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Xbox hardware revenue down 42%, content and services up by 61% last quarter

Microsoft can keep developing Xboxs and sell them at cost or low proffit as marketing tools fot thier Gamepass platform. Hardware is not the issue now , the interesting Will be how software studios behave. They need a tandem of great titles to support MS-AB-Bethesda "conlave"
As per Spencer, MS is losing between $100-200 per Xbox Series unit sold.

Sony added new PS+ tiers as a response to Gamepass.
Before GP, there was a somehow decent service called PS Now, they upped the tiers trying to squeeze as much revenue as posible from the same players.
 

Darsxx82

Member
NxwBdPG.jpeg

🤔🤔🤔🤔🤔🤔
Are you trying to say that because they don't give profit figures that means they are making losses?? 🤔😂

I repeat, only with what ABK generates (which has not changed its multiplatform release structure) they should already be registering benefits that would cover any loss generated by XGS.
The other thing is that you want to make believe that ABK (which was/is the gaming company with the highest profits by far in the industry) has become a black hole of losses just because it now belongs to MS...🙃

P.S. The XBOX division has not reported profit figures for decades. The biggest surprise would have been if he gave them now.
 
Are you trying to say that because they don't give profit figures that means they are making losses?? 🤔😂

I repeat, only with what ABK generates (which has not changed its multiplatform release structure) they should already be registering benefits that would cover any loss generated by XGS.
The other thing is that you want to make believe that ABK (which was/is the gaming company with the highest profits by far in the industry) has become a black hole of losses just because it now belongs to MS...🙃

P.S. The XBOX division has not reported profit figures for decades. The biggest surprise would have been if he gave them now.
If you see the data,

sowrry, but there is not data to bee seen.

your very healthy is a "very healthy" at best.
 

Generic

Member
Before GP, there was a somehow decent service called PS Now, they upped the tiers trying to squeeze as much revenue as posible from the same players.
PS Now was an attempt to catch the streaming market.

Not much of a response really. Hardly keeping them in "check".
Still a response, PS+ Extra and Premium only exist because of Gamepass. It was basically Sony saying "you don't need a Xbox to have a cheap subscription service with hundreds of games" to millions of consumers.

LOL yes because somehow Nintendo doesn't exist whenever these analogies need to be made

Never mind that Xbox already doesn't exist outside of US and UK and so far Sony hasn't needed to be put in check
The Switch is a portable with 10 years old tablet hardware.


Really guys, competition is good. If the Xbox drops the console market, things will get worse for consumers.
 

Kacho

Gold Member
For reference, I pulled up all of Microsoft's public financial reports so people could have accurate debating points.

Xbox hardware declines per quarter in FY24:
Q1: -7%
Q2: -9%
Q3: -31%
Q4: -42%
And we’re only halfway through the generation. I know there’s rumors about an early next gen console from Microsoft, but when interest in the brand has completely eroded, what’s the point?
 

Astray

Member
And the point is that having a good or great showcase when you are not delivering the games and there is a clusterfuck in your messaging/vision/strategy compounded by the complete free fall of your hardware of course its not going to have a big impact at all. BUT showcases/events (Marketing in general) have a very important and meaningful impact.
Showcases don't matter anymore to the larger market because most people play service and annual games now, and they have already decided where they like playing them too.

If you play FIFA or COD or Fortnite predominantly, then why would you exactly care about a Lego Horizon or Indiana Jones game reveal? Showcases are for the hardcore gamers who post pages of forum content about them on NeoGAF or ResetEra (the minority), not for normie players (the vast majority of consumers).
 
Showcases don't matter anymore
but they matter tho. it's like the recent Hall H at the sandiego comiccon. (for the nerds)

I have never seen those panels and I know the Roberto Junior is going to be the next Doom.

showcases or similar are just a marketing push. they are important to create awareness for games beyond the hardcore people.
 
Looking at MS Gaming and ABK combined, revenue DROPPED 12%!

MS Gaming Q4 2024 is $5.03 Billion (3.491B x1.44)

As separate companies, MS Gaming and ABK when summed together made $5.7 Billion in the April 2023 to June 2023 period. ABK’s $2.2 Billion was driven off of Diablo 4. MS Gaming was $3.491 Billion ordering to @Welfare ‘s calculations on IB.


iVF4rnM.png

If this keeps happening it'll actually be strong evidence by regulators like the FTC to deny future modest/large gaming acquisitions by companies like MS. Beyond just consolidating the market, the numbers dropping with consolidation vs. unconsolidated could be claimed to hurt the overall revenue growth of the gaming market.

Basically, unless these numbers improve by considerable amounts going forward, it's going to be a very bad look for Microsoft going forward WRT future gaming acquisitions. That doesn't even bring up the job cuts they've done since the purchase was completed (or studio closures like with Tango Gameworks).
 

Darsxx82

Member
sowrry, but there is not data to bee seen.

your very healthy is a "very healthy" at best.
LOL. Yes there is data, income. But I repeat, if your desire is to make people believe that ABK, from the moment it became part of MS, magically went from being the company with the highest profits in the industry by far to being a total ruin even though nothing has changed in its structure and operation..... OK.🤷🏻🙃
Name me a single company or division in any industry that hides its profits. I'll wait.

Hint: The answer is not in the discord nor in the employee handbook you have.

MS does not hide its benefits.... The difference is that Xbox is a small part of MS, which is a super-diversified company and its importance has nothing to do with what PS may have for Sony or other companies dedicated exclusively to the video game business. .
But then, MS has not provided profit figures for any of its divisions (and it won't be because none of them separately for decades generate profits 🤣) . It is not just a matter of the Xbox division. The funny thing is that someone expected them to make an exception only for Xbox or now for ABK 🙃
 

Unknown?

Member
While its a big number didn't we just hear a couple of months ago PS hardware was down like 30%?

The rush isn't there anymore

Maybe I am thinking something else about that 30% number

Regardless imagine at Castle Green they see these numbers and think "Oh lets release the same consoles but lets make them white, that will fix sales"

Red Wine Ugh GIF by Married At First Sight
Down off of all-time records. This is down on a huge drop already when it should be in its prime. It's like Wii 2011 levels of drop.
 

Darsxx82

Member
A "very healthy" division:
CbWPWbS.jpeg

mQEXqZZ.jpeg



If You Say So Shrug GIF

🙃 indeed

LOL. Clear example of when efforts to misrepresent become ridiculous and on top of it adorned with the typical self-congratulatory gif.......You should be proud😂

As if it were only MS who fired and closed Studios even though they had great profits...🤣

We will all agree that if MS decided to make all its games (from XGS, Bethesda and ABK) exclusive, the Xbox division would not be sustainable??? Well that's what that means. Which is very different from you wanting to see a kind of admission that the Xbox division (where XGS+Bethesda+Abk are) does not generate profits😆
 
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LOL. Clear example of when efforts to misrepresent become ridiculous and on top of it adorned with the typical self-congratulatory gif.......You should be proud😂

We will all agree that if MS decided to make all its games (from XGS, Bethesda and ABK) exclusive, the Xbox division would not be sustainable??? Well that's what that means. Which is very different from you wanting to see a kind of admission that the Xbox division (where XGS+Bethesda+Abk are) does not generate profits😆
VERY healthy division tho.
Happy Joaquin Phoenix GIF
 

Astray

Member
One thing that should be said is that next quarter is going to be the last one that gets boosted by the ABK merger, so the numbers are liable to look far worse in the next fiscal year.
 

Nonehxc

Member
As per Spencer, MS is losing between $100-200 per Xbox Series unit sold.


Before GP, there was a somehow decent service called PS Now, they upped the tiers trying to squeeze as much revenue as posible from the same players.
Make that between 200-300$ for mine Series X since it cost me new 400$ 😎

And the sweetest thing about it, it's that I bought it DIRECTLY FROM MS STORE MWAHAHAHAHA 🤗
 

NickFire

Member
I‘ve been a customer with COD and Sea of Thieves. Will be getting next COD soon enough. flight sim and Starfield would be hard to resist if they follow sea of thieves.
 

Clintizzle

Lord of Edge.
I give 0 fucks about Xbox hardware. They've aggressively secured some IP through acquisitions, so I care more about what they're going to with them.

- Gamer who is not a shareholder.
 

Unknown?

Member
I give 0 fucks about Xbox hardware. They've aggressively secured some IP through acquisitions, so I care more about what they're going to with them.

- Gamer who is not a shareholder.
Put them on gamepass but won't do anything that wouldn't have been done otherwise.
 

nick776

Member
When you say "update the Series X this year", what are you thinking they should/could have done?
Simply to boost sales--at least bring out the cylinder design, better yet improve performance and call it Series X Pro or something. Literally do SOMETHING to show they care about hardware (assuming they actually do care). What they actually did is not even a half-ass try.
 

rm082e

Member
Simply to boost sales--at least bring out the cylinder design, better yet improve performance and call it Series X Pro or something. Literally do SOMETHING to show they care about hardware (assuming they actually do care). What they actually did is not even a half-ass try.

The cylinder design we saw from leaked documents didn't have any performance improvements. It was a different shape to the plastic - like the PS5 slim. I seem to remember it had slightly faster wifi and a more recent bluetooth codec, which the new disc-less X didn't get. But even if it had, no one is going to swap out their existing Series X for slightly faster wifi.

Series X Pro was a decision they would have needed to make 2+ years ago to work on the designs, and would have required investment. They clearly aren't in a position to do that with sales being terrible, and it probably wouldn't have mattered anyone. The real Series X Pro is a gaming PC.

If people fundamentally don't want their console, there's nothing they can do to spice it up. They can only come out with new software to try and juice the existing hardware, or come out with new hardware, which seems like a bad idea given the trajectory of the Series consoles.

They're in a Dreamcast style death spiral. It's a slow moving train wreck that we've all been watching for the last 9 months. It's probably got at least another 6 to go. Q1, when we see the results of putting COD on Game Pass will be the real brass tax moment. Starfield failed hard. If COD fails hard too, they won't have a card left to play next year.
 
Good PR. Sony could have done nothing and it wouldn't have mattered.
It would have meant I wouldn;t have had access to my PS+ library. Just like if Nintendo had no competition, we'd probably only be able to buy gamers on cartridges and online play probably wouldn't exist.
 

Jaybe

Member
Gotcha. I was just responding to the figures in the OP.

I was trying to make the point that we since we don't know about operating expenses, we don't know about profit, just revenue. Granted, this is always the case but sometimes bears repeating, especially when operating expenses are likely much higher than they were before.

Yeah and you raise a good point, I believe the ABK side ran at an operating loss last quarter.
 
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