For example, the deal Sony Pictures made which gave Netflix all global film and sequel rights to KPop Demon Hunters with zero back-end participation on the billions of dollars Netflix is now certain to earn from KPop is widely considered by experts the single worst streaming deal ever made. And that was just one unproven animated kids musical. XBox has proven mega-IP like Minecraft, Call of Duty, Warcraft, Halo, Diablo and Elder Scrolls as well as lots of unproven properties - any one of which might become the next KPop Demon Hunters.
Xbox Turns Down Netflix $500M Offer (darkhorizons.com)
mrandish 4 hours ago
bathtub365 3 hours ago
Idiot211 3 hours ago
Oh dear, someone forgot to read the article.
intothemild 3 hours ago
Well, lets take just one of those examples, Minecraft.
Cost apparently $150mil to make, and so far, has earned around $960mil. So if we use the usual doubling of the cost to get to the real cost with marketing and everything, it cost ~$300mil, so that is about $660mil profit.
Now of course that gets split, Xbox wouldn't get 100% of that, but still, even if it got 50%, thats still most of the way to the $500mil they turned down, on just ONE film, and only factoring in the theatrical release profit, not including any money it would have made on merch, or streaming, or anything else.
sublinear 2 hours ago
My eyes are about to roll out of my head. Stale intellectual property can make unexpectedly good money for a little while, but this ain't exactly Mickey Mouse. Even Mickey Mouse is out of steam by now.
Microsoft is rejecting the deal simply because they can afford the loss even if they let everything under "Xbox" rot. They will only accept someone willing to overpay.
robmccoll 5 hours ago
pixelatedindex 5 hours ago
derektank 5 hours ago
georgel 5 hours ago
njovin 5 hours ago
kettlecorn 5 hours ago
philistine 4 hours ago
prmoustache 39 minutes ago
Do you meam potential upcomimg game that may be vaporware for a decade or two?
tonyhart7 5 hours ago
so they switch course midway to focus at AI
guidedlight 5 hours ago
It's like the entire company is only satisfied with being #1.
The whole thing is very confused and lacks consistency. The latest rumours are they are going to break up its Game Pass subscription offering so there are different subscriptions for multiplayer, cloud, games, etc. Isn't that the opposite of an effective subscription strategy?
rao-v 5 hours ago
devin 5 hours ago
Vaushite 5 hours ago
devin 4 hours ago
eddythompson80 5 hours ago
reactordev 5 hours ago
MBCook 5 hours ago
Steam just sits back and takes money, for the most part. The hardware/software/advertising spend is probably a drop in the bucket compared to MS.
eddythompson80 4 hours ago
scott_w 3 hours ago
eddythompson80 3 hours ago
I think I understand why Microsoft costs are higher than others due to their a spending spree, so the break even is much higher.
scott_w an hour ago
imtringued an hour ago
You don't seem to understand the difference between the margins on a sale and the averaged margins once the studio development costs are included.
If the store takes 30% you are still left with 70% gross margins but if you have development costs, you maybe only have enough sales to break even or just barely be profitable. A 30% margin on the entire studio means the studio must produce guaranteed successes consistently.
It might also not be obvious but if Microsoft imposed 30% margins, those are a floor, whereas a fee reduces the ceiling. They are not the same even if we assume the target is met.
scott_w 5 hours ago
eddythompson80 5 hours ago
bathtub365 3 hours ago
asanineassasin an hour ago
aaronbrethorst 5 hours ago
Loughla 5 hours ago
doctorpangloss 5 hours ago
pjmlp 4 hours ago
Only Xbox, the games console, is having a bad time, the publishing part is doing great with movie licenses, and all the studios that belong to Microsoft, regardless where they sell their games.
girvo 4 hours ago
numpad0 4 hours ago
wvenable 3 hours ago
The next failure was Xbox Live. The video game market is a hit-based market with big tent-pole franchises doing large launches. For a modern example, look at the hype around GTA6. Launches sold games and exclusives sold consoles. Microsoft put huge game launches on Xbox Live for their relatively low monthly cost and lost millions on those launches.
They also bought a bunch of game studios which is a terrible strategy for a console maker. Meta made the same mistake with the Quest.
It's was never the lack of commitment to a strategy -- it was just having the wrong strategy to begin with.
NegativeLatency 3 hours ago
demibabs 4 hours ago
wewewedxfgdf 5 hours ago
donbox 5 hours ago
hakfoo 5 hours ago
The architectural differences that made a console more compelling than a standalone PC are largely gone. (Nintendo is a bit of an exception here, but they were always playing a different market than Sony and MS anyway)
This means it's harder and harder to say "here's a unique experience you only get on Xbox" (or Playstation for that matter)
The price advantage is going away fast, especially with talk that next-gen consoles will top USD 1000.
All they have left is their prestige first-party products, which they don't seem to really know how to use effectively. Some of them have solid cultural penetration, and could spawn broader media franchises with the right handling.
frez1 5 hours ago
WhiteDawn 5 hours ago
Part of the sales pitch is you need more than just a torrent client to pirate.
Now in the world of AI I think this moat is evaporating. Hypervisor exploits are dropping like rain and determined individuals can vibe code a reasonably performant emulator in a couple of weeks.
In that world the only reasonable edge you have left is high prestige exclusives and merchandising/physical sales.
Nintendo has this cornered, one of the few companies who can pull off a rabid fan base buying a console they already own because this time there’s a triforce on it.
Meanwhile Sony and Microsoft are diluting their own IP and going full digital. Writing is on the wall if you ask me.
MBCook 4 hours ago
They’re gaming appliances and that will still be a huge draw.
PS: Sony gave up PC publishing, so that argument no longer holds. It was a dumb move as you said.
afavour 5 hours ago
> This means it's harder and harder to say "here's a unique experience you only get on Xbox" (or Playstation for that matter)
That’s also been the case for a very long time. That’s why they sign deals for exclusives.
eddythompson80 5 hours ago
On the other hand it seems to work for Nintendo which keeps their consoles intentionally underpowered and don’t try to compete with the AAA game expectations with the majority of their titles.
MBCook 4 hours ago
Look at all the amazing stuff in the indie space. Let your developers go wild and make neat games that don’t cost $200 billion each.
You could have so many test exclusives like the more fun and experimental stuff we had in the PS1/2 era.
You don’t have to give up the big games. Just don’t focus entirely on them.
Same problem movie studios have. They chase the “sure things” and just pump more money in to be “more sure”. It’s all more fragile than ever.
eddythompson80 4 hours ago
philistine 3 hours ago
conductr 4 hours ago
Razengan 5 hours ago
You're out of touch.
Step outside an echo chamber and you'll see that in most countries, including East Asia and the Middle East, if you take a walk around any big mall, you don't see kids pestering their parents to buy them a PC. They ask for a PlayStation or an Xbox or a "Nintendo" (yep that's what people still call the Switch)
In conbinis, there are Xbox and PlayStation gift cards hanging from the shelves, in the local currency.
There are accessories for PS/Xbox/Switch everywhere, more than PC gaming accessories.
And it's not because the PC stuff gets sold out while the consy stuff gathers cobwebs: If that was the case the consoles would stop getting restocked after a few months, but they keep stocking newer stuff. Meanwhile I have to hunt around and specifically request for Razer or Mad Catz or other PC-specific brands.
> The architectural differences that made a console more compelling than a standalone PC are largely gone.
If you go hang out at someone's home, nobody says "Let's go to my bedroom desk and play something on the PC", no they crash on the couch and turn on the TV and fire up FIFA or some other normie shit.
throwaway314155 5 hours ago
This is still the case in the U.S. for the most part. The point is moreso that barrier to entry is lowering. The SteamDeck is a PC/console and a good example of a possible trend in that direction.
Razengan 5 hours ago
Hell I saw PlayStations in barbershops in Vietnam! There's no way you'd see a PC in those environments.
The Steam Deck certainly reduces the gap, but I've yet to see it penetrate "normie" social circles, and it's still rare in random gaming shops compared to console stuff. Have Valve released their OS for other handheld manufacturers to use? That's probably the only way to end Windows' dominance and improve the coolness factor of "PC" gaming.
throwaway314155 4 hours ago
BobbyTables2 5 hours ago
Sure, there are advantages to using a keyboard+mouse in a FPS game but it’s a much different gaming experience than a handheld controller.
Razengan 4 hours ago
I will never forgive Microsoft for killing SideWinder.
Vaushite 4 hours ago
But I don't get why HN is randomly shadowbanning half my comments and not the other half! This one wasn't shadowbanned.
what 4 hours ago
Vaushite 4 hours ago
This one came pre-flagged.
devin 5 hours ago
No, the main driver is still there. People do not want to build and maintain PCs. Your 14-year-old nephew doesn't want to do it, either. People want to turn on a box and play a game. I am technical and I want absolutely nothing to do with maintaining a PC. I'll take the console experience every single time.
MBCook 4 hours ago
Vaushite 4 hours ago
dyauspitr 4 hours ago
Dylan16807 4 hours ago
And you don't need to build a PC to have a PC.
scott_w 3 hours ago
Since the PS4/Xbox One, they’ve been similar enough in underlying architecture that engines like Unreal have been able to smooth over the differences enough to make multiplatform technically viable. It’s meant companies like Capcom with RE Engine have made a huge success out of selling across all platforms, including PC. That freedom for publishers is a problem for console manufacturers who have fewer 3rd party exclusives as a result.
gucci-on-fleek an hour ago
With the notable exception of the original Xbox, which used mostly standard PC hardware [0] and ran mostly standard Windows [1].
[0]: https://en.wikipedia.org/wiki/Xbox_technical_specifications
[1]: https://en.wikipedia.org/wiki/Xbox_system_software#Original_...
prmoustache 28 minutes ago
The advantage of consoles are:
- No minimum/recomended config to check and insurance that a game or an accesorry bought for a console gen will work well for that console gen. In term of game compat this is something Steam tried to with the steam deck but has no way to enforce really and the biggest one imho. When you buy a brand new "budget" computer in the price range of a console you usually knownyou won't be able to play some of the upcoming AAA titles at least woth decent graphic quality.
- availability in retail stores
- ability to sell games in the second hand market but I don't think this is something that is here to stay with the disappearance of physical medias
exhilaration 4 hours ago
My take is that almost nobody has a standalone PC anymore, especially kids. Kids these days all start with iPads, them maybe they move up to Macbooks once they get to high school or college. Other than the local LLM fanatics I see here on HN, I have no idea who's buying those PC towers anymore, they seem like fringe relics from the past century.
numpad0 3 hours ago
Consoles slowly started losing that plot after the launch of Xbox and GPU development mess of PS3(the PS3 CPU was supposed to be the world's first APU but Kutaragi dropped the ball big time) and now consoles are just a Nespresso experience, with just marginally cheaper hardware tied to proprietary full-priced game discs, which is not worth much.
OS argument is practically valid but... Frankly IMO that's more of a disadvantage of PCs coming from horrible near nonexistent engineering discipline of software engineering than an advantage of consoles.
eddythompson80 5 hours ago
I’m sure if they are forced to (legally or otherwise) they can find a solution, but it would be a thorny thing to split.
prmoustache 34 minutes ago
returnInfinity 4 hours ago
ocd 4 hours ago
Regardless, I think the cracks are showing in all entertainment industry. I don't understand why anyone has been buying an XBOX after the 360 given home computing accessibility only got better around the time that generation ended. The line between a console like an XBOX and PC was already extremely blurred back then, and it still doesn't make sense to me to buy a gaming device where your software is tied to a specific generation's hardware. I just wanted to say that since while I don't think this licensing would be a good deal for either party, I resent Microsoft's arrogance about how they think their place in this industry is permanent.
donbox 5 hours ago
zug_zug 5 hours ago
TheAtomic 5 hours ago
ailun 4 hours ago
Cyph0n 5 hours ago
But it is similar to Fallout in that it was able to break out of its universe. Andor is enjoyable even if one hates Star Wars; Fallout is enjoyable even if you dislike gaming.
AstralSerenity 4 hours ago
xnx 4 hours ago
"[Netflix] recently made an offer to exclusively license Xbox titles from Microsoft for film and TV adaptations: $500 million for seven years."
Source: https://puck.news/newsletter_content/what-im-hearing-the-pet... (full text shows in reading mode)
herodoturtle 4 hours ago
bobbyblackstone 5 hours ago
For 12 years of rights.
jdw64 5 hours ago
steele 5 hours ago
jayd16 5 hours ago
zug_zug 5 hours ago
unsupp0rted 5 hours ago
Unfortunately, the right hands potentially no longer exist. The current generation seems largely unable to produce good things, with few exceptions (notably Andor)
a34729t 5 hours ago
caconym_ 5 hours ago
unsupp0rted 4 hours ago
Babylon 5 demonstrated that you can keep absolutely everything else crappy (effects, costumes, heck acting and even cinematography), so long as you're good at conversations in rooms.
philistine 3 hours ago
hattmall 4 hours ago
unsupp0rted 4 hours ago
In theory you can make any sci fi show about future humans and a couple other species going to war. Should be straightforward.
But getting the balance of that universe right in terms of little details is tricky: Halo has done the heavy lifting already.
roosterIllusi0n 5 hours ago
LoganDark 6 hours ago
(I even like some kids' shows too, like Tales of Arcadia and Miraculous Ladybug, just for having consistent tech/magic systems... also Daniel Spellbound)
I know of some much older shows with incredibly huge lore, like Star Trek and Stargate, and I do love reading about them, but I'm still struggling to get started with any of their shows/movies themselves, they feel a bit dry.
roosterIllusi0n 5 hours ago
kleeklee 5 hours ago
kyriakos 4 hours ago
donbox 5 hours ago
rapatel0 5 hours ago
LoganDark 5 hours ago
throwaway314155 5 hours ago
kyriakos 4 hours ago