Xbox, what on earth are you doing?

Xbox has a new rival in town, and you might be surprised to know that it’s TikTok, as well as movies, that keep the Head of Xbox Game Studios up at night. Not PlayStation, not Nintendo. A social media application available on Android and iOS, and those motion picture films that you used to flock to theaters to see, but can now more easily than ever before watch from the comfort of your own couch.

It’s likely strange hearing that a video game company isn’t considering other video game companies its competitors anymore. That’s understandable. Xbox targeting TikTok and movies as its new rivals probably feels entirely random. As random as it might feel, if PlayStation were to stop competing with other video game companies and start targeting fast food chains. On a surface level, it doesn’t make any sense. But if you dig a little deeper, you can start to see the direction that Xbox is probably taking, in addition to the reason it’s taking it.

Xbox probably sees TikTok and movies as its new rivals because it’s competing for your time

To be clear, this has always been the case. Video games are a form of entertainment, and as long as they’ve been around, they’ve had to compete for your time with any other form of entertainment. So, that’s not an entirely new aspect of things. However, things have changed quite a bit. Now more than ever, entertainment through mediums like movies and TikTok is commanding the time of everyone, from teenagers to full-blown adults.

TikTok consumption is on such a massive scale that it wouldn’t be surprising to learn if some users were avoiding all other forms of entertainment to scroll through new clips. There likely are some users out there who are like this. Microsoft and its Xbox team appear to think so, and this is likely a big reason why it considers TikTok one of its new main rivals.

This is just speculation, of course, but it’s the most reasonable assumption that can be made. TikTok, movies, and streaming video make up a huge chunk of media consumption these days. Naturally, Xbox wants users to spend time playing games as opposed to watching videos. So, it’s setting its sights on those types of services.

The Xbox, as we know it, has changed forever

The days of Xbox being the third console behemoth in the market are long gone. This console platform of the early 2000s and 2010s has transformed into something entirely different. It’s not dead per se, but it’s certainly dead in the sense that the Xbox that fans have loved for two decades isn’t the same. Not only is Microsoft now targeting social media apps as its new rival, but its Xbox consoles won’t be traditional consoles anymore. The next Xbox will reportedly be a Windows gaming PC with an Xbox UI layer on top. It’s a new age for Xbox. For better or worse, this is the path Microsoft has chosen to take.

The post Xbox's new rival is TikTok, not PlayStation or Nintendo appeared first on Android Headlines.

Rumors of the next-gen Xbox console powered by Windows, making it a full-fledged gaming PC, began floating to the surface of the news cycle earlier this month. Now, it seems that those rumors actually have weight to them. So much weight that the rumors are reportedly true.

When the rumors first popped up, we said it sounded like the next console would just be an expensive gaming PC. That’s exactly what Microsoft is going for, according to Windows Central. (It is worth noting that this report is based on “trusted sources within Microsoft.” So, Microsoft itself has not publicly announced these details). This probably comes as no surprise to some. The ASUS ROG Xbox Ally X and ROG Xbox Ally launched on October 16, and both feature a new software experience. It’s called the Xbox Fullscreen Experience, and it’s designed to be more of a console-like user interface than Windows 11.

One of the main complaints that Windows 11 handhelds have had so far is that they don’t feel like handheld consoles, which is essentially what they are. The Xbox Fullscreen Experience takes steps to address that issue. In most ways, it does a fine job at this. All your games are accessible right from one place. This includes games across clients like the Xbox app, Steam, Ubisoft Connect, and more. The next Xbox console is following in these footsteps.

Microsoft’s next Xbox console is a Windows PC, but it will have a console-style UI

The important bit here for console fans is that the new Xbox will have a console-style UI. Similar to, or perhaps exactly like, the Xbox Fullscreen Experience for the ROG Xbox Ally X and ROG Xbox Ally. The console experience will be layered on top of Windows, just like those handhelds. It will also boot into this experience as soon as you power it on, as opposed to booting into Windows first.

There is a major difference, though. As Windows Central reports, those who prefer this console UI can stay within it indefinitely. With no requirement to ever leave it. That means updates, game installs, etc., will all be doable from this experience. For comparison, with the ROG Xbox Ally X, if you want to update anything, it all has to be done from the Windows side of things. It’s not a great experience, all things considered. The next console is reportedly not going to have this problem. That’s a big step in the right direction if you want a console to be a console.

That being said, gamers will have the option to move to the Windows layout if they want to play games from other clients, such as Steam, or play Windows games that run in their own client and aren’t available on Xbox.

It’s still unclear what the price is going to be. However, Xbox President Sarah Bond did confirm that the next-gen Xbox will be a “very premium, very high-end, curated experience.” So, chances are the next Xbox won’t be as affordable as some people are hoping.

The post The next Xbox console is indeed a gaming PC powered by Windows appeared first on Android Headlines.

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From Obsidian’s The Outer Worlds 2 hitting Game Pass to Dragon Quest remakes, Virtua Fighter’s return, and a flood of indies, here’s every new Xbox game launching this week.

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Here is a list of everything new in Halo: Campaign Evolved, Halo Studios' remake of the original Halo: Combat Evolved from Bungie.

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The Xbox Insider Program isn't robust enough for the absolutely gargantuan effort ahead of Microsoft. Bringing Windows up to par with the Xbox console experience may be the platform team's biggest challenge yet.

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Read full article at https://wccftech.com/xbox-doing-better-japan/

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For the last two years, Microsoft’s video game division has been working to meet financial targets that are well in excess of the typical industry standard, which has led to waves of layoffs, canceled projects, and a general perception that the company is scrambling.

These allegations come from a new report from Bloomberg journalists Jason Schreier and Dina Bass, who reported that Xbox has been told it’s expected to work toward a profit margin of 30% across the board.

As far as can be told from outside Microsoft, this is significantly above Xbox’s profit baseline. A typical quarterly report from Microsoft only discloses revenue, but as noted by TweakTown, Xbox head Phil Spencer testified in court in 2022 that “the Xbox business today runs at a single-digit profit margin.”

It’s worth noting that even the biggest game studios usually maintain a profit margin of roughly 20% under typical circumstances. As an example, Xbox subsidiary Activision Blizzard, which runs some of the most popular games-as-a-service in the world today, “only” had a profit margin of 22-to-25% two years ago before Microsoft’s acquisition completed.

Even Sony, Microsoft’s primary competitor in the console space and the makers of the PlayStation 5, reportedly only runs at a 9.5% profit margin. Through that lens, any video game company that’s honestly eyeing a consistent 30% is living in a dream world.

The new financial target reportedly came directly from Microsoft CFO Amy Hood in the fall of 2023, which marked the start of a series of big decisions and policy reversals at Xbox.

Since then, Microsoft has drawn fire for multiple waves of layoffs; reorganized several subsidiaries such as Halo Studios; raised the base MSRP of the Xbox Series X twice so far this year; made moves to phase out physical media; officially ported many of its hit first- and third-party games to PlayStation and Switch; and canceled multiple highly-anticipated game projects such as Rare’s Everwild, a reboot of Perfect Dark, and ZeniMax’s MMO code-named Project Blackbird.

Earlier this month, Microsoft hiked the price of its Xbox Game Pass subscription service, claiming it was part of a significant “upgrade package.” Less relevantly to consumers, it has also allegedly raised the price of Xbox development kits by $500, blaming unspecified “macroeconomic” factors.

Some of that, to be fair, is due to circumstances outside Xbox’s control such as the ongoing chaos over tariffs. This year has been a rough time to be a hardware manufacturer.

Xbox is also apparently locked into at least one more console generation, according to recent interviews with Microsoft’s Sarah Bond. The phrase that keeps coming up is “very premium, very high-end curated experience.” If the recently-released Xbox Ally is any indication, the next-gen Xbox will be something more like an expensive, user-friendly Windows PC than what we’d currently recognize as a game console.

For a while now, though, Xbox has come off like its left hand doesn’t know what the right is doing, which made little sense in the wake of reports that the division was both growing and pulling in increased revenue. If it’s being forced to contend with unrealistic expectations from higher up at Microsoft, however, that would explain the overall sense of disorganization.

This is one of the most infamous types of “creative accounting” in the video game industry: issue an inflated revenue forecast, then blame developers/titles when their games fail to reach those numbers. Square Enix notoriously came under fire for this in the 2010s with releases like the 2013 reboot of Tomb Raider. It was a solid success (3.4 million copies sold), but its publisher wanted a blockbuster, so it regarded the game as a failure. History repeats.

In theory, Xbox ought to be one of the leading voices in video games as a hobby and medium right now, but it’s being forced to burn much of its time and effort in an attempt to meet a profit goal that no company on Earth could expect to reach.

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