Support NeoGAF

[FullMetalx117]

All you guys have to do is look for a Brand New Series X in the resale market and get it at or below MSRP (check ebay to be easy). There is no markup...a supply constraint/high demand would result in a markup. That is not the case here, seller probably losing money selling at MSRP with the 20-30% ebay cut. Must be hard to get rid of

Just checked and you can actually get it pretty easily on FB marketplace brand new for $450 no tax...

 

[Rhazer Fusion]

Serious question......aside from Starfield what other big exclusive do they have coming?

Perfect Dark
Avowed(?)
Fable
Hellblade 2
Everwild(?)
The Elder Scrolls 6
Stalker 2(?)
State of Decay 3(?)
Elder Scrolls 6
Outerworlds 2(?)
Forza Motorsport

 

[FrankWza]

Perfect Dark
Avowed(?)
Fable
Hellblade 2
Everwild(?)
The Elder Scrolls 6
Stalker 2(?)
State of Decay 3(?)
Elder Scrolls 6
Outerworlds 2(?)
Forza Motorsport

Isnt stalker 2 going to PS5 as well?

 

[johnjohn]

MS needs to have steady release schedule for their games, with no long period of time between them.
That is how you get more sales and market share.

Yes, and they've set themselves up nicely to do just that. After the Activision deal closes they'll have something like 40+ teams working on games. A far cry from the 5 they had just a few years ago.

 

[bender]

Perfect Dark
Avowed(?)
Fable
Hellblade 2
Everwild(?)
The Elder Scrolls 6
Stalker 2(?)
State of Decay 3(?)
Elder Scrolls 6
Outerworlds 2(?)
Forza Motorsport

You forgot:

The Perfect Dark
The Avowed
The Fable
The Hellblade 2
The Everwild
The Stalker 2
The State of Decay 3
The Outerworlds 2
The Forza Motorsport

 

[Rhazer Fusion]

Isnt stalker 2 going to PS5 as well?

I thought it was exclusive or at least for quite awhile? I could be wrong though.

 

[Fess]

The Elder Scrolls 6
Elder Scrolls 6

Don’t forget The Elder Scrolls VI

 

[Fess]

Price cut and/or new SKU needs to happen. And current gen exclusives, most of my friends are still playing on Xbox One X.

 

[Dirk Benedict]

When they can afford to release a nice slew of 1st Party, we would have a better picture of what's going on. For now, their HW issues can probably be attributed to lack of 1st party releases coupled with PlayStations stronger 1st party offerings and strategic timed exclusives.

 

[reksveks]

R reksveks

Can you share the link to the call itself?

Have they talked anything about the acquisition deal ?

https://www.microsoft.com/en-us/Investor/events/FY-2023/earnings-FY-2023-Q3.aspx

All about office, azure and openai.

 

[Robbinhood]

Xbox gamers need to spend less on Gaf gold and more on games.

 

[MasterCornholio]

VGC

VGChartz?

I play my lotto numbers based on VGChartz

 

[Heisenberg007]

not yet but they may mention it in the call, i think we will get PC YoY growth numbers and that's it.

Mornin'. Did they share anything in the call?

 

[mrmustard]

Perfect Dark
Avowed(?)
Fable
Hellblade 2
Everwild(?)
The Elder Scrolls 6
Stalker 2(?)
State of Decay 3(?)
Elder Scrolls 6
Outerworlds 2(?)
Forza Motorsport

Indiana Jones
Kojima game

 

[reksveks]

not yet but they may mention it in the call, i think we will get PC YoY growth numbers and that's it.

Mornin'. Did they share anything in the call?

We didnt even get that lol.

Only the revenue comment around subscriptions. Almost one billion in revenue.

Can try and badly estimate but you would have to make assumptions around the split between xbox live and Gamepass.

1 billion per q at a 10 usd arpu per month equals 33m subs between Gamepass and Xbox live. I think the 10 arpu is too high personally.

 

[Robb]

Indiana Jones
Kojima game

Perfect Dark
Avowed(?)
Fable
Hellblade 2
Everwild(?)
The Elder Scrolls 6
State of Decay 3(?)
Elder Scrolls 6
Outerworlds 2(?)
Forza Motorsport

Contraband as well, I think.

 

[reksveks]

Did buy another 3 stocks yesterday in the middle of the day so hoping it doesn't come crashing back in the morning

 

[onQ123]

Now, on to gaming.

We are rapidly executing on our ambition to be the first choice for people to play great games whenever, however, and wherever they want.

We set third quarter records for monthly active users and monthly active devices.

Across our content & services business, we are delivering on our commitment to offer gamers more ways to experience the games they love.

Our revenue from subscriptions reached nearly $1 billion this quarter.

This quarter, we also brought PC Game Pass to 40 new countries, nearly doubling the number of markets we’re available.

Great content remains the flywheel behind our growth. We have now surpassed 500 million lifetime unique users across our first party titles.

And I’ve never been more excited about our pipeline of games, including the fourth quarter launches of Minecraft Legends and Redfall.

In closing, we are focused on continuing to raise the bar on our operational excellence and performance, as we innovate to help our customers maximize the value of their existing technology investments and thrive in the new era of AI.

In a few weeks times, we’ll hold our Build conference, and we will share how we are building the most powerful AI platform for developers. And I encourage you to tune in.

I could not be more energized about the opportunities ahead.

So yeah AI is about to take over

 

[onQ123]

And in Gaming, revenue declined 4% and 1% in constant currency, ahead of expectations. Xbox hardware revenue declined 30% and 28% in constant currency on a high prior year comparable that benefited from increased console supply. Xbox content and services revenue increased 3% and 5% in constant currency driven by better-than-expected monetization in third-party and first-party content, and growth in Xbox Game Pass.

Segment gross margin dollars declined 9% and 5% in constant currency and gross margin percentage increased slightly year-over-year. Operating expenses declined 5% and 3% in constant currency, even with 3 points of growth from the Xandr acquisition. Operating income decreased 12% and 7% in constant currency.

Income decreased by 12%

 

[LordBlodgett]

Wasn't there a rumor circulating around these forums that Microsoft was forcing Bethesda to release RedFall and Starfield before they were ready because their Intelligent Cloud/Azure business was looking gloomy and they needed some revenue streams to pad the bad news? A 17% increase in Azure Cloud services and 27% increase in "other" cloud services sounds pretty good to me.

Yeah, that rumor was super ridiculous. I work in a decent sized MSP and way more of our clients are moving to Azure than are moving from. I'm also pretty sure Microsoft has never relied on Xbox to bolster other departments. Xbox is just too small a division to make or break Microsoft.

 

[Stare-Bear]

Sony outsold Xbox consoles by almost 6:1 this quarter.

Phil will have a VERY hard time to convince his board to take COD console exclusive (if that’s the thinking behind spending $70 billies).

 

[Sony]

Apart from the 30% drop, those results are quite good.

 

[onQ123]

Apart from the 30% drop, those results are quite good.

Xbox income is down 12%

 

[reksveks]

Xbox income is down 12%

More Personal Computing income is down 12% not Gaming. Gaming could be worse or better.

The segment referred in your post 620 is the More Personal Computing one.

 

[Snake29]

Numbers are only bad for Xbox Consoles

And without a console, it won’t get any better for Xbox with GP only. In fact it will only get worse.

 

[onQ123]

More Personal Computing income is down 12% not Gaming. Gaming could be worse or better.

The segment referred in your post 620 is the More Personal Computing one.

And in Gaming, revenue declined 4% and 1% in constant currency, ahead of expectations. Xbox hardware revenue declined 30% and 28% in constant currency on a high prior year comparable that benefited from increased console supply. Xbox content and services revenue increased 3% and 5% in constant currency driven by better-than-expected monetization in third-party and first-party content, and growth in Xbox Game Pass.

Segment gross margin dollars declined 9% and 5% in constant currency and gross margin percentage increased slightly year-over-year. Operating expenses declined 5% and 3% in constant currency, even with 3 points of growth from the Xandr acquisition. Operating income decreased 12% and 7% in constant currency.

 

[reksveks]

And in Gaming, revenue declined 4% and 1% in constant currency, ahead of expectations. Xbox hardware revenue declined 30% and 28% in constant currency on a high prior year comparable that benefited from increased console supply. Xbox content and services revenue increased 3% and 5% in constant currency driven by better-than-expected monetization in third-party and first-party content, and growth in Xbox Game Pass.

Segment gross margin dollars declined 9% and 5% in constant currency and gross margin percentage increased slightly year-over-year. Operating expenses declined 5% and 3% in constant currency, even with 3 points of growth from the Xandr acquisition. Operating income decreased 12% and 7% in constant currency.

The bold is the key word that you are skipping.

They are talking about the segment as a whole. MS very famously doesn't typically give any sub-segment OI numbers.

 

[sinnergy]

And not a shit was given by me

 

[onQ123]

The bold is the key word that you are skipping.

They are talking about the segment as a whole. MS very famously doesn't typically give any sub-segment OI numbers.

Which is more than just the 30% down for hardware

Edit: you're not the person I quoted in the beginning nevermind

 

[LordBlodgett]

These people are delusional.

These numbers are terrible. If I'm an investor I'm panicking right now and if I'm in charge I'm looking for who to fire.

And this is why the stock is up more than 8% since they announced earnings, because of these terrible numbers........

 

[reksveks]

Which is more than just the 30% down for hardware

And the link to what the 12% reduction in OI is referring to is?

The 12% OI reduction is the the segment performance, you can then assume what the gaming OI reduction if you want. I would just remember that hw is typically the lower margin revenue stream.

 

[onQ123]

And the link to what the 12% reduction in OI is referring to is?

I thought I was talking to the person I originally quoted.

 

[Heisenberg007]

And this is why the stock is up more than 6% since they announced earnings, because of these terrible numbers........

Because Microsoft numbers are good.

That does not mean that Xbox numbers are good too. We are discussing Xbox numbers, since this is a gaming forum, not the success that Microsoft is seeing in its other departments -- which are great and helping increase Microsoft's stock price.

 

[geary]

Isn't this generation a bit different then the other ones? I think this is the generation where you benefit of having 2 consoles, because of gamepass. I mean, even if PS sells a lot now vs Xbox, due to gamepass, the incentive to buy also an Xbox console is there, a thing which was not something to think about it in the previous generations.

 

[Gamer_By_Proxy]

Isnt stalker 2 going to PS5 as well?

I thought it was exclusive or at least for quite awhile? I could be wrong though.

It was reported awhile ago that Stalker 2 was a 90 Day Xbox exclusive. Not sure if any of that changed due to the war or if a PS5 version would be ready that quick however.

 

[Baki]

Phil will have a VERY hard time to convince his board to take COD console exclusive (if that’s the thinking behind spending $70 billies).

Thats a management decision. Board only gets involved in things like compensation, share buybacks and other major moves (eg layoffs etc). Also it’s unlikely that the 6:1 ratio will persist. It’s just a weak quarter for MS contrasted against a record breaking quarter for PS.

 

[wolffy66]

AI has the opportunity to change gaming and the world In some crazy ways. In a few years it's gonna be all we hear about in these calls when it comes to gaming.

 

[Lupin3]

The price hike didn't help, for sure.

 

[Poltz]

Thats a management decision. Board only gets involved in things like compensation, share buybacks and other major moves (eg layoffs etc). Also it’s unlikely that the 6:1 ratio will persist. It’s just a weak quarter for MS contrasted against a record breaking quarter for PS.

We will be saying this every quarter if things continue as they are.

 

[LordBlodgett]

Just hurry up and make XGS a Nintendo second party publisher.

Xbox as a console brand is already dead, at its core
Why doesn't Microsoft just become a third-party publisher and bring an "amazing" experience to billions of gamers without the PR bullshit

I'm starting to seriously get worried for the Xbox brand now.

Exactly this...

People here are confusing Microsoft, the $2T company, with Xbox, the weakest division of that company

The Xbox brand is dying right now

I don't think Xbox brand is long for this world at least in a traditional sense. Leadership will never outright say it but I think they understand the potential of hardware sales and the market they can capture with those sales. Services and publishing would seem to be the future and is something Microsoft is far better equipped to execute upon.

Pretty much a disaster for console sales.
I guess for them console hardware will end up becoming just an option until they fully transition their business to PC and cloud based subscriptions.

This is uncharted territory we’re in when the date of a brand like Xbox seems to be in limbo for now I feel

For anyone who thinks these numbers mean that Xbox should stop selling consoles or is thinking about doing so, what are you smoking? And can I try some?

So we know that 1 billion of their gaming revenue is from subscriptions and 500 million is from hardware. That means the other 2.1 billion is either their first party games, or it is their cut of game, DLC, and loot pack sales. I cannot imagine more than a couple hundred million from their own games this quarter because they only had HiFi Rush, GoldenEye, Age of Empires, and some DLC for FH5 and Halo Infinite. Most of this 2.1 billion is coming from their cut of third party sales, and they only get that on the Xbox, inside their ecosystem. On PC they barely have a functioning store, and they've got nothing for mobile, so how could they possibly phase out the console?

 

[FIREKNIGHT2029]

And this is why the stock is up more than 8% since they announced earnings, because of these terrible numbers........

Microsoft’s stocks are always up, no one gives a shit. We are talking about Xbox numbers here, they are terrible and there’s no way to spin this otherwise. Stay on focus, it’s a gaming forum afterall and we discuss gaming or gaming divisions here not the financial health of mega conglomerates.

 

[Banjo64]

For anyone who thinks these numbers mean that Xbox should stop selling consoles or is thinking about doing so, what are you smoking? And can I try some?

So we know that 1 billion of their gaming revenue is from subscriptions and 500 million is from hardware. That means the other 2.1 billion is either their first party games, or it is their cut of game, DLC, and loot pack sales. I cannot imagine more than a couple hundred million from their own games this quarter because they only had HiFi Rush, GoldenEye, Age of Empires, and some DLC for FH5 and Halo Infinite. Most of this 2.1 billion is coming from their cut of third party sales, and they only get that on the Xbox, inside their ecosystem. On PC they barely have a functioning store, and they've got nothing for mobile, so how could they possibly phase out the console?

I just want to play SoT and soon to be Everwild on my Switch so I can play in bed on native hardware

 

[Ozzy Onya A2Z]

Microsoft’s stocks are always up, no one gives a shit. We are talking about Xbox numbers here, they are terrible and there’s no way to spin this otherwise. Stay on focus, it’s a gaming forum afterall and we discuss gaming or gaming divisions here not the financial health of mega conglomerates.

Let us ignore first parry game sales + Game Pass + Gold + royalties + app services + pc/devices and all it's revenue.

Clueless.

 

[Banjo64]

Let us ignore Game Pass + Gold + royalties + app services and all it's revenue.

Clueless.

Let us ignore console sales plummeting.

Personally IDGAF about Xbox sales. I’ll play all future games on cloud or PC.

That suits Xbox as they don’t need to take a loss on hardware, and it suits me because I won’t need to pay to play online when it’s free on PC.

 

[onQ123]

For anyone who thinks these numbers mean that Xbox should stop selling consoles or is thinking about doing so, what are you smoking? And can I try some?

So we know that 1 billion of their gaming revenue is from subscriptions and 500 million is from hardware. That means the other 2.1 billion is either their first party games, or it is their cut of game, DLC, and loot pack sales. I cannot imagine more than a couple hundred million from their own games this quarter because they only had HiFi Rush, GoldenEye, Age of Empires, and some DLC for FH5 and Halo Infinite. Most of this 2.1 billion is coming from their cut of third party sales, and they only get that on the Xbox, inside their ecosystem. On PC they barely have a functioning store, and they've got nothing for mobile, so how could they possibly phase out the console?

I'm not sure what you're looking at but as far as the console go 30% down from last year place them around 1.4 million sold in 3 months while a big game like Hogwarts Legacy released & they was selling Series S for $150 if you think MS isn't looking at this weighing their options you're wrong.

 

[FIREKNIGHT2029]

Let us ignore first parry game sales + Game Pass + Gold + royalties + app services + pc/devices and all it's revenue.

Clueless.

Yea, let’s ignore the console sales in free fall on a gaming forum and focus on devices, apps, and subscription services. Great logic there.

 

[LordBlodgett]

Microsoft’s stocks are always up, no one gives a shit. We are talking about Xbox numbers here, they are terrible and there’s no way to spin this otherwise. Stay on focus, it’s a gaming forum afterall and we discuss gaming or gaming divisions here not the financial health of mega conglomerates.

Not going to lie, their console sales should not be down this early in the gen. 30% is pretty bad. On the other hand, this is their 2nd best Q3 gaming revenue ever, even with that fall. Saying the numbers are "terrible" is more than a little hyperbolic

 

[FIREKNIGHT2029]

Not going to lie, their console sales should not be down this early in the gen. 30% is pretty bad. On the other hand, this is their 2nd best Q3 gaming revenue ever, even with that fall. Saying the numbers are "terrible" is more than a little hyperbolic

If they were in a vacuum I’d probably ignore the floundering console sales. Problem is their biggest competitor is out here breaking records and doing triple and quadruple digit growth in hardware sales. They have to be wondering inside if they are losing all their market share to Sony at this point.

I’m sure there are some tough talks being had now and they are probably looking at making some internal changes to beef up console sales because this isn’t a good look at all. This kind of hardware drop off this early in the gen isn’t normal. Even if the rest of the numbers aren’t bad the hardware drop off still sticks out horribly. Something needs to be done and fast hopefully.

 

[Ozzy Onya A2Z]

Yea, let’s ignore the console sales in free fall on a gaming forum and focus on devices, apps, and subscription services. Great logic there.

I was talking all about Xbox, as you so eloquently requested, you know the various services they offer and turned over billions with outside of just console hardware.

Edit: you seem to have a poor understanding of how Xbox make money.

 

[Go_Ly_Dow]

The price hike didn't help, for sure.

PS5 sales have continued to increase following the price hike.