Video Game Market Analysis Thread

https://x.com/florian4gamers/status/1726853349964931114?s=46&t=O_AGT9SEnlptKOF_2SxtqQ

A literal Xbox Tax.

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Xbox hardware just isn’t desirable there. The Series S and PS5’s strong momentum all but sealed their fate in mainland Europe for this generation in my opinion.

A permanent price drop just isn’t worth it. Sacrificing even more money on hardware just so the ratio can be 3 to 1 instead of 5 to 1 in favor of PS ? Pass lol.

Obviously still try in that region but the main focus should be PC gamepass and growing their PC presence. It’ll be fine in the long run in the overall business aspect of things.

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What do you mean by Series S, isn’t that a positive considering it lowers the barrier of entry?

The tv market is an interesting case study. People buy the “cheapest” of the best sets. It means in a country like France when I look at the top seller lists on various large sites (like Ubaldi), it’s always Samsung & TCL at the top of the list. Often the mid-range sets with decent specs (anything between 500 & 1000 euros).

Price matters. A lot. If there’s a marginally inferior product in terms of specs (as is often the case in the tv market), it’ll still sell way better than the competition when it’s priced more competitively.

I’ve heard the stories about MS losing money on each console sold (I don’t know the veracity of this claim), but one thing is certain IMO: hardware specs have never really been that important in the console industry.

It’s up to Microsoft to somehow figure out a way of making a product which has competitive specs & more importantly a competitive price. And no, I don’t mind if Xbox has slightly weaker hardware than PlayStation, not when it’s cheaper. I was perfectly happy with my Xbox One once it had its price drop (I got mine for 249 euros in December 2016).

On paper it should of worked like that but it had the opposite effect. People in Europe wanted the XSX and it wasn’t available to them for a very long time during the shortage issues. People who want a XSX aren’t settling for the Series S, they’re turning to the PS5.

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I think the only answer on console side is for Microsoft to release their console 12 months before Sony. If they have a strong launch with a next gen Elder Scrolls and a few other games it might be to their benefit. I don’t think Microsoft on console side can compete with Sony if they release at the same time. Hopefully they improve leadership to take care of European and Asian markets by doing little things like improving localization and marketing.

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Nah.

People need to get out of the mind set of beating or even keeping up with Sony in console sales, console sales are important but they are nowhere near what they used to be

Xbox is releasing their games day and date on PC, that alone takes a big amount of it’s appeal away compared to PS which is still doing the half assed PC launches

Xbox doesn’t have to sell as many or even close to what Sony does in console sales, they only need to sell enough to make sense business wise and keep GP subscriptions, people need to stop looking at this from a console war/not first place = failing perspective

If they release ES6 alongside a CoD on GP and potentially other big games on the next Xbox launch, they wouldn’t even need to release a year early

Xbox issue was their complete loss of momentum in 2022 on on because of their complete lack of major titles, if they launch next gen with major titles like ES6, CoD on GP and more and keep that momentum up next gen they will be fine

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I agree. It’s why I agreed with some rumors a few weeks ago which suggested MS would release next-gen Xbox in 2026, forgoing a mid-gen upgrade for a real next-gen launch within 3 years.

Consoles are closed hardware with an expiration date. There’s no ‘future proofing’ a purchase when we buy a console. It becomes outdated by pc tech as soon as it’s conceived & long before it’s released.

Leave the “we have the most powerful hardware!” bragging rights to the company willing to charge more for their product. Considering their dominant position in terms of hardware sales, that’s logically Sony.

I feel there’s absolutely a market in Europe for Xbox when it’s priced competitively. Today’s sales data on Amazon shows this IMO.

I’m going to assume consoles still play a huge role in gamepass subscription numbers.

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Of course they do, 25-30m subs are on console, the console is hugely important but as long as those people are being provided with a console that’s what matters, not selling more than Sony

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How can we speak on launching early being the solution when we haven’t even seen the results of the obvious, launching with a desirable lineup of games and a good pipeline of future games?

We are basing our strategy on the results of a generation where they’ve poorly executed on delivering games early on, which won’t be an issue next generation.

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Exactly, it’s not like Xbox has been releasing AAA banger after banger and people aren’t caring

We are 3 years into the gen and not particularly much has been provided from all their acquisitions yet, they had little to nothing for their launch line up, most of Zenimax has either not released titles or were busy finishing up multiplat titles, CoD isn’t on GP yet alongside of the rest of ABK and the majority of Xbox studios havn’t even released anything yet

There’s still way too much to release before we talk about Xbox needing to release years early or price drops

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Just chiming in to say I agree with you. Those sales are the result of putting 0 effort in Europe. Localisation issues, non-existent marketing, no visibility in general.

Someone or a team of people should be in charge of knowing the area, what people want there and improve the situation, because it is sad to see.

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Yeah, this.

I don’t believe in launching early either.

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I’ve said it before, but outside of a small improvement, I don’t see a way out of the situation in EU for Xbox.

Not much they can do to move the needle. PS, Nintendo and PC are just too engrained in the culture in that region.

That’s why I think there is a limit of 60 million or so consoles that MS can hope to sell each gen.

OK, so why doesn’t he just sell lower on Playstation to sell lower everywhere else?

Heh heh

There seems to be a supposed Head of Japan/Asia position on the way but I guess we’ll have to wait and see just what kind of power they get (the job description says it is “fully autonomous”).

It is obvious that Mattrick’s “tiered countries” system BS was kept even if MS has ever tried to claim otherwise. Japan seems to be like the only non-anglo country they’ve tried to “upgrade” into “tier 1” (with the hires mainly) and it’s more like… tier 1.5? 1.8 even?

Now as for the other conversation on console sales, they seem to be going ahead on this, “forget console push PC” strategy where they are weak. They can do that, but… if all these 2024 games come out and is the usual Xbox localization effort, missing many crucial languages, or are terrible to the point where they need to apologize (Minecraft Legends Arabic this year), or their apps keep using Bing Translate that everyone keeps laughing at, or they make no attempt to get the word out about PC GP in these areas either (I can keep going lol)… Then when exactly are they going to get serious?

Maybe they’ll just look at it from a purely numbers point of view. As long as people in these regions are playing CoD and Blizzard games on PS5, Steam, Switch 2, then that’s all that matters and they are hitting their “3 billion gamers”

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Yeah, I can’t understand how it is so difficult for a trillion-dollar company to be able to do localization. Because this is not only Xbox, MS can’t translate their way out of a wet paper bag. How hard is it to hire one guy, one, who knows the language you are trying to imitate?

This is not a personal crusade either, idgaf about localization in my language for games since I play in English anyway (or whatever language is suitable for the setting of the game with subs). The MS app, website, communication “translations” though are horrible and obvious machine crap.

These things screams: We don’t give a shit about your country. Not a great tactic.

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Honestly this is such a weird take. Microsofts success isn’t about its ratio to PlayStation. Selling more consoles widens their customer base. The fact that selling more wouldn’t put them above PS is honestly irrelevant. Heck if the ratio goes 10:1 but you are selling more than you did that’s fine.

There is a sensible discussion about their losses per unit vs cost but I think the post is right. Europe has always been a tough market for Xbox there are lots of reasons. But price and their fumbling of it and clearly their high unit costs is a big factor.

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Not so much on launching early or not but the idea that you can fix this with games surely has to end now?

People keep talking about a steady release of games but who in the market even notices that? We do and we have Xbox’s. The current market I’m going to say cares little for exclusives unless those exclusives are absolute monster titles or massively popular licenced IP.

There is a massive amount of stake being out in a games lineup that cannot reasonably change the console market. It just can’t. Primarily because most people aren’t even aware of what’s coming out, what isn’t and where they can or can’t play these games. Starfield is a perfect example. A massive game. As big as anything Xbox has. But it won’t make people unaware of it or just causally aware buy an Xbox.

Console market is relatively simple. Most powerful based on perception. Lowest price. Most ‘cool and desirable’ brand. Most enticing and exciting next gen features. Coolest design. Marketing for the biggest games around.

That’s ultimately the factors that will decide.

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