DFC: Microsoft has killed the Xbox One Slim right out of the gate

[Aura7541]

DFC: Microsoft has killed the Xbox One Slim right out of the gate | Games industry news | MCV

Analyst DFC has issued a damning post-E3 verdict on Microsoft's handling of the Xbox Scorpio reveal.

"The most immediate problem is Microsoft effectively killed the Xbox One Slim right out of the gate," it said in an investor update. "If there were many Xbox 360, Wii U and even PlayStation 4 consumers interested in an Xbox One this holiday season they have now been told to wait until Scorpio arrives in 2017. Microsoft can only hope that the buzz around Project Scorpio goes away soon but with the cat out of the bag that is unlikely.

"There are all kinds of other problems with Microsoft's mixed messaging. The pricing on the original Xbox One is great, and the Slim is wonderful, but all the important new games will be on PC, so why invest in a console? Just upgrade your PC. And if you do want a console why buy now when Scorpio will be here later. All of this is a net dampener on new hardware sales now and really opens the door wide open for Sony and even Nintendo for the NX."

"The overall question now seems to be not if Microsoft will exit the game business, but when and how. Of course, that leads to many other questions such as how is exiting the game business handled? Is Xbox spun off? Does Microsoft find a buyer? Or does the company just shut Xbox down? DFC feels the latter option will most likely not occur but it is clear something must be done.

"Unfortunately the value of the Xbox brand is in serious flux with much of its advantage tied to the Microsoft Windows 10 operating system."

I agree with some points, but I think it's a bit harsh. The Scorpio is intended for the Xbox enthusiast audience. The average consumer is more price-conscious than power-conscious and won't particularly care about the Scorpio. I do agree with the PC part, though.

I think judgement should be withheld until we see how the XB1 S and Microsoft's first party games perform. If they don't do well, then yes, MS will start seriously considering spinning off the Xbox brand.

[kitler53]

it's still the topselling hardware at amazon right now so it's not all doom and gloom.

[DerNebel]

it's still the topselling hardware at amazon right now so it's not all doom and gloom.

Hardcore fans are always going to pre-order and I feel Amazon is one of the prefered places for these people to do that, I mean how else would you explain the Persona 5 special edition still being up there after like 2 weeks or so?

[Aura7541]

it's still the topselling hardware at amazon right now so it's not all doom and gloom.

First month sales will be big, no doubt about that. However, can it maintain a higher baseline after that point? Not to mention, the PS4 is already catching up on the hourly charts.

[Raven]

Phil Spencer: Microsoft Won't Force Developers to Push 4K on Xbox Scorpio  |  DualShockers

I don't think they really know where they're going with the PR. Just a hunch...

[the-pi-guy]

MS PR be like:
"Yeah it'll be available exclusively in black"
"Yeah, it'll be available only in white"

"Unfortunately it won't come with a controller"
"A controller will be sold with every box"

"It will play all Xbox games"
"It's only for movies, no Xbox games"

[Ludicrous Speed]

If you upgrade your PC to play these "important games" then MS still gets your money when you buy them from the Windows 10 store. I have never understood this argument about how it's so bad for MS that a fraction of the gaming world might play on PC rather than buy Xbox hardware.

[Mmm_fish_tacos]

Phil Spencer: Microsoft Won't Force Developers to Push 4K on Xbox Scorpio  |  DualShockers

I don't think they really know where they're going with the PR. Just a hunch...

I dont even think they know what the scorpio is at this point.

If you upgrade your PC to play these "important games" then MS still gets your money when you buy them from the Windows 10 store. I have never understood this argument about how it's so bad for MS that a fraction of the gaming world might play on PC rather than buy Xbox hardware.

Because it gives them acess to a much better service in steam. Right now ms makes money on every 3rd party game sold. Which help keeps the brand keep going. If people sell their xbox in favor of a pc then all 3rd party sales, at least most will go to steam.

What they gain on the pc side theyll loose on the xbox side.

[Dr. Pezus]

If you upgrade your PC to play these "important games" then MS still gets your money when you buy them from the Windows 10 store. I have never understood this argument about how it's so bad for MS that a fraction of the gaming world might play on PC rather than buy Xbox hardware.

Microsoft get less money if the games are bought on PC where most pc gamers buy their games (steam). Also, you skip buying their hardware too and giving them more money so there's that.

Thing is, XB1 isn't very popular so it makes a lot of sense that many people would want to see the occasional great game come to more popular platforms.

[DerNebel]

Microsoft get less money if the games are bought on PC where most pc gamers buy their games (steam). Also, you skip buying their hardware too and giving them more money so there's that.

Thing is, XB1 isn't very popular so it makes a lot of sense that many people would want to see the occasional great game come to more popular platforms.

No money from XBL Gold either.

I've seen this argument, that it's all just the same to MS, if you buy their games on Xbox or PC, being made quite a bit recently, but it's simply not true. Xbox only customers are way more valuable to MS than PC gamers that occasionally buy a MS game through the Win10 store.

[Aura7541]

If you upgrade your PC to play these "important games" then MS still gets your money when you buy them from the Windows 10 store. I have never understood this argument about how it's so bad for MS that a fraction of the gaming world might play on PC rather than buy Xbox hardware.

There are multiple holes in this argument, though.

1.) Xbox hardware isn't made for free. If consumers aren't interested in buying Xbox hardware and opt for PC instead, Microsoft will have wasted money on R&D and manufacturing. At least the controller will make MS some revenue. And while the money spent on Windows product keys will go to Microsoft, that's more Windows revenue than Xbox revenue.

2.) Xbox Live is free on Windows 10. Microsoft won't be getting as much online revenue from PC gamers as Xbox gamers if this continues unless the Windows store takes off. However, there's one big problem...

3.) The overwhelmingly vast majority of PC gamers will get their multiplat games from Steam. Microsoft won't receive money from Steam sales because they're not the distributor. Valve is. For MS to make money off of Steam, they have to publish their games on that service. However, doing so will undermine the Windows store, where Microsoft can make money off of because they are the owner of that service.

[Mmm_fish_tacos]