Microsoft ‘Transitioning’ Xbox Into ‘Live Service’ Model, Says Analyst

Today's news regarding the cancellation of the Xbox-exclusive Scalebound is indicative of Microsoft's transition of the Xbox brand and its games towards a 'live service' model, according to a prominent gaming analyst.

[DillyDilly]

Hmmmmmmmmmmmmmmmmmmmm

[bluefox755]

This should come as a surprise to no one, nor should their lack of transparency on the issue, unfortunately.

[joab777]

They never abandoned their original vision! Just redlined it and stalled it a bit and hired Phil to set us at ease. If they had a streaming service and were moving towards a Netflix type service, I may be interested.

As of now, they should just partner with Nintendo. They'd have great exclusives, 3rd party support and the baddest mobile device ever, with access to the entire MS store!

[conanlifts]

If they did that they might have more than 1000 yearly followers in Japan.

[XanderZane]

Don't think they are going the pay to play streaming service like PSNow. Even though you can already stream XBox One games on to your PC, but it's free to do. Hopefully they aren't trying to go full digital again. That would be a bad idea.

[mcstorm]

I don't see ms doing this. They have windows 10 so no need. People have been going on for years that ms dont support PC then they do they say the Xbox has no exclusive games. No matter what ms do people will find something to go on about. It's happened with the switch to. I see ms making PC and consoles closer and closer and this is not a bad thing imo. Also Microsoft are doing there own thing so are Nintendo and so are Sony for me that's what I want. The ps3 and 360 were to alike and the same with the ps4 and Xbox now. Now we are getting to the pro and Scorpio they are all showing off there own ideas and for me that's what I want keeps the competition going and gives us more reason to own all 3 consoles.

[slate91]

I like the name joab, but technically sony is ahead of ms in the transitioning phase if you look at psnow.

but with a release of the scorpio, this claim has no foundation. Unless they cancel the scorpio lol.

[EverydayJoe]

Oh man, can you imagine... I wonder if the diehards would somehow try to justify that "difficult decision" aswell.

[joab777]

Thanks! I just think that eventually streaming will be the future of TV and gaming. CES showed us how possible it is now with Ultra Settings PC streaming available. It's expensive but the price will fall eventually. Would you pay $50/month to be able to play whatever you wanted at Ultra Settings with no load times or updates?

Obviously, it would be a long time before MS reaches this point and would not effect the Scorpio. While Sony has been laser focused on exclusives, including new IPs, it seems MS has been focused on changing how you play X1 games. Thing is, we need games to play.

At some point, one might ask, why not simply build a gaming PC? What's the advantage of investing in MS?

As far as MS and Nintendo, just tongue and cheek really. One does well in hardware and the other with software. I do believe thought that the first company to offer a mobile device that has access to full games as well as to apps will be very successful...instead of having them segregated b/w the phone or tablet and a second device like the DS.

[Godmars290]

Their original vision died with their online-only plans. No mandatory online, no required Kinect and no dictating how games where resold meant default mandatory sub fees for XBL, no back end deals for ad for selling user info or audience counting, and no taking Gamestop's resale pie.

And why the hell would Nintendo even consider such a thing?

[slate91]

I would definitely be a customer of streaming if there was 0 latency.

[Cy]

*yawn* Another analyst pulling something out of his ass. Why do people give credence to what's never more than one guy's guess?

[Omnislashver36]

How is this a guess? I mean all signs point to it, it's actually a well thought out observation. All of their games are designed with Xbox Live in mind now.

[iceman06]

Never mind the fact that, when the Xbox brand was started and MS was entering the industry, ALL of the execs wanted exactly this. Going all the way back to Balmer, they've always seen the Xbox as a means to an end...sell more boxes to increase the reliance on services. (where money is made hand over foot and there is little to no risk) The services were the main reason why the Xbox division was able to make money on the 360. (RROD fiasco ate a ton of profits) It's not some insidious plot. It's a business tactic that has been part and partial of the philosophy of MS damn near since it's inception. It shouldn't be a surprise that some part of that makes it into the Xbox division. Now, that being said, this could be logical speculation that is wrong. But, it's not out of the realm of possibility.

[Razzer]

Windows 10 is taking center stage. Xbox will be a service within that ecosystem. Scorpio isn't going to be what you think it will be.

[_-EDMIX-_]

I still think it's going to be a console but it would not shock me if it's simply just a Windows 10 PC.

[fromchildren]

That kinda actually makes a lot of sense, Microsoft does on the windows OS afterall, selling scorpio as a tower PC should work beautifully and if it is some kind of laptop even better.

[slate91]

What are you thinking scorpio will be? Im kind of getting where youre coming from.

[FreeSpeech69]

I figure it will be like "Windows RT" if you remember what the Surface 1 and 2 was (Not Surface Pro 1 and 2). They still don't want to risk putting real windows on a console but I figure they will keep pushing it closer to it with all but .exe support (the only thing I care about so not for me).

[_-EDMIX-_]

I think it's still going to be a console.

[tdogchristy90]

What is a "live service model" anyway?

[ApocalypseShadow]

Basically it means the possibility of Microsoft turning into a "service."

They have the cloud services, they have the software knowhow. They would take XBL and windows 10 services and offer them onto other devices like Apple I products, Google Android, etc. Streaming directly to those products for a fee. Is it possible? Anything is possible. But it's more a future back up plan just like Sony has created a service from streaming games, movies and music anywhere to any product like Sony Vue, Sony music and Sony games. Is it possible? Anything is really.

But the reality has always been Microsoft pushing up their windows platform to as many products as possible and have the largest market share for their OS. It's why games were transitioned to PC to help the windows 10 platform. Xbox itself is actually a way of selling that same windows platform as it now runs windows 10 apps. When Scorpio comes out, best chance is that it's a PC sold as a powerful console. And it will play windows games. And Microsoft will possibly sell you apps that allow you to access Steam and other non Microsoft services. They will be the gate keeper getting paid by being in the middle. My prediction anyway.

We'll just have to wait and see.

[Omnislashver36]

It means all of their games are catered to their multiplayer service, Xbox Live. They don't care about single player anymore because it doesn't sell well for them.

[XXanderXX]

As long that I have an Xbox / MS console to buy and play from , don't care what they transition into .

[Goldby]

regrets incoming

[XXanderXX]

No regrets my colors don't run no matter how bad or dire the situation In it till the End.

[_-EDMIX-_]

Lol

We've been telling Xbox gamers this for years.

It was so painfully obvious that this company never really wanted to back new intellectual properties from their main teams, it was always some half-measure.

Microsoft has a huge issue with commitment and it was pretty clear that they had no interest in internally developing and supporting any new property that was not Halo or Gears of War.

[Fishy Fingers]

Ummm this is about moving away from hardware to being a service and software partner. If anything that means bolstering your internal IP/studios going forward.

Frankly, within a few gens all the hardware manufacturers will begin to take this role (PS Now, MARIO on mobiles etc), there is little money in hardware and with streaming it will eventually become redundant to buy 'the box'. The money will be in supplying the content (more than it currently is).

[_-EDMIX-_]

Except there's no guarantee that even going to happen.

I had a Theory very long time ago that Microsoft was possibly looking to exit the hardware market and simply become a publisher and part of that theory had to do with why they might have been very hesitant to purchase new teams or to start new long-term intellectual properties.

Notice that when they purchased Gears of War they also cancelled the Triple A first-person shooter that the team was working on despite the game being worked on before the purchase of Gears of War.

It might be redundant for Microsoft to have if physical Hardware presents but that's not going to be the case for a company like Sony that consistently sells extremely well with Hardware.

for god sakes 90 million is the lowest they've ever sold of Home consoles.

I don't know if Microsoft will exit the hardware Market but if they do Nintendo could catch an absolutely biblical second wind! I see the Nintendo switch being extremely successful for Nintendo in regards to their portable platforms and if it's able to achieve a respectable install base don't be surprised if they feel very confident entering the Home console Market when Microsoft exits.

Nintendo very much can fill that void because I actually have exclusives.

The only way I see Nintendo leaving the hardware Market is if the switch fails and if Microsoft continues to create consoles but if Microsoft exits the market they're going to create an absolutely huge vacuum that will have the market wide open for someone like Nintendo to continue.

[Cmv38]

From the announcement of the xb1, this console lacked identity and clear direction. The recent news, the scorpio all seem to continue that.

[Sm00thNinja]

We make a big deal about it but it's not like BIG NAME SONY EXCLUSIVES haven't had the same fate. Deep Down anyone? I'll be nervous after E3 if they get shown up again

[SpaceRanger]

Sony have had more than enough exclusives year after year to not be affected by deep down. Scalebound was the top listed game for them this year. Crackdown needs to show up and put up if this year actually means something to MS.

[Sm00thNinja]

True Microsoft better have something in the works come E3 or imo before E3 they need to host an event. ALL that momentum they supposedly gained in the fall is gone. Not sure if it's hit them yet. Crackdown is the least of their worries.

[Liqu1d]

Deep Down hasn't been cancelled.

[rlow1]

Once again everyone jumps the gun before anyone has a clue as to what is really going on at MS. First its no surprise MS is transitioning into a service, they themselves have said so many times. Sony is taking a much slower route to a service oriented theme and I think, taking a wait and see approach. As for Scalebound, it really does suck, even though I thought the game looked a little shallow.

[Fantasticzig]

I wonder if people are still going to $#!+ on Xbox after it becomes what everyone wanted Steambox to be? That's obviously where this is headed. Xbox as a platform will be reduced to an app, like steam, or maybe even a special boot-mode of Windows 10. The "consoles" will then be merely various pre-made gaming PCs for various graphical settings.

[Mikey94]

Scalebound gets cancelled all of a sudden people are acting like this is the end of Xbox. Seriously people now days do anything for attention.

[Sm3000]

I don't like this and I'm a huge Sony fan. PS NEEDS COMPETITION make no mistake

[Dixiedevil]

If you listen closely you can almost hear the sound of Microsoft driving the nails in their own ...Xbox. Hopefully its not true. Competition drives the market and makes gaming better for everyone.

[OC_MurphysLaw]

Both consoles from Sony & MS are all about offering services to the base. Anyone not understanding the drive behind PS+, Gold, PS Now, EA access, VUE, and music / movie rental on both needs to pull off the blinders. Sony and MS don't just want you buying games....they want you subscribing to their services as it makes it harder to leave the economy system and you likely will spend more.

[iceman06]

Agreed. Add to that, most of these ventures are relatively low risk-high reward for the console providers. Live brought a crap ton of revenue. PS+ followed suit fully knowing that it couldn't pass up that same kind of revenue only adding the dangling carrot of free games. Each has added more and more. What's more, third parties are starting to notice this increased revenue stream. The slippery slope? (known fallacy, but sometimes comes true) The market segregates into a service driven model and the only way we play games is by subscribing to various services.

[OC_MurphysLaw]

The slippery slope you speak of is 100% the direction they want to move this to. If Sony, MS heck even Nintendo felt they could legitimately get you to buy a box that in reality was little more than a media bridge to large server banks where they streamed all the content to you last gen they would have jumped at it. As it stands the tech is still too early to be reliable to a point they could rely on it and ditch older ways...but don't think this is not coming. The day one of the big 3 come out with a console (I would think Sony would be the most impactful here btw) that ditches the disc drive altogether will signal a point of no return. Console makers would cut their manufacturing costs dramatically with a move like this ....and they are well aware of that. Hosting server banks with subscriptions to access is a far more profitable direction that creating consoles that need disc drives and sit on store shelves until sold.

[Goldby]

@Dlacy & Cobra

Dont stick Vue into the same catagory as PS+, Gold, Now or EA access. it is completely different. nothing to do with gaming what so ever. it is a replacement for cable, and isn't just available on playstation 4 consoles, but also their blu ray players, smart tvs

[OC_MurphysLaw]

agreed its different on one hand...but its more services based product being offered up to keep you in their ecosystem.

[Artemidorus]

Xbox are going in a direction of a long boring path. Deadbeat sequels and microtransactions are a nightmare, pure cancer to gaming.

[Goldby]

sooon enough there will be a little Microtransaction in Halo 5 to unlock halo 6.. /s

[Artemidorus]

Sounds about right

[Silkside]

As much as I dislike ms, it's sad to see this happening. Without competition sony will become complacent and won't push hard like they are now

[wutang4ever]

yes this is a good direction for MS, always believed they were more a software company.

BUT, but I don't think Windows 10 store will be successful just like windows live wasn't successful.
Steam owns the PC gaming service market. Unless MS teams up with Steam, I don't see them going far in the PC realm.

[meka2611]

Great. Another horrible move by microsoft, this is starting to get ridiculous. I own both systems but prefer my xbox, it's getting to the point where I'll be playing my ps4 a lot more. They just keep making dumb decisions, just like that stupid one that if xbox doesn't get a game first or exclusive content, they don't get it. I don't care about feeling special, I'm a gamer I just want the damn games.

[BigGamersSmallTalk]

It's funny, I don't recall comments like this when Sony cancels a game or even closes a studio. Yet it never fails to garner overreactions from people whenever Microsoft does something. Could it be Scalebound was becoming too expensive and too ambitious? The games engine was supposedly running terrible and had a lot of frame rate problems.
But let's go ahead and read a bunch of nonsense into it because the industry is full of PlayStation fanboys who grew up with a PS1 or PS2 as their first console.

Does nobody else see the double standards that arise whenever something bad happens to Microsoft versus when something bad happens to Sony? Cancelled games happen all the time, closing studios happens all the time. Sony does it too. Heck, Sony bought a streaming game service but you didn't hear everyone run for the hills and say "Sony is trying to get out of hardware, they want everyone to stream their games!". The overreaction is strong.

[Razzer]

You can pretend all you want like Microsoft is always the victim and no one ever says anything negative about Sony. That is just absolute bullshit. Keep dreaming those deluded dreams.

[Armyntt]

Wouldn't be surprising. The world is going to the service/subscription model. Even Cadillac has a subscription service coming soon. It's the future like it or not.

[mahmoods26]

I think it's also because Sony has created a culture where it's ok to try out new games that aren't established IPs. They kind of pushed that years ago with their PS Plus offerings. MS just saw it as another revenue stream. Games like Rocket League and Thomas was Alone would have never found their audience without PS Plus. When you're primary gaming focus is first and third person multiplayer shooters and you build your audience and marketing around that, don't complain when they don't buy anything else.

They bring out Tomb Raider. It's an exclusive, it's not an exclusive, it's on PC, it's not on PC. That was ridiculous.

Then Quantum Break, the marketing for that was underwhelming.

Gear of War 4 - Disappointing single player. Anaemic multiplayer

Master Chief Collection - Buggy and still not fixed

Halo 5 - Horrible single player. Sold on the strength of its IP considered the weakest in the series.

[Segata]

I mean I been saying this will hapen for 5 years. Don't think many are surprised.