Microsoft says it's competing with Amazon and Google, not Nintendo or Sony for future gaming

Phil Spencer
Phil Spencer (Image credit: Windows Central)

What you need to know

  • Microsoft competes in the gaming space with Nintendo and Sony.
  • Xbox head Phil Spencer says that he views the cloud providers as competition.
  • Amazon and Google are investing in the gaming space.
  • Microsoft wants to be the one to reach billions of gamers going forward through Project xCloud.

It's not secret that Microsoft competes with Nintendo and Sony in the gaming space. However, the company doesn't view the two as competition. Microsoft is obviously worth over a trillion dollars, and Nintendo and Sony don't come close, but it's more about the future of gaming.

Cloud gaming seems like it's taking off because companies like Google, NVIDIA, Microsoft, Shadow, and others, offer their own subscription services. Amazon is reportedly working on its own platform that it'll reveal closer to the next-generation console launches.

Xbox head Phil Spencer sees Amazon and Google as competition because they have the established cloud infrastructure to provide gaming to billions of individuals. He said the following in an interview with Protocol. You can read an excerpt from the interview below compiled by The Verge.

When you talk about Nintendo and Sony, we have a ton of respect for them, but we see Amazon and Google as the main competitors going forward. That's not to disrespect Nintendo and Sony, but the traditional gaming companies are somewhat out of position. I guess they could try to recreate Azure, but we've invested tens of billions of dollars in cloud over the years... I don't want to be in a fight over format wars with those guys while Amazon and Google are focusing on how to get gaming to seven billion people around the world. Ultimately, that's the goal.

It's understandable that Microsoft will want to look ahead and establish themselves early. However, only time will tell who comes out on top.

Asher Madan handles gaming news for Windows Central. Before joining Windows Central in 2017, Asher worked for a number of different gaming outlets. He has a background in medical science and is passionate about all forms of entertainment, cooking, and antiquing.

62 Comments
  • Personally I would say Nvidia is the one to worry about currently.
  • Yeah good point
  • I'm not sure. GeForce Now image quality is very poor.
  • Is that from the bit rate, or the resolution, or what? I can't access any of them so I can't compare.
  • That being said based on reviews of GeForce Now since it's release I haven't read anything that says the competitors are better than it. It's more stable and less laggy than Stadia and it also provides higher visuals and higher available devices than xCloud. Nvidia won't got the same userbase as the others through the simple fact that it is more focused on people into tech, it hasn't been mass marketed, but literally no review has said it's not the best option available at the moment.
  • While understandable, based on other comment sections this isn't going over well with other gamers. You can't think in terms of sales when it comes to this, and I don't think the layman really gets it.
  • The real truth is mainly Sony gamers done understand or compute it. They are still fixated on 1990 Console sales being the metric. In a world where 6-20 year Olds don't care about digital ownership. Console gamers and physical ownership gamers still exist. But even on Sonys last FY Q3 report yesterday they reported on PS consoles all sales of games on PS4 in Q3 now had digital account for 49% of the sales. Up from 34%. Xbox passed 50% digital sales for its games over 1 year ago.
  • Exactly. Sony boldly chose to entrench in their 90s-2000 model of what a console is, focusing hard on single player games, discs, game sharing, and other things that a group of die hard old fashioned gamers want. But the world has moved away from this, and if that's their strategy for the PS5 era, they're going to suffer the consequences.
  • We'll see about it. We'll see how popular the PS5 is. We don't have to wait long for it.
    I used to read similar post in 2013. MS's policies back then, were policies of the future, I was told...
    The XB/MS fans used to support those policies.
    We saw what it did and how successful the PS4 was against the XB1. We'll see how popular the PS5 is compared to the X series... Don't have to wait too long...
  • No matter how popular the PlayStation 5 is, it won't sell billions or reach billions.
  • They could end up being the Nokia of the gaming industry.
  • @jams
    I'm sure you'll love that to happen. MS with a monopoly would be great for them and their fanboys. Not much to gaming, but I guess that's not your priority...
  • Actually I hope that doesn't ever happen especially for someone like you. Just like it's fanboys, Sony seems to be complacent with their current success and strategies and that may not translate over well to the next gen.
  • I wonder about you not wanting that to ever happen. lol
    Since when do you care more about meand other gamers? And we'll see about how popular it will be or not in the coming future. I see a lot of preditions here. I've seen the same type of predictions in 2012-2013...
    We all know what happened then...
  • There were a lot of predictions in the auto industry too until Tesla came along. And look whats happening now. Nobody truly knows what's going to happen
  • We'll see if XB game pass and their streaming will have billions of customers. Forget billions, I wonder how many million actually have constant fast internet to stream games. Now How many of these will actually want to stream games... Spencer talks a big talk. He has big dreams of reaching billions of people.
    He and his team was aiming to sell 200 million XB1. LOL
  • Yeah that was pretty funny 200 million. But hey aim high. No point running an entire division and aiming small. Lol. In all seriousness going forward it looks like Sony gamers and Xbox gamers next Gen will both have over 50% of its install base buying digital. It's taken Sonys gamers longer to adopt. But it's now happening pretty rapidly. I think mainly Phil is talking services though. Xbox seems to be migrating their first Party software to PC but still managing to do it and get those PC players involved through Xbox on PC. Via Gamepass. It's a pretty smart move. They were not going to make a store like Steam and just make it a success. To many loyal Steam fans. But doing it as a subscription where all firdt party content on PC is playable free on Gamepass it doesn't feel like they are trying to encroach on Steam. Instead what they have done is actually get some console only gamers like myself to build a PC. And PC players already can check the service out for like a £10.99 for a month What will be interesting to see is how rapidly Gamepass subs may increase in 2021. With games like Halo Infinite, Fablee reboot ( Rumoured), Forza 8, Gears 6, The Outer Worlds 2 etc etc all hitting both Xbox console and Xbox PC right on thr very midnight of launch. At no extra cost other than the service. Personally I think this Xmas onwards is really going to be crunch time for big adoption of Gamepass. And without realizing it PC gamers will warm to the service whilst feeling like they aren't cheating on Steam. Who knows Xcloud releases officially this year. I think E3 will be a case of Xcloud pricing and details of launch. Xbox Console details and pricing. And a brand new PC store interface for Xbox. With the ability to purchase games and access Ganepass PC games on the same storefront. It honestly wouldn't surprise me if the rumour that Series X has a Windows 10 mode is true as well. Gaming though IMO isn't sustainable as just a console anymore. I think next Gen consoles only will be ok. But the transition will happen over the next 5nor so years. By the end of next Gen, any company not operating a fully fledged PC store/service and not adopting Streaming I don't see making it past 2030. That's just my opinion on the little things I've noticed in the adoption away from discs and digital booms.
  • I've been reading that digital is taking over for so long now. We've seen last generation how gamers responded to it.
    I can give you the ratio of digital sales from Sony in the last few quarters:
    FY 2017 Q1: 39%
    FY 2017 Q2: 27%
    FY 2017 Q3: 28%
    FY 2017 Q4: 43% FY 2018 Q1: 43%
    FY 2018 Q2: 28%
    FY 2018 Q3: 37%
    FY 2018 Q4: 45% FY 2019 Q1: 53%
    FY 2019 Q2: 37%
    FY 2019 Q3: 49% From these numbers there is still a majority of PS games that sells better physically. And that is considering 2 major points that cannot be ignored.
    1) These doesn't include people buying physical games used. The percentage of gamers who also buys physical games should bring down that percentage even more.
    2) There are so many games that are ONLY available digitally. I wonder what is the real ratio when gamers actually have a choice. I can't think of any PS4 game that is only available physically so this only favours the digital ratio... I think these numbers show that PS4 gamers still prefer physical games in their majority. There is still a large percentage of players that buys digital games too. That's why I say physical + digital should be the way forward. Not digital-only. These numbers are directly taken from Sony's financial reports (both page 8):
    https://www.sony.net/SonyInfo/IR/library/presen/er/pdf/18q4_supplement.pdf
    https://www.sony.net/SonyInfo/IR/library/presen/er/pdf/19q3_supplement.pdf Also I don't know where you get MS's numbers. I never actually found these. Can you provide a link, like I did with the Sony one?
    ----------------------------------
    Now about PC gamers moving towards game pass and XCloud?
    I really don't think PC gamers will be into that. I would think PC gamers mostly love their freedom and open platform. I don't see them renting mostl y old arcade games that stops selling well. I don't see them ageeing to the restrictions of streaming games without modding and stuff. And paying monthly fees.
    The great thing about steam is we can see in real time the numbers of players actually playing games. As of right now neither Halo MCC nor Gears 5 MS's last 2 major release on steam is present in the top 100. That actually tells a story...
    -------------------------------------
    "Gaming though IMO isn't sustainable as just a console anymore."
    I think it's not sustainable for MS. Nintendo and Sony seems to be doing fine with the traditional ways. PS4 and Switch are 2 of the most successful consoles of all time.
    That's why MS is trying to move away from consoles. Sony is only thinking of providing new options like PS Now or PSVR. For MS, it's not an option it's their new business model.
  • Those numbers on the FY reports from Sony your misunderstanding. Those are the % of people that bought the game on digital. So as an example last FY Q of all games bought Physical and digital 49% of gamers in PS4 bought them digitally. So yes using the figures you posted in just 2 years from 2017 - 2019 roughly 50% of all game sakes on PS4 are now digital. Those %s are how many bought digital out of all the sales for games on PS4. So for example last quarter 51% of game sales were physical. Compared to 2 years ago 2017 where PS4 gamers bought around 33% digitally. That's risen to 45% in 2019. Ans upward trend of less physical for PS gamers. Going by this trend by next year PS gamers will be over 50% digital vs Physical. Like it or not, Physical is dwindling. In 5 years it wouldn't be out of the question for physical to only account for 20-25% of all games sales.
  • I really don't know what you mean by my misunderstanding. I know what it means and it's the ratio of digital:physical.
    Here is the definition:
    Full game software digital download ratio is calculated by the following formula: "Full game software units sold via digital transactions" / "Full game software units. And just as expected you TOTALLY ignored my points about people buying used games AND how many of games are only available digitally so that just increase digital sales. It doesn't truely show that 50% of people prefer digital games. "Physical is dwindling"
    Are you joking? Physical is still the prefered ways of gamers. You may ignore the points I'm making because it doesn't help your agenda but these points are valid that cannot be ignored. And AGAIN as expected you didn't talk of the point on PC gamers and TOTALLY ignored me when I asked where you got the numbers for XB's physical v digital numbers.
    I hope you weren't inventing numbers...
  • Your previous post literally shows that digital sales are increasing year on year, you're contradicting your own facts and choosing to bring in data that isn't shown as a means of proving your point instead of allowing the facts that YOU presented to speak to the topic. It doesn't mean that 50% is digital, but it DOES mean that in a short space of time digital has gained a lot of traction.
  • I never said there wasn't a trend upwards for digital. I'm saying that we are not yet there. We are NOT at 50-50 percent.
    And even with these numbers we aren't at 50%. And Used market + many games being digital only further brings down the percentage. I still think there is a strong enough base (much more than 50%) who would prefer physical if given a choice and they just won't disappear in 4-5 years. While I understand companies trying to push for digital-only and make every game goes to their store. And they can keep full control of the prices.
    What I don't understand is consumers pushing for it. Digital + physical is something everyone should push for even if they only play digital. Options is good for the consumers, and physical market and many ways to buy a game help regulate prices more than if there was only one digital store. Also the guys said
    "Xbox gamers are now over 65% digital."
    I've been asking for a source for some time now. How can we have a serious discussion if peopl makes up numbers?
    So I'll keep asking for evidence.
  • Neither will xCloud or the Series X.
  • Any news on Sony's last Q4 results for gaming? I'm guessing a downwards trend.
  • Well I hope the console price will at least be competitive with Sony
  • A true statement, but way too early to say it. This isn't the kind of PR Microsoft should be spinning before a console launch, this kind of thing can so easily be used against them and they should know that.
  • Used against them by who? Gamers who are in the 30s and 40s? Thry are about to launch a Console yes. But they are also officially launching Xcloud this year. And also now have Gamepass on PC. They are now pushing Xbox as a service. Console is 1/3 of their gaming platform now.
  • By any gamer or journalist who wants to use "Microsoft doesn't care about consoles/considers Xbox more like Stadia etc" as a tool against them. Regardless of whether or not it's a worthy concern, Microsoft's rep among gamers is fragile and this kind of thing is all it takes.
  • What would be the problem then? Console hardware is sold at a loss. Console hardware it's only one way of playing the games and services they make the real money on. They're aiming to reach more people than they can sell consoles to. They're thinking beyond the curve.
  • Makes total sense. MS are very clearly not just a console manufacturer. This year Xcloud launches officially. You have Gamepass on console and PC. All their first Party content releases on Gamepass the very minute it is available. And MS actually make PC specific games like Age Of Empires 4. I would agree. MS main competitors moving forward are the 2 companies with Server infrastructures. Every single other medium has moved over to services. Games are taking longer, but will 100% move. Older hat gamers may not ever move. But younger gamers, gamers between 6 - 20 now will absolutely embrace stream gaming. It's their Era. Only older gamers really care about owning their stuff.
  • This is a clear example of how regressive Sony's strategy is. They're being conservative and being the best console of 2013.
  • So the future of gaming is not a console, it is cloud
  • I don't see why they can't coexist.
  • Exactly like Netflix and Blockbuster coexist. Convenience will always win. Options are good. But as we know from MS, options that are less used are left behind. You probably still can rent DVD movies somewhere, yeah.
  • We'll see about that.
    If that's where MS's priority is, good luck to them.
    I guess if people want to keep gaming on consoles PS and Nintendo is the way for them.
  • To be fair MS aren't not making a console. If someone doesn't want a PC or to Stream Series X is still coming out. So if their is any first party games they like that MS shows off at E3, they can still buy a console to play them on. And still take advantage of the money saving Gamepass as well. Don't see MS stop making consoles until Console sales decline across the board massively. Wouldn't surprise me if many are playing Xcloud direct from an App on their Google TV sometime in the future.
  • When Microsoft first came out with the Xbox, no one thought it would be able to compete with the likes of Nintendo, Sony and Sega (albeit, Sega was loosing much ground then). Now, 20 years later, they have made Xbox a respected platform and now focusing on the trend of technology... digital content and streaming. Have they made some mistakes, absolutely. However, not focusing on and continue to directly compete with Sony and Nintendo and not worry about Google and Amazon would be a huge mistake.
  • That just confirms where their priority really is. It's more about services. MS have been so focussed on services we can all guess their strategy going forward. They are working hard to push services ans killing traditional ways. We've seen their adverts Office 2019 vs Office 365 where they would trash their own product to make the service look better.
    That's where they are moving towards. Yes right now they'll soon launch a new console. But that's clearly NOT their priority. They priority is services. Renting services. Keep paying them money. We've seen how they wanted to kill physical games and the used games market last gen. But they haven't changed, they are still in that mindset, launching the XB SAD edition. 100% digital means you're suppose to go to their store to get game. They have the more control of prices and it kills the used games market. Used games used to help regulate the prices of the market. For me, it looks like series X is a console for the XB/MS fanbase. For those who bought the 1st XB1, the XB1s and Scorpio.
    They want to get people hooked to their renting game service and XB live gold. And later get even more control over gamers with streaming service.
    I think their dream is clear. They want to be the steam of streaming. Sit back let people pay them continuous amount of cash so they can rent games.
    Keep control of what gamers play and when they play it. And now, Google and Amazon are the competition for that dream. What the guy is saying is true if most gamers WANT to stream games and rent them.
    First we'll need to see if this will ever happen. I've been hearing the death of consoles for years now, they are still selling really well. MS is going hard on this service and streaming stuff.
    Good luck to them in their fight against Stadia and Amazon...
    Me, I like my traditional ways of playing. I like my consoles and owning copies of my games.
    For people like me who like console gaming and/or physical+digital games, I guess PS and Nintendo is the way to go...
  • Don't really understand where you are getting at in the move to services. Sony and Nintendo are literally moving in the same direction. Sony has Playstation now, which is also available on PC and certain mobile devices, and it has Playstation plus, which it's trying to set up similar to Game pass, it actually inked a relationship with MS to power their cloud. Over to Nintendo, they have Nintendo online, which replaced Virtual Console as the way to play NES and SNES games through subscription, and it's brought a number of games to mobile. Regardless of what platform, pick one, the majority of gamers (including myself), bought digital copies of their games. PC has been this way for nearly a decade...so how do you figure Sony and Nintendo aren't moving in the same direction? The evidence is they already are.
  • The difference is that MS's priority is clearly services and even games as services. The company itself moves towards that for some time now.
    Others had these type of options but they aren't pushing them as much as MS is pushing game pass... " the majority of gamers (including myself), bought digital copies of their games."
    But majority of console gamers are buying physically.
    See I buy digital games, but I also buy physical games. I don't restrict myself, I do them both.
    I am for having options. Pushing for ONLY digital only benefits these companies and it goes against gamers.
    Sony and Nintendo knows that so they will not abandon that market. It's has much a priority for them as anything else.
  • Strictly speaking as of now PS gamers are practically 50/50 digital vs physical. As of their last FY Q3. Xbox gamers are now over 65% digital. Nintendo I'm not sure about. I haven't looked at them to be honest. I'd say quite easily next Gen both PS5 and Series X will both have more gamers buying digital than Physical. Sony absolutely wants to do services. The problem was they bought Gaikai. And that was basically a huge waste of money. Sony don't have the infrastructure to even attempt Game streaming on a global scale. They will be behind the curve with it, because they realized they had to approach 1 of the big 3 to use their cloud to build a new service. And they chose MS Azure because Sony said MS cloud was much more advanced for gaming. Much like Netflix did for movie streaming, MS saw an opportunity to get out in front first with quality Game Steaming. And that's what they have done. (or about to do officially) With the issues Stadia has you can see why Sony chose Azure.
  • Preach. I would argue switch users are mostly digital simply because All of their games aren't available physically. They have hundreds of physical games on switch, and over a thousand in the E shop
  • You bring up many good points. I also completely forgot that Sony had to cave and go with MS Azure. You are also correct about Gaikai. They were bought out by Sony back in 2012 for $380 million. Now it does seem like that was a mistake. In 2014, Sony had “fully greenlit” a project where Gaikai would help build “the fastest global network ever made” to let gamers play like never before. That may still be the plan, but Sony’s going to need some help. That may be why it struck a cloud gaming partnership with Microsoft.
  • I've been reading that digital is taking over for so long now. We've seen last generation how gamers responded to it.
    I can give you the ratio of digital sales from Sony in the last few quarters:
    FY 2017 Q1: 39%
    FY 2017 Q2: 27%
    FY 2017 Q3: 28%
    FY 2017 Q4: 43% FY 2018 Q1: 43%
    FY 2018 Q2: 28%
    FY 2018 Q3: 37%
    FY 2018 Q4: 45% FY 2019 Q1: 53%
    FY 2019 Q2: 37%
    FY 2019 Q3: 49% From these numbers there is still a majority of PS games that sells better physically. And that is considering 2 major points that cannot be ignored.
    1) These doesn't include people buying physical games used. The percentage of gamers who also buys physical games should bring down that percentage even more.
    2) There are so many games that are ONLY available digitally. I wonder what is the real ratio when gamers actually have a choice. I can't think of any PS4 game that is only available physically so this only favours the digital ratio... I think these numbers show that PS4 gamers still prefer physical games in their majority. There is still a large percentage of players that buys digital games too. That's why I say physical + digital should be the way forward. Not digital-only. These numbers are directly taken from Sony's financial reports (both page 8):
    https://www.sony.net/SonyInfo/IR/library/presen/er/pdf/18q4_supplement.pdf
    https://www.sony.net/SonyInfo/IR/library/presen/er/pdf/19q3_supplement.pdf Also I don't know where you get MS's numbers. I never actually found these. Can you provide a link, like I did with the Sony one?
    -------------------------------------
    Sony wants services but they aren't making it their priority. For Sony their console is making them loads of money as it is. Services are just added options to them. They have invested in this streaming platform and in VR. MS is different their business model and priority seems to be moving towards services. Whether it's game pass or XCloud. They want the death of physical games and wanted it for years. They probably want the death of consoles as we know them. The traditional business model wasn't working out for them because they could never sell enough consoles and get the same kind of install base of Sony or Nintendo.
    They could never get into market beyond the NA/UK/Aus market because they never cared that much about those.
    Now they think they'll reach billions just because they have a renting service of games that can be streamed?
    Again, good luck to them.
  • Using those figures you posted, how can you say that. From 2017 - 2019 digital on PS gamers has risen from 33% in 2017 (rough average of each quarter) to 45%. An upward trend in 2 years of 12% of gamers buy digital. In 2019 only 55% buy physical as opposed to 68% in 2017. By 2021 continuing that trend PS gamers will be majority digital. And in another 5 years could easily have digital at 70% on PS games. Your figures your posting supports the idea less and less care for physical ownership. And more and more gamers go digital every year. As I said Sony made it a priority when they bought GaiKai. It just didn't work. So because they are behind in that race now, they are clinging to the old model as long as they can. But Sony absolutely tried to get the jump on the rest for services when they bought GaiKai. At the time they made tons of noise about PSNOw and steaming and GaiKai.
  • I really don't know what you mean by my misunderstanding. I know what it means and it's the ratio of digital:physical.
    Here is the definition:
    Full game software digital download ratio is calculated by the following formula: "Full game software units sold via digital transactions" / "Full game software units. And just as expected you TOTALLY ignored my points about people buying used games AND how many of games are only available digitally so that just increase digital sales. It doesn't truely show that 50% of people prefer digital games. And AGAIN as expected you didn't talk of the point on PC gamers and TOTALLY ignored me when I asked where you got the numbers for XB's physical v digital numbers.
    I hope you weren't inventing numbers... "As I said Sony made it a priority when they bought GaiKai. It just didn't work. So because they are behind in that race now, they are clinging to the old model as long as they can."
    Well, they never marketed PSNow more than their consoles and games. Unlike what MS is doing. MS is clearly shifting it's priorities.
    MS has been shifting it's priorites throughout the generation, from Kinect 2.0, and the power of the cloud. To the best XB lineup ever and BC in 2015, to hololens, to cheapest UHD player, to the most powerful console ever. To gamepass and XCloud... It looks to me like MS couldn't or can't compete in the console space so they are trying to move to another sector. Game streaming and renting games... Spencer talks about billions of people. So is the casual crowd who they are mostly catering to?
    It surely looks that way to me...
  • Or you just seriously want to convince people not to go with Xbox.
  • At this point, Spencer is doing a good job by himself.
    But I'm actually clear. If MS's priority is streaming, than people who wants to do mainly streaming should stick to MS, Amazon or Google.
    For traditional console, it's Sony & Nintendo.
    Already XB1 is miles behind PS4 and Switch. You think with MS's strategy it'll will change?
  • The focus and emphasis in this market space is forward thinking into cloud computing. Sony and Nintendo my compete on the hardware aspect of gaming, but fall short when it comes to cloud space. Cloud space is where technology is continuing to evolve and neither Nintendo or Sony have the capacity to compete there. MSFT's primary competitor in that domain is Amazon and their AWS services.
  • I'm interested to see how many X Series consoles actually sell, and also, just how many third party developers release games for it. Especially as the years progress and Microsoft continues to focus on streaming.
  • MS were smart. Their servers all are actual Console motherboards. So when your playing the stream it's the Xbox Console version. So for a 3rd party all they do is make the game for Series X and with no extra work whatsoever. I mean at all. The game runs on streaming. This is the issue Stadia has. Every game has to be totally redone for Stadia. Taking time and development away from PS, Xbox and PC.
  • Actually that is the issue Microsoft has. Play Anywhere has already proven that publishers DON'T want people buying a game once and playing it wherever they want (Play Anywhere is, likewise, incredibly simple to implement) so like I said it will be interesting to see which publishers actually choose to have their games in the cloud. And also if Microsoft makes it mandatory for Series X games to be on xCloud (which, although I really wish it were the case, I highly doubt it will be) what will happen with third parties then. That being said, publishers are going to want money, so they'll release on both, at least until they start getting their own streaming services off the ground. This was meant to be a response to the response of my post.
  • These comments by Spencer reminds me so much of this interview by the same Spencer back in 2012. Looking back it's quite a funny interview...
    Funny how he was such a massive part of that 2013 launch and how XB fans still never seem to blame him for that.
    https://www.gamesindustry.biz/articles/2012-07-03-microsoft-sees-xbox-be...
  • The very fact that he talks about 7 million shows how ridiculous and how much of an ignorant he is when it comes to the world outside the US. Does he think there are 7 billion people around the world with a device and a good internet speed that can't wait to play MS's rented games? Does he think that people who can't afford food and shelter, can't wait to subscribe to MS's gaming services? What a joke.
  • It's called hyperbole. Look it up.
  • I would think that someone like the head of XB would have a rough idea of the number of people they are targeting.
    If he is doing it, I think he doesn't need to do it. For me, the actual number would have actually make it more credible and serious.
  • In reality, they do WANT every single person in the world to use their services (like any business) so 7 billion is the hope, it's obviously never going to happen for reasons already stated, but that doesn't mean they don't some day want it to.
  • So technically they even WANT to sell XB1 to everyone in the world. The console is available in most highly populated nations so by that logic they should say the same thing about their console.
    Market research is actually important, who you're targeting and potential customers. Not just throw that their target is everyone. Anyway, it's not that important.
  • Finally, somebody at Microsoft gets it.
  • Absolutely Correct. Sony is a Consumer Electronics manufacturer.
    Nintendo is a Game/Console manufacturer. Amazon and Google are Cloud Computing Providers, which is where MS competes with them.
    Google is also a huge Search/Advertising platform/Software provider, all of which MS competes in.
    Amazon is THE Online Retailer, where MS also competes (poorly.) Cloud Computing is powering all MS financials now and into the future, so yeah. They don't worry about Consumer Products like Sony makes (you won't see Microsoft TVs any time soon) nor will they bother with handheld Game Consoles (xCloud takes care of that.)
  • Yup it's clear.
    So all those who want to play their games by streaming can move towards MS, Google or Amazon.
    If you want consoles and the traditional ways of playing stick to Sony or Nintendo.
  • Microsoft should just up and buy Nintendo anyway, but the Japanese government won't allow it.
    Just for the Intellectual Property if anything. Imagine Mario Cart on Xbox/xCloud......sigh. But, it's not likely to ever happen due to cultural/government issues, even with Nintendo agreeing to use MS Azure as it's Cloud Platform.