This week’s financial report and first-party games showcase emphasizes that Xbox Game Pass has become the priority for the tech giant.
This week, Microsoft released its financial report for its fourth quarter 2020 earnings period, and the numbers show a sharp rise in revenue. In total, the tech giant brought in $38 billion for the quarter, representing a 13% increase over the same period last year. In particular, the company’s gaming segment grew by an impressive 64%, totaling $1.3 billion in revenue for the quarter.
It was Xbox content and services that did most of the heavy lifting here; Xbox hardware revenue increased by a sizable 49%. Meanwhile, Xbox Game Pass reportedly saw record engagement amid the COVID-19 pandemic, proving once again where Microsoft’s true strength in the gaming sector lies.
“I think that content and services is a real strength for Microsoft,” David Cole, owner of analytics provider DFC Intelligence, told GameDaily. “Xbox Game Pass is a pretty killer subscription service in terms of content, and a great deal has been invested in that. Also the PC side of content services saw some major releases like Minecraft Dungeons and Sea of Thieves. What it says to me is that Microsoft may have a future beyond game hardware.”
Historically, the second quarter of the calendar year is a lull in terms of games revenue, but 2020 is far from a typical year, and not just because of the pandemic. This year also marks the end of the current generation of console platforms, a period that has, in the past, been marked by below average game and hardware sales.
For Piers Harding-Rolls, research director of games at Ampere Analysis, Microsoft’s financial boost is the product of unprecedented market conditions.
“I think it will be rare to find a games company that doesn’t post strong results,” Harding-Rolls told GameDaily. “Microsoft not only saw substantial games content and services revenue growth, but even its Xbox hardware revenue was up 49% year-on-year at a time when it is meant to be in decline as we head into a new cycle. Hence the sell-out and shortages of Xbox One consoles across retail.”
Also this week, Microsoft hosted a showcase of next-gen first-party games, a presentation that emphasized the company’s dedication to creating an ecosystem for the Xbox brand. Almost every single game highlighted will be available on Xbox Game Pass, which is a subscription that is available on PC, illustrating that Microsoft’s priorities lie with services rather than hardware.
“The real attraction with Game Pass is the quality of the games,” Cole said in a report. “Every Xbox Game Studio title is available on Game Pass at launch. This includes AAA titles like Halo Infinite, Forza and the new Fable (as well as the original Fable games). There is also a nice selection of third-party titles. For example, Bungie’s Destiny 2 will be coming to Game Pass this fall.”
Considering that gaming and gaming services helped bring about Microsoft’s 13% increase in revenue for the quarter, it’s not surprising to see the company emphasize Xbox Game Pass. At only $5 a month, Cole said it’s one of the best values in all of games.
It’s also important to note that its xCloud streaming service also figures heavily into Microsoft’s roadmap; when it launches this fall, consumers can bundle their Game Pass and xCloud subscriptions together for $15 a month.
“The beauty of Game Pass is it is not a game streaming service. However, for those that cannot afford high-end hardware it can include a streaming service when xCloud launches this fall,” Cole said. “With Game Pass, users download the games they want directly to the hard drive/storage of whatever hardware device they are using. Subscribers can play those games as long as they have a subscription. Subscribers can download as many games as they want.”
Game Pass is already a certified mega-hit service, with a reported 10 million subscribers as of April. This puts it well ahead of Sony’s PlayStation Now streaming service, which only has a reported 2.2 million subscribers.
Between the impressive financial performance and the emphasis on Game Pass in its showcase event, Microsoft’s intentions for the next generation of gaming are clear: services over hardware. In fact, consumers won’t even need to own an Xbox system to play the company’s lineup of first-party games. As we move ever closer to the launch of the new consoles, it will be interesting to see how Microsoft’s vision pans out.
Sam, the Editor-in-Chief of GameDaily.biz, is a former freelance game reporter. He’s been seen at IGN, PCGamesN, PCGamer, Unwinnable, and many more. When not writing about games, he is most likely taking care of his two dogs or pretending to know a lot about artisan coffee. Get in touch with Sam by emailing him at sam.desatoff@gamedaily.biz or follow him on Twitter.
CHICAGO (AP) — United Airlines has struck a deal with Elon Musk’s SpaceX to offer satellite-based Starlink WiFi service on flights within the next several years.
The airline said Friday the service will be free to passengers.
United said it will begin testing the service early next year and begin offering it on some flights by later in 2025.
Financial details of the deal were not disclosed.
The announcement comes as airlines rush to offer more amenities as a way to stand out when passengers pick a carrier for a trip. United’s goal is to make sitting on a plane pretty much like being on the ground when it comes to browsing the internet, streaming entertainment and playing games.
“Everything you can do on the ground, you’ll soon be able to do on board a United plane at 35,000 feet, just about anywhere in the world,” CEO Scott Kirby said in announcing the deal.
The airline says Starlink will allow passengers to get internet access even over oceans and polar regions where traditional cell or Wi-Fi signals may be weak or missing.
Sony has made it easy for Canadian consumers to preorder the PlayStation 5 Pro in Canada directly from PlayStation’s official website. Here’s how:
Visit the Official Website: Go to direct.playstation.com and navigate to the PS5 Pro section once preorders go live on September 26, 2024.
Create or Log in to Your PlayStation Account: If you don’t have a PlayStation account, you will need to create one. Existing users can simply log in to proceed.
Place Your Preorder: Once logged in, follow the instructions to preorder your PS5 Pro. Ensure you have a valid payment method ready and double-check your shipping information for accuracy.
Preorder Through Major Canadian Retailers
While preordering directly from PlayStation is a popular option, you can also secure your PS5 Pro through trusted Canadian retailers. These retailers are expected to offer preorders on or after September 26:
Best Buy Canada
Walmart Canada
EB Games (GameStop)
Amazon Canada
The Source
Steps to Preorder via Canadian Retailers:
Visit Retailer Websites: Search for “PlayStation 5 Pro” on the website of your preferred retailer starting on September 26.
Create or Log in to Your Account: If you’re shopping online, having an account with the retailer can speed up the preorder process.
Preorder in Store: For those who prefer in-person shopping, check with local stores regarding availability and preorder policies.
3. Sign Up for Notifications
Many retailers and websites offer the option to sign up for notifications when the preorder goes live. If you’re worried about missing out due to high demand, this can be a useful option.
Visit Retailer Sites: Look for a “Notify Me” or “Email Alerts” option and enter your email to stay informed.
Use PlayStation Alerts: Sign up for notifications directly through Sony to be one of the first to know when preorders are available.
4. Prepare for High Demand
Preordering the PS5 Pro is expected to be competitive, with high demand likely to result in quick sellouts, just as with the initial release of the original PS5. To maximize your chances of securing a preorder:
Act Quickly: Be prepared to place your order as soon as preorders open. Timing is key, as stock can run out within minutes.
Double-Check Payment Information: Ensure your credit card or payment method is ready to go. Any delays during the checkout process could result in losing your spot.
Stay Informed: Monitor PlayStation and retailer websites for updates on restocks or additional preorder windows.
Final Thoughts
The PlayStation 5 Pro is set to take gaming to the next level with its enhanced performance, graphics, and new features. Canadian gamers should be ready to act fast when preorders open on September 26, 2024, to secure their console ahead of the holiday season. Whether you choose to preorder through PlayStation’s official website or your preferred retailer, following the steps outlined above will help ensure a smooth and successful preorder experience.
For more details on the PS5 Pro and to preorder, visit direct.playstation.com or stay tuned to updates from major Canadian retailers.
Since the PlayStation 5 (PS5) launched four years ago, PlayStation has continuously evolved to meet the demands of its players. Today, we are excited to announce the next step in this journey: the PlayStation 5 Pro. Designed for the most dedicated players and game creators, the PS5 Pro brings groundbreaking advancements in gaming hardware, raising the bar for what’s possible.
Key Features of the PS5 Pro
The PS5 Pro comes equipped with several key performance enhancements, addressing the requests of gamers for smoother, higher-quality graphics at a consistent 60 frames per second (FPS). The console’s standout features include:
Upgraded GPU: The PS5 Pro’s GPU boasts 67% more Compute Units than the current PS5, combined with 28% faster memory. This allows for up to 45% faster rendering speeds, ensuring a smoother gaming experience.
Advanced Ray Tracing: Ray tracing capabilities have been significantly enhanced, with reflections and refractions of light being processed at double or triple the speed of the current PS5, creating more dynamic visuals.
AI-Driven Upscaling: Introducing PlayStation Spectral Super Resolution, an AI-based upscaling technology that adds extraordinary detail to images, resulting in sharper image clarity.
Backward Compatibility & Game Boost: More than 8,500 PS4 games playable on PS5 Pro will benefit from PS5 Pro Game Boost, stabilizing or enhancing performance. PS4 games will also see improved resolution on select titles.
VRR & 8K Support: The PS5 Pro supports Variable Refresh Rate (VRR) and 8K gaming for the ultimate visual experience, while also launching with the latest wireless technology, Wi-Fi 7, in supported regions.
Optimized Games & Patches
Game creators have quickly embraced the new technology that comes with the PS5 Pro. Many games will receive free updates to take full advantage of the console’s new features, labeled as PS5 Pro Enhanced. Some of the highly anticipated titles include:
Alan Wake 2
Assassin’s Creed: Shadows
Demon’s Souls
Dragon’s Dogma 2
Final Fantasy 7 Rebirth
Gran Turismo 7
Marvel’s Spider-Man 2
Ratchet & Clank: Rift Apart
Horizon Forbidden West
These updates will allow players to experience their favorite games at a higher fidelity, taking full advantage of the console’s improved graphics and performance.
Design & Compatibility
Maintaining consistency within the PS5 family, the PS5 Pro retains the same height and width as the original PS5 model. Players will also have the option to add an Ultra HD Blu-ray Disc Drive or swap console covers when available.
Additionally, the PS5 Pro is fully compatible with all existing PS5 accessories, including the PlayStation VR2, DualSense Edge, Pulse Elite, and Access controller. This ensures seamless integration into your current gaming setup.
Pricing & Availability
The PS5 Pro will be available starting November 7, 2024, at a manufacturer’s suggested retail price (MSRP) of:
$699.99 USD
$949.99 CAD
£699.99 GBP
€799.99 EUR
¥119,980 JPY
Each PS5 Pro comes with a 2TB SSD, a DualSense wireless controller, and a copy of Astro’s Playroom pre-installed. Pre-orders begin on September 26, 2024, and the console will be available at participating retailers and directly from PlayStation via direct.playstation.com.
The launch of the PS5 Pro marks a new chapter in PlayStation’s commitment to delivering cutting-edge gaming experiences. Whether players choose the standard PS5 or the PS5 Pro, PlayStation aims to provide the best possible gaming experience for everyone.
Preorder your PS5 Pro and step into the next generation of gaming this holiday season.
