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Microsoft Q2 2021 Destroys Sales and Profits (Xbox +40%)

Operating income ISN'T THE SAME as Net Income for the company. As the number for the whole company provides that. You can clearly google what is the difference between the two.
That's one thing you should do. Because you don't seem to know it.

In 2017 when the TCJA was in acted, Microsoft made a loss. And not because their operation were making losses. That's why you never compare net profits if you want to know how the business operations are doing.

But I guess the whole business world isn't as smart as you.
The fact that you even think you have to tell it's not the same points out you don't come from a business background
 
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wolffy71

Banned
So where are people getting Xbox revenue figures from? Why report revenue and not profit?
Because to factor profit you need to include investments made but income not yet realized. Future investment is controllable so they know that this $ is whatever they decide it to be basically. Revenue on the other hand drives what they want those investment $ to look like. If the future looks promising most companies will forego entire years profits to continue to grow revenues. Investors like arrows pointing up, revenue and growth projections are their favorites. Stock prices make people rich way quicker than dividends.
 

John Wick

Member
I thought MS's 2 bethesda worth of profit was impressive but Apple banked nearly 5 and half Bethesda's in the same quarter. I dread to see what happens when Apple turn the screw. If MS aquire another big Studio/Publisher then I can see Apple, Amazon Google and Sony also going for big buys
 
I thought MS's 2 bethesda worth of profit was impressive but Apple banked nearly 5 and half Bethesda's in the same quarter. I dread to see what happens when Apple turn the screw. If MS aquire another big Studio/Publisher then I can see Apple, Amazon Google and Sony also going for big buys
??
MS net profit: $15.5bn = 2.07 Bethesdas
Apple net profit: $28.7bn = 3.8 Bethesdas
 
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martino

Member
I thought MS's 2 bethesda worth of profit was impressive but Apple banked nearly 5 and half Bethesda's in the same quarter. I dread to see what happens when Apple turn the screw. If MS aquire another big Studio/Publisher then I can see Apple, Amazon Google and Sony also going for big buys
if/when they unleash the kraken on gaming things will change forever.
 
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Corgi1985

Banned
LOLOLOL!!!! Go learn something more man.
  • GameStop revenue for the quarter ending October 31, 2020 was $1.005B, a 30.16% decline year-over-year.
  • GameStop revenue for the twelve months ending October 31, 2020 was $5.162B, a 29.63% decline year-over-year.
  • GameStop annual revenue for 2020 was $6.466B, a 21.96% decline from 2019.
  • GameStop annual revenue for 2019 was $8.285B, a 3.06% decline from 2018.
  • GameStop annual revenue for 2018 was $8.547B, a 7.31% increase from 2017.
yeah healthy company what the fuck was I thinking

https://www.macrotrends.net/stocks/charts/GME/gamestop/revenue
 

Kagey K

Banned
  • GameStop revenue for the quarter ending October 31, 2020 was $1.005B, a 30.16% decline year-over-year.
  • GameStop revenue for the twelve months ending October 31, 2020 was $5.162B, a 29.63% decline year-over-year.
  • GameStop annual revenue for 2020 was $6.466B, a 21.96% decline from 2019.
  • GameStop annual revenue for 2019 was $8.285B, a 3.06% decline from 2018.
  • GameStop annual revenue for 2018 was $8.547B, a 7.31% increase from 2017.
yeah healthy company what the fuck was I thinking

https://www.macrotrends.net/stocks/charts/GME/gamestop/revenue
I think he was making references to the external forces pushing GME to the moon that have nothing to do with their actual earnings.
 

DaGwaphics

Member
I thought MS's 2 bethesda worth of profit was impressive but Apple banked nearly 5 and half Bethesda's in the same quarter. I dread to see what happens when Apple turn the screw. If MS aquire another big Studio/Publisher then I can see Apple, Amazon Google and Sony also going for big buys

It'll be interesting to see if Apple ever gets serious about gaming, overall it's a low margin business by their standards. I would expect Amazon/Google to jump first.
 

Excess

Member
It'll be interesting to see if Apple ever gets serious about gaming, overall it's a low margin business by their standards. I would expect Amazon/Google to jump first.
I agree. The future of game services is with companies that have massive cloud infrastructures. Yes, Apple has this capability, but it's not for enterprise solutions, so scaling it simply for gaming would be silly.

As for Sony, they actually rely on Microsoft's Azure cloud infrastructure. But Microsoft is the most open and collaborative of the bunch. Their entire fortune was built on partnerships, something Steve Balmer forgot and Satya understood. Ever since Satya took the helm, MSFT stock is to the moon since 2013. But I digress.
 

FrankWza

Gold Member
Someone in this very thread on previous page said to you that these profit numbers aren't provided by Microsoft, isn't it?

EDIT : don't show again that screenshot crap because operating income isn't the same as net income. This crappy screenshot of yours shows difference more than $2.3bn in income for the whole company.
Which is why they continue showing overall “subs” and no breakdown for gp or gpu. They boast without context.
Please understand, revenue isnt profit. Like I said, PlayStation will have 8-10 billion dollars in revenue but only about 1 billion of that goes to actual profit. Gaming is extremely expensive with low margins. That’s why so few companies get involved or are afraid to.
And this is why Msoft with all their bags of cash everyone always points to doesn’t drop the price of x to $399 or $299 and sell series s for $99. Why don’t they just blow everyone out of the water and do this?
 

DaGwaphics

Member
And this is why Msoft with all their bags of cash everyone always points to doesn’t drop the price of x to $399 or $299 and sell series s for $99. Why don’t they just blow everyone out of the water and do this?

I don't think anyone will ever over-subsidize hardware again after the PS3 debacle, where Sony not only had no net profit but also burned through most of the cash they earned on the PS1 & PS2. That's never a good option.

Investing so big in hardware will have no return, where investing big in software may have no return. A critical difference.
 
It'll be interesting to see if Apple ever gets serious about gaming, overall it's a low margin business by their standards. I would expect Amazon/Google to jump first.

Apple also has infamous history in the massive failure of the Pippin from the '90s probably still haunting them, tbh. It was a different era and different management, but that might be something preventing them from jumping into the console space even to this day.

Amazon and Google have already tried entering; Google is laughable and have folded their efforts when they barely got off the ground. Amazon looks more promising but they seem to be in danger territory with Luna. The issue with both is that they don't have a console alternative to provide for the main market.

They are banking too much on cloud gaming when even Microsoft are weighing it as a push to complement their Xbox console devices and native versions to run on PC systems. It's not the time for a cloud-only gaming solution on the market; you NEED to have a system in the market for native non-cloud gaming to put forth a truly legitimate ecosystem offering to gamers at large.

So out of Amazon and Google, whoever's the first to design an actual console to release on the market for customers to buy online & brick/mortar stores, will be the one that becomes a viable competitor.
 

Jigsaah

Gold Member
Of course revenue is going to be up, they launched two consoles during the quarter! All of gaming is up that goes for every gaming company, a 40 percent jump isnt impressive.
On queue as usual. LOL it's literally comical at this point.
 

DaGwaphics

Member
Apple also has infamous history in the massive failure of the Pippin from the '90s probably still haunting them, tbh. It was a different era and different management, but that might be something preventing them from jumping into the console space even to this day.

Amazon and Google have already tried entering; Google is laughable and have folded their efforts when they barely got off the ground. Amazon looks more promising but they seem to be in danger territory with Luna. The issue with both is that they don't have a console alternative to provide for the main market.

They are banking too much on cloud gaming when even Microsoft are weighing it as a push to complement their Xbox console devices and native versions to run on PC systems. It's not the time for a cloud-only gaming solution on the market; you NEED to have a system in the market for native non-cloud gaming to put forth a truly legitimate ecosystem offering to gamers at large.

So out of Amazon and Google, whoever's the first to design an actual console to release on the market for customers to buy online & brick/mortar stores, will be the one that becomes a viable competitor.

We just aren't quite there yet with streaming. I'm not the pickiest, so for me, I've had a passable experience with PSNow (haven't tried Xcloud yet). With that said, even for a non picky user there are some latency issues that do effect gameplay, I feel like I've had some unnecessary deaths in Avengers, just due to timing issues with the platforming. LOL

But, like you said, I can live with that as just an add-on since I'm about ready to packup my PS4 and send it to a new home and probably won't have a PS5 until mid-gen. As a primary gaming platform there is still a ways to go for sure.

All that considered, I can see all the potential streaming players wanting to get in position now so that if the market gets more favorable (the latency issues are eased via heavier usage of leo satellites, etc.) they are right there to pounce on those opportunities. Should definitely be easier for MS, Sony and Nintendo to gain trust in that area since they've all been in gaming for a long time now.
 
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