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Microsoft gaming revenue increased three percent year-on-year to hit $1.6bn for FY17

J

jaybe00

Neo Member
WaterAstro said:
Software sales are up... but, what software?

I don't mean to be coy, but I literally can't think of big sellers other than Gears 4 (I think that's this FY?) and Forza Horizon 3?

I guess maybe it's Minecraft sales?
Click to expand...

Gears of War 4, Halo 5, and Halo Wars 2 micro transactions adding up :)
Oh and the platform cut for third party software for the most part.
 
M

Matt

Member
Jeff Freecss said:
Okay, I'll just believe you do have the knowledge. But sharing your knowledge doen't always means you have to rain on other's parade and call them hyperbolic. Knowledge are inherently objective, yes. But your opinion base on the knowledge is very hard not to be subjective. I think you have to realize this first so you can prevent your comments from being deemed as arrogant. You may not be a arrogant man but online forum are a place without speak tone and body language. Unless your posts are truly facts-only, they are to be interpreted in all different kinds of ways. And I think it's easy to think some might find your posts rude.
Click to expand...
I have every right to express my thoughts on issues, and that some of the things I say come from a position of insight others don't have isn't a negative. Because that information might be "more negative" than others hope for is not a reason not to share it.

GAF is not supposed to be a message board for blind cheerleader-ing. Outside of maybe in Community, we should not endeavor to just be excited. This is a place for discussion and consideration. No one should be worried about bursting bubbles.

Bits N Pieces said:
I work for a pretty big publisher in the UK and I can tell you over here that companies are very protective about letting competitors know what budgets they have fir different departments. I've worked for different companies within the industry over the last 15 years or so and know people who work for clients, direct and indirect competitors and people out with my industry, now unless im a board member, director or very senior manager none of us have a clue what others are spending on what.

Unless Matt has the ear of Spencer, Myerson or someone else it just seems mad that these execs would have such loose lips when it comes to disclosing sensitive business information. I get that if you know people who know people who know people then you can probably surmise specific details but to say im not speculating and what I am saying is factual then you need to be dealing with the top brass on a regular basis.

Of course this post will get shot down and ill be told im being salty but after many years on the web on many different types of forums for all sorts of things I'm reluctant to wholeheartedly believe everything I read by users who I have no idea who they are, maybe that's just me though.
Click to expand...
Again, you are free to believe what you want. But I have a damn good record here, so I haven't given anyone a reason to not believe me.
 
B

Bits N Pieces

Member
Nightengale said:
Fair enough. I'll defer my statement then in lieu of my lack of knowledge in this matter.
Click to expand...

Sorry, I should clarify my statement. I work for a big media publisher now and have also worked for ad agencies in the past and have actually helped plan and deliver campaigns for EA and Sony. I wouldn't even want to put a ball park figure on what the budgets were for specific divisions within those companies, or any company I've worked with or for and I don't know if any of my colleagues or those I know in competitors would know either but im not at that level, im more hands on rather than exec decisions. Maybe one day, lol.
 
MisterR

MisterR

Member
Hawk269 said:
Weird...so you have a like an anti-Matt contingency that stalks you? lol.

I think we had this discussion in another thread a while back and one thing as an observer on it was that "at times" you do come across as a bit anti when someone tries to say something positive about MS. This is not at exact example, but I hope you get where I am going with the following:

Gaf User: Wow..The Xbox One X looks fantastic!!! Hype!
Matt: It's good, but I would not say fantastic.

Gaf User: I think the price of the Xbox One X is great for what you get.
Matt: It is not that great. Not saying the system is bad, but I would not call that price "Great".

Gaf User: MS is killing it with hardware and improvements.
Matt: I wouldn't use "killing it", it has been better, but not "killing it".

Those are exaggerated examples, but the point is that I know that some users when they are excited about something MS related, you tend to knock it down a bit. You may be 100% accurate in your response and you may be correcting people, but it is like Sheldon on the Big Bang Theory, he says a lot of shit that pisses others off, but in his heart he does not mean any harm. He just does not realize that what he is saying is making people feel bad.

You are the Sheldon of Gaf. You correct people or bring them down to earth and I don't think for a second your intention is to make people feel bad or you are being a asshole. I just have observed when someone posts something they are excited about in regards to MS, you tend to knock them down a bit. Not by being mean or being an ass, but it just comes across that way at times. I guess for some perception is reality.

I have not personally felt you have done that to me, but I do see how some people view it. Perhaps you are just a direct person that has little tact when it comes to replying to someone with a bit of empathy. I am not suggesting that you need to agree with someone saying that the Xbox One X is the best thing to ever hit the face of the earth, but using a different tone when responding at times may be beneficial. Again, this is just observation of what I see and I know others have pointed out. I don't think for second you are a bad person or you enjoy correcting people or knocking down what they are excited about. It is a perception that some have.
Click to expand...

Nobody who has actual knowledge should have to dumb down their posting to coddle others delusions.
 
Okami Haundo

Okami Haundo

Member
WaterAstro said:
Software sales are up... but, what software?

I don't mean to be coy, but I literally can't think of big sellers other than Gears 4 (I think that's this FY?) and Forza Horizon 3?

I guess maybe it's Minecraft sales?
Click to expand...

Does it say anywhere that "software" sales are only Microsoft-published games?
 
S

sirronoh

Member
MisterR said:
Nobody who has actual knowledge should have to dumb down their posting to coddle others delusions.
Click to expand...

Yeah, this.

Honestly guys, this thing with Matt -- this isn't the hill to die on.

Discussion surrounding what he knows or doesn't know or how people may feel disappointed or even hurt by what he shares on Microsoft has derailed the thread (and many more like it) and it's unnecessary. Everyone is certainly entitled to their own feelings and level of skepticism but my advice would be to share your concerns with Matt via PM and not through yet another Microsoft thread.


Now, on topic -- Microsoft. Regarding system selling software, since this came up earlier, I am of the mind that all software, regardless of how popular or not, has the potential to sell a system to a consumer that really wants to play that game. I have a friend who bought a PS4 recently for Berserk and the Band of the Hawk. I follow games closely and never heard of that game before that point.

We tend to focus on first-party or third-party but it's really any game. When people talk about first vs. third party this generation and which one sells more consoles, my hunch is that third-party helps drive consoles in the beginning of the generation and first-party starts to become a factor in the latter half of the generation once consoles have saturated the mainstream and more selective consumers are left. I'm not someone who has access to any data whatsoever but that's a theory I've been working on for a few months after seeing third-party dominate 2013 through 2016 and first-party (or third-party console exclusive) start to tip the scales in 2017. I have to see how things play out by the end of next year though.
 
F

FinaruDensetsu

Member
If your personal feelings are getting hurt because someone in the industry is saying something level headed about your favorite game machine that's 100% a YOU problem.

Disagree all you want. Question it. I sure do. But god damn don't get butt hurt about it.
 
Goalus

Goalus

Member
Revenue up.

MAU up.

And both despite declining hardware sales which XOX is ready to combat.

Well done Microsoft, and keep it up!
 
F

fbutron

Member
Savantcore said:
Higher software sales is a plus but, well, you'd certainly hope so considering that there have been literally millions more consoles sold in the meantime. Dwindling Xbox Live users should be quite concerning, shouldn't it? Unless I'm misunderstanding.
Click to expand...

Switch logins on Minecraft to the rescue and new Xbox accounts
 
N

nycgamer4ever

Member
Bsigg12 said:
Having a new, more powerful console announced for Holiday 2017 was going to cause it to slump outside last holiday regardless.
Click to expand...

While I am sure some are holding off for the new hardware, I'm willing to bet it's more a product of the lack of first party titles, PS4 doing really well, and the increased competition from Nintendo Switch that is cause the slump.
 
J

jaybe00

Neo Member
meirl said:
Where does it say that? How big was this chunk?
Click to expand...

It doesn't :) I'm just being partly coy because I hate the practice of micro transactions, but there doesn't seem to be many clear drivers for +11% growth in software either. No truly major releases vs prior year that would account for that much growth either first or third party. And Live subs are probably flat or close to flat.
 
joecanada

joecanada

Member
sense said:
Yes, it will sell to existing hardcore fanbase for three or 4 months just like the xb1s and then they will be back to where they are right now. People are putting too much faith in a $500 hardware that is not a new generation to boot.
Click to expand...

This is exactly right . If they do 30% of current sales even for Scorpio it's not a barn burner. I feel like people think they are going to double sales with Scorpio
 
J

jaybe00

Neo Member
Goalus said:
Yes, but it makes no sense to compare Q2 and Q4 - neither in terms of revenue nor in terms of MAU.
Click to expand...

It makes the most sense to compare MUA vs the prior Q4 to account for seasonality and the YoY trend (a la revenue). Did they provide Q4 2016 number anywhere? Comparing to Q3 is somewhat bogus really especially when it isn't a trend seen over multiple quarters. Peak performance and the gap to the peak performance is helpful to understand, so I wouldn't completely discount it, but prior year Q4 is the most important comparison.
 
W

watdaeff4

Member
Regarding the OT:
Games as a service seems to be the reason and why that isn't going away.

Regarding the Matt discussion: the guy used to work for and report to President Obama until the age of 25 when Google threw him a ton of money to work for them. It's not hard to imagine in that world that by now he knows exactly what is going on at the executive level of the Xbox division
 
G

gamz

Member
watdaeff4 said:
Regarding the OT:
Games as a service seems to be the reason and why that isn't going away.

Regarding the Matt discussion: the guy used to work for and report to President Obama until the age of 25 when Google threw him a ton of money to work for them. It's not hard to imagine in that world that by now he knows exactly what is going on at the executive level of the Xbox division
Click to expand...

I thought he was a game dev?
 
rokkerkory

rokkerkory

Member
Some of these responses lol

Good job on MS for getting s/w sales up per console / user but they need another shot in the arm or 10 with Scorpio!
 
J

Jeff Freecss

Member
watdaeff4 said:
Regarding the OT:
Games as a service seems to be the reason and why that isn't going away.

Regarding the Matt discussion: the guy used to work for and report to President Obama until the age of 25 when Google threw him a ton of money to work for them. It's not hard to imagine in that world that by now he knows exactly what is going on at the executive level of the Xbox division
Click to expand...

Even if that's true, I don't get why connection with Obama and Google means you get the plan of Microsoft.
 
MaulerX

MaulerX

Member
watdaeff4 said:
Regarding the OT:
Games as a service seems to be the reason and why that isn't going away.

Regarding the Matt discussion: the guy used to work for and report to President Obama until the age of 25 when Google threw him a ton of money to work for them. It's not hard to imagine in that world that by now he knows exactly what is going on at the executive level of the Xbox division
Click to expand...


He works for Google? Is that why he hates MS? Or was this a joke post?
 
Samanosuke Akechi

Samanosuke Akechi

Member
tenor.gif
 
GHG

GHG

Gold Member
Hawk269 said:
Weird...so you have a like an anti-Matt contingency that stalks you? lol.

I think we had this discussion in another thread a while back and one thing as an observer on it was that "at times" you do come across as a bit anti when someone tries to say something positive about MS. This is not at exact example, but I hope you get where I am going with the following:

Gaf User: Wow..The Xbox One X looks fantastic!!! Hype!
Matt: It's good, but I would not say fantastic.

Gaf User: I think the price of the Xbox One X is great for what you get.
Matt: It is not that great. Not saying the system is bad, but I would not call that price "Great".

Gaf User: MS is killing it with hardware and improvements.
Matt: I wouldn't use "killing it", it has been better, but not "killing it".

Those are exaggerated examples, but the point is that I know that some users when they are excited about something MS related, you tend to knock it down a bit. You may be 100% accurate in your response and you may be correcting people, but it is like Sheldon on the Big Bang Theory, he says a lot of shit that pisses others off, but in his heart he does not mean any harm. He just does not realize that what he is saying is making people feel bad.

You are the Sheldon of Gaf. You correct people or bring them down to earth and I don't think for a second your intention is to make people feel bad or you are being a asshole. I just have observed when someone posts something they are excited about in regards to MS, you tend to knock them down a bit. Not by being mean or being an ass, but it just comes across that way at times. I guess for some perception is reality.

I have not personally felt you have done that to me, but I do see how some people view it. Perhaps you are just a direct person that has little tact when it comes to replying to someone with a bit of empathy. I am not suggesting that you need to agree with someone saying that the Xbox One X is the best thing to ever hit the face of the earth, but using a different tone when responding at times may be beneficial. Again, this is just observation of what I see and I know others have pointed out. I don't think for second you are a bad person or you enjoy correcting people or knocking down what they are excited about. It is a perception that some have.
Click to expand...

Yes, let's neuter or drive away another industry insider from GAF because some of your feelings are getting hurt. Shhhh, all hype, no reality.

Seems like the logical thing to do. I mean, that's how it usually plays out isn't it?
 
D

Dr. Carroll

Banned
There's such a bizarre obsession with "winning". Microsoft as a company is making a lot of money. They are an extremely profitable company. This isn't a war. It doesn't actually matter how many Xboxes or copies of Windows 10 they sell specifically, so long as they continue to sell them and the money keeps rolling in.

There is such a thing as carving out a profitable niche for yourself, you know.
 
F

Finaj

Member
Dr. Carroll said:
There's such a bizarre obsession with "winning". Microsoft as a company is making a lot of money. They are an extremely profitable company. This isn't a war. It doesn't actually matter how many Xboxes or copies of Windows 10 they sell specifically, so long as they continue to sell them and the money keeps rolling in.

There is such a thing as carving out a profitable niche for yourself, you know.
Click to expand...

They're also very diverse in the ways that they make their money, especially considering other technology companies.
 
R

Renekton

Member
Finaj said:
They're also very diverse in the ways that they make their money, especially considering other technology companies.
Click to expand...
Hmm that means I'm quite outdated (no sarcasm), I always thought majority of earnings are from software suites (eg Office) and hosting (Azure)
 
Goalus

Goalus

Member
jaybe00 said:
It makes the most sense to compare MUA vs the prior Q4 to account for seasonality and the YoY trend (a la revenue). Did they provide Q4 2016 number anywhere?
Click to expand...

Yes, and I am assuming that's exactly what they are doing in their report. What leads you to think otherwise?
 
M

Maintenance

Member
Goalus said:
Comparing Q2 and Q4 makes no sense because people play less during summer. Compared to the same quarter of the previous year MAU are up, and that is what matters.
Click to expand...

Last year they went up. This year they went down.

Those are the numbers, straight out of the horse's mouth.
 
O

OléGunner

Member
MAU's are up on yearly quarter comparison which no doubt Xbox division is ecstatic over.

I must say the XB1S momentum fizzled out much faster than I anticipated (especially in the US where I thought it'd clean house)

I anticipate similar with XB1X.
 
Goalus

Goalus

Member
Neith said:
I'm not really seeing a successful model of business here. We'll see with Scorpio.
Click to expand...

Indeed.

It's strange that a business that makes money (like Microsoft's gaming division) is referred to as successful.

It also makes me wonder why Sony is still in business - they also seem to be making money which is a clear indicator that their business model is not successful. Maybe they can achieve a turnaround with PS5.
 
C

Christocolus

Member
Goalus said:
Indeed.

It's strange that a business that makes money (like Microsoft's gaming division) is referred to as successful.

It also makes me wonder why Sony is still in business - they also seem to be making money which is a clear indicator that their business model is not successful. Maybe they can achieve a turnaround with PS5.
Click to expand...
Lol
 
J

Jumeira

Banned
That's damn impressive and shows signs that Phil's strategy is working. Now imagine how much more successful they'd be with a large array of 1st/2nd party games.

Positive all round.

Neith said:
I'm not really seeing a successful model of business here. We'll see with Scorpio.
Click to expand...

LOL, such insight
 
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