MS Earnings Call - FY23Q2 |

Ronin_7 said:
I don't think because it's just to many studios to close... Would be really bad.
Click to expand...
They don't have to close, Sega didn't when they pulled out of consoles.

StreetsofBeige said:
Xbox has never been a big performer for MS in 20 years. Out of all the key product lines and pillars, it's got to be the worst one out there compared to cloud, windows, MS Office, server stuff etc...

But it's still around.
Click to expand...
And, believe it or not, some investors have griped over the years and said MS has no business being in console for just that reason. If their strategy for this generation does not pan out, I am hard-pressed to think there will be another.
 
chonga said:
Here is the problem. If you bring out a product that displaces another then you must at the very least replace the revenue you displace, and ultimately you aim really is to gain extra.

Additionally the benefit and idea of things like service titles and Game Pass is to avoid the peaks and troughs of figures from hit titles. Instead you're aiming for a more steady flow of cash.

We are still seeing ebbing and flowing and it is failing to displace lost revenues.

It is, so far, a failure.
Click to expand...
GP isn't going to fix all of macro engagement issues that the industry could be facing, we know software units are down double digits in EU/UK in Q4 and Sony highlighted lower engagement numbers in the previous earning call.
 
diffusionx said:
They don't have to close, Sega didn't when they pulled out of consoles.


And, believe it or not, some investors have griped over the years and said MS has no business being in console for just that reason. If their strategy for this generation does not pan out, I am hard-pressed to think there will be another.
Click to expand...
If they close the AB deal at least next 10 years they will try.
 
The earning call was a bit boring for gaming but got the following: MAU's - 120m in the quarter.

As always take MAU's with a pinch of salt.

 
Last edited:
Kacho said:
What major third party games dropped in Q4 besides the usual stuff? Callisto Protocol was a bomb. Midnight Suns and NFS likely underperformed. No big Ubisoft game like we usually get. Sales for Gotham Knights and Saints Row dropped off a cliff. Awful, awful year for third party software.
Click to expand...
I think COD Modern Warfare II and Fifa 23 were bigger than their previous iterations and other third party games alongside other older releases.
 
So the times I said MS is facing an uphill battle I wasnt trolling....this is what an uphill battle looks like.

Time to see what MS does in 2023.
 
thicc_girls_are_teh_best said:
But it's rather worrying if the only way a company can increase their gaming revenue is through buying up other gaming publishers and assimilating their revenue into their console division's. That ultimately is not a sustainable long-term growth option.
Click to expand...

And you have the CEO of the company himself being bonused on Gamepass subs...

... and a mountain of evidence the only reason he opened up the pocket books is because he was sold on the idea of GP blowing up with xCloud usage...

I've been saying the same thing for years; if cloud doesn't take off to the extent that it actually starts looking like a large console userbase on it's own, then Xbox is going to be sold off.
 
Yeah it's pretty clear Nutella only kept Xbox around because he saw an opportunity for growth with services and the cloud. If growth fizzles out for both so will his interest in keeping Xbox around.
 
Geez......mega-corp *only* makes $16 billion in profit and 10k lose their jobs.

I'm not judging Microsoft here. I get it. This is what businesses do. But damn....
 
Some of the Fy23Q3 forecasts

OEM decline another 30%
Device decline mid 40%
365 will be flat
Search grow high single digit
Gaming will decline high single digits, SW will decline low single
 
Gudji said:
The Office Oops GIF
Click to expand...
Now replace face with Phil"s 😄
 
GHG said:
No significant new game releases and specifically targeting customers who don't have buying power will do that to you.
Click to expand...

Their strategy was to provide a cheap hardware access point to a mass market audience promising these people that after that even the games would be really cheap to get through a subscription.
This is the big part of their strategy this gen and it is already fully in place and it's failing.
Are they going to try to shift production back to Series X or it's even a more dangerous bet?
The other part of the strategy is boosting the exclusive software output through big acquisitions and this is work in progress.
The Activision deal was probably supposed to play a big part in that but the future of that deal is now uncertain, what is certain is that it won't happen at the conditions Microsoft wanted (no COD at all on Playstation within 3 years, immediatly available only on GP day one).

An other point coming out of these results is the strong seasonality of the brand and their need to have a big title pushing sales for them during the holiday season, under these circumstances what is their big holiday season 2023 title? Do they have something else big planned outside Starfield and if not does it make sense to position that game as their next holiday season title even at the cost of an other delay? This point and the fate of the Activision deal will be huge things for them this year.
 
Based on those numbers I'd say their strategy is failing.

Content and services being down 12% is not good considering their focus on generating revenue through these offers. The idea being of course that by focusing on metrics like MAU that even slumping in hardware sales should only result in revenue rising more slowly than anticipated.

With hardware revenue and C+S both tracking down by roughly the same amount it shows that these things are performing in lockstep, which of course begs the question for shareholders to question where the value is in expending huge sums on the content and services side compared to previous years.
 
Clear said:
Based on those numbers I'd say their strategy is failing.

Content and services being down 12% is not good considering their focus on generating revenue through these offers. The idea being of course that by focusing on metrics like MAU that even slumping in hardware sales should only result in revenue rising more slowly than anticipated.

With hardware revenue and C+S both tracking down by roughly the same amount it shows that these things are performing in lockstep, which of course begs the question for shareholders to question where the value is in expending huge sums on the content and services side compared to previous years.
Click to expand...
Based on one quarter lol when it's clear they've been up others when there's content. If you don't release any games it's kinda hard to retain users who have other avenues to game .
 
poppabk said:
Where are people getting the console sales from?
Click to expand...
It's fake alarmist redderick. They didn't for whatever reason produced enough series x suddenly the generation is over. Now when all their games are out this year including starfeild and console are available on shelf like series x and it's still sitting or not selling well then let's talk.
 
bitbydeath said:
No way they'd close it, if anything I'm sure either Apple or Amazon could buy it. Nintendo and Sony wouldn't be allowed even if they had the money.
Click to expand...
Here is a wrinkle to any potential closing situation: Google set the bar extremely high for customer protection/friendliness when they shut down Stadia. I know the situations are very very different, but it is the most recently example and will certainly be brought up as comparison.

Not that I would think they would ever just straight up shut Xbox down, if anything this is just further reason why they wouldn't.
 
Last edited:
R3claimer117 said:
Based on one quarter lol when it's clear they've been up others when there's content. If you don't release any games it's kinda hard to retain users who have other avenues to game .
Click to expand...

It really shouldn't be inline with hardware revenue though. The whole point on going big with digital services is its supposed to insulate the platform against variances within hardware sales. The idea being that things like the dips you get at generational transitions no longer apply, the audience is carried forwards as its about investment in the ecosystem not just the box. Something you can't really guarantee especially for casual gamers many of whom buy a piece of hardware purely to play "their" game, be it CoD, Fifa, whatever.
 
Kacho said:
Hope he's getting paid well for these big brain takes. Very insightful stuff.
Click to expand...

He's tracking the decline in XBOX Series console sales. There's no need to slight someone for looking at the math. Unless of course, you think Microsoft's quarterly reports are inaccurate.
 
Some of you are acting like a 13% decline is the end of the world. It's not really that bad considering their anemic first party output.
 
R3claimer117 said:
lol at some people in here discussing a 2 trillion dollar company like they're on their death bed cause their smallest division was down. I mean it's expected there was no first party release all year except smaller games like grounded and pentiment.
Click to expand...
Ask Zune, ask Mixer, and Microsoft phones. Xbox is in danger.
 
Pelta88 said:
He's tracking the decline in XBOX Series console sales. There's no need to slight someone for looking at the math. Unless of course, you think Microsoft's quarterly reports are inaccurate.
Click to expand...
No. He's regurgitating information that's readily available and adding the most John Madden take imaginable.

"The Cowboys are down 10 points and it's really not looking good for them. If they want to win the game they need to score more touchdowns, Pat."
 
Ansphn said:
Ask Zune, ask Mixer, and Microsoft phones. Xbox is in danger.
Click to expand...
I would not say Xbox is in danger right now but people that act like MS is going to lose money for any product indefinitely are being silly. As you pointed out, MS is not afraid to shutter a product or a service.
 
Last edited:
You must log in or register to reply here.

Similar threads

MS Flight Simulator 2024 |OT| The Sky is Calling
6 7 8 9 10
467
23K
Feel Like I'm On 42 replied
Microsoft Earnings Call - Q2 2025 - Game Pass set new quarterly record for revenue; PC sub base grew 30%; Gaming growth will be in low single digits
2 3
131
7K
KungFucius replied
Are MS too scared to port Halo to Playstation?
2 3
126
5K
xrnzaaas replied
MS shares new Xbox app mock up with a “Steam” tab
2 3 4 5
242
12K
Orbital2060 replied
Esport earnings
0
437
twilo99 replied
Top Bottom