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[reksveks]

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:

FY22 Q3 - Press Releases - Investor Relations - Microsoft

www.microsoft.com

https://view.officeapps.live.com/op/view.aspx?src=https://c.s-microsoft.com/en-us/CMSFiles/SlidesFY22Q3.pptx?version=96df00a5-3875-6477-a693-4e5784b0f929

 

[DeepEnigma]

 

[xClout]

Bo_Hazem

 

[Goalus]

Called it.

I'd say both hardware and software will be up yoy for MS.

 

[Mr Hyde]

 

[Godot25]

So by the time Acti Blizz deal will close Microsoft will earn more then 68.7 billion dollars in profits.

Insane

 

[johnjohn]

Now imagine the results when Xbox actually releases exclusives lol. Gonna be a big Holiday season for them.

 

[nominedomine]

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?

 

[Godot25]

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

Forza released in November, HI in December. This quarter is January-march

 

[R3claimer117]

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

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.

 

[nominedomine]

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.

 

[adamsapple]

 

[reksveks]

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

this your first MS earning call. They also don't release Surface Device unit numbers

 

[nominedomine]

this your first MS earning call. They also don't release Surface Device unit numbers

I don't care about Surface man but it would be interesting to get some actual numbers instead of just revenue.

 

[adamsapple]

That's the best non-holiday quarter ever for Xbox.

GG Phil and team Xbox.

 

[reksveks]

I don't care about Surface man but it would be interesting to get some actual numbers instead of just revenue.

I only highlighted the Surface cause it highlights the fact that MS doesn't give those numbers across the board. Similarly how Apple refused to give out numbers for unit sales as well.

If you want to complain though , feel free.

 

[Deerock71]

Microsoft wants to all of a sudden start talking about earnings again. Wonder what's changed?

 

[reksveks]

Microsoft wants to all of a sudden start talking about earnings again. Wonder what's changed?

its earning season and they have investors who need to get updated?

 

[ReBurn]

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.

 

[Mutantchipmunk]

 

[Dolodolo]

Yeah, again, nothing specific. Some percentages and an attempt to pass off revenue as something meaningful.


Again, we will have to wait for Sony's financial report, where literally every number will be explained and calculated

 

[ReBurn]

Microsoft wants to all of a sudden start talking about earnings again. Wonder what's changed?

They release earnings information every quarter. They have to.

 

[Kagey K]

Microsoft wants to all of a sudden start talking about earnings again. Wonder what's changed?

They do this every 3 months (and have for years) it's part of their responsibility as a publicly traded company.

 

[elliot5]

Yeah, again, nothing specific. Some percentages and an attempt to pass off revenue as something meaningful.


Again, we will have to wait for Sony's financial report, where literally every number will be explained and calculated

Why do you have to wait for Sony’s financial report in a Microsoft financial report thread

 

[Craig of War]

This gen gone to be like PS3 vs 360 days i been saying that since day 1 Sony is not gone to steamroll Xbox this gen

 

[Kagey K]

Yeah, again, nothing specific. Some percentages and an attempt to pass off revenue as something meaningful.


Again, we will have to wait for Sony's financial report, where literally every number will be explained and calculated

Sony is going to explain and calculate every number of MS earnings?

 

[elliot5]

 

[adamsapple]

Sony is going to explain and calculate every number of MS earnings?

Good guy Jim.

That's good to hear.

Hopefully we can finally start turning around on the extreme hardware scarcity we've had the first year and half of the console generation.

 

[Godot25]

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.

 

[adamsapple]

Full earnings call where they will go over all this in detail will start in half an hour-ish.

Can be seen here:

Microsoft Fiscal Year 2022 Third Quarter Earnings Conference Call

 

[sircaw]

 

[Goalus]

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.

 

[Dolodolo]

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

 

[chonga]

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.

 

[Dolodolo]

By the way. Question. Does that include Bethesda's earnings?

 

[adamsapple]

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.

- Content and Services crossed $3bn for the first time in a Q1 period.

 

[nominedomine]

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]

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.

 

[Dolodolo]

- Content and Services crossed $3bn for the first time in a Q1 period.

Content and services include third party sales too, even if they have declined to some extent.
And again, this is revenue.
Like advertising socks, but with a hole.

 

[onesvenus]

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.

I think you missed the part where they explicitly say that GP and first party games offset the decline in third party sales

 

[adamsapple]

Content and services include third party sales too, even if they have declined to some extent.
And again, this is revenue.
Like advertising socks, but with a hole.

I think you missed the part where they explicitly say that GP and first party games offset the decline in third party sales

Only Concern ™ allowed onesvenus

 

[Faithless83]

 

[Ozriel]

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]

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

 

[nominedomine]

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.

 

[Dolodolo]

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]

- 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]

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]

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.

 

[tusharngf]