Microsoft's Next-Gen Xbox for 2028 to Combine AMD Zen 6 and RDNA5 with a Powerful NPU and Cloud Integration

[Vayra86]

Again, neither DLSS™ nor RTX™.
This is madness, Microsoft will be crushed by Nintendo if they managed their way so poorly.

Nvidia doesn't make a custom x86 APU. Its as simple as that.

Nobody on a console really cares, its never going to make or break a purchase for a console player whether or not it has a fancy Nvidia sticker. Nintendo players don't care either.

 

[lexluthermiester]

Now I understand why everyone refuses to engage with you.

Why, because I refuse to suffer fools? Or perhaps because I refuse to back-down to or yield to same? Or perhaps because those people are the same silly sods who don't know how to react with anything other than ego and pride? Hmm? Gee wiz, what a shocker.. Feel free...no...feel invited to add me to your ignore list.

Do you understand that's accountability margin and can't be compared to the others? That graph was gone from Tweak Town because of how inaccurate it is.

So wait, because the information in TweakTown's article doesn't support YOUR meritless argument, THEY are inaccurate? It's not THEIR info anyway, it's microsoft data. You do know that SEC filings are REQUIRED to be accurate, right? Severe penalties and fines if it not, you do know that, right?

 

[Imouto]

So wait, because the information in TweakTown's article doesn't support YOUR meritless argument, THEY are inaccurate? It's not THEIR info anyway, it's microsoft data. You do know that SEC filings are REQUIRED to be accurate, right? Severe penalties and fines if it not, you do know that, right?

That moment you realize you are arguing with someone that doesn't understand that a lawyer had to ask Phil Spencer in front of a judge about Xbox's profits and he was still vague.

Lemme see if you understand: That graph was removed from Tweaktown's article because it's inaccurate and misleading. Phil Spencer said it's in the single digits and he was asked about it because Microsoft doesn't disclose the data.

 

[Gooigi's Ex]

Again, neither DLSS™ nor RTX™.
This is madness, Microsoft will be crushed by Nintendo if they managed their way so poorly.

PFFFFFFHAHAHAHAHAHAHAHAHAHA “Again, neither DLSS nor RTX” right because upscalers are “selling points”. Not everyone wants DLSS AND RTX and Nintendo is NOT paying that extra money for “DLSS and RTX”

Plus, Microsoft is a Trillion Dollar company, and Nintendo is not. AI is a major cash flow for NVIDIA, DLSS and RTX for GAMERS is not.

 

[80-watt Hamster]

That moment you realize you are arguing with someone that doesn't understand that a lawyer had to ask Phil Spencer in front of a judge about Xbox's profits and he was still vague.

Lemme see if you understand: That graph was removed from Tweaktown's article because it's inaccurate and misleading. Phil Spencer said it's in the single digits and he was asked about it because Microsoft doesn't disclose the data.

5% margin (for an arbitrary single digit example) on $12.8B would still be $640M. Not exactly the cash cow level profits some are implying, but also not not making money.

 

[Imouto]

5% margin (for an arbitrary single digit example) on $12.8B would still be $640M. Not exactly the cash cow level profits some are implying, but also not not making money.

We just simply don't know. Is the Zenimax deal included in that operating profit? Is the ABK deal going to be included? Xbox can't sustain those purchases by itself as it would take decades just to break even before getting a dollar back from those adquisitions.

I think (and this is my theory) Xbox is being treated as an investment fund for the +$100B Microsoft usually has in cash. The moment Xbox hardware is too much of a burden or a limiting factor they will become a third party and turn Game Pass into a service for their exclusives only. Nothing would really happen because I bet it's within their expectations and paying a 30% cut to Sony is better than having less than 20% of the console market.

 

[Vayra86]

We just simply don't know. Is the Zenimax deal included in that operating profit? Is the ABK deal going to be included? Xbox can't sustain those purchases by itself as it would take decades just to break even before getting a dollar back from those adquisitions.

I think (and this is my theory) Xbox is being treated as an investment fund for the +$100B Microsoft usually has in cash. The moment Xbox hardware is too much of a burden or a limiting factor they will become a third party and turn Game Pass into a service for their exclusives only. Nothing would really happen because I bet it's within their expectations and paying a 30% cut to Sony is better than having less than 20% of the console market.

You're quite accurate on that.

And I do agree, its unlikely the profits are huge. But what MS did gain for all that money is a strong position in the gaming market. And they still post yearly results that are positive. Xbox is growing YoY. Whatever that takes.

 

[80-watt Hamster]

We just simply don't know. Is the Zenimax deal included in that operating profit? Is the ABK deal going to be included? Xbox can't sustain those purchases by itself as it would take decades just to break even before getting a dollar back from those adquisitions.

I think (and this is my theory) Xbox is being treated as an investment fund for the +$100B Microsoft usually has in cash. The moment Xbox hardware is too much of a burden or a limiting factor they will become a third party and turn Game Pass into a service for their exclusives only. Nothing would really happen because I bet it's within their expectations and paying a 30% cut to Sony is better than having less than 20% of the console market.

You're right; we don't know. But single digit profit is still profit. It's like you're suggesting that they should take their ball and go home because they've only sold half what the PS5 has. But that was also true last gen, and going futher back the PS2 clobbered the O.G. Xbox by a factor of six. One gen later and it was 1:1. Games are thus far still a growth industry, and it'd be pretty mad if you ask me for MS to abandon a reasonably strong position in a growing market.

 

[Imouto]

You're quite accurate on that.

And I do agree, its unlikely the profits are huge. But what MS did gain for all that money is a strong position in the gaming market. And they still post yearly results that are positive. Xbox is growing YoY. Whatever that takes.

The gaming market is growing at a much faster pace and they're being left behind. They are not meeting any growth target either. If they didn't buy Zenimax they wouldn't have much to show for now and they spent the first two years of the Series gen with barely nothing anyway. Now that they bought ABK it would be suicide to make all their titles exclusive with the Series sales dwindling and proof that their exclusives ain't making anyone buy a Xbox and much less jump ship.

You're right; we don't know. But single digit profit is still profit. It's like you're suggesting that they should take their ball and go home because they've only sold half what the PS5 has. But that was also true last gen, and going futher back the PS2 clobbered the O.G. Xbox by a factor of six. One gen later and it was 1:1. Games are thus far still a growth industry, and it'd be pretty mad if you ask me for MS to abandon a reasonably strong position in a growing market.

They were one meeting away from shutting Xbox down in the ONE generation. Series is already selling less than ONE.

I'm not saying they should pack or sell their assets. I'm saying it makes no sense keeping the Xbox hardware after investing so much because it's obvious they can't steer clear from the abyss.

 

[umeng2002]

Not this cloud horsesh*t again.

 

[dyonoctis]

The gaming market is growing at a much faster pace and they're being left behind. They are not meeting any growth target either. If they didn't buy Zenimax they wouldn't have much to show for now and they spent the first two years of the Series gen with barely nothing anyway. Now that they bought ABK it would be suicide to make all their titles exclusive with the Series sales dwindling and proof that their exclusives ain't making anyone buy a Xbox and much less jump ship.


They were one meeting away from shutting Xbox down in the ONE generation. Series is already selling less than ONE.

I'm not saying they should pack or sell their assets. I'm saying it makes no sense keeping the Xbox hardware after investing so much because it's obvious they can't steer clear from the abyss.

I find it interesting that the PS5 and series X are very close in price and spec, but the former stopped being sold at a loss in 2021 when the Xbox isn't.

 

[Hyrel]

All that if Microsoft is still gonna bother with Xbox by 2028, every decision they've made this gen and the last has only made them lose money and playerbase to Playstation.

 

[Vayra86]

The gaming market is growing at a much faster pace and they're being left behind. They are not meeting any growth target either. If they didn't buy Zenimax they wouldn't have much to show for now and they spent the first two years of the Series gen with barely nothing anyway. Now that they bought ABK it would be suicide to make all their titles exclusive with the Series sales dwindling and proof that their exclusives ain't making anyone buy a Xbox and much less jump ship.

Sure, but that isn't unusual nor does it spell doom for Xbox.

The fact remains, gaming grows YoY and Xbox grows too. Whether it keeps pace doesn't matter, there is growth. Mobile has been growing faster than ANY console for years. Doesn't mean consoles do bad, nor does console growth mean the PC gaming growth is bad. The market diversifies, and grows, people have more than one device. When tablets came out, we already had to conclude it wasn't replacing any device much, it was mostly in addition to other devices doing pretty much the same thing. It can exist between mobile and laptop just fine. The laptop still is very much alive. The desktop is alive. Consoles are alive. Cloud gaming isn't removing much in the non-cloud gaming space either - its just yet another way to access content, people use it when they have no better options, and not to replace a lower-latency, higher quality experience.

 

[R0H1T]

The laptop still is very much alive. The desktop is alive. Consoles are alive.

Spoiler

Meh, people don't realize how building an ecosystem can make money for you in the long run ~ just look at Android or iOS for Google/Apple heck youtube! YT was bleeding money for probably more than a decade & it's likely their second biggest money spinner after Android now & it has absolutely no competition

MS with their IP & reach could easily be the top gaming company in a decade!

 

[kapone32]

All that if Microsoft is still gonna bother with Xbox by 2028, every decision they've made this gen and the last has only made them lose money and playerbase to Playstation.

Gamepass is their focus Xbox is just a platform to get onto Gamepass. The thing is every Windows 11 PC has the ability to have Game pass. All you have to to do is accept it during install. That is every Windows 11 based PC. From Handhelds to full tower Desktops is a huge potential market for Xbox (MS Gaming Division) and it does not look like it is slowing down. In fact it is integrated completely into your Google pay now.

There will be new consoles. What people don't appreciate is that we are into PC and are now on AM5 and it is a real investment to build a powerful PC. The Xbox is basically a 5800X/6700/6800 combination that translates to AM4 but still cheaper than building a similar PC. Sony have already released info on PS5 Pro but that Network does not have the potential of Gamepass for penetration. Even in 2028 there may be requirements for 8K, Faster networking hardware and just faster general hardware so yes I would expect a box to get onto Gamepass will be relevant to MS.

There is a ton of matchbox vs hotwheels in PS vs MS but at the end of the day the PC is better for getting more Japanese Games, thanks to the Playstaion and the console/PC line is so blurred that Console ports are for the most part if you have a similar or faster AMD system nice.

 

[close]

I'm already not a fan of XBox, this pretty much guarantees I'm not going to buy it.


While I agree with you, it is making them money..


Good raytracing? I think not.

The choice is between raw performance, price, and backwards compatibility. I'd say the compromise for now is well justified. In a parallel universe Xbox has "good raytracing" and someone is complaining "good price/backwards compatibility? I think not".

 

[SJZL 2.0]

So even the "most intellectual forum site" on the internet still fights a console war? How low these guys have stooped.

 

[lexluthermiester]

So even the "most intellectual forum site" on the internet still fights a console war? How low these guys have stooped.

Right? Kinda sad isn't it..

The choice is between raw performance, price, and backwards compatibility. I'd say the compromise for now is well justified. In a parallel universe Xbox has "good raytracing" and someone is complaining "good price/backwards compatibility? I think not".

That's fair.

 

[Ravenas]

Consoles are very appealing these days. GPUs are far too expensive these days, and maintaining multiple desktop computers in a household is a chore financially.

Xbox Series X is a great piece of hardware and so is PS5. You can enjoy most of the games you enjoy on PC, except for PC centric games, with good graphics and no managing of video options / drivers. The problem with the console, specifically Xbox, is subscription centric.

Everything is a subscription these days and it's beyond annoying. There is some relief with Steam that I control what I want to buy and how often I want to budget gaming.

One good thing about the PS5 is its quality of games, disc centric, and not forcing me into a subscription service. Not sure how much longer that will last.

 

[Vayra86]

Consoles are very appealing these days. GPUs are far too expensive these days, and maintaining multiple desktop computers in a household is a chore financially.

Hard disagree on the multiple desktops being a chore in a household.

Its an advantage, but only if you use these desktops for different purposes. I always move parts from my gaming PC to the HTPC downstairs, the latter being practically free.
If its about the amount of work involved, sure. The PC always loses from a console. You pay that advantage in time with limitations the PC doesn't have. Similar things apply to it in comparison to smart TVs, digital settop boxes and smartphones/apps to drive your content. You can indeed get the services brought to your door. It also means you lose control over your content.

 

[chrcoluk]

View attachment 326048
Well shit, Xbox is somehow making more operating profits than Playstation. I guess the people working there are not as stupid as forum dwellers think.

wtf, Sony seem to be more aggressive on margins, what are they doing to come out with lower margins than Xbox.