Gaming News - Page 117
Xbox views PlayStation as a hostile competitor
Xbox Gaming CEO Phil Spencer says that PlayStation is a hostile competitor.
Note: The quotes taken here were transcribed via live audio call and are not wholly representative of what was said, and there are paraphrases.
Microsoft believes that Sony is a hostile competitor due to its myriad of exclusivity deals, which sees Sony buying up platform and timed-exclusivity for big-name games like Final Fantasy and Call of Duty. Spencer says that Sony outright pays developers to skip Xbox, a controversial business practice also referred to as "blocking rights."
Continue reading: Xbox views PlayStation as a hostile competitor (full post)
Xbox Game Pass revenues can be tied directly to player counts, engagement, and popularity
Xbox gaming boss Phil Spencer gives a quick explanation on how developers make money from Xbox Game Pass deals.
Xbox Game Pass can be risky or rewarding depending on many factors. The service can bring negative effects like "cannibalization," which reduces overall premium full game sales as a result of the business model--gamers are less likely to buy a game for full price if they can access it on Game Pass. To help make up for this effect, Microsoft offers specific deals to developers as incentives to bring new content to the value-driven service.
In the recent FTC v Microsoft evidentiary hearing, Xbox CEO Phil Spencer outlines the kinds of revenue deals that developers can take advantage of on Game Pass. When asked specifically about a revenue share split by FTC legal counsel James Weingarden, Spencer replied that Game Pass actually doesn't adhere to the standard 70-30 storefront model because it's a subscription.
Bethesda's Pete Hines explains the merits of platform exclusivity
ZeniMax's Head of Publishing Pete Hines explains why some Bethesda games go exclusive, and highlights the general merits of platform exclusivity that apply to all independently-operated game developers.
Starfield is a full-on Xbox exclusive, but it wasn't always going to be. Microsoft's $7.5 billion buyout of ZeniMax, Bethesda's parent company, changed things. In yesterday's evidentiary hearing in the FTC v Microsoft trial, ZeniMax's Pete Hines revealed key information about exclusivity deals, how such deals benefit ZeniMax, and how the publisher fits into Microsoft's games division.
Hines' testimony first reveals that ZeniMax is a limited-integration company, meaning that ZeniMax's studios--Bethesda Game Studios, id Software, Tango Gameworks, ZeniMax Online, Arkane, etc--do not report or answer to Xbox Game Studios head Matt Booty. Instead, ZeniMax reports directly to Phil Spencer.
Continue reading: Bethesda's Pete Hines explains the merits of platform exclusivity (full post)
Xbox cloud streaming may never be uncoupled from Game Pass due to profitability concerns
Microsoft's Xbox Cloud Gaming (also known "as xCloud") may not ever become a standalone subscription service due to the constrained logistics of the business.
During yesterday's evidentiary hearing the FTC v Microsoft case, Xbox SVP Sarah Bond highlighted the practical realities of Microsoft's game streaming initiative. The Xbox executive highlights how xCloud operates, reiterating that Xbox's game streaming fork is powered by actual Xbox Series X consoles and not Azure servers. Microsoft has made it clear that it makes no money from Xbox hardware sales, and since these servers are powered by Xbox consoles, Microsoft themselves must acquire Xbox units for the service and potentially reduce consumer product availability in the process.
This could put constraints on the practicality of the business. It's unclear that xCloud is even profitable, which is likely why the delivery method is combined with Xbox Game Pass Ultimate--the premium value-oriented part of Game Pass could offset any losses from xCloud, the same way that software sales and services help Microsoft offset the losses from console hardware sales.
Microsoft still expects PS6, next Xbox by 2028
In new court filings, Microsoft's legal counsel reiterates a 2028 forecast for the next PlayStation and Xbox console generation.
If the traditional hardware cycle is anything to go by, Gen10 could launch in 2028. The modern games industry has taught us that things change quite fast, especially with disruptive services like Game Pass, and world-altering events like the pandemic and challenging economic climate.
In a recent findings of fact filing in the FTC provisionary injunction court case (Case 3:23-cv-02880-JSC Document 177), Microsoft lawyers once again mention a potential release date for the PS6 and next-gen Xbox. It's a very small mention, and the date is in relation to the 10-year Call of Duty deal that Microsoft has offered Sony. Microsoft lawyers say that the 10-year deal would overlap with the launch of Gen10 consoles...assuming they came in 2028.
Continue reading: Microsoft still expects PS6, next Xbox by 2028 (full post)
Warzone 1.0 shutting down as Activision unifies Call of Duty infrastructure
After engaging tens of millions of players and making tons of revenues, Warzone 1.0 will officially shut down in September.
Warzone Caldera, the first iteration of the landmark free-to-play Call of Duty mode that radically transformed Activision-Blizzard's business, is officially closing shop on September 21, 2023. The mode will be pulled offline on all platforms and gamers will need to move over to Warzone 2.0. The move remains clear: Activision has unified the Call of Duty ecosystem with a new updated proprietary games engine that is capable of belting out new premium games, the F2P Warzone 2.0, and the upcoming Warzone mobile--there's just too many spinning plates going at once.
Activision says that all existing content that was purchased in Warzone 1.0 from MW 2019, Black Ops Cold War, and Vanguard will still be available in those games, but the base F2P game will be taking offline.
Microsoft explains why Xbox cloud game streaming is so costly
Microsoft's corporate VP of Xbox Sarah Bond clarifies why Xbox game streaming is a costly venture.
Xbox,s game streaming infrastructure isn't cheap to operate. The service is bundled as a value proposition in Microsoft's Xbox Game Pass Ultimate subscription, which helps subsidize the cost of the service. But ultimately it sounds like Xbox Cloud Streaming, aka xCloud, has not been profitable for Microsoft for one big reason: the
As part of her testimony in the recent FTC vs Microsoft evidentiary hearing, Xbox exec Sarah Bond offers more details about how xCloud works. Microsoft's game streaming service doesn't actually use server blades or Azure. Instead, xCloud uses literal Xbox Series X hardware to power the service. That means Microsoft has to acquire more Xbox consoles--which it does so at a loss--in order to beef up its servers.
Continue reading: Microsoft explains why Xbox cloud game streaming is so costly (full post)
Activision refused to bring Call of Duty to Xbox unless Microsoft went beyond 70-30 rev share
Microsoft executive Sarah Bond confirms that Activision refused to bring Call of Duty to its Gen 9 consoles unless Microsoft promised a better revenue share.
Activision has used its $31 billion Call of Duty franchise as a very influential negotiation tactic to secure lucrative multi-year deals. These deals extend to favorable revenue shares that go beyond the typical 70-30 split (Activision keeps 70% of revenues, platform-holder gets 30%).
As part of her testimony at a recent FTC vs Microsoft evidentiary hearing, Sarah Bond confirmed that Activision CEO Bobby Kotick refused to bring Call of Duty to the Xbox Series X/S Gen 9 launch unless Microsoft made a specific revenue split deal. "It was clear that Call of Duty would be on PS5 and that would not have been good if it was not also on Xbox if it was launching at the same time," Bond said. "It was clear if we did not move beyond the standard rev share, he would not place Call of Duty on Xbox."
Xbox's Phil Spencer has final say on game exclusivity
As the CEO of Microsoft's video games division, Phil Spencer has authority on which games become exclusive and which games don't.
The evidentiary hearing for the FTC vs Microsoft preliminary injunction case is under way--a case that could ultimately determine the fate of the $68.7 billion Microsoft-Activision merger--and key Xbox executives have given interesting testimony to defendants and plaintiffs. A large part of the FTC's case hinges on Microsoft's willingness and incentive to make content exclusive to the Xbox ecosystem, and we've received some interesting answers from Xbox leadership on this topic.
Xbox Game Studios lead Matt Booty was one of the key witnesses in today's evidentiary hearing and his testimony outlined a general understanding of the Xbox business. Testimony from the Xbox Game Studios head confirms that Xbox's CEO Phil Spencer has the final say on game exclusivity.
Continue reading: Xbox's Phil Spencer has final say on game exclusivity (full post)
Sony wouldn't share PS6 details with Activision following Microsoft acquisition
If Microsoft successfully acquires Activision, Sony Interactive Entertainment CEO Jim Ryan confirms that Sony will stop sharing details of its new PlayStation hardware with Activision in order to protect its trade secrets.
In a recent court filing (Case #3:23-cv-02880-JSC, document #134-2) in the FTC's preliminary injunction case against Microsoft, Sony's Jim Ryan outlines a new business relationship that would ensue as a result of the Microsoft-Activision merger. If Microsoft is able to merge with Activision, then Sony will cease providing Activision with information about its next-generation PlayStation consoles, including its upcoming PS6.
The filing includes part of Jim Ryan's deposition taken in April 2023, which mentions "Once Microsoft acquired Activision...SIE could no longer share confidential details about its next console in development."