Microsoft mistakenly leaks confidential information about Xbox business
“Game On” is The Fly’s weekly recap of the stories powering up or beating down video game stocks.
NEW RELEASES:
This week’s most notable release is Warner Bros. Discovery’s (WBD) “Mortal Kombat 1,” which launches for PlayStation 5 (SONY), Xbox Series X/S (MSFT), Nintendo Switch (NTDOY), and PC on September 19. Also out this week is “Separate Ways,” a downloadable expansion for Capcom’s (CCOEY) “Resident Evil 4” remake. The DLC releases September 21 for PS5, Xbox Series X/S, PS4, and PC.
MICROSOFT LEAK:
Microsoft mistakenly uploaded confidential information about its video game business to a federal court website, Bloomberg’s Cecilia D’Anastasio and Leah Nylen report, citing a person familiar with the matter and a post from a Federal Trade Commission employee. “The FTC was not responsible for uploading Microsoft’s plans for its games and consoles to the court website,” FTC director of public affairs Douglas Farrar said in a social media post.
According to The Verge’s Tom Warren, the occurrence marks the biggest leak in Xbox history, mostly because unredacted emails typically don’t appear in the public domain. Among the top stories that emerged from this leak of FTC vs Microsoft documents, according to Warren, are:
- Microsoft is working on a new disc-less Xbox Series X design with a new gyro controller
- The company’s next generation Xbox console is planned for 2028 and could achieve “full convergence” of its cloud gaming platform and physical hardware
- Microsoft Gaming CEO Phil Spencer said in an August 2020 email that he would be interested in acquiring Nintendo, saying the company would be “THE prime asset” for Microsoft in gaming
- Before ZeniMax Media was acquired by Microsoft, the company was working on remastered versions of “The Elder Scrolls IV: Oblivion” and “Fallout 3,” as well as new entries in the “Doom” and “Dishonored” franchises
CONSUMER SPENDING:
Last week, Circana analyst Mat Piscatella said that August 2023 U.S. consumer spending on video game content, hardware and accessories grew 3% vs. year-ago, to $4.2B. Growth across both content and accessories spending offset a double-digit percentage decline in hardware. Year-to-date U.S. consumer spending across video game products was 2% higher than a year ago, at $34.9B. Spending on video game content in August grew 4% vs. YA, to $3.7B. On console and PC platforms, growth in digital premium downloads offset declines across physical SW and digital add-ons. Non-mobile subscription spending fell 4%, while Sensor Tower reported mobile growth of 2.5%. Video game hardware spending fell 13% when compared to a year ago, to $328M.
PlayStation 5 dollar sales fell by a single-digit percentage in the month when compared to a year ago, while both Switch and Xbox Series declined by a double-digit percentage, said the Circana analyst. PlayStation 5 was the best-selling hardware platform in both unit and dollar sales during August 2023, with Xbox Series ranking 2nd across both measures. PlayStation 5 continued to lead the 2023 hardware market across both units and dollars. Year-to-date hardware spending was 13% higher when compared to the same period in 2022, at $3.2B. Accessories spending in Aug grew by 12% vs YA, to $159M. 7 of the top 8 best-selling accessories of August in dollar sales were PlayStation DualSense gamepads, with PlayStation VR2 ranking as the only non-DualSense gamepad appearing among the top 8.
On the software side, Piscatella said that Electronic Arts’ (EA) “Madden NFL 24” was the best-selling game of August in the U.S., instantly becoming the 6th best-selling game of 2023 YTD. This is the 24th consecutive year in which a “Madden NFL” franchise release was the best-selling title of its launch month. Launch month dollar sales of “Madden NFL 24” software, excluding digital add-on spending, grew by a double-digit percentage when compared to “Madden NFL 23” a year ago. Bandai Namco’s (NCBDY) “Armored Core VI: Fires of Rubicon” was the 2nd best-selling game of August and ranked as the 20th best-selling game of 2023 year-to-date after one month in market. Other top selling premium games for the month of August in the U.S. were Embracer’s (THQQF) “Remnant II,” Activision Blizzard’s (ATVI) “Call of Duty: Modern Warfare 2” and “Diablo IV,” Warner Bros. Discovery’s “Hogwarts Legacy,” Nintendo’s “The Legend of Zelda: Tears of the Kingdom,” Sony’s “MLB The Show 23,” and Microsoft’s “Minecraft.”
OTHER STORIES TO WATCH:
- Nintendo briefed Activision Blizzard last year on its next generation Switch console, The Verge reports [read more]
- Microsoft’s “Starfield” is the fifth fastest-selling game in Europe in 2023, Gamesindustry.biz reports [read more]
- Apple (AAPL) said that Ubisoft’s (UBSFY) “Assassin’s Creed Mirage,” Capcom’s “Resident Evil Village,” and “Resident Evil 4” will be playing on iPhone 15 Pro [read more]
- WarnerMedia CEO Jason Kilar has joined Roblox’s (RBLX) board of directors [read more]
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Originally Posted September 19, 2023 – What You Missed This Week in Video Games
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