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Microsoft FY2015 Q3: 1.6M 360+XBO Shipped

lZcTZqV.png

Wasn't that true last year anyway? A real improvement would be only in-engine footage of first party titles.
 

Sakura

Member
Pretty bad sales. Even if the XBO itself didn't decrease YoY, the XBO is a lot cheaper now than it was then. Sales should be up.
 
Idk, I think Sony is going all in too. Its looking like this E3 is going to be massive. I mean even Bethesda and Square Enix have their own press conferences.

It makes sense as well. I think a lot of devs were cautious coming into this generation. Hence all of the remasters and cross generation titles. Now that they know this gen is off to a roaring start it makes sense everyone is ready to reveal.

Could be but since Sony also have there own show i expect them to save stuff .
For eg PSX could be first time we see GOW4 gameplay .
 

mrg6290

Member
I'm more concerned than anything personally
The level of concern in this thread is concerning.

To be fair, in regards to global sales, Microsoft should be concerned. Obviously they hoped to increase their global share and that doesn't look to happen.
 
Oh yeah, I forgot about Forza 6 and Quantum Break >_<

With that many games, I think MS's E3 conference is pretty set, unless they move some of those games to Gamescom.

Don't think so, the EU (excluding UK) is scorched earth for X1 (1:4 sales ratio vs. Sony in Germany IIRC).
MS must show the good stuff in Vegas when US mainstream media will be there.

I'm more concerned than anything personally

No need to be concerned. Xbox is a vehicle to get young people on MS ecosystem, if Win10 4 free fails you can be concerned. Anyways it's -24% revenue in a slow Quarter, not profits.
 

GHG

Gold Member
I think all signs are pointing towards this being their last generation in the dedicated console hardware business.

This e3 will be the most significant e3 in the brands history. They need some heavy hitters, and fast (like 2015 fast).

The biggest issue they face is that most people who are in it for the long running franchises like halo and Forza will have most likely already bought a console due to there already being 2 Forza games and the halo collection.

So where do they go from here? All that's really left in terms of big hitters that are tied to the brand is Gears really. I'm not sure how many consoles Fable will move, especially considering the direction they are taking the franchise.

This is what happens when you neglect and misuse your 1st party for so long. All those franchises/studios that they have neglected and allowed to fall to the waste side such as PGR, all the Rare games, rallisport, the RPGs from last gen, etc mean that out side of the couple of regular exclusives (Forza and halo) they don't really have much that is synonymous with the brand anymore. There hasn't really been a long term strategy with their 1st party and it really shows now. Buying 3rd party exclusives only gets you so far.

Meanwhile Sony is only just warming up in terms of their 1st party this gen. Big hitters and long standing franchises that are synonymous with the playstation brand like Gran Turismo, Uncharted, God of War and Ratchet have yet to have iterations release this gen, but yet the console is still selling like hot cakes.

Xbox is in trouble this gen no matter how you try and spin it.
 
I think all signs are pointing towards this being their last generation in the dedicated console hardware business.
[....]
Xbox is in trouble this gen no matter how you try and spin it.

The only one spinning sth is you IMO.
Show me a MS earnings report that backs up your speculations. All the recent ones I have read, show xbox as a very healthy division. Console warz have no meaning for IRL business decisions.
 
I think all signs are pointing towards this being their last generation in the dedicated console hardware business.

This e3 will be the most significant e3 in the brands history. They need some heavy hitters, and fast (like 2015 fast).

The biggest issue they face is that most people who are in it for the long running franchises like halo and Forza will have most likely already bought a console due to there already being 2 Forza games and the halo collection.

So where do they go from here? All that's really left in terms of big hitters that are tied to the brand is Gears really. I'm not sure how many consoles Fable will move, especially considering the direction they are taking the franchise.

This is what happens when you neglect and misuse your 1st party for so long. All those franchises/studios that they have neglected and allowed to fall to the waste side such as PGR, all the Rare games, rallisport, the RPGs from last gen, etc mean that out side of the couple of regular exclusives (Forza and halo) they don't really have much that is synonymous with the brand anymore. There hasn't really been a long term strategy with their 1st party and it really shows now. Buying 3rd party exclusives only gets you so far.

Meanwhile Sony is only just warming up in terms of their 1st party this gen. Big hitters and long standing franchises that are synonymous with the playstation brand like Gran Turismo, Uncharted, God of War and Ratchet have yet to have iterations release this gen, but yet the console is still selling like hot cakes.

Xbox is in trouble this gen no matter how you try and spin it.


I doubt this is their last generation - I see this as only the beginning of going down the correct path. It'd be a waste of potential things like hololens/minecraft and whatever else they are so vigorously working on. The focus of meshing all their products into one ecosystem.

I'm pretty positive the games are going to be steller and at the end of the day if your not a numbers guy the gamers are going to win from whatever they decide to spit out in desperate mode.
 

Bgamer90

Banned
I think all signs are pointing towards this being their last generation in the dedicated console hardware business.

I could see the next Xbox after this basically being a Windows PC with the Xbox app front/center for (easier) crossplay purposes but I can't see this being the last gen for Xbox. They are doing too much integration work right now and I can't see them wanting to completely dump the money they are making from Live.

The biggest issue they face is that most people who are in it for the long running franchises like halo and Forza will have most likely already bought a console due to there already being 2 Forza games and the halo collection.

Forza probably -- I don't agree with Halo though. There are people (PS4 owners included) who are waiting for Halo 5 to come out to buy the system as it's the first true Halo for this current gen.
 
Anyone pull out the chalkboard yet? No?
Oh well Xbox had a great holiday fueled mostly by super aggressive price cuts. The question was always if they could sustain that.
 
I could see the next Xbox after this basically being a Windows PC with the Xbox app front/center for (easier) crossplay purposes but I can't see this being the last gen for Xbox. They are doing too much integration work right now and I can't see them wanting to completely dump the money they are making from Live.

So, you're saying they would turn Xbox into a PC where you would have to pay for online? They should just give up on the spot if that is their great plan for the future.
 

Bgamer90

Banned
So, you're saying they would turn Xbox into a PC where you would have to pay for online? They should just give up on the spot if that is their great plan for the future.

I'm simply speaking in terms of the next system's build as they really seem to be pushing crossplay and that would seemingly make things easier for that feature.

But honestly, is this really much different from now though? The Xbox One is getting a ton of updates outside of just gaming making it more than just a gaming box obviously.
__________

Too gain momentum they really need a stellar E3 conference and a slim version imo

Yeah, I think we'll see a slim model earlier than last gen; Sales from new people as well as current Xbox One owners who want a replacement.
 

NoPiece

Member
The only one spinning sth is you IMO.
Show me a MS earnings report that backs up your speculations. All the recent ones I have read, show xbox as a very healthy division. Console warz have no meaning for IRL business decisions.

Well, the FY2015 Q3 results that started this thread don't seem particularly healthy.

Computing and Gaming Hardware revenue decreased $72 million or 4%, primarily due to lower revenue from Xbox Platform, offset in part by higher Surface revenue. Xbox Platform revenue decreased $306 million or 24%, driven by a 20% decline in console volume and lower prices of Xbox One consoles compared to the prior year. We sold 1.6 million Xbox consoles during the third quarter of fiscal year 2015 compared with 2.0 million consoles during the third quarter of fiscal year 2014.

Computing and Gaming Hardware revenue increased $499 million or 6%, primarily due to higher revenue from Surface, offset in part by lower revenue from Xbox Platform. Xbox Platform revenue decreased $471 million or 8%, driven by lower prices of Xbox One consoles compared to the prior year, as well as a decrease in second- and third-party video games revenue. We sold 10.7 million Xbox consoles during the first nine months of fiscal year 2015 compared with 10.6 million consoles during the first nine months of fiscal year 2014.

It isn't about Microsoft vs Sony, it is about whether Microsoft's greater interests are served by being in the shrinking console business, or are they better off focusing on mobile, tablets, desktop, and cloud services. When Microsoft is considering it's existential competition, it is worried about Google, Apple, Amazon, and even Valve, not Sony.

Everyone thought the battle for the living room was going to determine the future for companies like Microsoft, but it turns out that convergence happened in people's pockets instead, and Microsoft totally missed the smartphone and tablet market. That's really where they need to recover, and they are a little bit with Surface. If Microsoft pulled out of the console market, what would the negative be for the company?
 

roytheone

Member
Huh, those numbers aren't that great. It does put there renewed interest in windows gaming in a different light, maybe they want PC gaming as a very stable safety net for as things really go bad. I wouldn't be surprised if Microsoft had a lot more PC news to share this E3.
 

Bgamer90

Banned
It seems a bit early for an XB1 slim. 360 didn't get a slim model until it's 5th year on the market.

I agree in terms of comparing it to last gen but I think it would be a good way to get more sales as some current Xbox One owners would get it too.

Honestly wouldn't be too surprised if we'll see a new model in 2016.
 

NoPiece

Member
So, you're saying they would turn Xbox into a PC where you would have to pay for online? They should just give up on the spot if that is their great plan for the future.

I agree just trying to make PC users pay additional money for Gold would fail. They already tried with GFW and it didn't work at all.

But there are other ways to try and get that money. What if they did something like making Windows 11 available via a $10 a month subscription, and it included access to Office and was bundled with all the Xbox Gold functionality? So you aren't paying for it directly, but they are using it to make a Windows subscription palatable.
 

geordiemp

Member
I think hardware can be attractive in its design and capabilities in itself....

So I would say 360 was an attractive piece of kit in its time as it was so efficient and strong for its vintage and generally praised.

Surface 3 looks cool and a viable approach to the market. imo.

Xb1 is often viewed as a miss step in hardware optimisation by todays gaming hardware by many, not sure what MS will do as its too late to change it.
 

GHG

Gold Member
The only one spinning sth is you IMO.
Show me a MS earnings report that backs up your speculations. All the recent ones I have read, show xbox as a very healthy division. Console warz have no meaning for IRL business decisions.

Ok, so since you seem to be so knowledgable on this subject can you point me towards these figures? Preferably ones in 2015.

I doubt this is their last generation - I see this as only the beginning of going down the correct path. It'd be a waste of potential things like hololens/minecraft and whatever else they are so vigorously working on. The focus of meshing all their products into one ecosystem.

I'm pretty positive the games are going to be steller and at the end of the day if your not a numbers guy the gamers are going to win from whatever they decide to spit out in desperate mode.

Most things are pointing towards them transitioning "xbox" into a service, such as windows (PC, tablet and phone) integration and cross play/buy. They have already rebranded their media player on the windows platform to being "xbox" so moving forwards I think we are just going to see the lines blur more and more and for it to just become an ecosystem spanning multiple platforms. Eventually they will just have a streaming service and no dedicated console hardware to speak of IMO. I also see Sony going in this direction for what it's worth but the feeling I have is that Microsoft will move first on it due to the long standing internal debate that they seem to be having about the console hardware business and whether it has been a worthy venture or not from a profitability standpoint over the last decade and a half.

I could see the next Xbox after this basically being a Windows PC with the Xbox app front/center for (easier) crossplay purposes but I can't see this being the last gen for Xbox. They are doing too much integration work right now and I can't see them wanting to completely dump the money they are making from Live.



Forza probably -- I don't agree with Halo though. There are people (PS4 owners included) who are waiting for Halo 5 to come out to buy the system as it's the first true Halo for this current gen.

No doubt there are people waiting and it will move consoles but I'm not sure it's on the scale it once was. Especially considering the MCC debacle and the fact that many long standing fans don't have faith in 343 to take the series forward in the right direction.
 

mrklaw

MrArseFace
Wouldn't you normally go with a price cut first to clear in channel stock, then roll out a new slim model? So depending on sell through, you'd have a price drop heading into the holidays, then a slim intro in q1 to boost sales through the quieter first half?



I agree that Microsoft are like likely to move towards a model that doesn't necessarily require a big box. They have time to see how their new xbox on PC strategy pans out before that though. Also hololens being standalone hardware works well with that approach too - VR requires strong local hardware so it would put demands on a Ps5, but hololens would work just as well with a lower powered box under the TV which streams games.
 
To catch up with PS4, Xbox needs to:
- Have equal or greater number of desirable games than PS4
- Have a perception that it's easy to play games with it

People will forgive everything and come in droves, as long as you have unique games that are desirable to play. But here is a mistake that these big companies make: the brand new FPS, Desert Shooter Bang Bang, isn't something very unique or desirable in a world of multiplatform Call of Duty and Battlefield. Watered down Zombie Massacre Simulator isn't something unique either. What should MS do to get unique games? I'm not sure. Aggressively pursuing indies? They are not AAA games, but AAA games usually want to be multiplatform anyway, thanks to high development costs.

I'm hoping MS will have something exciting to show at E3. They can turn this around, if they take the right approach.
 

Bioshocker

Member
So Microsoft are in a similiar state as Nintendo were with the Wii U after the same period of time on the market. They've failed to get owners of their old platforms to upgrade to the new ones. Nintendo lost their audience to mobile gaming and social media gaming, Microsoft's lost them to Sony.

A lot of 360 owners, myself included, have bought a PS4 instead. And I think very few of them will end up owning both consoles (although I personally will). These customers are lost for this entire generation.
 
Ok, so since you seem to be so knowledgable on this subject can you point me towards these figures? Preferably ones in 2015.

http://www.trefis.com/stock/msft/mo...IDER_4f3bafbafd3829ea10eeb9593465b445f02c1004

On this site you can pretty much find out for yourself, that Xbox accounts for 170m$ of MSFT profits. Office and Dynamics is at 17 billion $.
Important takeaway for you: Xbox is peanuts. But profitable peanuts. So a drop in revenue (not profits) for a Quarter means as much as you losing 25 cents on the streets. Seriously, I bet the CFO of MS doesn't even know what Forza and Halo are exactly.
But losing Xbox would mean losing living rooms/young people and be a PR desaster.
 

GHG

Gold Member
http://www.trefis.com/stock/msft/mo...IDER_4f3bafbafd3829ea10eeb9593465b445f02c1004

On this site you can pretty much find out for yourself, that Xbox accounts for 170m$ of MSFT profits. Office and Dynamics is at 17 billion $.
Important takeaway for you: Xbox is peanuts. But profitable peanuts. So a drop in revenue for a Quarter means as much as you losing 25 cents on the streets. Seriously, I bet the CFO of MS doesn't even know what Forza and Halo are exactly.
But losing Xbox would mean losing living rooms/young people and be a PR desaster.

I've never said they will lose xbox. But what they are doing is changing what "xbox" is and means. If you can't see that then you can't have been following much over the last couple of years.

The acquisition of Minecraft is key to the transition as it means they will be able to keep millions young people locked in no matter what they do next, even if that means moving away from dedicated console hardware. They want "xbox" to be bigger than just a console. It's now becoming an ecosystem spanning multiple devices. Already, the majority of the devices out there with "xbox" on them are not consoles.

And the battle for the living room isn't even where the big bucks are anymore.

And for what it's worth what you linked still doesn't give you any definitive information on the xbox divisions profits since it's grouped with the surface and windows phone divisions. But the fact they group all of those 3 things together in their reports should tell you everything you need to know in terms of the direction the division is heading in.
 

Kinan

Member
Mandatory launch-aligned graph update:

cvunq.jpg


As usual, top of the error bars means X360 sold nothing, bottom - it sold the same amount as X1. Dots, therefore, depict "realistic" situation with X1 shipping 3/4.
 
I've never said they will lose xbox. But what they are doing is changing what "xbox" is and means. If you can't see that then you can't have been following much over the last couple of years.

The acquisition of Minecraft is key to the transition as it means they will be able to keep millions young people locked in no matter what they do next, even if that means moving away from dedicated console hardware. They want "xbox" to be bigger than just a console. It's now becoming an ecosystem spanning multiple devices. Already, the majority of the devices out there with "xbox" on them are not consoles.

And the battle for the living room isn't even where the big bucks is anymore.

OK moving target, I get it. Ask 100 people in the streets what "xbox" is and then you will see, that all your speculations are unfounded in the forseeable future. Xbox means dedicated hardware. But maybe you can produce other sources that back up what you are speculating about.

And for what it's worth what you linked still doesn't give you any definitive information on the xbox divisions profits since it's grouped with the surface and windows phone divisions. But the fact they group all of those 3 things together in their reports should tell you everything you need to know in terms of the direction the division is heading in.

It's common to lump minor divisions together. Closest number available.
 
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