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MS/Xbox Earnings Call for Q1 2022 (Calendar Year)

reksveks

Member


Summary
- Gaming revenue up 6%
- Xbox Content and Services up 4% (6% CC)
- Third Party Game sales declined unknown amount but made up for by first party sales and GP subscriptions
- Xbox Hardware up 14% (16% CC)
Revenue in More Personal Computing was $14.5 billion and increased 11%, with the following business highlights:
  • Windows OEM revenue increased 11%
  • Windows Commercial products and cloud services revenue increased 14% (up 19% CC)
  • Xbox content and services revenue increased 4% (up 6% CC)
  • Search and news advertising revenue excluding traffic acquisition costs increased 23% (up 25% CC)
  • Surface revenue increased 13% (up 18% CC)
  • Revenue was $49.4 billion and increased 18%
  • Operating income was $20.4 billion and increased 19%
  • Net income was $16.7 billion and increased 8% GAAP (up 13% non-GAAP)
  • Diluted earnings per share was $2.22 and increased 9% GAAP (up 14% non-GAAP)

Will add more info as it comes in cause its kinda boring at the moment..


Sources:
 
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Very uninteresting info, almost nothing to do with gaming. 6% growth in gaming revenue and 14% growth in hardware revenue?

No info on game sales, sub numbers, hardware units, etc. Boring.

Now imagine the results when Xbox actually releases exclusives lol. Gonna be a big Holiday season for them.
Didn't they just release Forza Horizon and Halo? Two of their biggest IPs?
 
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Forza released in November, HI in December. This quarter is January-march 😉
Those releases don’t count for this quarter that’s why they said this is the biggest non holiday quarter for Xbox ever and there was no first party release at all. Which is crazy to think off.
Never said they released this quarter, but it's not like those games ceased to exist and aren't having an effect still. Well, at least they should be having an effect I think being GaaS an all.
 
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ReBurn

Gold Member
Surface computing devices are the some of the worst ive ever used. They must be up 13% because there aren't any good lptops left in the market. I love my Xboxes but Microsoft makes some lousy laptops.
 
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Godot25

Member
Never said they released this quarter, but it's not like those games ceased to exist and aren't having an effect still. Well, at least they should be having an effect I think being GaaS an all.
Well. They said that Game Pass and 1st party offset decline in third party revenue (COD Vanguard etc.) so it's not like they made jackshit. Revenue in services even grew and Xbox had best non-holiday quarter in history.

Not bad at all.
 

Goalus

Member
Didn't they just release Forza Horizon and Halo? Two of their biggest IPs?

No, you're wrong. From the NPD thread:
I don't think Phil has done squat for Xbox, personally. Where are my freaking games? MS has been saying the "games are coming" for like 9 years. We can say the "tsunami of games" has arrived, when they've actually arrived. Everything else is just talk until then. Per the usual.

Just more waiting I guess.

So it seems they haven't released any games for the past 9 years.
 
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Well. They said that Game Pass and 1st party offset decline in third party revenue (COD Vanguard etc.) so it's not like they made jackshit. Revenue in services even grew and Xbox had best non-holiday quarter in history.

Not bad at all.
I guess Halo and Forza Horizon just aren't as big as I figure they were, to have so little impact after less than half an year in the market.
 

reksveks

Member
4% growth in content seems quite poor given the strong growth in HW and claims of growing market share.

Could suggest that the slowing GP sub growth has slowed further still.

From GI/NPD numbers for software sales

In terms of units; UK is down 6%
In terms of revenue; US is down 5.3%

EU actually seems to be stronger than those two so Sony might benefit there more.
 

Ozriel

Member
Very uninteresting info, almost nothing to do with gaming. 6% growth in gaming revenue and 14% growth in hardware revenue?

No info on game sales, sub numbers, hardware units, etc. Boring.

We’ll be sure to drop Satya a note so they tailor their investors briefing to suit your tastes.

Weird. And I thought Microsoft literally didn't care about hardware sales. Lots of people have said this :)

Big difference between “xbox isn’t all about hardware sale” and “xbox doesn’t care about hardware sales”.
 

Godot25

Member
I guess Halo and Forza Horizon just aren't as big as I figure they were, to have so little impact after less than half an year in the market.
Did you read what I just wrote?

1st party and GamePass cause a rise in revenue despite fact that third party revenue made a decline

ie Halo Infinite and FH5 sold just fine or they made people subscribe to GP
 
Weird. And I thought Microsoft literally didn't care about hardware sales. Lots of people have said this :)
They care enough to bring up VGChartz number but not enough to publish the numbers themselves.

ie Halo Infinite and FH5 sold just fine or they made people subscribe to GP
How do you know? GP seems to be growing so slowly now that they don't even update the number of subscribers.
 
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Dolodolo

Member
1st party and GamePass cause a rise in revenue despite fact that third party revenue made a decline

ie Halo Infinite and FH5 sold just fine or they made people subscribe to GP
That's the problem with their reports.
What specific titles and how influenced.
What was the most influential in the gamepass
Etc.
Again, nothing specific.
It's just, well, look, we have sales of equipment, a game pass, and money from our games did something there to compensate for the losses of a third party.
And PLEASE someone finally tell me if all these figures include sales of Bethesda games
 

chonga

Member
- Content and Services crossed $3bn for the first time in a Q1 period.
Not sure what this is meant to be saying?

You do realise that revenue can grow but growth itself can slow, right? Slowing growth does not mean negative numbers.

From GI/NPD numbers for software sales

In terms of units; UK is down 6%
In terms of revenue; US is down 5.3%

EU actually seems to be stronger than those two so Sony might benefit there more.
Various individual publisher reports continue to show good growth in MTX/DLC and so whilst units, and therefore revenue of game sales, might decline, the cash cow chugs along nicely. As platform holders take a cut of that too, this needs factoring in.
 

Faithless83

Banned
Some people are still failing to see how gamepass works for developers.
"Not enough user base to cover for development cost + earnings on Xbox."
"Hey what if we put your game on gamepass and pay you X moneys?"
"Sure."

It's not rocket science, the decline on third party sales was due to the lack of attach rate. People who own a "gamepass machine" are not buying games.
This will lead to a future where third parties are the ones on gamepass, hence the acquisitions.
 

Godot25

Member
They care enough to bring up VGChartz number but not enough to publish the numbers themselves.


How do you know? GP seems to be growing so slowly now that they don't even update the numbers.
Jesus. I will repeat that slowly, so even you can understand

Xbox service revenue grew despite fact that third party games didn't bring that much money. Which can be probably attributed to underperforming Vanguard.

So that means that
A: first party game like Halo Infinite and FH5 are selling great even 4 months after release
B: those games made people subscribe to GamePass
C: combination of both

Sorry, but it is impossible to explain it more simply.
 
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