# Will Xbox continue into the next generation?
**URL:** https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594
**Category:** The Game Room
**Tags:** video-games-e-games
**Created:** [November 23, 2023, 6:25pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594 "2023-11-23T18:25:18Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@Mahaloth](https://boards.straightdope.com/u/Mahaloth)
#### Post date: [November 23, 2023, 6:25pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/1 "2023-11-23T18:25:18Z")
PS2 sold 155 million, while Xbox sold 24 million: Huge win for Playstation
PS3 sold 87 million, while Xbox 360 sold 84 million: Basically a tie
PS4 sold 114 million, While Xbox One sold 52 million: Xbox was destroyed
PS5 has now sold about 41 million units, while Xbox has sold 21 million of X & S total.
Is Microsoft making good money on this system? It started out with its new system losing, but its sequel system was very much the equal to PS3. Now, they are completely behind and it doesn’t look like they can catch up.
I believe Microsoft is developing a new Xbox, but is there any chance they quit the hardware market? They must make money on licensing, but it seems like Sony has really won the console war there.
Nintendo feels like it competes entirely outside Sony and Microsoft. Switch has outsold everything except PS2 and the Wii was right up there with PS4 and the original Playstation. I presume Nintendo is just fine even with the one-off failure of the Wii U.
My understanding is Nintendo will likely release Super Switch(Switch 2?) next year and if it offers PS5 level graphics in a still portable system, it will likely be a huge hit.
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### Author:  [@Atamasama](https://boards.straightdope.com/u/Atamasama)
#### Post date: [November 23, 2023, 6:31pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/2 "2023-11-23T18:31:12Z")
> [@Mahaloth](#):
>
> Is Microsoft making good money on this system?
Yes.
Not console sales themselves but that’s nothing new. Consoles are often sold at a loss since they make money off the games.
I remember in the 90s working at Toys R Us when the N64 came out, and having the chat with my manager about how that console and others (like PlayStation) didn’t make money, but it didn’t matter because the games were insanely profitable, and the console makers got a cut from each one.
Here’s an article from a couple of years ago.
> **[Microsoft would like to remind you the Xbox definitely makes money](https://www.theverge.com/2021/5/6/22422691/microsoft-xbox-consoles-profit-software-services-revenue-apple-epic-games-trial)**
>
> Xbox consoles are sold at a loss
Microsoft doesn’t have to be #1 in the market to justify staying in it.
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### Author:  [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)
#### Post date: [November 23, 2023, 6:41pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/3 "2023-11-23T18:41:08Z")
> [@Atamasama](#):
>
> the games were insanely profitable, and the console makers got a cut from each one.
just like printer ink.
But where’s the money now for the retailers like Wal-Mart, where the games are sold by streaming?
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### Author:  [@DCnDC](https://boards.straightdope.com/u/DCnDC)
#### Post date: [November 23, 2023, 6:42pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/4 "2023-11-23T18:42:24Z")
XBox had **Halo** , which allowed it to catch up.
They _still_ have **Halo** , but nobody cares that much anymore.
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### Author:  [@Horatius](https://boards.straightdope.com/u/Horatius)
#### Post date: [November 23, 2023, 6:54pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/5 "2023-11-23T18:54:55Z")
> [@Mahaloth](#):
>
> PS5 has now sold about 41 million units, while Xbox has sold 21 million of X & S total.
So they own 1/3 of the current market, why would they toss that away? This idea that PS is ‘winning’ is kind of ridiculous. This isn’t a football game where the score matters. As long as MS thinks they’re making enough money, they’ll keep making it. MS has been ‘losing’ in this market for over 20 years now, and they don’t appear to be quitting.
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### Author:  [@Palooka](https://boards.straightdope.com/u/Palooka)
#### Post date: [November 24, 2023, 6:02pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/6 "2023-11-24T18:02:02Z")
I could see Microsoft exiting the hardware market in the sense of pivoting to a streaming-focused thin client kind of console. Microsoft was “losing” so they spent $70 billion of Azure money on Activision. Sony is so worried that they’re opening up crossplay after a decade of rejecting it.
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### Author:  [@AlsoNamedBort](https://boards.straightdope.com/u/AlsoNamedBort)
#### Post date: [November 24, 2023, 6:17pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/7 "2023-11-24T18:17:26Z")
> [@Mahaloth](#):
>
> My understanding is Nintendo will likely release Super Switch(Switch 2?) next year and if it offers PS5 level graphics in a still portable system, it will likely be a huge hit.
It 100% will not have PS5 power in a portable system. Maybe PS4 level.
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### Author:  [@Chronos](https://boards.straightdope.com/u/Chronos)
#### Post date: [November 24, 2023, 6:55pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/8 "2023-11-24T18:55:56Z")
They might not make money off of the console sales, but they still need console sales to be high. Anyone who doesn’t own a Microsoft console won’t be buying any Microsoft-licensed games. And there are costs associated with developing and supporting the consoles, so if the income gets too low, the profits do disappear.
And if you’re behind in the market, there can be feedback effects that push you even further behind. Game makers will naturally want to release their games on the most-popular console, and they’re more likely to release exclusives for that console, and less likely to release exclusives for the other console. People will see their friends playing the more-popular console, and that serves as free advertising. If you can play multiplayer with folks using the same console, but not cross-console, then folks will want the console that lets them play against more people. If there’s any way to resell old games (even if it’s just the legacy games from previous generations that this console is backwards-compatible with), then people will want the console with a bigger used market. All of this would serve to make the more-popular console even more popular, and the less-popular one even less so.
Plus, of course, there’s presumably some reason why the more popular console is more popular to begin with. If you’re the #2 company, you need to figure out what you’re doing wrong, and fix it. And how confident are you that you were right and did manage to fix it?
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### Author:  [@CuckerTarlson](https://boards.straightdope.com/u/CuckerTarlson)
#### Post date: [November 24, 2023, 9:50pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/9 "2023-11-24T21:50:55Z")
They sell accessories. Controllers, headsets, SSDs, you name it. They also push snacks and vinyl figurines to go along with your games. I’d imagine they must make some money off of selling gift cards for game platforms, too.
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### Author:  [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)
#### Post date: [December 27, 2023, 2:23am UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/10 "2023-12-27T02:23:02Z")
The next generation will be the first where previous huge cross-platform franchises are only available on one. I may switch to MS for the next single player Fallout and I’m sure I am not alone.
But in any case, MS is perfectly happy selling millions of consoles even if someone else is selling more. As long as it turns a profit it won’t care what Sony is doing. It can also afford to make less money on console sales because it’s another way of making its software part of the firmament.
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### Author:  [@Hoopy\_Frood](https://boards.straightdope.com/u/Hoopy_Frood)
#### Post date: [December 27, 2023, 4:44am UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/11 "2023-12-27T04:44:30Z")
> [@CuckerTarlson](#):
>
> I’d imagine they must make some money off of selling gift cards for game platforms, too.
Yes. Especially if you want a physical card. Most companies with digital distribution of media–both Microsoft and Sony included–do not sell physical cards, only digital ones. (Apple is a notable exception. You can get physical Apple gift cards directly from Apple. And, actually, Sony doesn’t sell digital cards directly either. They rely on a third-party for that as well.)
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### Author:  [@Justin\_Bailey](https://boards.straightdope.com/u/Justin_Bailey)
#### Post date: [December 28, 2023, 5:50pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/12 "2023-12-28T17:50:04Z")
Huh? Microsoft, Sony. and Nintendo (and Steam, Fortnite, Minecraft, and Roblox for that matter), all sell physical gift cards.
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### Author:  [@Atamasama](https://boards.straightdope.com/u/Atamasama)
#### Post date: [December 28, 2023, 5:59pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/13 "2023-12-28T17:59:05Z")
> [@Justin\_Bailey](#):
>
> Microsoft, Sony. and Nintendo (and Steam, Fortnite, Minecraft, and Roblox for that matter), all sell physical gift cards.
Not Microsoft. If you go to their web site you can order a digital gift card but not a physical one.
Hoopy\_Frood didn’t say that the physical gift cards didn’t exist, it’s just that the companies don’t sell them directly. They are sold by someone else.
I can walk into many stores and get a physical Xbox gift card. But not from Microsoft itself.
> **[Buy Xbox Gift Card – Digital Code - Microsoft Store](https://www.microsoft.com/en-us/p/xbox-gift-card-digital-code/cfq7ttc0k63h/0025?icid=gift-card-page_R1_CP1_XboxGC_10272023&activetab=pivot:faqtab)**
>
> Get the Xbox Gift Card – Digital Code at Microsoft Store and compare products with the latest customer reviews and ratings. Download or ship for free. Free returns.
> ### Can I buy a physical gift card?
>
> Physical gift cards for the online stores can be purchased at top retail outlets.
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### Author:  [@Justin\_Bailey](https://boards.straightdope.com/u/Justin_Bailey)
#### Post date: [December 28, 2023, 6:54pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/14 "2023-12-28T18:54:48Z")
Does that matter? Does Microsoft not get the money or something if you buy the card from Walmart?
The retailer cut of gift cards is likely tiny.
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### Author:  [@Atamasama](https://boards.straightdope.com/u/Atamasama)
#### Post date: [December 28, 2023, 6:59pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/15 "2023-12-28T18:59:56Z")
> [@Justin\_Bailey](#):
>
> The retailer cut of gift cards is likely tiny.
I see reports of anywhere from 5%-20% per card. That’s about the same as what a retailer would expect from selling computer or game console accessories.
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### Author:  [@Justin\_Bailey](https://boards.straightdope.com/u/Justin_Bailey)
#### Post date: [December 28, 2023, 10:22pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/16 "2023-12-28T22:22:58Z")
Wow. I stand corrected. Clearly, it must be worth it for retailers to sell gift cards. But I always assumed they were making almost nothing on them.
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### Author:  [@Atamasama](https://boards.straightdope.com/u/Atamasama)
#### Post date: [December 28, 2023, 10:35pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/17 "2023-12-28T22:35:21Z")
To be fair it’s probably closer to 5% in most cases, but that’s still decent. And I’m talking gift cards in general, not specifically cards for gaming companies.
I used to be an assistant manager at a computer store many years ago and that isn’t a bad margin.
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### Author:  [@Chronos](https://boards.straightdope.com/u/Chronos)
#### Post date: [December 28, 2023, 10:47pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/18 "2023-12-28T22:47:50Z")
For something that never expires, takes up almost no shelf space, and can’t be shoplifted, 5% is an amazing margin.
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### Author:  [@Mahaloth](https://boards.straightdope.com/u/Mahaloth)
#### Post date: [March 9, 2024, 6:32pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/19 "2024-03-09T18:32:10Z")
I am not the only one at least asking this question:
> **[Microsoft Will Be Debating Right Now Whether Xbox Consoles Have a Future,...](https://www.ign.com/articles/microsoft-will-be-debating-right-now-whether-xbox-consoles-have-a-future-says-peter-moore)**
>
> IGN interviews ex-Xbox boss Peter Moore about the future of video game consoles and asks: is this generation the last?
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### Author:  [@EllisDee](https://boards.straightdope.com/u/EllisDee)
#### Post date: [March 9, 2024, 7:31pm UTC](https://boards.straightdope.com/t/will-xbox-continue-into-the-next-generation/993594/20 "2024-03-09T19:31:07Z")
That article is speculation from an outsider who used to run Xbox at Microsoft. But I remember seeing on Reddit earlier this year that Microsoft already announced that they were done with Xbox. I never did see any links to articles; just a bunch of topics in various subreddits with titles like “So now that Microsoft is done with Xbox, what are you going to do?”
Googling around, this article from February 8th explains what I saw on Reddit, but unfortunately doesn’t explain what’s actually happening. It says “there will be a ‘business update event’ next week to address the console’s future”:
> **[Is Xbox Shutting Down? Here's What We Know About What's Happening at Microsoft](https://www.complex.com/pop-culture/a/kevin-wong/is-xbox-shutting-down-heres-what-we-know)**
>
> We're breaking down all the recent news and rumors circulating about the future of Xbox and its parent company Microsoft.
And then this 4 minute snippet from a podcast explains what was announced at that business update event, which was just that they are going to be putting four exclusives onto other platforms. But they won’t name those titles, other than to say it’s not Starfield or Indiana Jones. They do say they are titles that are at least a year old.
[ ](https://www.youtube.com/watch?v=q__d01cizC8)
So I guess that’s what all that reddit chatter was about, and I guess that’s also why it then quickly died down a week later.
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