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

Interesting. Raises questions. Hardware sales are down and are probably going to flatten at this point unless 1X sees a big boost. Like office 365, subscriptions probably drive a big part of this number: xbox live engagement is up. I'd expect a huge push for game pass and an expansion of that service over the coming years. A shame for a lot of MS's bombs early in the gen: give game pass a year of making money and it probably would've been the perfect service for something like D4 to release on and succeed.
 

Trago

Member
I find this a kinda strange argument to make now when we just had a first half of the year that could serve as a case study in the positive effects a strong exclusive lineup can have on the health of a platform.

Those titles have more headroom to shine basically. It would be crazy to release heavy hitters during the holiday season when basically all the major third party stuff is released. But that is a Microsoft problem.
 

Matt

Member
I wonder if Minecraft Switch is counted in the gaming revenue since Microsoft does own the IP. Obviously, not all the money from a sale goes to the IP owner, but MS still gets some of it.
Minecraft is developed and published by MS, they aren't just the IP holder. All Minecraft revenue (outside platform cuts) is counted in this.
 

kadotsu

Banned
I wish we would now YoY software unit numbers. Lower MAU paired with higher software revenue could either mean that there were more titles that people bought in the quarter or that average spent on a per title basis went up.
The first would be nice to see while the second is a clear indication that MS is slowly turning into a whale hunting company, which would be sad.
 

MisterR

Member
X1S momentum fizzled out pretty fast. The software side is helping keep things somewhat positive but they need to address the hardware problem.

I feel like they have a relatively small but very dedicated fan base that is very willing to upgrade but they are not really extending their fan base. Think the same thing will play out with One X. Fast sells from the diehards upgrading, then back to low sales.
 

wapplew

Member
Hardware holding back revenue growth again.
Since software is the main revenue driver, it's time MS release their games on every platform available to maximize profit like Minecraft.
 

ethomaz

Banned
That is why MAU basically give us any ideia of the situation.

First you look at this pretty low 3% increase in revenue over last year when XB1 possible had a 20% (~5m?) userbase increase over last year.

So XB1's userbase are not buying more games? Or spending money with services and Live? That could be affected by the weak software output this year?

At least units sold could show a feeling of increase in userbase while revenue and MAU just shows the situation is getting worst and worst every quarter.
 
It's safe to assume that they are currently investing more in software.

Problem is that we won't see that closer to release and even then it's a 2-3 year bet.
It really isn't.

It's been the same at Microsoft for a few years now, a few big exclusives like halo et Al but otherwise some small console exclusive or timed exclusive smaller games.

That's a big reason why Xbox isn't doing as well as it theoretically should be. They have fostered the idea that, like Nintendo, you only need the console for exclusives otherwise the ps4 can cater to your every need and that's before even Adding Playstation having a tonne more exclusives anyway.

We have heard for years now that Microsoft is doing more for 1st party games, and while they do come out with a few that aren't the usual games it simply isn't enough to justify this prophecy that Xbox fans seem to believe "Microsoft will fund a whole load of exclusives and compete with Sony. You wait and see!" never arrives.
 
I can't really believe a company like Microsoft wouldn't be investing money in software when all this year they've been getting bashed for lack of first party software. I mean come on.
 

jroc74

Phone reception is more important to me than human rights
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.

Interested in this too.

Still surprising to see them continue this generation when even the S failed to have a positive impact. What's their goal? At this pace they will end this generation with less than 40 million consoles while Sony will approach 100 million. The US was their one constant but even there they fail miserably now. Even selling less than a supply constrained Switch.

And their 1st party strategy has been bad for years. Have they still not understood that it's best to release your own games from February to August and leave the rest of the year for the heavy hitting multiplatforms?

Me too. I mean they do have ways of making money with a low install base tho.

I wouldnt be shocked if they did try to come out with their next gen console sooner.
 

wapplew

Member
I can't really believe a company like Microsoft wouldn't be investing money in software when all this year they've been getting bashed for lack of first party software. I mean come on.

Why invest in software when you still get higher revenue by release almost nothing.
 
Interested in this too.



Me too. I mean they do have ways of making money with a low install base tho.

I wouldnt be shocked if they did try to come out with their next gen console sooner.

Um you guys are not really reading that correctly. It's not dwindling "Xbox Live Users", it's dwindling MAU. I don't think that's that weird considering we're in summer and more people go out for summer vacation and whatnot.

As in it's not like their subscriptions are going down, just that there were fewer active users in recent months. Which again, I think is normal in Summer where more people are outside rather than cooped up inside playing games and logging onto Live.
 

Papacheeks

Banned
I'm not sure what you're doing here.

He hates people that might know something saying thing's like " Don't assume they are investing in software".

He basically want's you to spill the beans if you know what MS is doing division wise.
 
Things look pretty positive! Hardware decline doesn't seem too surprising given Xbox One X being a known quantity and all the bundles/discounts they've offered on the One S. I'll be curious to see if they can reach the point where hardware breaks even or goes into the positive.

Also still really curious to see what their actual long-term plan is for Xbox hardware. The One X will definitely help shape their decision to either continue iterative hardware or return to the traditional generational approach.
 

jroc74

Phone reception is more important to me than human rights
That is why MAU basically give us any ideia of the situation.

First you look at this pretty low 3% increase in revenue over last year when XB1 possible had a 20% (~5m?) userbase increase over last year.

So XB1's userbase are not buying more games? Or spending money with services and Live? That could be affected by the weak software output this year?

At least units sold could show a feeling of increase in userbase while revenue and MAU just shows the situation is getting worst and worst every quarter.

I get what you are saying, thats why its good to have both.

Um you guys are not really reading that correctly. It's not dwindling "Xbox Live Users", it's dwindling MAU. I don't think that's that weird considering we're in summer and more people go out for summer vacation and whatnot.

Yea Monthly Active Users.

Some of us are just wondering why that is. MAU could fluctuate based on anything.

With younger folks on summer break should it be going down?

Oh, I see now. Some may be confusing MAU with overall users period. I admit I didnt catch that when I quoted that post, lol.
 
Hence why I said that third party software matters more.

People seem to be too focused on first party software.
Third party is undoubtedly crucial but I think the first half of this year, in particular, shows that great first party/exclusive content can work wonders for a platform as well.

Basically, a platform should strive to have the best of both worlds.
 

Papacheeks

Banned
Things look pretty positive! Hardware decline doesn't seem too surprising given Xbox One X being a known quantity and all the bundles/discounts they've offered on the One S. I'll be curious to see if they can reach the point where hardware breaks even or goes into the positive.

Also still really curious to see what their actual long-term plan is for Xbox hardware. The One X will definitely help shape their decision to either continue iterative hardware or return to the traditional generational approach.

I feel the opposite about this information. It looks fairly bleak compared to other companies and a $500 box isn't going to change much come this holiday.
 
I can't really believe a company like Microsoft wouldn't be investing money in software when all this year they've been getting bashed for lack of first party software. I mean come on.
They've been criticized for years and haven't done much why would this year be much different.
 

oti

Banned
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.

Still. They'll monetize their super hard-core fanbase and not lose money with every unit sold.

What I find more interesting here is how badly the X1S does. It's reaching super cheap territory in Germany for instance and it's still not selling. Not long and we'll be at 149 Euros with a couple of games.
 
I get what you are saying, thats why its good to have both.



Yea Monthly Active Users.

Some of us are just wondering why that is. MAU could fluctuate based on anything.

With younger folks on summer break should it be going down?

Oh, I see now. Some may be confusing MAU with overall users period. I admit I didnt catch that when I quoted that post, lol.

Yeah that's what I thought the poster you quoted was referring to. If that was not his intent, then I was mistaken.

They've been criticized for years and haven't done much why would this year be much different.

In previous years I remember people always praising them on releases in the latter half of the year.
 

jroc74

Phone reception is more important to me than human rights
Still. They'll monetize their super hard-core fanbase and not lose money with every unit sold.

What I find more interesting here is how badly the X1S does. It's reaching super cheap territory in Germany for instance and it's still not selling. Not long and we'll be at 149 Euros with a couple of games.

Last Christmas is seemed like the better buy for me vs the PS4.

Kind of shocked by its sales too. A few months ago, year or 2 ago, it was 3rd parties sell consoles, now it seems the complete opposite.
 
To be #2 these are really impressive numbers. MS really was on to something with the whole Xbox live thing. Changed the industry. In some way worse, cuz more money out of our pocket etc...

But impressive man. With Minecraft now under MS, looks like they've secured there spot in the industry.
 
We have heard for years now that Microsoft is doing more for 1st party games, and while they do come out with a few that aren't the usual games it simply isn't enough to justify this prophecy that Xbox fans seem to believe "Microsoft will fund a whole load of exclusives and compete with Sony. You wait and see!" never arrives.

I never said those investments in software would be successful.

Hence the word bet.

I'm just going by what Phil was saying in E3. Investments happening, closer to chest until release is ready. You can choose to believe it or not.
 

oti

Banned
Last Christmas is seemed like the better buy for me vs the PS4.

Kind of shocked by its sales too. A few months ago, year or 2 ago, it was 3rd parties sell consoles, now it seems the complete opposite.

Got mine last year with a 2nd controller and FIFA 17 for 220 Euros. That was the best price at that point. And it still wasn't selling. I think I've seen 160 Euros or something flying around here and there since then. They're clearly losing to the PS4 Slim and even that console was 180 Euros at some retailers.

Price development pretty much forced both Sony and MS to release a mid-gen console. PS5 shouldn't be too far off either. PS4 Pro has been 350 Euros already.

Pretty crazy times.
 

Trago

Member
Third party is undoubtedly crucial but I think the first half of this year, in particular, shows that great first party/exclusive content can work wonders for a platform as well.

Basically, a platform should strive to have the best of both worlds.

I'm not arguing against the idea. I'm just wondering where some people get the idea that strong first party is seemingly the end-all-be-all. It isn't. And I agree that, out of the big three, Microsoft needs to show the most improvement when it comes to first/second party output.
 
I'm not sure what you're doing here.

I'm just trying to establish if you are stating as fact that MS are no longer investing the same levels or more in software or if this is just your opinion? That's all I'm doing here, trying to understand your post in more detail.
 

Rolf NB

Member
why is it not safe to assume? According to the report they made more with software, why shouldnt they invest more in software?
Also, Phil Spencer just said that they signed a couple of exclusives: http://xboxtavern.com/phil-spencer-just-signed-exclusives/

so, yeah. it is indeed safe to assume, if you want to believe what Phil says, but I don't think he is lying and I think he knows more than any of us.
Have you been born after E3 2017?
 

MilkyJoe

Member
X1S momentum fizzled out pretty fast. The software side is helping keep things somewhat positive but they need to address the hardware problem.



What? Lol

It's not even the same market.
 
why is it not safe to assume? According to the report they made more with software, why shouldnt they invest more in software?
Also, Phil Spencer just said that they signed a couple of exclusives: http://xboxtavern.com/phil-spencer-j...ed-exclusives/

so, yeah. it is indeed safe to assume, if you want to believe what Phil says, but I don't think he is lying and I think he knows more than any of us.
I actually don't see where it says they're making more investments in first party. As in more than they currently are.
 

Matt

Member
why is it not safe to assume? According to the report they made more with software, why shouldnt they invest more in software?
Also, Phil Spencer just said that they signed a couple of exclusives: http://xboxtavern.com/phil-spencer-just-signed-exclusives/

so, yeah. it is indeed safe to assume, if you want to believe what Phil says, but I don't think he is lying and I think he knows more than any of us.
It has absolutely nothing to do with if Spencer is "lying" or not. All of MS's announced games are supposed to be out within a year. Of course they will have other games to replace those in their lineup. That in no way means their investment or attention on first party software is increasing.
 

MisterR

Member
I can't really believe a company like Microsoft wouldn't be investing money in software when all this year they've been getting bashed for lack of first party software. I mean come on.

I don't think they have any desire to up first party output. I think at this point they want to not invest a bunch more in Xbox. I think they are happy to let third parties do the heavy lifting and sit back and just get whatever profit they can from that.
 
I feel the opposite about this information. It looks fairly bleak compared to other companies and a $500 box isn't going to change much come this holiday.

What about the information seems particularly "bleak" to you? If it's about hardware sales, we don't have the numbers to say whether lower sales or discounted pricing played a bigger role.
 

Matt

Member
I'm just trying to establish if you are stating as fact that MS are no longer investing the same levels or more in software or if this is just your opinion? That's all I'm doing here, trying to understand your post in more detail.
I'm saying no one has any reason to assume their investments in first party are going up.
 
PUBG also isn't going to be Xbox exclusive for long.
It's going to be "exclusive" for however long it's in early access I imagine. I wouldn't be surprised if that's over 9 months

Ark sold 1mil copies in like 4 months of early access on XB1, when the PC was at 4mil. PUBG just hit 5 mil. I don't see why it also wouldn't hit 1mil in a short amount of time with how big it is right now
 
I'm saying no one has any reason to assume their investments in first party are going up.

To be fair, without knowing what the yearly budget actually is its hard to ascertain if its going to go up, down or stay at the same level of investment.

It seems to me a good time to quote a Scottish legend, Kenny Dalglish:

Is the Xbox budget going up or down?

"Mibbes aye, mibbes naw."
 

Matt

Member
To be fair, without knowing what the yearly budget actually is its hard to ascertain if its going to go up, down or stay at the same level of investment.

It seems to me a good time to quote a Scottish legend, Kenny Dalglish:

Is the Xbox budget going up or down?

"Mibbes aye, mibbes naw."
This is being too generous. OK, I'll make my position more clear:

MS is not meaningfully increasing their investments in or focus on first party. That could change, I would love for that to change, but it hasn't.
 
It has absolutely nothing to do with if Spencer is "lying" or not. All of MS's announced games are supposed to be out within a year. Of course they will have other games to replace those in their lineup. That in no way means their investment or attention on first party software is increasing.

So it's a good thing the guy you quoted mentioned nothing about expanding 1st party, he said they are investing in more games, which is clear they are.
 
This is being too generous. OK, I'll make my position more clear:

MS is not meaningfully increasing their investments in or focus on first party. That could change, I would love for that to change, but it hasn't.

But they are investing in new externally developed games, which is honestly what they always done best, and honestly precisely where I want them to expand.
 

gamz

Member
I'm saying no one has any reason to assume their investments in first party are going up.

Or down for that matter. Nobody knows anything except those in the know. So what is everyone talking about? Speculation is fine but don't make it come off as fact. Which you sometimes do.
 
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