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Microsoft Quarterly Earnings (ending calendar Q3 2020) - includes Xbox Rev +30%

MrFunSocks

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For sure. Company level.

And extremely important too because it gives MS ammo to do what it wants and buy more studios. Zenimax at $7.5 billion cost is about 6 weeks of profit.

Sony at $5-9 billion per year (trailing 3 years) can't do shit. They are going to bank most of it to play catch up with billions of losses years back.

In fact, their biggest acquisition the past 10 years isn't even gaming related. I think it was a music label at $2 billion.
Exactly. I don’t think the pro Sony crowd on here understand just how huge the zenimax purchase is. It’s far more than Sony can spend on any purchase, and it’s not even really a big purchase for MS. They bought LinkedIn for like $28 billion ffs.

What it shows is that Satya has made good on their “taking games as a pillar of the company” seriously. People didn’t believe it when they said it, even when they promoted Phil to the upper echelon. Maybe after spending what Sony make in an entire year on an acquisition people will finally start getting the idea that MS are not going away. If anything zenimax was just the start.
 

Clear

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It worked for MS Office and Photoshop.

Whole other ball-game, corporate and business usage made these things hugely profitable despite the number of pirated copies outnumbering legitimately licensed ones by huge margins.
 

mckmas8808

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Man they REALLY need to hurry up and get some zenimax games out on PS5 so they can get some revenue. They might go under without it.

Insane growth almost across the board. Azure is unbelievable and as a dev that uses it they’re just hitting home run after home run. Trying to justify buying the surface pro x 2 atm haha

Compare this to Sony’s last quarter results where they launched TLOU2 and it hopefully shows people in here where they both stand - Sony had $2.15bil profit. MS had ~7x that. Hopefully people can understand why MS don’t need to release zenimax games on the PS5 now lol.


They don’t sell year long subs, so it’s pretty easy to determine.

What's wrong with you?
 
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Exactly. I don’t think the pro Sony crowd on here understand just how huge the zenimax purchase is. It’s far more than Sony can spend on any purchase, and it’s not even really a big purchase for MS. They bought LinkedIn for like $28 billion ffs.

What it shows is that Satya has made good on their “taking games as a pillar of the company” seriously. People didn’t believe it when they said it, even when they promoted Phil to the upper echelon. Maybe after spending what Sony make in an entire year on an acquisition people will finally start getting the idea that MS are not going away. If anything zenimax was just the start.
In 2005 (I think), MS had so much money, they literally did a special $3 dividend to 10 billion shares. They gave away $30 billion cash because the coffers got too big.

At the time they couldn't figure out a better way to spend it, so they did a one time dividend.

And at the time, I don't think they were even making $10 billion profit per year. Now it's trending at $50 billion.
 

ChuckeRearmed

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You do realize MS get paid by people to use it, right? Shit's not free.
I mean that revenue it is the overall amount of money earned - like not the pure profit. So increase of revenue doesn't mean that they profit has become bigger.

I do wonder though when they will tell GP subscription count next time.
 
Oct 26, 2018
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It worked for MS Office and Photoshop.
Didn't know Adobe did subs. I don't follow graphic design.

All I remember was back in the heydays, MS Word would be like $200, MS Office $500 and if you wanted ti buy Adobe Photoshop from Future Shop it was like $800.

lol
 

Kagey K

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I mean that revenue it is the overall amount of money earned - like not the pure profit. So increase of revenue doesn't mean that they profit has become bigger.

I do wonder though when they will tell GP subscription count next time.
The last update was just over a month ago with 15 mil on Sept 21. The one before that was 10 mil in April.

So who knows, maybe when they do Q2 in Jan if the growth is massive or maybe they wait until Q3 and do 6 months from the last update. 🤷‍♂️
 

Vol5

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How did you guys get 3.1b in revenue for the quarter? Is this number 1.3b from last year + the % increases throughout the year?
 

Evangelion Unit-01

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More revenue doesn't necessarily mean more income or positive income at all...but I know it isn't something you guys want to discuss.
Up 30% year over year or quarter over quarter? From what base?
30% to what?

+30% to tiny number is still tiny

+30% to big number is huge gain

It is relevative.

I could gain +10000% of cash and be poor if I start from 0.1€

But still better than -30% :messenger_savoring:
Revenue is up for Xbox, but no talk of profit?
Any profit for gaming division?

Console warring in a thread about quarterly earnings? Sad.


Copying and pasting from the 10-Q:


Segment revenue and operating income were as follows during the periods presented:

(In millions)
Three Months Ended September 30,20202019
Revenue
Productivity and Business Processes$12,319$11,077
Intelligent Cloud12,98610,845
More Personal Computing11,84911,133
Total$37,154$33,055
Operating Income
Productivity and Business Processes$5,706$4,782
Intelligent Cloud5,4223,889
More Personal Computing4,7484,015
Total$15,876$12,686

More Personal Computing

Our More Personal Computing segment consists of products and services that put customers at the center of the experience with our technology. This segment primarily comprises:

•Windows, including Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising.

•Devices, including Surface and PC accessories.

•Gaming, including Xbox hardware and Xbox content and services, comprising Xbox Live (transactions, Xbox Game Pass and other subscriptions, cloud services, and advertising), video games, and third-party video game royalties.

•Search.


Revenue increased $716 million or 6%.

•Windows revenue decreased $48 million or 1%, primarily driven by a decrease in Windows OEM, offset in part by growth in Windows Commercial. Windows OEM revenue decreased 5%. Windows OEM Pro revenue decreased 22%, impacted by lower commercial demand and a strong prior year comparable. Windows OEM non-Pro revenue grew 31%, driven by consumer PC demand. Windows Commercial products and cloud services revenue increased 13%, driven by increased demand for Microsoft 365, offset in part by a decrease in agreements that carry higher in-quarter revenue recognition and continued weakness in transactional licensing.

•Gaming revenue increased $550 million or 22%, driven by an increase in Xbox content and services, offset in part by a decrease in Xbox hardware. Xbox content and services revenue increased $649 million or 30%, driven by growth in third-party titles, Xbox Game Pass subscriptions, and first-party titles. Xbox hardware revenue declined 27%, driven by a decrease in volume of consoles sold ahead of new console launches.

•Surface revenue increased $417 million or 37%, driven by year-over-year differences in product launch timing and channel purchasing, as well as PC market demand.

•Search advertising revenue decreased $202 million or 10%. Search advertising revenue, excluding traffic acquisition costs, decreased 10%, driven by reduced customer advertising spend.

Operating income increased $733 million or 18%.

•Gross margin increased $522 million or 8%, driven by growth in Gaming and Surface. Gross margin percentage increased slightly, primarily driven by gross margin percentage improvement in Gaming and Surface, offset in part by a lower sales mix of Windows.

•Operating expenses decreased $211 million or 8%, primarily driven by reductions in advertising.
 

jimbojim

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You can ask this every quarter but they still aren't going to give it to you because they're not console warriors trying to be able to "AHA!" anyone.

So you called a Sony and Nintendo a console warriors because they gave us a profits every quarter. LOL.
 
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MrFunSocks

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Wasn't it Nokia?
That poster was talking about Sony.

So you called a Sony and Nintendo that are console warriors because they gave us a profits every quarter. LOL.

Sony and nintendo don't also have other products that fit in the same division as video games.

Xbox is part of a division at Microsoft. They report financials for that division, not for individual products within the division.

I'm calling you the console warrior btw, like your tag says you are.
 
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jimbojim

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Sony and nintendo don't also have other products that fit in the same division as video games.

Sony has bunch of products. Damn, still can't stop laughing because you called indirectly Sony and Nintendo a console warriors because they gave us profits info every quarter. LOL Never thought that i will heard that from an Xbox fan. SneakerSo was right all along.
 
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MrFunSocks

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Sony has bunch of products. Damn, still can't stop laughing because you called indirectly Sony and Nintendo a console warriors because they gave us profits info every quarter. LOL Never thought that i will heard that from an Xbox fan. SneakerSo was right all along.
What other products does sony have with the playstation in the playstation division?

Report me for trolling MS/Xbox threads > 06/27
 
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How did you guys get 3.1b in revenue for the quarter? Is this number 1.3b from last year + the % increases throughout the year?
Where are you guys getting 3.1 from?
This has to be low... It would mean Surface and windows search is 8.7 billion...
For the same quarter in 2019, Gaming was $2.54 billion. Add 30% is actually $3.3 billion.

Three Months Ended September 30,20192018
Server products and cloud services$9,192$7,058
Office products and cloud services8,4667,622
Windows5,3534,901
Gaming2,5422,738
Search advertising1,9911,788
LinkedIn1,9091,530
Enterprise Services1,5451,450
Devices1,2021,261
Other855736
Total$33,055$29,084

Wasn't it Nokia?
 
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Stuart360

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Sony has bunch of products. Damn, still can't stop laughing because you called indirectly Sony and Nintendo a console warriors because they gave us profits info every quarter. LOL Never thought that i will heard that from an Xbox fan. SneakerSo was right all along.
Can you cretins stop living up to your custom tags for once in your life. The tags are there to shame you, not encourage you.
 

Evangelion Unit-01

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WTF are you talking about? Which console warring?

Anyway, still no profit info for gaming division as i stated in post before

Report me for trolling MS/Xbox threads > 06/27
lol


Read my post. Microsoft reports operating income in three segments. You'll see which segment Xbox falls in and how much operating income that segment generated.
 

jimbojim

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What other products does sony have with the playstation in the playstation division?

Report me for trolling MS/Xbox threads > 06/27

Various Accessories, PS Music, PSVR...

Me trolling? LOL, dude, you just called out a Sony and Nintendo a console warriors in Xbox thread because they give us profit info every quarter. And you called me for trolling. Don't be a hypocrite. I've just asked for profits in Gaming division. LOL
 
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jimbojim

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Report me for trolling MS/Xbox threads > 06/27
lol


Read my post. Microsoft reports operating income in three segments. You'll see which segment Xbox falls in and how much operating income that segment generated.

I've asked for Gaming division only, not Personal Computing as a whole ( which includes Windows, Devices, including Microsoft Surface, PC accessories, and other intelligent devices ). If they split the revenue for each segment in Personal Computing, they surely didn't mentioned a profit for a Gaming Division. Just for a Personal Computing as a whole
 
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MrFunSocks

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Various Accessories, PS Music, PSVR...

Me trolling? LOL, dude, you just called out a Sony and Nintendo a console warriors in Xbox thread because they give us profit info every quarter. And you called me for trolling. Don't be a hypocrite. I've just asked for profits in Gaming division. LOL
Report me for trolling MS/Xbox threads > 06/27

Microsoft don't split xbox profit/loss out because it's part of a division. That's all there is to it. No amount of you trolling and console warrioring is going to change that. Their shareholders don't care, they aren't demanding to know how much profit or loss Xbox by itself is making.
 
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gamechanger87

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I've asked for Gaming division only, not Personal Computing as a whole ( which includes Windows, Devices, including Microsoft Surface, PC accessories, and other intelligent devices ). If they split the revenue for each segment in Personal Computing, they surely didn't mentioned it for a Gaming Division
Xbox gaming revenue was $3.1 billion.

What else do you want?

Apple doesn’t even report units sold anymore.

Xbox is less than 10 percent of MS revenue.

 
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jimbojim

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No amount of you trolling and console warrioring is going to change that.

Looks who's talking. Hypocrite. You called a Sony and Nintendo a console warring companies in this very thread because they give us a profits info every quarter yet you calling me for trolling and console warring
 
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Evangelion Unit-01

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I've asked for Gaming division only, not Personal Computing as a whole ( which includes Windows, Devices, including Microsoft Surface, PC accessories, and other intelligent devices ). If they split the revenue for each segment in Personal Computing, they surely didn't mentioned it for a Gaming Division

Companies report by segment. That is how MSFT reports.

Sony reports on different segments-Music, Picture, Gaming, etc.

You aren’t going to get a Xbox only number unless MSFT changes the way they report. That isn’t MSFT being sneaky and hiding some huge Xbox loss nor is it the “gotcha” you want
 

gamechanger87

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I've asked for profit in Gaming division.

MS hasn’t reported profit at that level in an incredibly long time. You are asking for data that they don’t share.

MS only reports OI at three major segments. They give revenue detail for more but only report OI for the major combined segments (Office Productivity, Networking, everything else)

You can go dig around all you want for data they don’t share.

 

jimbojim

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That was almost 10 years ago. Companies report a lot less now.

Why do you care so much how much money they are making? They just spent 7.5B on the division.

Oh right the tag....

MS bought Zenimax, not Gaming division itself. Oh right the tag...LOL. I've just asked for profits in gaming division. NORMALLY. Pretty normal question. Instead i got pretty aggressive attack posts by Xbox fans here immediatelly labeling me with tag. LOL. Calling me for a console warring immediatelly after i've asked for profits in gaming division, yet one Xbox called a Sony and Nintendo a console warrior companies in Xbox thread, man. Yeah, nice. I mean, WTF.
 

iHaunter

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You have to delete this, it goes against what every financial analyst in Gaff has been saying regarding MS needing money from sony/GamePass is making MS broke/No one is interested in Xbox/MS needs to exit the game industry... etc

No one said Microsoft makes no money, their console just sucks dick because there are no games. I think GamePass is a great idea. It's still far too early to tell if game quality will suffer. If Halo: Infinite is anything to go by, I believe they will.
 
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gamechanger87

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MS bought Zenimax, not Gaming division itself. Oh right the tag...LOL. I've just asked for profits in gaming division. NORMALLY. Pretty normal question. Instead i got pretty aggressive attack posts by Xbox fans here immediatelly labeling me with tag. LOL. Calling me for a console warring immediatelly after i've asked for profits in gaming division, yet one Xbox called a Sony and Nintendo a console warrior companies in Xbox thread, man. Yeah, nice. I mean, WTF.

MS bought Zenimax for the division. Where else would you put it? Are you saying that Zenimax wasn’t doubling down on the segment when Satya said it was?

I pasted the 10Q up there and said they haven’t reported that day in a decade.

What else do you want? I can’t pull info out from nowhere
 

MrFunSocks

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MS bought Zenimax, not Gaming division itself. Oh right the tag...LOL. I've just asked for profits in gaming division. NORMALLY. Pretty normal question. Instead i got pretty aggressive attack posts by Xbox fans here immediatelly labeling me with tag. LOL. Calling me for a console warring immediatelly after i've asked for profits in gaming division, yet one Xbox called a Sony and Nintendo a console warrior companies in Xbox thread, man. Yeah, nice. I mean, WTF.
They literally haven't reported gaming profit/loss for at least 5 years since they restructured their entire company into 3 divisions, why do you think that all of a sudden this quarter they will placate the console warriors? They don't give the information you keep asking for, haven't for 5 years. The only person that doesn't understand this is you. There's nothing sinister or hiding. They didn't restructure the entire reporting structure of one of the biggest companies in the world just to hide some profit or losses from a tiny department lol.
 
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longdi

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Strangely no earnings pop to msft price..i guess the virus situation has caught up to wall Street.

Apple and Sony earnings later today, i hope they pop so my bets can pay for 3080