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Microsoft’s Q2 FY2025: Gaming Revenue -7%, Hardware -29%, Content and Services +2%

E

EN250

Member
coachmcguirk91 said:
2% increase for content and services has to be horrific, right?
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After the release of fucking COD aka yearly printing money machine, yeah

No one can come up and say with a straight face that everything is OK, COD didn't move the needle for GP aka the best deal in gaming that people don't give a fuck about because they're happy paying for the games they actually want to play or keep playing the same games they've been playing for years without the need of that service

MS going hard on publisher mode and preparing every big game they had/have to be ported to PS4+5 and Switch is going to be their only saving grace
 
DeepEnigma

DeepEnigma

Gold Member
adamsapple said:
Depends, is it a Series S Pro? No, is it a new generation? Yes.
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Donald Trump GIF by NowThis
 
ProtoByte

ProtoByte

Weeb Underling
adamsapple said:
HeisenbergFX4 HeisenbergFX4

"Higher margin hardware". Sounds like that Premium new Xbox in 2026 confirmed. 🥳


1uT0JSM.jpeg
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So wait:
Xbox handheld
Modular Xbox console releasing early
Xbox Series XXXTentacion??

These things DO NOT mix. Trying to sell people on high powered hardware when your games are going everywhere and to PCs that will blow consoles out of the water doesn't work. Much less does it work when the actual games are being held back by weaker PCs, weaker consoles and fucking handhelds.

Sony's figuring this out with the PS5 Pro.
 
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Woopah

Woopah

Member
coachmcguirk91 said:
2% increase for content and services has to be horrific, right?

To hit Microsofts quota, Gamepass needs to grow on average 40% every year for the next 5 years
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EN250 said:
After the release of fucking COD aka yearly printing money machine, yeah

No one can come up and say with a straight face that everything is OK, COD didn't move the needle for GP aka the best deal in gaming that people don't give a fuck about because they're happy paying for the games they actually want to play or keep playing the same games they've been playing for years without the need of that service

MS going hard on publisher mode and preparing every big game they had/have to be ported to PS4+5 and Switch is going to be their only saving grace
Click to expand...
A hardware decline of 29% is horrific, but a 2% growth in software and services isn't. It's not amazing either but I certainly wouldn't call it "horrific".
 
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poppabk

poppabk

Cheeks Spread for Digital Only Future
thicc_girls_are_teh_best said:
I think you might be making the same mistake I made a moment ago; i.e conflating the content & services number with "just" Game Pass. They have WOW subs, ESO subs, Bethesda Softworks subs, whatever paid stuff is there for Battle.NET (don't think there's any, but not sure), and IIRC Fallout '76 has an optional paid subscription?

WOW's been gradually growing over the year, thanks to WOW Classic. ESO is probably at least steady, same with those other ones. Only Game Pass saw a giant price spike middle of last year so it's the only one out of those with reason for suspected major subscriber drop-off.
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But why would you suspect a subscriber drop? Let's say MWIII sold 5 million copies on Xbox and PC last year, which is extremely low balling, that is $350 million in sales. Let's say a 50% loss in sales to gamepass - that's $175 million. With only two months of gamepass sub since the launch of BO6 - any lost sale couldn't even been 50% accounted for by new subs just for BO6.
People were predicting a big loss in revenue because of BO6 going to gamepass but revenue actually increased marginally. There is a big revenue hole that got filled by *something*.
 
E

EN250

Member
Woopah said:
A hardware decline of 29% is horrific, but a 2% growth in software and services isn't. It's not amazing either but I certainly wouldn't call it "horrific".
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Man, it's CALL OF DUTY "for free"* on GP, if that game doesn't pump the numbers up big time, nothing ever will, well maybe GTAVI, but no one would be that stupid to sign that deal because it could cost the same or more than buying a big ass publisher :messenger_beaming:

*not really, but you get me...
 
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Ashamam

Ashamam

Member
adamsapple said:
Doesn't look like there will be a mid-gen Xbox, they might try to launch a new-gen earlier than the next PS though, that seems a lot more likely.
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I was talking about the 'refresh' that has already happened along with price increase. Pretty sure they improved margin on the back of the increase even allowing for the extra 1TB.
 
adamsapple

adamsapple

Or is it just one of Phil's balls in my throat?
Ashamam said:
I was talking about the 'refresh' that has already happened along with price increase. Pretty sure they improved margin on the back of the increase even allowing for the extra 1TB.
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That was a limited edition console, not the standard SKU replacement.

This is from their call talking about their future plans, which also include more games on Switch and PS going by Satya's comments.

TheGodfather07 said:
Didn't gamepass price go up? Yet they're only 2% up? With a new call of duty game launching on the service. That's devastating! Did they lose subscribers?
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Again, the 2% is for the total content and services segment, not for just game pass.

poppabk said:
People were predicting a big loss in revenue because of BO6 going to gamepass but revenue actually increased marginally. There is a big revenue hole that got filled by *something*.
Click to expand...

If we go by them specifically calling game pass by name as the driver, then it's likely contributed by the extra sign-ups around the CoD period.

I'm still curious to know exactly what's included in the content and services department, is it all game sales too? just digital sales ? MTX ?
 
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laynelane

laynelane

Member
GHG said:
The issue with them is that they always seem to need to create an adversary to keep them going. This is consistent across their whole history and all of their business lines. It's bizarre.

What ever happened to finding gaps in markets and/or creating products that solve a problem for people, instead of just going out there and attempting to outright replace other companies who are already doing a good job of satisfying people?

They can't compete with Sony so they are now going to attempt to make an enemy out of Valve?

Morgan Freeman Good Luck GIF
Click to expand...

I'm just thankful gaming doesn't have the same kind of avenues they used for Windows, Office, etc., dominance. My first real exposure to MS as a company was the anti-trust case against them in 2001. The actions they took to create a monopoly state and protect it were a real eye-opener since all this stuff was relatively new at the time.

Phil and others talked about spending Sony out of business and a "career moment" attained through acquiring Nintendo, but I'm just glad they lack the ability to actually make those types of moves. It would not be to the benefit of the industry. As well, if there really are plans to challenge Valve...yeah, your GIF kind of says it all. :messenger_grinning_smiling:
 
Woopah

Woopah

Member
Kacho said:
That’s a 2% bump driven by COD?
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COD drove Gamepass which was then the primary driver of 2% growth in content services (which also includes things like software, DLC and MTX).

DeepEnigma said:
What’s horrific is that it’s reliant on their main competitor.
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Now that they've already lost the console war, I don't think that will really matter to them. They won't care about relying on PS for COD like they don't care about relying on Nintendo for Minecraft.
EN250 said:
Man, it's CALL OF DUTY "for free"* on GP, if that game doesn't pump the numbers up big time, nothing ever will, well maybe GTAVI, but no one would be that stupid to sign that deal because it could cost the same or more than buying a big ass publisher :messenger_beaming:

*not really, but you get me...
Click to expand...
Well on PC at least the sub users went up 30%. Them not mentioning console suggests to me that the user growth there was less impressive .

But given that Gamepass was the primary driver of content growth I'd say COD probably did pump the numbers up.
 
adamsapple

adamsapple

Or is it just one of Phil's balls in my throat?
GHG said:
You'd better start learning to love clouds.
Click to expand...

I hope not. It's a massive turn off to have PS3 BC only be via cloud, running the games on native hardware is one of the best parts of Xbox's approach to BC.
 
GHG

GHG

Gold Member
adamsapple said:
I hope not. It's a massive turn off to have PS3 BC only be via cloud, running the games on native hardware is one of the best parts of Xbox's approach to BC.
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Well all of the current gen library isn't currently available via the Windows store, in fact only a small proportion of it is.

If you want an indication of what proportion of your library will carry over in native fashion then cross reference the play anywhere list.
 
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GHG

GHG

Gold Member
Bumblebeetuna said:
Compliment coming from you 🤭
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I know right?

I'm just really glad that you came to this thread with the intention of discussing this quarters financial results for Xbox.

Given your enthusiasm in previous threads of this nature when they were able to obfuscate outcomes with a positive slant I'm sure you've got a lot to say on this subject matter now that everything is laid bare for all to see.
 
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DeepEnigma

DeepEnigma

Gold Member
adamsapple said:
Odds are the next Xbox is a hybrid PC anyway, so it fits both needs.

A device like that which retains all previous Xbox BC, including OG and X360, and also be forward compatible.

Sounds awesome.
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Odds are that they’re not going to sacrifice Live Pass subs or their own store revenue with PC launcher options.
 
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