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[lefty1117]

Not having starfield last year is seriously hurting them badly.

GG Phil spencer. You let the platform down by not having any 3rd party AAA games ready incase of an event like this.

Yeah I think it's pretty much going to come down to this. The Halo Infinite failure is a massive problem for them, and exclusive AAA games have not materialized yet. THey'll have to hope the Bethesda stuff makes the difference.

 

[McCrank]

Good or bad, I am more confident in that Sep 6th date for Starfield now...

 

[mckmas8808]

1 billion from sub services per quarter? That's nice 4 billions per year
Not bad at all, considering they haven't released big first party game for 1,5 year.

But "muh, unsustainable"

Shame that consoles sales are directly tied to attractive first-party releases, so they are not that great. I guess we will have to wait until Starfield for console sales to pick up. Hope that Microsoft will get Series X production in order by September.

Next quarter will be the last with aprox. 3,5 billion in revenue since later they will have ActiBlizz revenue that will add 1,7+ billions in revenue per quarter.

It's NOT a shame that consoles sales are directly tied to attractive first party releases. Why are some of yall like this? You are actively wanting companies to be worse, but then rewarded for it.

 

[mckmas8808]

Good or bad, I am more confident in that Sep 6th date for Starfield now...

There's 100% certainty that Starfield is coming out of Sept 6th. After the latest ABK news at least.

 

[onQ123]

For people still holding on to the Supply Constraints story it's time to snap back to reality.

In what world would it be hard for Microsoft to supply between 500k & 1 million Series X consoles while Sony is supplying around 6 million PS5s in the same time frame?


Low sales is not the result of low supply the low supply is a result of low sales.

 

[lucbr]

Availability depends on region. Recently I haven't seen any XSX available in physical stores (only XSS and PS5). We must understand that part of the market buy what is in stores. More products available and visible on the shelves, more sales. Product visibility matter, it's the basics of retail. Microsoft also reported the stock problem. I hope they don't lie to investors.

 

[Cyberpunkd]

For people still holding on to the Supply Constraints story it's time to snap back to reality.

In what world would it be hard for Microsoft to supply between 500k & 1 million Series X consoles while Sony is supplying around 6 million PS5s in the same time frame?

Low sales is not the result of low supply the low supply is a result of low sales.

This, there is no way that the longer this goes the lower the supply of consoles if Microsoft was selling everything they produced. The opposite should be happening and is happening in case of Sony.

 

[XXL]

For people still holding on to the Supply Constraints story it's time to snap back to reality.

In what world would it be hard for Microsoft to supply between 500k & 1 million Series X consoles while Sony is supplying around 6 million PS5s in the same time frame?


Low sales is not the result of low supply the low supply is a result of low sales.

Mods can close this thread now. We're done here.

 

[onQ123]

Availability depends on region. Recently I haven't seen any XSX available in physical stores (only XSS and PS5). We must understand that part of the market buy what is in stores. More products available and visible on the shelves, more sales. Product visibility matter, it's the basics of retail. Microsoft also reported the stock problem. I hope they don't lie to investors.

They did not report on stock problem this quarter they only used the fact that they supplied a lot of consoles last year around this time as an excuse for why the numbers are down this year in comparison

 

[poppabk]

MS doesn't think of success and failure the way you and I do.

Much like Saudi Arabia, they get infinite spigots of money from their main money makers. Windows, Office, Azure. Since over 95% of the world is forced to use Windows and Office whether they like it or not, MS is guaranteed these revenue streams in perpetuity. So much like the Saudis and their oil money, MS doesn't care about money and money is not their primary goal nor measure of success.

Instead, MS measures success by which new markets they can enter and dominate. On a fundamental level, they are a monopolist. Their entire thinking is based on monopoly, not competition. They hate competition. Competition means fair play and that makes MS angry. They only like to crush competition, not play some kind of fair rules-based sport with them.

So MS enters markets they think they can crush all existing market competitors and control utterly. They will throw any and all resources at this market, until the moment they realize that they are unable to control and dominate. Then they will abruptly withdraw, regardless of previous time and money spent. The best example of this is mobile phones. Over a more than decade period, they threw unlimited money at mobile phones (including multiple acquisitions like Danger and Nokia's phone division) to try and push all competitors out. They were actually an early market entrant in the nascent smartphones business. Unfortunately for them, Apple invented the iPhone and revolutionized smartphones overnight. They were slow to react to Apple (Steve Ballmer famously laughed at the iPhone) and Google were much quicker to acquire Android. MS was slow, produced a series of poor quality products in the Windows Mobile and then Windows Phone llines, spent a ton of money, and got nowhere. The moment Satya Nadella took over as CEO, he put the Windows Phone division to the axe.

Nadella also wanted to axe Xbox, another of Bill Gates' and Ballmer's pet projects, but was convinced to stay his hand. Now it's nearly a decade into Nadella's reign as CEO and MS once again was slow, produced a series of poor quality products in Xbox One and Xbox Series S/X, and now they are at the final spending lots of money phase with this $70 billion acquisition of Activision Blizzard. Make no mistake about it, MS is once again near the end of their monopolist's playbook here. If they are unable to push back against Sony after they have finished this acquisition and denied Call of Duty to PS, it's probably going to be the end. Regardless of previous time in market and money spent, they will drop the guillotine on Xbox if their final gambit to destroy Sony fails. This is how MS works and how they think.

Yeah they will be dropping out of cloud any day now. Those tens of billions in Azure profits mean nothing without being able to dominate the market.

 

[StealthGoblin]

Well the ABK news definitely changes my outlook.

Between now and Starfield is a wash, and even then I’m not sure whether Starfield will move the needle in the way a lot of people expect. I’m sure it’ll review well, and I hope it’s a great game, but will it repair reputational damage?

Nintendo will have a new console out soon which will creep into and be part of ‘next gen’ conversations and will get more multiplat games, Sony will march away with console sales on the back of availability, Spider-Man 2, the PS5 slim, and likely a very very strong showcase.

It’s not a total disaster, but if it is true that most GamePass subs are PC, or that is where their growth is (I can’t remember which exactly) then that leaves Xbox, the console, in a hard place at least in the short term.

Sony getting into PC and Cloud is also interesting. Any gain they make in that area is eating into someone else’s lunch.

 

[SF Kosmo]

Yeah it's not great, but when you delay your lone big blockbuster title for the year, it's to be expected. The question is whether or not Starfield can reverse the trend.

 

[NickFire]

Well the ABK news definitely changes my outlook.

Between now and Starfield is a wash, and even then I’m not sure whether Starfield will move the needle in the way a lot of people expect. I’m sure it’ll review well, and I hope it’s a great game, but will it repair reputational damage?

Nintendo will have a new console out soon which will creep into and be part of ‘next gen’ conversations and will get more multiplat games, Sony will march away with console sales on the back of availability, Spider-Man 2, the PS5 slim, and likely a very very strong showcase.

It’s not a total disaster, but if it is true that most GamePass subs are PC, or that is where their growth is (I can’t remember which exactly) then that leaves Xbox, the console, in a hard place at least in the short term.

Starfield will probably move a lot of PC GP subs, and MS should be looking to offer an annual subscription as soon as possible to keep them after the first month or two. If they don't they will be leaving 40-60 dollars on the table for each subscriber who signs up, plays, and drops, depending on how long people take to complete.

 

[StealthGoblin]

Starfield will probably move a lot of PC GP subs, and MS should be looking to offer an annual subscription as soon as possible to keep them after the first month or two. If they don't they will be leaving 40-60 dollars on the table for each subscriber who signs up, plays, and drops, depending on how long people take to complete.

Indeed. I plan to get it for Fable and drop it when I’m finished with it. I’m not sold on Starfield yet but I’d do the same there too unless I couldn’t.

 

[Luminoth-4545]

Would you like to explain why this has PS5 at 30 million when we know for a fact they hit 32 million over the holidays?

https://www.gameinformer.com/2023/0...lion-units-shipped-after-its-best-quarter-yet

Sell through is always going to be a couple of million behind shipped numbers, expect PS5 to be close to 38 million when Sony reports PS5 shipments on Friday.

 

[tr1p1ex]

seems very odd they don't have any stock anywhere. they had more stock last year.

something is up. I'm going to say new hardware revision. One that doesn't require proprietary storage for optimization to play games. (admittedly I am basing this only on a few things I read about the difference in storage between PS5 and XSX. And for all I know that info could be off or MSFT could fix this with software or something.)

 

[Bitmap Frogs]

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

Man, listen to me.

Spin-off Xbox, keep it partially owned (like 40%) and go public.

Suddenly there’s no daddy Microsoft to rescue you, suddenly people realize performance matters. Start dumping the rotting remains of failed Microsoft execs like Greenberg and the marketing guy who thought television is better than games (he still works there, somehow).

Let everyone managing the studios there’s no going back, it’s make it or die time.

Rebrand. Microsoft is a toxic name and Xbox is so nerdy even Al yankovic would be ashamed of it.

There, success. The Xbox division has all it needs to succeed except the drive to succeed.

 

[IDKFA]

The problem is sooooooo easy to fix that Microsoft are absolutely as thick as a castle wall for not spotting it.

Phase one. Make future first party games Gamepass exclusive. If you want to play Fable or the new Forza, you HAVE to sign up for GP.

Phase two. Cut digital sales. Make the Xbox ecosystem GP only. If you've bought digital games then you'll need a GP sub to access them. Have a physical disc? Need a GP sub to use it. Now people have to sign up to GP. Microsoft has them by the balls. Now for the killing blow.

Phase three. Cut a deal with third party publishers to have every major release come to GP on day one and also never leave the service. People will lap that up.

Phase four, also know as the final form. Up the price of GP to at least £40 per month.

Microsoft start rolling in the money and dominante the gaming landscape. It's so successful that Sony and Nintendo follow the same path.

*Mic drop*

 

[MikeM]

The problem is sooooooo easy to fix that Microsoft are absolutely as thick as a castle wall for not spotting it.

Phase one. Make future first party games Gamepass exclusive. If you want to play Fable or the new Forza, you HAVE to sign up for GP.

Phase two. Cut digital sales. Make the Xbox ecosystem GP only. If you've bought digital games then you'll need a GP sub to access them. Have a physical disc? Need a GP sub to use it. Now people have to sign up to GP. Microsoft has them by the balls. Now for the killing blow.

Phase three. Cut a deal with third party publishers to have every major release come to GP on day one and also never leave the service. People will lap that up.

Phase four, also know as the final form. Up the price of GP to at least £40 per month.

Microsoft start rolling in the money and dominante the gaming landscape. It's so successful that Sony and Nintendo follow the same path.

*Mic drop*

Ah yes. These anti-consumer moves will go over so well with both the public and regulatory bodies in future deals. Lol these takes man…

 

[StealthGoblin]

seems very odd they don't have any stock anywhere. they had more stock last year.

something is up. I'm going to say new hardware revision. One that doesn't require proprietary storage for optimization to play games. (admittedly I am basing this only on a few things I read about the difference in storage between PS5 and XSX. And for all I know that info could be off or MSFT could fix this with software or something.)

If they were smart, they’d be putting a decent amount into azure blades. I’d like to think they haven’t over prioritised that over getting consoles into gamers’ hands.

 

[IDKFA]

Ah yes. These anti-consumer moves will go over so well with both the public and regulatory bodies in future deals. Lol these takes man…

If Microsoft could get every third party game to release day one on GP, plus make it so no game ever leaves the service, then I'd happily pay up to £70pm for it. I'd probably still fell like I was ripping off Microsoft as well!

The more you offer, the more people pay. However, you need to get them locked into that service for life.

Call it anti-consumer if you want, but you can't deny people would lap it up and it would be a wild success.

 

[LordOfChaos]

Do they break out Xbox profit and loss anywhere, or only revenue?

 

[Brucey]

Do they break out Xbox profit and loss anywhere, or only revenue?

Only very rarely.

We do know that the Xbox hardware has never made a profit:

May 2021

"Xbox business development vice president Lori Wright, who is a third-party witness in the case, was asked by Epic lawyer Wes Earnhardt “how much margin does Microsoft earn on the sale on the Xbox consoles?”

“We don’t. We sell the consoles at a loss,” she responded, according to Protocol.

Asked if Microsoft has ever earned a profit on the sale of an Xbox device, she said “no.”

https://www.videogameschronicle.com...de-a-profit-from-the-sale-of-an-xbox-console/

 

[MikeM]

If Microsoft could get every third party game to release day one on GP, plus make it so no game ever leaves the service, then I'd happily pay up to £70pm for it. I'd probably still fell like I was ripping off Microsoft as well!

The more you offer, the more people pay. However, you need to get them locked into that service for life.

Call it anti-consumer if you want, but you can't deny people would lap it up and it would be a wild success.

In a world of rising costs for families- doubtful. Maybe a select small population, but as it is MS has what, 25 million subs? Jackng up the pricing will make people leave, not make more commit. I’d be one of them- at that price, i’d much rather buy a game of whatever I choose a month.

 

[Rocco Schiavone]

 

[ChorizoPicozo]

never gets old. this week is Sonys's earnings, right?

 

[Ev1L AuRoN]

The problem is sooooooo easy to fix that Microsoft are absolutely as thick as a castle wall for not spotting it.

Phase one. Make future first party games Gamepass exclusive. If you want to play Fable or the new Forza, you HAVE to sign up for GP.

Phase two. Cut digital sales. Make the Xbox ecosystem GP only. If you've bought digital games then you'll need a GP sub to access them. Have a physical disc? Need a GP sub to use it. Now people have to sign up to GP. Microsoft has them by the balls. Now for the killing blow.

Phase three. Cut a deal with third party publishers to have every major release come to GP on day one and also never leave the service. People will lap that up.

Phase four, also know as the final form. Up the price of GP to at least £40 per month.

Microsoft start rolling in the money and dominante the gaming landscape. It's so successful that Sony and Nintendo follow the same path.

*Mic drop*

Don Mattrick, is that you? Haven't you learned nothing from the Xbox One launch?

 

[ulantan]

never gets old. this week is Sonys's earnings, right?

Tommrow

 

[Tsaki]

Do they break out Xbox profit and loss anywhere, or only revenue?

Hah good one. Profit is to the Xbox division like garlic is to vampires.

 

[Estocolmo]

Hardware down 30% is worrying.

Isn't it 30% because it compares to 2021 which was a record high for xbox?

 

[Imtjnotu]

Isn't it 30% because it compares to 2021 which was a record high for xbox?

no it compares to quarter or YOY not YO Two years ago

 

[Interfectum]

I bet that dude was hard the entire time he was making that shitty photoshop.

 

[Humdinger]

I listened to a little of Colt trying to cope with the merger news. It was sad, lol.

 

[MacReady13]

What do Microsoft do if console sales keep declining?

Do they really care about console sales though? They seem to only care about how many hours people use game pass and how many subscribers they have on game pass...

 

[TheGodfather07]

Do they really care about console sales though? They seem to only care about how many hours people use game pass and how many subscribers they have on game pass...

That's a stupid question. What kind of business doesn't care about selling it's own product?

 

[FrankWza]

Do they really care about console sales though? They seem to only care about how many hours people use game pass and how many subscribers they have on game pass...

Well, they made an entirely different performing sku and price point at launch for the first time in video game history so that they could cover more bases and appeal to more gamers. I would say they do

 

[kingyala]

problem of xbox is ip, they have no games and they killed the ones they had, buying activision and bethesda isnt going to fix this cause this is just a coward move to block sony from having access to cod and such games, its simply forcing consumers to purchase xbox instead of enticing consumers by actually developing games that people want to play.., forced monopoly capitalism, i dont want a world where all my games come from microsoft, its dangerous... anybody who thinks this is a good idea, will be awaiting a very dark future..

 

[PeteBull]

problem of xbox is ip, they have no games and they killed the ones they had, buying activision and bethesda isnt going to fix this cause this is just a coward move to block sony from having access to cod and such games, its simply forcing consumers to purchase xbox instead of enticing consumers by actually developing games that people want to play.., forced monopoly capitalism, i dont want a world where all my games come from microsoft, its dangerous... anybody who thinks this is a good idea, will be awaiting a very dark future..

Pretty sure xbox/microsoft has many amazing ip's already, and not talking about forza/halo/gears here, look how zelda looks on outdated weak af handheld-switch, now imagine new AAA banjo-kazooie game, made from ground up for series x(and ported down to series s, not other way around), it would be somewhere in the range of new ratchet and if good dev team is put behind it, it would look and play glorious.

Fable/elder scrolls, those games should already be getting not cinematic but playable trailers/demos by now, to excite potential/future xbox console buysers... Fable is well know and belowed frachnice, and lets not forget skyrim so previous elder scrolls game sold well over 30m copies- thirsty ppl are there, and they will buy those games day one- just make/show them something worth buying/waiting for.

There is tons more and i mean true classic very below ip/frachises with worldwide appeal https://en.wikipedia.org/wiki/Category:Microsoft_franchises

Just gotta put some competetent dev studios behind it , and not worry about woke agenda/anti crunch etc, fucking crunch to the max if needed be, but show us some diamonds, microsoft!

 

[Fafalada]

Realistically, somehow I don't think XBLG accounts for a full billion.

I do wonder how attribution of revenue works for 1:1 conversions they offer. I've renewed my gp for 3 years but all I've ever paid for has been XBLG.

Microsoft is betting that's how it will go.

That's not really a bet, as its happened in last 20 years across majority of the games markets. Consoles are rather the last hold over where non recurring revenue model still has a majority presence, MS isn't being visionary here, they're just hitching the same ride everyone else is mostly on, but as a platform holder they hope to control more of the pie.