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Posted by BlueBerry2001 2 hours ago

Microsoft raises Xbox prices by up to 43%(www.theverge.com)
61 points | 58 commentspage 2
GiorgioG 1 hour ago|
Xbox is in complete disarray and is imploding. I haven’t owned a PlayStation in decades. If my son’s Xbox Series X (the worst naming ever) suddenly dies, we’ll either switch to PlayStation or build a PC.
darth_avocado 1 hour ago||
Xbox is in complete disarray because none of the people in charge seem like people who have played a single video game ever.
inigyou 30 minutes ago|||
And isn't that just so typical? Every industry right now is headed by money extraction experts, not experts in that industry.
x0x0 23 minutes ago|||
I don't think it's played; it's that idiots brought low-margin businesses into a high-margin enterprise b2b saas company (that exploits a monopoly too) and are shocked that gaming is not going to give you 30% or higher margins. Nintendo is super disciplined and a bad year for Microsoft margin-wise is one of Nintendo's best. If Nintendo can't regularly hit 30% margins, nobody can, and certainly (as you say) people who don't game and don't know a single thing about gaming except speedrunning a tutorial aren't going to do that.
binarin 1 hour ago|||
Isn't playstation going download only way in a year or so, with no physical disks at all?
2III7 1 hour ago||
The majority of gamers don't care. PC has been digital only for decades.
ZenoArrow 1 hour ago||
There are a few points to raise here.

Firstly, yes PC is mostly digital only, but there is at least competition between PC gaming marketplaces, which helps to restrict anti-consumer practices like deleting content that gamers have paid for.

Secondly, some of the competitors in the PC gaming space allow for physical backups of installation media, which helps with game preservation. For example, if a game is bought on GOG, the installer is mostly/always one that can be backed up onto physical media.

Thirdly, while it's true most gamers have moved away from physical media, it still has value. For example, second hand games allow for more people to take part in gaming than could otherwise (legally) do so. Taking away physical games won't stop people on low incomes from wanting to game, and is likely to lead to a resurgence in game piracy. Not exactly the outcome game industry leaders are likely to welcome.

goldenarm 1 hour ago|||
PS5 prices went up 35% in the past 2 years, and PC RAM went 5x. This is a global problem
ohmylawd 1 hour ago||
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wronglebowski 1 hour ago|||
I think that’s the really important implied question right now. Mostly everyone already has some form of device to play games on. What happens when they start to die off?
sssilver 1 hour ago||
Would you consider the Steam Machine?
ravenstine 1 hour ago||
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dbg31415 1 hour ago||
For my entire life, I've seen the same cycle.

Microsoft buys something great, optimizes all the good out of it, and then pulls the plug.

Skype, Nokia, GitHub...

Now it's happening to video games.

The thing everyone needs to realize is that Microsoft fundamentally doesn't make anything, they never have.

All they can do is buy low and sell high. Or buy high and sell higher.

They certainly can't lovingly craft games, the way gamers expect.

In fact, I'd go so far as to say that executives hate artists. Go out of their way to fire them.

Look at what's happening to Blizzard & Bethesda under Microsoft. Arguably Blizzard was ruined the moment Activision sunk their claws in. Quality went down, creativity went down, and all so Bobby could buy a new yacht and sail to Epstein's Island.

"Do you guys not have phones?" That's something a manager who was totally out of touch with his audience would say. Not of an artist creating experiences for gamers.

Microsoft wedge micro-transactions into everything, changes game play to emulate games like Candy Crush where gamers have to pay every 30 seconds. Really more slot machines than video games, but to the ghouls running the show they can't tell the difference.

Players like to be amazed, entertained, and it's not a formulaic process. A gamer will never say, "Oh good, I love feeling pressure and being rushed and all I wanted to do was put in more money all along!"

Microsoft has killed support for all these games. Which kills community.

They add things that nobody wants, because they saw someone else doing it. And they keep adding more of these pay to win and collection "buy a new skin" type mechanics.

Anyway this is a straight up rant at this point, but Microsoft buying something is always a sign doom will follow. Just a matter of time. Xbox held out pretty well. But in the last year or three Microsoft has set its sights on ruining every game it has, so it's just a matter of time now before gamers abandon it. I have zero faith Microsoft will find a way to bring an audience back, because they have no idea how to connect with said audience. It's always just going to be, "How much ARR does that game produce? Wow what a great game!"

inigyou 29 minutes ago||
Same with Google, Oracle, and basically every big company. In gaming, Valve is a holdout for now - maybe they felt burned after getting prosecuted for shoving Steam full of micro transaction gambling and they're laying low for a while.
aaomidi 25 minutes ago|||
I think you're right and I think it's because Microsoft behaves a bit like PE.
gertop 28 minutes ago||
Microsoft didn't buy Xbox, they built the entire ecosystem themselves...
rustcleaner 1 hour ago|
I'm sure it applies to Xbox too, but I priced out today's PS to the PS1 and it closely follows the inflation rate that M2 has undergone.

M2 expansion is the prime driver of prices, after supply & demand. Normalize SPX, gold/silver, etc, to M2 and see that they all run in fairly horizontal channels. You can even see nominal GDP normalized to M2 having been flat initially and then transitioning into a downward sloped curve for the last few decades.

By normalizing, I mean [in TradingView] doing SYMBOL*23.16*10^12/M2SL (conceptually SYMBOL*M2SL[0]/M2SL). Most important items track close to M2's roughly 6.5%-7% annualized force of interest inflation rate (the quotient of the natural log of the ratio of price now to historical price, over the elapsed time between the prices).

7% inflation (FoI) -> wealth halflife of cash ≈ 10 years.

kiddico 1 hour ago||
Reading this made me question my own mental stability.
rustcleaner 1 hour ago|||
CPI replaces steak with hamburger or chicken once steak becomes unaffordable. It understates inflation.
inigyou 1 hour ago|||
He's basically saying the increase in prices has matched the increase in the money supply. Implying that we need to hold politicians accountable for the massive expansion in the money supply. Which is logic that's hard to fault.

Also implying that inflation is under-measured, perhaps deliberately. Which definitely seems true for anyone who's experienced inflation.

rustcleaner 1 hour ago|||
Better stated than my ham-fisted attempt. Thank you. :^)
ZenoArrow 1 hour ago|||
Except the increase in prices is not tied to M2 in this case. It's clearly a matter of supply not matching demand, as a result of changes in priorities of computing equipment manufacturers. You don't have to look at M2 to understand that Micron, Samsung and SK Hynix deprioritising DDR memory over HBM for AI data centres has led to the rapid increase in prices for consumer-grade RAM.
rustcleaner 1 hour ago|||
Margins for consumer were wider vs HBM before killing Crucial, and still is today. Something else is going on...
inigyou 1 hour ago|||
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DarkmSparks 1 hour ago||
Sounds about right.

"Prices double every 10 years" is a fairly standard economics benchmark.

inigyou 59 minutes ago||
Also known as 7.2% inflation.
DarkmSparks 54 minutes ago||
Inflation is different.

Rule 72 is nominal prices.

Inflation accounts for a 2026 xbox being significantly more advanced technology than a PS1

inigyou 40 minutes ago||
Ah, you're right, I did forget to account for the part where the CPU being 1000x as fast means that prices actually fell 99% even though they went up 10x.