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Not good year on year numbers ending 31st March 2026:

  • Xbox content and services revenue are down 5%
  • Gaming Revenue is down 7%
  • Hardware Revenue is down 33%
 
Not good year on year numbers ending 31st March 2026:

  • Xbox content and services revenue are down 5%
  • Gaming Revenue is down 7%
  • Hardware Revenue is down 33%
Not surprising, I'd attribute the price increase on the game pass for the first bullet. No great AAA Exclusives on the second, and the third is most likely due to the price hikes - at least that's my take on it.
 
In the UK the Series X is 23% more expensive than a PS5 Slim. That's big difference for no material gain. Sure the Slim doesn't include a disc drive but that doesn't matter to the majority of gamers who play live service games that are mainly digital.

If MS don't fix the price, they will lose a huge generation of gamers who will likely choose a PS5 instead of Series X to play GTA6.
 
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In the UK the Series X is 23% more expensive than a PS5 Slim. That's big difference for no material gain. Sure the Slim doesn't include a disc drive but that doesn't matter to the majority of gamers who play live service games that are mainly digital.

If MS don't fix the price, they will lose a huge generation of gamers who will likely choose a PS5 instead of Series X to play GTA6.

PS5 Slim no disk drive: £429


Xbox Series X digital: £436 (retail 449.99)



Hardly that much difference at all. And Sony have announced they are looking at changing their business model for the PS6 due to extremely high component costs.. I actually think Microsoft are playing it smart with them rumoured to be launching a PC Console hybrid for a premium price. If you can install Steam on it well that'll draw me in! And many others too I would imagine. Xbox is on the right path and the Series X priced more then well enough for the next GTA game...

And FYI, PS5 with disk drive is £529 (retail £569.99)


And Xbox Series X with disk drive is £479.99 (Retail is £499.00)



So I fail to see where this huge price difference is where Xbox have to sort their pricing out? Sony has had more price increases on hardware than Xbox and they launched a Pro model at £700 that now costs £789.99 unless you can find it on discount.
 
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Sony have announced they are looking at changing their business model for the PS6 due to extremely high component costs.. I actually think Microsoft are playing it smart with them rumoured to be launching a PC Console hybrid for a premium price.
I don't envy Xbox and Playstation job of pricing the next generation consoles.

You could take a massive loss on the console and make up for it by massively jacking up the price of gamepass or PS+. Other than that some console owners only play 1-2 games - live service ones. Therefore you can't rely on recouping hardware costs on game purchases.

RAM and SSDs are so pricey that for the me the next get console those component can make up £300-400 of the cost.

MS could navigate this licencing the new xbox to MSI and Asus and let them take the risk on production.
 
I don't envy Xbox and Playstation job of pricing the next generation consoles.

You could take a massive loss on the console and make up for it by massively jacking up the price of gamepass or PS+. Other than that some console owners only play 1-2 games - live service ones. Therefore you can't rely on recouping hardware costs on game purchases.

RAM and SSDs are so pricey that for the me the next get console those component can make up £300-400 of the cost.

MS could navigate this licencing the new xbox to MSI and Asus and let them take the risk on production.

Well consoles have had it hard, this gen launched when COVID started so they were impossible to find, with scalpers with Ai bots buying them up in droves and then charging a huge premium for them. And game development was severely impacted too as a result of lockdowns.

So we all thought well next gen will be better....

OH NOOOOOO....... along comes uncle Ai boom with his fabrication plants more then willing to let Ai companies buy up every wafter they can get, and pay higher prices for them to be turned into memory storage and CPU's for the Ai data farms popping up more then flowers do across the globe in summer time! And the likes of Nvidia viewing gaming as a market to destroy, then rent back to the consumer through a subscription service to use their Ai data centres to play games...

So no I don't envy them, but Microsoft are a large part of the current problem surrounding next gen consoles so I have no sympathy for them really at all.

Anyway, went off on one there, I still think Microsoft will manufacture and sell their own console even if they licence it out also.
 
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Well consoles have had it hard, this gen launched when COVID started so they were impossible to find, with scalpers with Ai bots buying them up in droves and then charging a huge premium for them. And game development was severely impacted too as a result of lockdowns.

So we all thought well next gen will be better....

OH NOOOOOO....... along comes uncle Ai boom with his fabrication plants more then willing to let Ai companies buy up every wafter they can get, and pay higher prices for them to be turned into memory storage and CPU's for the Ai data farms popping up more then flowers do across the globe in summer time! And the likes of Nvidia viewing gaming as a market to destroy, then rent back to the consumer through a subscription service to use their Ai data centres to play games...

So no I don't envy them, but Microsoft are a large part of the current problem surrounding next gen consoles so I have no sympathy for them really at all.

Anyway, went off on one there, I still think Microsoft will manufacture and sell their own console even if they licence it out also.
That's an excellent point. Another consecutive generation of challenging conditions for consoles.

Not only did current gen suffer because of covid but the biggest regret must be not having an nvidia gpu doth dlss support. Dlss is probably the most impactful new gaming technology over the past 10-20 years.

It series X and PS5 supported it instead of far, they performance would be much better. Nintendo should consider themselves lucky with the switch 2. Nvidia would unlikely agree to a similar partnership deal today.

Xbox will make another console however it will likely serve as a reference design like Surface or Pixel devices. Designed to be a benchmarks to show 3rd party partners how to integrate software and hardware. This is not a bad thing.

The new Xbox might be powerful but optimised for a certain price point but then MSI and Asus makes a similar product but with higher price point and specs for those willing to pay.
 
That's an excellent point. Another consecutive generation of challenging conditions for consoles.

Not only did current gen suffer because of covid but the biggest regret must be not having an nvidia gpu doth dlss support. Dlss is probably the most impactful new gaming technology over the past 10-20 years.

It series X and PS5 supported it instead of far, they performance would be much better. Nintendo should consider themselves lucky with the switch 2. Nvidia would unlikely agree to a similar partnership deal today.

Xbox will make another console however it will likely serve as a reference design like Surface or Pixel devices. Designed to be a benchmarks to show 3rd party partners how to integrate software and hardware. This is not a bad thing.

The new Xbox might be powerful but optimised for a certain price point but then MSI and Asus makes a similar product but with higher price point and specs for those willing to pay.
Has Turing really aged that well, WRT newer versions of DLSS? Because that would be the hardware that MS/Sony would have used for the X/PS5 had they used nvidia hardware. Also assuming they wanted to go back to not using a SoC with iGPU and if they went ARM (to have a SoC), losing backwards compatibility with their previous generation library.
 
Has Turing really aged that well, WRT newer versions of DLSS? Because that would be the hardware that MS/Sony would have used for the X/PS5 had they used nvidia hardware. Also assuming they wanted to go back to not using a SoC with iGPU and if they went ARM (to have a SoC), losing backwards compatibility with their previous generation library.
Do you own a PC and have you tried DLSS 4 and 4.5?
 
Do you own a PC and have you tried DLSS 4 and 4.5?
I have a blackwell PC so yeah, but I don't get the performance hit everyone else does (for the appropriate level of upscaling). I'm not saying Turing is trash (okay I am a little bit) just that there is a huge performance hit using DLSS 4.5 on it, where I wouldn't be sure if the juice is worth the squeeze. If there were able to get early access to Ampere (which is the franken chip the Switch 2 uses) that would have been better, but that is squarely in the middle of the crypto boom and at that point nvidia had pivoted away from gaming to DC, so I am unsure they would have been willing to give good pricing for the hardware (which is most of the reason N waited till 2025 to use T239 for S2, they probably got good pricing on such an old product).
 
I guess my point is we shouldn't discount what AMD was willing to do to secure the hardware design wins they got with MS (and Sony). And based on what next gen is going to look like, it seems like they (AMD) are still willing to do more than what nvidia is probably willing to do (especially at this point).


If the next xbox really is just a PC, that will probably change how folks look at consoles in a pretty big way.
 
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I have a blackwell PC so yeah, but I don't get the performance hit everyone else does (for the appropriate level of upscaling). I'm not saying Turing is trash (okay I am a little bit) just that there is a huge performance hit using DLSS 4.5 on it, where I wouldn't be sure if the juice is worth the squeeze. If there were able to get early access to Ampere (which is the franken chip the Switch 2 uses) that would have been better, but that is squarely in the middle of the crypto boom and at that point nvidia had pivoted away from gaming to DC, so I am unsure they would have been willing to give good pricing for the hardware (which is most of the reason N waited till 2025 to use T239 for S2, they probably got good pricing on such an old product).
Nvidia would not have been cheap for MS or Sony to work with. However in life you rarely regret paying a premium for the best product, but you can regret paying less for an inferior one.

I reckon DLSS would have extended the life of the PS5 and Series X by 2 years. At 4k the tech is highly advantageous. Currently both consoles run games at 1200-1440p quality or 700-1080p. Higher end of liner and single player games but at the lower end of open world or demanding titles.

Take my PC. I play on it on my TV. I have a 4070ti Super but had a 4070. Both are considered 1440p GPUs but that would be rasterised. If I play 4k natively at high-ultra settings, frame rate for AAA titles is 25-40fps. Enable DLSS and it's 60-100fps with zero fidelity loss. In fact, in some games where there is tearing, DLSS makes the image better! In a nutshell, DLSS enables me to get the equivalent of the rasterised performance of a 4090. That's a GPU 3 times the price with 2-3 power consumption.

I have tried FSR through my AMD CPU but the artefacts are visible. With DLSS the Series X would have been able to run quality mode at 60fps. Look at how the 20 and 30-series keep getting DLSS upgrades and can now run DLSS 4.5 that uses transformer models and improves frame rate even more with less loss in visual fidelity.

However it's positive that AMD and Sony have recognised errors of the past. Hence why they announced PSSR and have made upscaling algorithms and top priority. Some of the algorithms they are working on with AMD will also be used for PC GPUs and most likely the Xbox too. After all, it makes the life of developers much easier if there are only 2-3 algorithms to develop.

Now that RAM and SSD prices are surging and supply is constrained, upscaling algorithms matter even more!
 
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Well well well, the gloves are off now. A VERY good show from Xbox today, and announcing Gears Of War E day and Clockwork Revolution will both be Xbox console exclusives was great to hear, I think both will still be on PC though. A lot of good games announced this week.
 
Vivarium, Crazy Taxi and join us look interesting to me. Lots of other awesome titles announced too. However almost all of them will be released on PC, PS5 or/and switch.

Edit: From what I can tell "console exclusive" means xbox(no other consoles)...but also PC. This makes sense because in 12-24 months the next xbox will be a PC.
 
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This is cool. I have an xbox, that is largely unused, so I won't be buying one.I don't expect most people won't be, due to scalpers anyways,


1780997540654.png
 
This is cool. I have an xbox, that is largely unused, so I won't be buying one.I don't expect most people won't be, due to scalpers anyways,


View attachment 2636562
I thought the OG xbox looked tacky when they did this translucent green. I think this one also looks tacky.

If it were clear though.....
 
I think project helix will be offered on subscription with gamepass. Possibly even bundled with a broadband or phone plans.

I think an ad supported tier would work too. Many affordable Android phones are heavily subsidised by ads and reinstalled apps.

Obviously there will will be an option to buy it outright.

 
I think project helix will be offered on subscription with gamepass. Possibly even bundled with a broadband or phone plans.

I think an ad supported tier would work too. Many affordable Android phones are heavily subsidised by ads and reinstalled apps.

Obviously there will will be an option to buy it outright.

MS had a "rent to own" model for the Series X at one point during launch. I wonder if they dropped it.
 
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I can see them trying to do that. Not sure if that will be successful or not, though their gamepass subscription service has largely been successful for them.
The reality is that many people live pay check to pay check. Spending $900-1000 on a console outright isn’t feasible. Neither is it responsible or possible for many to put it on a credit card.

Therefore there might have to be a new business model like how $1000-1500 phones are sold on a plan or rental service. Consoles used to be popular birthday or Christmas presents for kids. Can’t do that with a $900-1000 console before adding a new games and maybe an extra controller!

MS had a "rent to own" model for the Series X at one point during launch. I wonder if they dropped it.
A few months ago I came across a ps5 rental service here in the uk.

Maybe consoles can be bundled with satellite/cable tv or something.
 
I can see them trying to do that. Not sure if that will be successful or not, though their gamepass subscription service has largely been successful for them.

The reality is that many people live pay check to pay check. Spending $900-1000 on a console outright isn’t feasible. Neither is it responsible or possible for many to put it on a credit card.

Therefore there might have to be a new business model like how $1000-1500 phones are sold on a plan or rental service. Consoles used to be popular birthday or Christmas presents for kids. Can’t do that with a $900-1000 console before adding a new games and maybe an extra controller!


A few months ago I came across a ps5 rental service here in the uk.

Maybe consoles can be bundled with satellite/cable tv or something.

They stopped it last year before the price increases. Maybe they will do the samething for Helix, but I guess it depends on the lenders.

And if you got in on the tail side of the program, you probably are not affected by the GP price changes.
 
They stopped it last year before the price increases. Maybe they will do the samething for Helix, but I guess it depends on the lenders.
They need a plan b then. The issue is that the many gamers pay love service titles. For those titles a series S, PS5 and even a 3060 gpu from 5 years ago is fine.

The only exception is if you play highly comparatively and need 240-360fps.....which hardly any tv can display anyways.

Right now, very few games justify a very powerful PC. It's a nice to have rather than a must have. So helix must be creative in convincing people with 60hz tvs to pay premium cash for it.
 
MS had a "rent to own" model for the Series X at one point during launch. I wonder if they dropped it.
I had a deal like that through Verizon. This was when the consoles were unable to be found in stores. It was zero interest and they just charged me through my phone bill. It was awesome.
 
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This is embarassing
Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform, and hardware subsidy, but our annual revenue has declined nearly half a billion during that time.

Frightening:
When I joined as CEO in February, the price we paid for console storage components was over 2x as high as we paid last fall. These costs have since doubled again. And as we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier. Memory costs have followed a broadly similar trajectory.

 
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