I've had the Xbox Series X for over 3 weeks now, and with the Xbox Series X|S launching today, I wanted to share some quick thoughts and previous twitter threads i've done regarding Xbox's future strategy.
My key takeaway is that the console has a very premium and polished feel to it. From the design of the console to the UI and software
It's launching in a more complete state than the Xbox One did and is bolstered by new technology & innovations to improve the overall experience
Quick resume is indeed impressive.
After finishing Tell Me Why Ch1 I was able to instantly jump into Forza to complete a few races, then jump back to Tell Me Why after Ch2 finished downloading, with each transition taking just a few seconds.
No need to quit / restart games.
The onboarding experience is good. You can set up the console through the Xbox app on your smartphone and then utilise the app to download games or remote play.
My favorite feature is that screenshots from the console instantly appear in the app and can then be shared.
Lack of a flagship title at launch is definitely noticeable. But not as big of an issue these days given Xbox has a strong value prop with Game Pass and Back compat.
Not to mention cross gen live service titles + new third party games are optimised for the console at launch.
It's a seamless transition for existing Xbox users, with their games library, friends list and other settings transferring over.
For new players, Game Pass is the main value prop, offering a large day one library for a low monthly cost.
Ultimately an attractive offer for all.
Console still plays a large role in the Xbox ecosystem, even as the company shifts focus to marketing Game Pass as the main entry point
It's the platform where Microsoft will continue to generate the majority of its revenue. My thread below explains more
That being said, it's clear that Xbox is looking to go beyond the console and provide a seamless and frictionless experience to existing gamers and new players, with multiple entry points into the Xbox ecosystem.
I also put together a thread with my overall view on the Xbox strategy for this year and beyond. How Xbox is looking to remove as many barriers to entry as possible to reach a broader audience, including in the console space.
With the PS5 launching in select markets today, I thought I’d do a quick thread with my thoughts on PS5 and PlayStation’s overall strategy going forward.
This is from my pov as an analyst.
1/
Sony is focusing on 3 key areas this gen:
Premium hardware at an affordable price
Exclusive content from first party & partners
Network services + Ecosystem
The PS5 is very much the center of the PlayStation ecosystem, with network services helping to bridge a smooth transition
The PS5 very much feels like a next gen console and has the innovation to match
DualSense increases the immersion of playing games
Custom SSD enables faster load times & unique game design
2/ It's worth noting that the game does not have an official license to operate in China. China is a complicated market where video games are regulated heavily.
Achieving an official release requires working with a Chinese publisher and gaining approval from regulators.
3/ China is a country of 685 million gamers that spent over $33 billion on games last year. Players have diverse tastes and actively seek out new and fun experiences.
Whether a game has an official release or no localisation at all, Chinese gamers will discover and play them.
PUBG Corp's partnership with Microsoft to host PUBG and PUBG Mobile on Azure has led to speculation that the company made the move so that it can re-enter the India market, where the game was banned earlier this year
In case you missed this article I wrote, India has banned a number of Chinese published mobile games due to rising tensions between the two countries and potential national security issues.
PUBG Mobile was banned because Tencent is the dev and publisher.
"Console in the Cloud" is a perfect way for Nintendo to pitch cloud gaming on Switch.
Cloud gaming can enhance the experience on Switch.
- Local play for games that can run natively
- Cloud games for those that cannot / are designed for next gen (PS5/Series X) consoles.
Cloud gaming can be further integrated into Switch to enhance the experience for players in the future. E.g.
- Choose to download or stream game demos
- Instantly start playing games as they download, then switch to the local ver.
- Extend gameplay to other devices.
Cloud gaming is not a replacement for local games on Switch, it is simply a way to further enhance the Switch ecosystem
The hybrid nature of Switch is also a plus. No need to switch to a mobile device with touch controls. You get the same cloud game experience handheld or on TV
This is usually the part where I do a bunch of tweets breaking down Xbox by number of Live users, hardware growth/decline and other stuff.
Except Microsoft doesn't report any of that anymore..... so.....
🤷♂️
That being said, the only thing I can say for sure is from the first tweet.
Xbox total gaming revenue was up 22% YoY. Which means it generated around ~$3.1bn in the quarter. The majority being content and services sales, which was up 30% YoY.