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[Darsxx82]

If its better than expected then why are they having to make substantial cuts to staff?

Quite the quandary.

LOL. Typical of you, not reading what is said and spinning what you don't like to read.

I was talking about the hardware. MS expected a decline for this quarter and there has still been growth despite the large discounts.
I have faith that you will understand it

Then, about the layoffs?? I have already given my opinion. It seems like a disgusting move and difficult to justify by a 3T company. That said, this is capitalism and the industry is seeing an extreme layoff process seeking to maintain profits or avoid losses. MS just added 17,000 new employees to its gaming business.... Disgusting mainly because MS's promise and expectations towards ABK employees were different but that is the reality. You have Sony itself in the leaked docs imposing layoffs or cuts to its Studios and even a willingness to close some despite record income....

Now if you want we talk about numbers and not about how friend or enemy video game companies are for us....

 

[newtypepilot]

This is like claiming you are a ladies man after spending $69 billion on hookers.

I ain't gonna settle for Arkansas 6. I like beautiful women. It's LA 10s all the way.

 

[Sanepar]

Xbox Revenue (Quarter Ending Dec 31st 2022) - $4.76 Billion
Activision Revenue (Quarter Ending Dec 31st 2022) - $2.33 Billion
Combined Revenue (Quarter Ending Dec 31st 2022) - $7.09 Billion

So revenue was essentially flat compared to last year if you are combining MS+ACTI 2022 Vs 2023. There was not growth.

But they always try to show a pretty pic.

 

[twilo99]

Not the low numbers some were seemingly hoping for lol

The inevitable demise of Xbox is not about numbers, it's about a narrative that goes well beyond accounting...

 

[Luminoth-4545]

How is hardware revenue 3% more if they sold less?
More costs instead of profit?

They could have sold less despite revenue being up, units sales could either be slight down or slightly up.

 

[GHG]

LOL. Typical of you, not reading what is said and spinning what you don't like to read.

I was talking about the hardware. MS expected a decline for this quarter and there has still been growth despite the large discounts.
I have faith that you will understand it

Then, about the layoffs?? I have already given my opinion. It seems like a disgusting move and difficult to justify by a 3T company. That said, this is capitalism and the industry is seeing an extreme layoff process seeking to maintain profits or avoid losses. MS just added 17,000 new employees to its gaming business.... Disgusting mainly because MS's promise and expectations towards ABK employees were different but that is the reality. You have Sony itself in the leaked docs imposing layoffs or cuts to its Studios and even a willingness to close some despite record income....

Now if you want we talk about numbers and not about how friend or enemy video game companies are for us....

I literally responded to what you said, I'll leave the spinning to you (clearly).

 

[ReBurn]

All I want to know is how much cash they have on hand post-acquisition.

 

[FIREKNIGHT2029]

Hardware being up only 3% is quite telling lol.

 

[twilo99]

All I want to know is how much cash they have on hand post-acquisition.

• Microsoft cash on hand for the quarter ending September 30, 2023 was $143.951B, a 34.21% increase year-over-year.

you get a rough number by subtracting ~80 big ones

I guess practically what they spent on ABK was roughly their profit from one fiscal year.

 

[FoxMcChief]

All you haterz betta STFU!

MS is the ONLY console platform on their way to serving 1 BILLION GAMERS!!!!

Spoiler

Just maybe not on Xbox... or console at all.

Fine by me.

 

[Ass of Can Whooping]

Fine by me.

Unblock me then snowflake

 

[wolffy66]

These companies layoff who they "can" not who they "have" to. Like it or not, that's why they're profitable and why your 401k demands it.

 

[Topher]

All I want to know is how much cash they have on hand post-acquisition.

• Microsoft cash on hand for the quarter ending September 30, 2023 was $143.951B, a 34.21% increase year-over-year.

So I guess you get a rough number by subtracting ~80 big ones

https://view.officeapps.live.com/op/view.aspx?src=https://microsoft.com/en-us/investor/earnings/FY-2024-Q2/Document/DownloadDocument/7/FinancialStatementFY24Q2.xlsx

 

[Thick Thighs Save Lives]

Microsoft CEO Satya Nadella on gaming in Q2, 2024: "This quarter we set all-time records for monthly active users of Xbox, PC, as well as mobile where we now have 200 million monthly active users, inclusive of Activision Blizzard King. With cloud gaming we continue to innovate to offer players more ways to experience the games they love... hours streamed increased 44 percent year over year."

 

[ReBurn]

https://view.officeapps.live.com/op/view.aspx?src=https://microsoft.com/en-us/investor/earnings/FY-2024-Q2/Document/DownloadDocument/7/FinancialStatementFY24Q2.xlsx

81 billion in liquidity and they're out there laying people off.

 

[Darsxx82]

I literally responded to what you said, I'll leave the spinning to you (clearly).

Sure Jam! .gif

 

[ShaiKhulud1989]

So no GP numbers still? Terrific.

 

[GHG]

So streaming was the highlight huh?

Well well well.

 

[twilo99]

https://view.officeapps.live.com/op/view.aspx?src=https://microsoft.com/en-us/investor/earnings/FY-2024-Q2/Document/DownloadDocument/7/FinancialStatementFY24Q2.xlsx

That might be more accurate, I got the other number from here:

https://www.macrotrends.net/stocks/charts/MSFT/microsoft/cash-on-hand#:~:text=1%20Microsoft%20cash%20on%20hand%20for%20the%20quarter,2021%20was%20%24130.334B%2C%20a%204.54%25%20decline%20from%202020.

 

[Diddy X]

Totally sounds like they are about to shut down the Xbox division like Neogaf told me.

 

[Ass of Can Whooping]

Totally sounds like they are about to shut down the Xbox division like Neogaf told me.

I'm all bout that third party life now

 

[TheBomb]

That engagement!

 

[DrFigs]

consoles were up 3%, which is interesting. assuming it's by revenue here right? not that this is great, but it didn't decline despite massive cuts to prices?

 

[twilo99]

81 billion in liquidity and they're out there laying people off.

I'm sure you understand that in order to get to a point where you have 81 billion dollars to play with is not by running a charity?

Now, we can argue about the "morals" of all this and I'm sure we would ultimately agree that this sort of thing is excessive, but then we would have to tackle how capitalism works, and why corporations act in this manner to begin with, which essentially mimics a greedy human being.

 

[Elios83]

In the conference call they're saying that console market was weaker than expected.
The ambition is to reach more gamers on more platforms and they need to implement disciplined cost control (about layoffs).

 

[FoxMcChief]

81 billion in liquidity and they're out there laying people off.

New to business?

 

[twilo99]

New to business?

It's really hard to grasp for some people..

 

[Baki]

I’ll bring up the same thing I always bring up when Microsoft shares their revenue:

How much is actual profit?

$8 billion in gaming revenue don’t mean Jack if there is $9 billion in expenses.

Still no me mention of Gamepass subscribers.

I think -$690M for the segment due to acquisition related expenses. While the segment (including Surface) would've posted $400M+ profit. Likely most of that profit would be from ABK.

 

[Thick Thighs Save Lives]

Microsoft CFO Amy Hood shares Q3 outlook for gaming:

• gaming growth in low 40s, with 45 points of net impact from ABK
• Xbox content + services low to mid 50s, 50 points of net impact from ABK
• "[Xbox] hardware revenue will decline year-over-year"

 

[Baki]

81 billion in liquidity and they're out there laying people off.

$27B profit in 3 months. They are not laying people off due to cash issues. They are laying people off because they believe they do not need them.

 

[Elios83]

Guidance for hardware business is further decline yoy.

 

[Ar¢tos]

What makes you think they sold less, Microsoft never share unit sales.

Estimates.

 

[twilo99]

Guidance for hardware business is further decline yoy.

Aren't the xbox consoles lumped with Surface under "devices" ? The Surface lineup needs a refresh, and still, I think Apple simply killed them with their ARM offerings..

 

[ShaiKhulud1989]

So basically HW decline and 0 Services growth w/o ATVI? Yikes.

 

[Diddy X]

I'm all bout that third party life now

The goal is to get more profit than Sony and Nintendo if they need to go 3rd party to achieve it then do it, I myself DGAF as am a PC gamer, just keep bringing the games.

 

[GHG]

Aren't the xbox consoles lumped with Surface under "devices" ? The Surface lineup needs a refresh, and still, I think Apple simply killed them with their ARM offerings..

It's literally what's being said in the earnings call.

You should try tuning in:

 

[jroc74]

I must have missed all these posts where folks were suggesting a $69 billion acquisition would have a negative impact on revenue.

Thank you.

I believe most ppl expected this.....didnt they just acquire ABK?

Once again...its all about the revenue....

 

[Darsxx82]

EDIT. It was a error for me.

It's my confusion. I thought the Tweets referred to Q Oct-Dec. It refers to its predictions for next Q January-March.

MS predict bad momento for Xbox hardware for next Q.

 

[DrFigs]

Okay. That 3% up in hardware revenue was misleading. There's nothing wrong with admitting a mistake

i'm confused so hardware revenue went up, but they sold less consoles? i am not sure i follow

 

[adamsapple]

 

[FIREKNIGHT2029]

 

[Clintizzle]

oh fuck i'm gonna cum.

 

[GHG]

oh fuck i'm gonna cum.

 

[Ass of Can Whooping]

New to business?

It's really hard to grasp for some people..

 

[ShaiKhulud1989]

The goal is to get more profit than Sony and Nintendo

Gaming ended with net loss, my dude.

 

[jm89]

Where the gamepass numbers at?

 

[Darsxx82]

i'm confused so hardware revenue went up, but they sold less consoles? i am not sure i follow

It's my confusion. I thought the Tweets referred to Q Oct-Dec. It refers to its predictions for next Q January-March.

I Will do a edit.

 

[Bernoulli]

Where the gamepass numbers at?

 

[Clintizzle]

Where the gamepass numbers at?

 

[twilo99]

"Gaming" is bigger than Windows lol