I truly don't understand...

I truly don't understand, how did he convince Microsoft to give him BILLIONS of dollars to invest after unanimously losing the generation to Sony? It would make sense if Xbox had been dominating you know dumping money to keep the lead but it seemed like such a lost battle that wasting money on it would be unjustifiable.

How did he do it?

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Probably made a deal with the higher ups at Microsoft that if the console flops they can fall back on expanding Xbox as a service to every device.

Maybe he had faith that people would become sentient and realize that Xbox has been better all along.

xbox brand is a drop in the bucket compared to azure and their other software, a few billion is nothing to them

You could say the same about sony taking in account all the other shit they do but you don't see them spending mad bucks for new studios

Microsoft would be foolish to let the Xbox brand die off, it still commands a huge value.
Your investment decisions shouldn't be on the present, but the future.

The alternative is losing billions on a shitty console no one wants

>Phil, why did we lost hard to Sony
>Nogame, mr Nutella
>how do we change this
>give money to buy studio, mr Nutella

Bethesda started the DLC idea, so it's always their golden boi. Plus their games are the only singleplayer games that keeps running for nearly 10 years, 10 FUCKING YEARS over multiple gen consoles!

Pretty sure PS is one of if not the highest grossing division of Sony. Also i bet the subscription service idea had the MS execs drooling.

Phill took a knee and had that lucious mouth of his to work on a MS big shot executive cock. He guzzled that boiling hot sticky load of cum for you and me, for games all over the world.

Now it's our turn to do our part. This christmas play smart, play xbox!

test

MS doesn't care. Their entire gaming division only exists to help them avoid anti trust litigation. They make all of their money through NSA contracts now.

xbox has been losing billions for the past 20 years, you really think they gonna start to care now?

lol
ps division was the only thing keeping sony afloat, it's a complete counterweight to shit like sony pictures

Game pass is showing promise and is the core of xbox going forward so of course investing in studios to make games was going to happen.

(1) Microsoft is desperate to save face

(2) Low interest rate environment and the Federal Reserve literally buying corporate bonds

Because, zoomer, it was fucking Don Mattrick that lost the last generation. He literally but a gun to Xbox's head at the start of the generation and pulled the trigger.

Phil is saving it. He's also "not competing with Sony or Nintendo".

I mean microsoft is over 15 times the size of sony in terms of market cap. They are so ridiculously huge that big division like the playstation to sony is nothing to MS

I know you don't care. And I've said it before.
But the shift to digital has been Huge for console makers. They went from making $7 on platform fees per game.
To 30% of fortnite revenue, 30% of game sales on top of the platform fee (might be combined actually?) 30, of season passes microtransactions etc. Getting more marketshare would obviously be good for Xbox. But they can keep their current marketshare and still be incredibly profitable.
especially if they manage to pull off gamepass.

One could suspect the story is quite similar to the birth of Playstation. Nintendo stabbed Sony in the back to go with Philips. Sony chairman was fucking livid, tasked a group of fellas to prep every chess piece with a blank check with the mission to murder Nintendo. As with Microsoft, they were completely humiliated this generation and spent the past 5 or so years prepping every chess piece needed to push Sony's Californian shit in. That means S and X models, their price points, game pass, xcloud, getting the jump on manufacturing, competent internal designs, etc.

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>Generation lasted 6 years
>Mattrick was at the head for about 5 months
>Phil was in charge for 5 years and 5 months
>Somehow it's Matricks fault

Suuuuuuuuuuuuuuuure.

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>Nogame
Nope.
Worse hardware + $100 more + DRM + TVTVTV

profit margins are much higher for software (most of msft) than hardware and movies (most of sony)

look at their income and assets, msft literally btfos all over sony

This is Microsoft's last ditch attempt to capture enough of the market in their new closed ecosystem to be able to kill off legacy support and turn the Windows 10 / Xbox ecosystem back into growth part of the company instead of a legacy expense.

If it fails they'll likely follow the path of IBM and go to cloud services only, but that also meshes well with this acquisition as it would enable them to have exclusive content for that service.

He didn’t need to convince anyone. the gaming division of Microsoft has doubled its revenue over the last 10
Years.

why do people accept 10s of millions of dollars to play for Browns when they always lose? why not just be unemployed instead?

Mattrick was the lead for the entire R&D period before launch, tard. He decided kinect was a big thing. That people only used the xbox for netflix. And that used games should be banned.

How the hell do you recover from that? Sony almost didn't recover from 599 US dollars.

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I think the execs saw that Google and Amazon were coming for the streaming sectors and they wanted to one up them. I don't really think this is about consoles at all because Zenimax was looking to sell for years now and Microsoft could have done this purchase instead of buying Obsidian or Ninja Theory.

yeah, but what's more important. Making money or Zig Forums threads?

Because MS is a business and Xbone made money. They don't base their decisions on internet console war posts.

The start of a gen is the most crucial time.

You must be from a different reality as Bethesda didn't come up with DLC in this one. Even speaking only of consoles, there was dlc on dreamcast and paid dlc on the original xbox.

xbox has never made money, that's why they always talk about engagement and shit like that instead of profits

lol. Imagine being this stupid.

>One could suspect the story is quite similar to the birth of Playstation. Nintendo stabbed Sony in the back to go with Philips
Rather, Sony betrayed Nintendo trying to in effect make them a third-party dev on their own "Nintendo Playstation", and then when Nintendo did not simply knuckle under and die allowing themselves to be killed and acquired, Sony went ahead and sold the Playstation under their own brand.
Nintendo's deal with Phillips was an attempt to find an alternate license for CD-ROM technology, but Sony's underhanded contract turned out to bar Nintendo entirely from the technology without paying them all the revenue for CD based games. Which is why they ultimately launched the N64 without optical discs, and avoided CD-ROM compatibility by using a different disc size with the Gamecube.

Of course this royally fucked over third parties like Square who had already gotten Nintendo Playstation dev kits and made use of the CD-ROM's greater storage capacity. Though that '10 years' thing is ridiculously overstating Square's commitment. They were still on the GB, and GBA during that period, and had returned to the home consoles as early as the Gamecube.

it's true though

He gave a blowjob to all the share holders while crying cross dressing like a swedish girl.

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It’s very simple user. Microsoft is very huge, but it’s CEO (god bless his curry heart) Satya Nadella believes that it is not big enough and that it can grow even bigger still. Just one problem, the divisions that make the big bucks are already so large and so successful that it is difficult from them to grow more since they pretty much own the markets in which they compete. So how can Satya Nadella keep Microsoft growing if it’s already the biggest player in these markets? Well he needs to look for markets that Microsoft doesn’t already dominate and of course gaming is one huge market in which Microsoft has always lagged because to be honest the company never much cared about it, it was all about having some sort of presence in your living room so other tech giants wouldn’t completely remove them from the market. So now Xbox is a big part of Nadella’s strategy for the future growth of Microsoft, and do not be fooled he will not stop until every time you boot up a game Microsoft gets a cent out of it. In a few years Xbox will no longer be the console but a platform you’ll access on any other console.

what if I told you that Microsoft is a publicly traded company that publishes earnings reports and gives financial statements.

Xbox has never directly made money for Microsoft, but its indirectly made them billions by locking developers into Microsoft's ecosystem that reduces the PC to being little more than an Xbox that runs Office.
Without the Xbox game developers would be targeting Vulkan on the PC which would make it far easier for developers to support PC platforms other than Windows which could harm Microsoft's core monopoly.

>matrick
Caught the xbox at its peak (2010)
Made a console weaker and bigger than sony (it had never happened)
Even with a weaker console, it was 100 more expensive
Anti-consumer policies (or poorly explained)
a lot of advertising for TVTV and little for console (even though there are more xone games at the beginning).
lost support from companies and with that, games

>Phil
Created what should have been the xone (Xbox one S), cheaper, smaller and quieter
Created the strongest console of the generation (xoneX) 4k
free BC
gamepass
bought more studios, regained confidence from third party partners
objectively created the best next gen console (series x)

>buy sony
>cancel playstation
>quadrouple your sales
why doesn't microsoft just do this

seems like the only problem so far with xsx is lack of games. this is an issue with ps5, but to a lesser extent. normies like spiderman.

Gamepass and xcloud are the future.

Microsoft only joined the console war to be disruptive to sony. The more they lose ground to sony the more money they are willing to spend. It's pretty based.

Sony is not even MS competition. Sony's not even in their league, they're unbothered by Sony. They could literally buy them if they truly cared.

>how did he convince Microsoft to give him BILLIONS of dollars to invest after Mattrick unanimously losing the generation to Sony?
FTFY. Even if Phil didn't convince M$ to do that, any M$ exec with brain cells would eventually do that and M$ would greenlight it. Why? What's a sub-based content-dependent service without content? Before all of their acquisitions, their few studios were shit pumping out the same few shit content. The solution is to get more (already) established studios capable of creating more and varied content without having to worry about building from the ground up at great expense. Also, the acquisition came with many IPs that is good to go to be turned into a steady stream of content that they don't have to worry about getting each studio to pump out annual rehashes (like Activision and the like does), leading to crunch/burnout (which leads to various problems), just to make sure there is no content drought.

Because then they have an actual monopoly. Nintendo is focusing pretty much solely on handhelds so they'd be uncontested in consoles.

Microsoft is actually one od the largest funders of chronos group.

He actually salvaged last gen well with minimal resources. GamePass is a stroke of genius and had 15mln users before Bethesda acquisition. Starfield or new ID game may push it to 30mlns easily.

>Microsoft only joined the console war to be disruptive to sony
what? these companies don't compete in any other spaces. they probably did it because they saw there was profit to be made.

are you....a dumb nigger?

Tv, TV, Tv, Tv Tv, Sports Sports Tv Call of duty Sports Tv Tv Tv. Sports Call of Duty Call of Duty Television Television Television Tv Tv Tv all of duty Sports Sports Sports.

Holy shit, what delusional cope.