Thursday, September 21st 2023

Phil Spencer Responds to Xbox Roadmap Leak

Microsoft Gaming's chief, Phil Spencer, has issued a public-facing response to the recent leak of potential upcoming Xbox products (2024 to 2028): "We've seen the conversation around old emails and documents. It is hard to see our team's work shared in this way because so much has changed and there's so much to be excited about right now, and in the future. We will share the real plans when we are ready." The information dump (in part) consisted of presentation material prepared for (internal) April 2022 meetings, so it is possible that the Xbox division has changed direction in the meantime. Spencer was also involved in an August 2020 discussion with Microsoft marketing executives, regarding a possible buyout of Nintendo—according to leaked FTC legal case material. It should be noted that Microsoft has made attempts to acquire Nintendo in the past—but their approaches were "laughed off."

The Verge has managed to obtain an email distributed to Microsoft employees, as sent out by an embattled Spencer—he reiterates his public messaging of "real plans" in the company memo: "I know this is disappointing, even if many of the documents are well over a year old and our plans have evolved...We all put incredible amounts of passion and energy into our work, and this is never how we want that hard work to be shared with the community. That said, there's so much more to be excited about, and when we're ready, we'll share the real plans with our players."
He signed off by stating: "In closing, I appreciate all of the work that you pour into Team Xbox to surprise and delight our players. In the days and weeks ahead, let's stay focused on what we can control: continuing the amazing success of Starfield, the upcoming launch of the incredible and accessible Forza Motorsport, and continuing to build games, services and devices that millions of players can enjoy." It was not surprising to see AMD mentioned in the leaked roadmap for a next-generation Xbox console—Team Red has been involved in Microsoft gaming hardware since the days of Xbox One. We doubt that Spencer & Co. will be running off to partner with another firm (e.g NVIDIA) any time soon. Given recent rumblings, plans for "hybrid" cloud gaming intended for the latter half of the decade could have changed.
Sources: Phil Spencer Tweet, The Verge, Kit Guru
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11 Comments on Phil Spencer Responds to Xbox Roadmap Leak

#1
theouto
I'm still marvelling at the arrogance and hubris required by someone to think the chance to buy Nintendo, let alone valve, would ever arise. Much less that they could convince those companies to be bought out by them, it's comedy gold, quite honestly.
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#2
TechLurker
Typical expected damage/drama control. I'm not knocking them for it or anything, but it's obvious they're trying to temper expectations now that what they had in mind for the near-future is public.

On one hand, yeah plans change and the listed ideas/plans might not happen at all or be delayed, but on the other, it does show what they were seriously considering and shifting resources to.

If I had to have any concern about their roadmap, it's their intention to really focus on monetization of everything.
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#3
oxrufiioxo
theoutoI'm still marvelling at the arrogance and hubris required by someone to think the chance to buy Nintendo, let alone valve, would ever arise. Much less that they could convince those companies to be bought out by them, it's comedy gold, quite honestly.
Valve is only worth around 10 billion tops not sure why it would be a surprise that a company that can afford to spend 70 billion on a company couldn't buy them especially if they spun off steam to a different company. Nintendo on the other hand is worth around 50 billion also significantly less than ActiBlizz but likely much more difficult to acquire due to regulatory hurdles probably why they went with the actiblizz deal instead.

I mean Microsoft could technically afford to Acquire Sony if it wanted to although that would be instantly blocked thankfully. They are not worth significantly more than Activision.

I think you are underestimating how large Microsoft is and maybe overestimating how big some of these companies are. Companies like Capcom, Square-enix, Ubisoft, EA, Valve, would all be drops in a bucket for Microsoft monetarily wise.

The way you convince companies is to offer them a significant premium over what their shares are worth at the time like they did with Activision. Pretty sure if they offered Valve 30 billion which would be stupid considering what they are worth valve would be like where do we sign.
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#4
Imouto
oxrufiioxoValve is only worth around 10 billion tops not sure why it would be a surprise that a company that can afford to spend 70 billion on a company couldn't buy them especially if they spun off steam to a different company. Nintendo on the other hand is worth around 50 billion also significantly less than ActiBlizz but likely much more difficult to acquire due to regulatory hurdles probably why they went with the actiblizz deal instead.

I mean Microsoft could technically afford to Acquire Sony if it wanted to although that would be instantly blocked thankfully. They are not worth significantly more than Activision.

I think you are underestimating how large Microsoft is and maybe overestimating how big some of these companies are. Companies like Capcom, Square-enix, Ubisoft, EA, Valve, would all be drops in a bucket for Microsoft monetarily wise.

The way you convince companies is to offer them a significant premium over what their shares are worth at the time like they did with Activision. Pretty sure if they offered Valve 30 billion which would be stupid considering what they are worth valve would be like where do we sign.
Valve is far bigger than those estimations and Nintendo has that value right now. If a buyout was on the table they'd be far more expensive than ABK. Nintendo doubles ABK revenue and so is estimated for Valve.
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#5
oxrufiioxo
ImoutoValve is far bigger than those estimations and Nintendo has that value right now. If a buyout was on the table they'd be far more expensive than ABK. Nintendo doubles ABK revenue and so is estimated for Valve.
For sure that's why I mentioned they would have to offer a significant premium per share. Nintendo would likely cost them at least 100 billion and Valve 3x to 4x it's net worth I'm just saying Microsoft could easily afford either if it wanted to they likely estimated themselves what it would cost to aquire either and decided against it thankfully.
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#6
evernessince
oxrufiioxoFor sure that's why I mentioned they would have to offer a significant premium per share. Nintendo would likely cost them at least 100 billion and Valve 3x to 4x it's net worth I'm just saying Microsoft could easily afford either if it wanted to they likely estimated themselves what it would cost to aquire either and decided against it thankfully.
I don't see Nintendo happening at all. The company has tremendous pride, something they'd have to trample to sell. In addition, Nintendo has essentially reached historical status with the Japanese government. Japan would likely ask domestic investors to match any Microsoft bid to buy the company before they allowed a sale to Microsoft as they have done in the past with other Japanese companies.

For Valve, Gabe doesn't like Microsoft to begin with so it's unlikely they will sell so long as he's alive. It's the whole reason they are pushing proton and Linux. They are a private company so really there's nothing MS can do unless gabe agrees.

Microsoft really shouldn't be allowed to buy either. That's too much power in the hands of the few.
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#7
oxrufiioxo
evernessinceMicrosoft really shouldn't be allowed to buy either. That's too much power in the hands of the few.
I think both would be blocked. My point was more on the money side of things. Although I do wish someone would actually buy the rights to Valves games and do something with them I guess I will have to settle for Half Life 2 RTX
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#8
evernessince
oxrufiioxoI think both would be blocked. My point was more on the money side of things. Although I do wish someone would actually buy the rights to Valves games and do something with them I guess I will have to settle for Half Life 2 RTX
Well hopefully now that we have Half Life Alyx Valve gets back into developing more games.
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#9
theouto
oxrufiioxoValve is only worth around 10 billion tops not sure why it would be a surprise that a company that can afford to spend 70 billion on a company couldn't buy them especially if they spun off steam to a different company. Nintendo on the other hand is worth around 50 billion also significantly less than ActiBlizz but likely much more difficult to acquire due to regulatory hurdles probably why they went with the actiblizz deal instead.

I mean Microsoft could technically afford to Acquire Sony if it wanted to although that would be instantly blocked thankfully. They are not worth significantly more than Activision.

I think you are underestimating how large Microsoft is and maybe overestimating how big some of these companies are. Companies like Capcom, Square-enix, Ubisoft, EA, Valve, would all be drops in a bucket for Microsoft monetarily wise.

The way you convince companies is to offer them a significant premium over what their shares are worth at the time like they did with Activision. Pretty sure if they offered Valve 30 billion which would be stupid considering what they are worth valve would be like where do we sign.
You forget that Valve is led by Gabe Newell, you know, this guy


www.gamespot.com/articles/ea-sought-to-buy-valve-for-1-billion-report/1100-6394880/

Other companies have tried buying Valve in the past, when they were valued for so much less, and GabeN showed them the door, as long as GabeN remains in control, it won't ever happen, specially with how much he dislikes Microsoft, hell, SteamOS and Proton started being developed in case windows became a mess of a product, remember how he called windows 8 a disaster?

Sure, you could argue that EA lowballed Valve, but if you read what Gabe said afterwards, it is unlikely that he would've been swayed by more money, and with how much money they generate now, I don't think he'd be swayed by atviblz levels of cash, he actually seems to care.
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#10
oxrufiioxo
theoutoYou forget that Valve is led by Gabe Newell, you know, this guy


www.gamespot.com/articles/ea-sought-to-buy-valve-for-1-billion-report/1100-6394880/

Other companies have tried buying Valve in the past, when they were valued for so much less, and GabeN showed them the door, as long as GabeN remains in control, it won't ever happen, specially with how much he dislikes Microsoft, hell, SteamOS and Proton started being developed in case windows became a mess of a product, remember how he called windows 8 a disaster?

Sure, you could argue that EA lowballed Valve, but if you read what Gabe said afterwards, it is unlikely that he would've been swayed by more money, and with how much money they generate now, I don't think he'd be swayed by atviblz levels of cash, he actually seems to care.
Even in 2012 it likely would've taken 20B+ so the offer was pretty offensive to begin with.
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#11
trsttte
theoutoI'm still marvelling at the arrogance and hubris required by someone to think the chance to buy Nintendo, let alone valve, would ever arise. Much less that they could convince those companies to be bought out by them, it's comedy gold, quite honestly.
Hubris sure but let's not forget Microsoft is a trillion dollar company, 2.37 trillion to more precise. Nintendo "only" had a revenue of 13billion last fiscal year and has a current market cap of around 50billion. Microsoft could easily buy them out, a crazy absurd 200billion buyout would still be less than 10% of microsoft value, they could easily take that hit.

It had no chance of being aproved but would be a hell of a lot better investment than buying activision blizzard :D
ImoutoValve is far bigger than those estimations and Nintendo has that value right now. If a buyout was on the table they'd be far more expensive than ABK. Nintendo doubles ABK revenue and so is estimated for Valve.
Still low enough for Microsoft's insanely deep pockets
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