Xbox One Scorpio and Xbox One S Are Not Attempts To Maximize Profits, Says Phil Spencer

Microsoft not trying to maximize profits by switching to a smartphone style upgrade model, Spencer insists.

Posted By | On 12th, Oct. 2016 Under News | Follow This Author @Pramath1605

xbox one scorpio

A l0t has been said of the console upgrades at this point. While the concept found few takers when it was first discussed earlier this year, at this point, upgraded consoles in the guise of the PS4 Pro and the upcoming Xbox One Scorpio (and even the Xbox One S, to a lesser extent) are a reality, and one that the market largely seems to have embraced.

More than anything else, these upgraded consoles, as well as the product lifecycles that go with them, are often likened to the upgrade cycle that one often sees for smartphones, where a new flagship product comes out on an annual basis. Indeed, Microsoft are releasing an Xbox One S this year, followed by a Scorpio the next year. Is this an attempt to move to a smartphone style upgrade cycle for consoles, and maybe attempt to shore up some profits for the Xbox division, which has historically been very bad at that?

In an interview with PC Authority, Xbox head Phil Spencer insists that this is not the case. “Ah, no. The business model for console is pretty set,” Spencer says. “I like the relationship that it’s able to build with our customers and the number of consoles that are sold, really across the industry, it’s not really just a pure Xbox point. Y’know when you look at the number of consoles that were sold last year against what were sold this year, relative to any individual PC gaming spec that’s out there, you sell a lot more consoles.

“That opens up a great market, and those customers buy a lot of games, play a lot of online, buy a lot of content for those games, I think that business structure will stay. You’re absolutely right that if you’re losing money on a console and you have somebody upgrade that console every year, and they’re not your best game customer in terms of the games that they buy, that can be a struggle for the overall business. But I think what we’re going to find is that our early adopters for our new hardware are also our best gaming customers across gaming content, and gaming accessories, and everything else that they do. We’re going to learn as we go forward, but I’m confident in the activity that we have on our network from our consoles.”

Of course, it would be foolish to deny that there is a profit motivation here- corporations don’t do anything unless they can justify it with some sort of monetary gain. However, it seems evident that Microsoft’s reasons for the switch to this kind of upgrade cycle are not purely profit driven. Given that this seems to be the direction that the entire industry is moving towards for now, I can definitely see that being true.

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  • -youjustgotburned-

    4 years, to me, will be the upgrade cycle standard from now on. Consoles lasting for more than that is in the past now.

    • Agreed, but it’s not really 4 b/c you can still play all existing games on the base system, so assuming the 2nd half is another 4 years it will still be 8yrs or so…

    • Mark


    • Learned Handgun

      There are still people playing the the 360 and PS3, does that mean the upgrade cycle for those consoles is like 12 years? I think it’s better to think of an upgrade cycle from the producer’s standpoint. Slims are not really upgrades but instead revisions. Upgrades have to produce noticeably different outputs. Scorpio and PS4p came quicker than previous upgrades, do produce noticeably different results, but are also produce proportionately less results to correspond with the shortened upgrade window.

    • No, my point was simply that you don’t need to upgrade to Scorpio and PS4 and still be able to play all the latest games. It’s not a required upgrade, where as the jump from 360/PS3 to XB1/PS4 is a required upgrade to play the latest games, so the upgrade cycle is still 8 years, assuming the second half lasts as long as the first half.

  • Mark

    Nah Pramath, what Phil’s saying is there IS profits to be made, but it ain’t hardware, it’s gamers joining Xbox Live, buying games and using their services, and buying controllers etc. What the Pro and Scorpio does for Sony and MS is it allows them to sort of re-energize their brand to customers, because we’re already in year 4 soon, so similar to phones, ur gonna get new customers and keep ur old ones mainly, because ur product stays fresh every couple years….but the hardware isn’t the objective, it’s the buying that comes afterward

    • Learned Handgun

      That is exactly what I read too. Phil literally responded by talking about software. Heck he even said something about losing money on the hardware side, which btw, I read to mean the Scorpio will be sold at (or less than) cost, fingers crossed.

    • Mark

      Although it’ll prolly be 500 bucks, reading Phil and Albert’s recent comments (comparing the price to the S model), I’m soo hoping they sell at 400….take the small hit up front Microsoft, take the small hit.

  • JC

    Spencer just wants to put the Mattrick-machine to rest and behind him. He redesigned something to start fresh and peddle his own vision. It sucks to inherit somebody else’s mutant child and then pretend you have to love it like your own.

    They were upfront from Day 1 that the X1S and Scropio would be releasing in relatively close proximity so nobody gets “tricked” into buying and X1S and one year later get blindsided by Scorpio. I applaud his honesty with the consumer.

    • Mr Xrat

      Slow down on the Kool-Aid, fella.

    • JC

      What koolaid…? Everything I said is true and the only real subjective part is if you applaud the honesty or not.

      Now please have your bot accounts upvote me too. Fair is fair.

    • TheCellGames

      Relax dude. XD. He’s desperate for attention as Mr.Monkeypoop always is.

  • crazy_black_man-

    Considering the terrible quality of the Xbox hardware that MS releases, they can’t possibly make much profit on the hardware. That $150 ripoff Elite controller came at the right time to replace the $150 ripoff Kinect camera, that no one else was buying after they stopped forcing it on people.

    • Luke Skywalker


    • efnet

      He’s just looking for any kind of interaction, people like that you just ignore and let them die a lonely death lol
      Just have a look at his psn crazy_black_man-
      He hardly has any games, majority of what he has played are rented, I would suggest you and everyone else just read past his comments like one should walk right past a bum with two arms and two perfectly working legs …
      Dumb people don’t deserve attention ..

    • One The One


    • -youjustgotburned-

      So true. The guy is a fraud, he was bought a paper weight just to boost about it. He hasnt even touched the VR. He ain’t a gamer, let alone a PlayStation fan, he is just a mindless insect who wants to feel validated.

    • TheCellGames

      Salty_black_man has no Elite controller. How pathetically sad. P.S. You need a lot of gimmicks for PSVR, I’ve seen you defend that crap before. You’re such a hypocrite.

  • Mr Xrat

    Of course it is. He knows full well that with every new edition that comes out Xgimps buy another to “show support.” I’d put a full third of sold Xbones being owned by someone who already an Xbone.

    • Susannellis

      Google is paying 97$ per hour! Work for few hours and have longer with friends & family! !ap574f:
      On tuesday I got a great new Land Rover Range Rover from having earned $8752 this last four weeks.. Its the most-financialy rewarding I’ve had.. It sounds unbelievable but you wont forgive yourself if you don’t check it
      ➽➽;➽➽ http://GoogleFinancialJobsCash854MarketEpicGetPay$97Hour ★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★::::::!ap574f:….,……..

  • TheCellGames

    No Phil. We know it’s not to increase profits. It’s not like MS needs that. We know you’re looking for more market share.

  • justerthought

    If it’s not all about maximising profits, he’s either a very bad business man or a liar. Are we really to believe MS have turned into a charity.


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