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[Jaybe]

Microsoft Overview

• Revenue was $61.9 billion and increased 17%
• Operating income was $27.6 billion and increased 23%
• Net income was $21.9 billion and increased 20%
• Diluted earnings per share was $2.94 and increased 20%

FY24 Q3 - Press Releases - Investor Relations - Microsoft

 

[ChorizoPicozo]

I smell another business update

 

[March Climber]

Follow the money.

 

[Men_in_Boxes]

If you still own a PS5 after this thread, you're not deserving of human affection.

 

[Kacho]

Hardware looking really strong and we're only halfway through the generation.

 

[ShaiKhulud1989]

Well, they are dominating PS5 sales after all

/s

Jokes aside, poor Xbox hardware. It's a clear game over.

 

[Jaybe]

Gaming revenue without the addition of ABK would have been a 4% decline

Something that’s been masked in this reporting is the ABK side of the business had a -17% decline:

Using Welfare’s post and going back to ATVI earnings reports, it looks like the ABK side of the business lost a significant amount of revenue versus year ago (-17.3%) likely due to CODMW3 selling a fair bit less than CODMW2.

ABK JanFebMar2024: $1.971 billion
ABK JanFebMar2023: $2.383 billion
$ change: - 412 million
ABK year over year $ change, -17.3%

 

[Gaiff]

Probably counting PlayStation games sales in Content and Services.

 

[Mr Moose]

Gaming revenue without the addition of ABK would have been a 4% decline

Damn, I thought that's what it meant but wasn't sure. And contents and services was +1% without Activision?

 

[Kacho]

If you still own a PS5 after this thread, you're not deserving of human affection.

Did you mean "don't own" ?

 

[ChorizoPicozo]

If you still own a PS5 after this thread, you're not deserving of human affection.

The best platform for GaaS is mobile, so

 

[Jaybe]

Damn, I thought that's what it meant but wasn't sure. And contents and services was +1% without Activision?

Yes that’s right.

 

[nial]

Probably counting PlayStation games sales in Content and Services.

Not probably, that's the case.

 

[Mr Moose]

Last year:

• Gaming revenue decreased $133 million or 4% driven by a decline in Xbox hardware. Xbox hardware revenue decreased 30% on a strong prior year comparable, driven by lower volume of consoles sold. Xbox content and services revenue increased 3% driven by growth in Xbox Game Pass.

 

[Punished Miku]

Don't worry about the hardware. All those custom X-Men controllers are going to count. And it's a contest prize, so they're going to be given away and counted as sold. There's like over 10 X-Men in there.

 

[Jaybe]

Below was the prior year’s quarter Jan 23 to Mar 23) as a comparison without ABK included. What’s striking is that has dropped nearly a third again. Probably why thr movement to multiplatform and the rumours they are considering to an OEM PC like branded Xbox.

Xbox + Microsoft FY23 Q3 Results: Total Gaming -4% ($3.607B), Content & Services +3%, Hardware -30%​

 

[Topher]

Below was the prior year’s quarter Jan 23 to Mar 23) as a comparison without ABK included. What’s striking is that has dropped nearly a third again. Probably why thr movement to multiplatform and the rumours they are considering to an OEM PC like branded Xbox.

30% drop two years in a row?

 

[Jaybe]

Don't worry about the hardware. All those custom X-Men controllers are going to count. And it's a contest prize, so they're going to be given away and counted as sold. There's like over 10 X-Men in there.

Plus fridges and controller hoodies

 

[ReBurn]

If you still own a PS5 after this thread, you're not deserving of human affection.

I own two so forever alone I guess

 

[Kacho]

Below was the prior year’s quarter Jan 23 to Mar 23) as a comparison without ABK included. What’s striking is that has dropped nearly a third again. Probably why thr movement to multiplatform and the rumours they are considering to an OEM PC like branded Xbox.

Wasn't hardware down last year due to shortages? So it's down another 30% this year without shortages. Crazy!

 

[twilo99]

62 large profit ?

lol

 

[ShaiKhulud1989]

Wasn't hardware down last year due to shortages? So it's down another 30% this year without shortages. Crazy!

It is down even with crazy promotions.

ABK aside those are very Hellblade 2-on-a-PS5-in-a-year kind of numbers no matter how you spin them.

 

[Kerotan]

Xbox hardware

 

[dem]

When is the last time you saw any marketing for Xbox consoles?

 

[Cyberpunkd]

Am I not getting something? Because it looks like without ABK they would be -4% on the revenue, +1% on content, which is a bit...

 

[Kacho]

those are very Hellblade 2-on-a-PS5-in-a-year kind of numbers no matter how you spin them.

Every screen is an Xbox after all

Wonder if Timdog ever recovered...

 

[twilo99]

 

[ChorizoPicozo]

it just hit me, remember the meme:



how it started

how it ended:

Dat 30% cut

mastefull strategy from our pal Phil Spencer

sometimes reality really imitates fiction. perfection

 

[Dane]

One thing i've noticed is that Xbox seems to have always a better profit ratio against its install base. Their 85%+ digital ratio + almost the entire active userbase paying subscription helps that.

 

[MisterXDTV]

Below was the prior year’s quarter Jan 23 to Mar 23) as a comparison without ABK included. What’s striking is that has dropped nearly a third again. Probably why thr movement to multiplatform and the rumours they are considering to an OEM PC like branded Xbox.

If they drop 30% again next year, it's probably gonna be surpassed by Steam Deck...

LOL

 

[splattered]

"Without ABK" as if that matters? Hardware dead though lmao

 

[Little Chicken]

Wow Xbox makes more than Office and Windows now? A success

 

[ShaiKhulud1989]

"Without ABK" as if that matters?

Yes? ABK profits are mostly not made on or with Xbox, you know.

And they still need to cover 80 odd billions they've spent on M&A.

 

[ChorizoPicozo]

Follow the money.

 

[GHG]

They might as well rebrand the division to Activision Blizzard at this rate.

 

[Little Chicken]

"Without ABK" as if that matters? Hardware dead though lmao

The success of the Xbox division has people so bothered that they have to make up alternate timelines where Microsoft didn't acquire ABK

 

[Kacho]

"Without ABK" as if that matters? Hardware dead though lmao

Context is important. The ABK growth won't be a factor much longer.

 

[semiconscious]

When is the last time you saw any marketing for Xbox consoles?

saw any marketing for what, now?...

 

[MisterXDTV]

"Without ABK" as if that matters? Hardware dead though lmao

Well that matters in a way.

They spent 75 fucking billions to get it

No shit their revenue improved

Amazing result....

LOL

 

[Astray]

They might as well rebrand the division to Activision Blizzard at this rate.

That's what going to happen imo.

There's no way any sane investor looks at these results and thinks the Xbox devices are of any strategic benefit whatsoever.

 

[GHG]

The success of the Xbox division has people so bothered that they have to make up alternate timelines where Microsoft didn't acquire ABK

Activision was supposed to bolster the existing business, not hold up the whole business by itself.

It's not unrealistic to suggest that given their current predicament, without Activision they would be toast.

 

[Elios83]

Hardware dead, the rest masked by the Activision revenues boost, more PS5 games are coming.

 

[adamsapple]

The acquisition bringing in the dough

 

[Bernoulli]

 

[Little Chicken]

Activision was supposed to bolster the existing business, not hold up the whole business by itself.

It's not unrealistic to suggest that given their current predicament, without Activision they would be toast.

Well they aren't without Activision so what does it matter

 

[bender]

 

[Varteras]

 

[ShaiKhulud1989]

The acquisition bringing in the dough

What dough? Even ActiBlizz has written off some 300 odd millions on merger expenses. 75 billions to go!

 

[nial]

Wasn't hardware down last year due to shortages? So it's down another 30% this year without shortages. Crazy!

Shortages were from 2020 to 2022, hardware was down in 2023 due to low sales.

 

[diffusionx]

If Microsoft could acquire a $70B game company every quarter their numbers would look amazing.