Xbox is changing its tone about Gameplay; Microsoft’s failed goals

Microsoft's latest financial report, as well as Phil Spencer's recent statements during his interview with the Wall Street Journal, suggest signs of a change in Microsoft's tone towards games.

BingMag.com Xbox is changing its tone about Gameplay; Microsoft’s failed goals

Microsoft's latest financial report, as well as Phil Spencer's recent statements during his interview with the Wall Street Journal, suggest signs of a change in Microsoft's tone towards games.

The important thing for some people is that Microsoft failed to meet its Game Pass subscription growth goals in the second quarter of this year. I will conclude the results of the last 6 months. Not only has there been a noticeable lack of big, exclusive Xbox titles this past year, but this was the first summer after the coronavirus restrictions when people actually went on vacation. It was inevitable that some of the game companies' business goals would not be realized as the companies wanted, and Microsoft is not the only company to experience this. ; Phil Spencer estimated that Gameplay would probably only account for about 15 percent of Xbox content and services revenue, stating, "We don't have a future where I think 50 to 70 percent of our revenue comes from subscription services. .

15% seems like a low number, especially when you consider that Microsoft has invested billions of dollars in games and developers in the name of Games.

Xbox has been doing great so far. It has been done with Gameplay. The branding and messaging work around this subscription service has made it the flagship subscription platform in the industry. Gamepass may not have the most users, but other subscription services - from PlayStation Plus to Apple Arcade - are constantly compared to it.

BingMag.com Xbox is changing its tone about Gameplay; Microsoft’s failed goals

Xbox Games has actually become a powerful factor for selling Xbox consoles. For the first time since the PlayStation 2, which gained a lot of attention with its DVD player, a game console has a very impressive feature that is not limited to a specific video game. During the publication of its financial report, Microsoft announced that half of the people who bought the cheaper Xbox Series S device are new to the Xbox ecosystem, and it is easy to imagine that Gameplay played a big role in attracting the attention of some of these new players. p>

However, despite these successes, the movement of Gameps has been delayed by a series of obstacles. The first big obstacle has been the disruption of Microsoft and many other companies' plans to release their games, mainly due to the covid-19 and the change in the way studios work in a hybrid (in-person and virtual) way. This issue was clearly evident in Microsoft's game release schedule this year. Of course, this should be a temporary situation, but Microsoft still has a long way to go before it reaches the ideal conditions for regularly releasing big games on the Gameplay service, and this situation is made more difficult by the fact that top-tier game publishers are reluctant to include new big titles. They don't have them in this service.

The next important obstacle and factor are free-to-play games. As such, the $70 games aren't a true competitor to Gamepass, but rather the biggest titles on the market, such as Fortnite, Call of Duty Warzone, and Roblox, all of which are free. Microsoft is trying to find ways to use free-to-play games in Game Pass, like its partnership with Riot Games, but it hasn't quite figured it out yet. There's also the fact that for many people who only play a handful of games a year, a subscription service doesn't make much sense.

All of these are logical reasons why Microsoft might see the potential of gaming. So consider that, especially on lower consoles, where Spencer says the service's growth is slowing.

BingMag.com Xbox is changing its tone about Gameplay; Microsoft’s failed goals

Of course, in the meantime, you should also keep in mind that the big purchase of Activision Blizzard by Microsoft is currently being investigated and discussed by various regulatory bodies around the world. Some of the data that Microsoft wants to share is undoubtedly relevant.

One of the biggest concerns of the UK regulatory body (CMA) is the potential dominance of Gameplay and Microsoft in the game subscription and streaming space. Xbox by announcing that the game streaming service takes only 15% of the Xbox content and services business. dedicates, points out that even if Gamepass becomes the most popular subscription service in video games, it will ultimately be just one business model, and not the biggest business model.

The message from other regulatory bodies. Regarding Spencer's comment about computers and mobile phones. Microsoft announced that its Gameplay subscription service on PCs has grown by 159 percent, which is in line with recent comments from indie game publishers about the service's growing popularity. One indie game developer who spoke anonymously to GameIndustry.biz predicts that the subscription service Gamepass will soon become Steam's main competitor instead of the Epic Games Store.

And on mobile, Spencer He has talked about wanting to end the dominance of Apple and Google and even stated that Call of Duty Mobile is more interesting for Microsoft than the expensive console versions. we had stated, it is not much different. With the purchase of Blizzard, Microsoft will have big and well-known works such as Diablo and Warcraft for personal computers, which, along with Call of Duty, can strengthen gameplay on personal computers and make this service become a competitive competitor for Steam. On the other hand, Microsoft will have a strong presence in the mobile field through titles such as Candy Crash and Call of Duty, where it can develop business.

BingMag.com Xbox is changing its tone about Gameplay; Microsoft’s failed goals

By talking about this, Microsoft is responding to concerns that the acquisition may hurt competition in the console space and instead showing how the acquisition will It will increase in computer and mobile. In other words, this does not only mean more intense competition with Sony, but Apple, Google and Valve are also in this competition.

This is a convincing argument, but there are still doubts and concerns in this. There is a context. When it comes to PCs, Gameplay is no match for Steam. Some indie publishers we spoke to are concerned about what a popular subscription service on PCs might mean for premium indie titles. To prove his point, one publisher pointed to Netflix's impact on cinema, especially smaller-screen movies.

These fears are currently unsubstantiated by data, but it is what industry insiders (including Microsoft) believe. They will pay attention to it. Microsoft wants to make sure that competing with Steam creates more opportunities for developers, not less.

In terms of mobile, it's unclear how Microsoft plans to seriously compete with Apple and Google. Candy Crush and Call of Duty along with Xbox Game Streaming will certainly give Microsoft a strong presence on mobile, but not deep enough to offer significant competition to Google Play or the App Store.

However, With the release of its latest financial report, as well as Spencer's new talk, Microsoft wants to shift the focus and discussion away from consoles and games and provide a broader view of the video game industry. By doing so, they hope to justify their massive $69 billion purchase of Activision Blizzard and show that the acquisition will not only increase competition, but increase it.

BingMag.com Xbox is changing its tone about Gameplay; Microsoft’s failed goals

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