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

adamsapple

Or is it just one of Phil's balls in my throat?



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Seriously, great job and my heartiest congrats to all parties involved. Series is an incredible turnaround compared to Xbox One.
 

StreetsofBeige

Gold Member
Xbox doing great. Well, MS as a whole is. $16.7B profit.

After hours the stock is up too.

277.08 +6.86 (+2.54%)
After hours: 6:00PM EDT
 

Riky

$MSFT
Don't pretend to be an idiot. You perfectly understand what I'm talking about.

The income tab says growth from Gamepass and money from their 1p games.

I remind you, especially for you, that Gamepass is on PC, and Microsoft games (Bethesda) are also on PC.
And all the Xbox games, at this point in time, except for MSFT, GhostWire, Deathloop, are on the good old Xbox one.

If I wanted to be a clown like you, I could generally write that the growth of the Xbox is due to the high sales of the last two Bethesda games on Ps5, but this has nothing to do with reality, so I will not :)

Resorting to insult territory already, poor show son.
I'm a Gamepass Ultimate subscriber, that spreads across both Xbox and PC owners, we don't know how many just subscribe to PC only, if you do please share the figure.
I got Deathloop on PS5 as well, happy to buy high scoring product that funds further output.
 
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Faithless83

Banned
GamePass is not the entire gaming division of MS…
Ok, let's use our brains for a moment:

Xbox hardware is sold at a loss.
Gamepass is sustainable.
First party will be day one on Gamepass.


Do I need to go on?
It's growing, remember, they were still losing 2:1 to PS5 by the end of last year.
Growth is growth, period, yet no sales numbers, just percentages.
And I guess you’re serious about the demo thing so, uh, enjoy them.
I'm not trolling, think about it, every game at release and likely retroactively to first parties, this is a lot more useful (to me), than gamepass (which I also have due to my 3 years extension of gold for 1$).
 

adamsapple

Or is it just one of Phil's balls in my throat?
Lmao, so much for hardware sales not mattering. I knew they would shout it out at the first opportunity when things were in their favor, it just took a few years for them to be able to do so.

Lets not even mention that he is ignoring the Switch and "beating" a competitor that is sold out.

Not mattering is not the same as them not revealing hardware numbers. They haven't done that for almost a decade, including this quarter.

I .. I honestly don't know what posts like yours are trying to accomplish.

Seriously man, tone the console war rhetoric down a notch.
 
Ok, let's use our brains for a moment:

Xbox hardware is sold at a loss.
Gamepass is sustainable.
First party will be day one on Gamepass.


Do I need to go on?
It's growing, remember, they were still losing 2:1 to PS5 by the end of last year.
Growth is growth, period, yet no sales numbers, just percentages.

I'm not trolling, think about it, every game at release and likely retroactively to first parties, this is a lot more useful (to me), than gamepass (which I also have due to my 3 years extension of gold for 1$).
Selling at a loss doesn't negatively impact revenue, it impacts profit.

Not mattering is not the same as them not revealing hardware numbers. They haven't done that for almost a decade, including this quarter.

I .. I honestly don't know what posts like yours are trying to accomplish.

Seriously man, tone the console war rhetoric down a notch.
You are the one who seem too concerned about console wars. Why would I censor my opinion? So that Xbox fans don't feel personally offended? I was under the impression this was a place of discussion. If I'm wrong, I'm wrong, so what? I'm being sincere at least, I'm not trolling or anything.
 
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Dolodolo

Member
Resorting to insult territory already, poor show son.
I'm a Gamepass Ultimate subscriber, that spreads across both Xbox and PC owners, we don't know how many just subscribe to PC only, if you do please share the figure.
I got Deathloop on PS5 as well, happy to buy high scoring product that funds further output.
No dear
I was responding to your bullshit about xbox having a smaller user base than the xbox 360 right now, which is blatantly gibberish considering exactly what positions Microsoft refers to as growth factors
 

Goalus

Member
One company is yelling on twitter that they have sold more
Another company will provide concrete figures on May 10
How many consoles did they sell

That's the difference :)
It's none of anyone's business.
If Sony wants to provide their competitors with detailed numbers on how they are doing, more power to them.
 

Jaybe

Member




The time periods don't really line up but the GP growth was 25 from 18 so that 39% gp user growth so either average time per user has increased (assuming gp growth is constant) or gp slightly increased in growth.

Solid logic R reksveks ! I was thinking something was off. When they give their little soundbites, I wish they’d post a data table and some references (yeah, I know that won’t happen)
 

Chukhopops

Member
Ok, let's use our brains for a moment:

Xbox hardware is sold at a loss.
Gamepass is sustainable.
First party will be day one on Gamepass.


Do I need to go on?
It's growing, remember, they were still losing 2:1 to PS5 by the end of last year.
Growth is growth, period, yet no sales numbers, just percentages.

I'm not trolling, think about it, every game at release and likely retroactively to first parties, this is a lot more useful (to me), than gamepass (which I also have due to my 3 years extension of gold for 1$).
It's been known since the Epic vs Apple trial that MS gaming division is profitable, back in 2019 it made between 1.6 and 2.2bn USD in profit. It was in literal court documents.

And their revenue has only grown since then. Just let it go.
 

IntentionalPun

Ask me about my wife's perfect butthole
One company is yelling on twitter that they have sold more
Another company will provide concrete figures on May 10
How many consoles did they sell

That's the difference :)
Playstation hardware sales are a key metric for Sony's financial picture as a whole because the division is so important.

That's the only reason they release figures to investors. Same reason they give these investors an outloook picture ahead of time of expected sales.

MS investors aren't clamoring for Xbox hardware sales numbers.
 

Riky

$MSFT
When was the last update on if the hardware sales are sold at a loss?, I would think the Series X at least should have turned that corner by now.
 

Dolodolo

Member
Playstation hardware sales are a key metric for Sony's financial picture as a whole because the division is so important.

That's the only reason they release figures to investors. Same reason they give these investors an outloook picture ahead of time of expected sales.

MS investors aren't clamoring for Xbox hardware sales numbers.
This is an excuse
For Sony, first of all, sales of games are important, no matter their own or third-party, as well as for Microsoft

In Sony's reports, everything is literally painted down to a specific figure.
There are some abstract percentages in Microsoft reports.
 

Faithless83

Banned
It's been known since the Epic vs Apple trial that MS gaming division is profitable, back in 2019 it made between 1.6 and 2.2bn USD in profit. It was in literal court documents.

And their revenue has only grown since then. Just let it go.
Revenue has grown but profit hasn't? Consider the gamepass push and how it isn't profitable still?
Add that up with the acquisitions and how games will be developed to be released on day one on Gamepass.
Development isn't free.

With The new ps plus, things will heat up quite a bit.
 

adamsapple

Or is it just one of Phil's balls in my throat?

Riky

$MSFT
The only references I can find are from May of last year.




But realistically I don't expect this to have changed over a year.

I don't know, that article said then that it costs as much to make as PS5 and they have managed to get the disc version profitable at the same sales price. It might be a possibility.
I would presume Series S is still a loss leader.
 

IntentionalPun

Ask me about my wife's perfect butthole
In Sony's reports, everything is literally painted down to a specific figure.

Not true at all; Sony bundles some things together in ways that obfuscate what the individual items sell/how they are performing. Sony also has many divisions and they don't all release the same level of detail.

What makes you think MS needs any excuses to not release numbers anyways? They are bound to investors; the figures they release literally exist for investors to digest and no other reasons.

If the numbers were insanely high, would MS change their mind? Maybe... but they still really don't need to nor are investors asking for it.

Only fanboys give 2 shits about this crap.
 
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Chukhopops

Member
Revenue has grown but profit hasn't? Consider the gamepass push and how it isn't profitable still?
Add that up with the acquisitions and how games will be developed to be released on day one on Gamepass.
Development isn't free.

With The new ps plus, things will heat up quite a bit.
Nobody outside MS knows the current profit of the gaming division, but it was profitable in 2019 and its revenue has increased by around 30% total since that point. They're not losing money.

External acquisition costs don't go into a company's P&L so the only impact of the acquisition in the profit structure would be the increased operational costs, but since both Bethesda and AB were profitable themselves their revenue is significantly larger than their costs.

I don't know what you're trying to say about the new PSPlus, both services have been growing in the past so I don't see why they would suddenly cannibalize each other.
 

IntentionalPun

Ask me about my wife's perfect butthole
MS multiple times and Xbox fans. That was the excuse they came up to stop showing the numbers, but now that it suits them, for the briefest of moments, it became a relevant metric again.

edit: Can't post on this topic anymore. I'm out.

Why are you out?

No links?

Phil Spencer never actually said that, nor did anyone at MS. They said that hardware isn't the only thing their business is depending on.

“I don’t want people to start painting a strategy onto us that everything we’re doing is about selling you an Xbox console because that’s not actually what we’re trying to do,” Spencer explains. “So then I kind of feed the wrong view into the business and what we’re trying to get done if I play into a number that’s actually not a number that we use to drive our strategy or our focus on delivery of games.

You are right in that some Xbox fanboys turned this into "hardware sales don't matter" but it was always nonsense.

Xbox hardware is still MS's gaming bread and butter, they would much rather you buy an Xbox than not.. as the Xbox is a digital storefront where every dollar spet nets them at least a 30% cut. And they never said otherwise.

But their business really did shift beyond that.. a bigger focus on PC than before.. a focus on services.. so as far as the overall financial picture of Xbox? It is less dependent on hardware than before.
 
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Hezekiah

Banned
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.
Lol tbf in the case of Halo the effect appears to be much lower than desired due to the lack of content, and the general dissonance between fans and 343i.
 

StreetsofBeige

Gold Member
Great thing about MS is no matter how good or bad Xbox/gaming is to their overall financials, they dont seem to care one bit.

Xbox has probably been their worst performing product line for profits since Xbox OG 20 years ago. Yet MS is at record profits again growing at around 10%/yr which is insane.

So whatever shitty profits or net loss Xbox does to MS, their $16.7 billion quarterly profit already has that baked into it.
 

Darsxx82

Member

It can be said that it is the only bad news.
It seems that they will not be able to maintain the same amount of XSeries for sale in the coming months. Although, due to their expectations of decline, it seems that the lack of stock will not be as serious as it was months ago.

I don't know, maybe now there are months when the priority is to accumulate a certain amount in stores to be able to respond to the demand for Christmas and BF.
 

Riky

$MSFT
Great thing about MS is no matter how good or bad Xbox/gaming is to their overall financials, they dont seem to care one bit.

Xbox has probably been their worst performing product line for profits since Xbox OG 20 years ago. Yet MS is at record profits again growing at around 10%/yr which is insane.

So whatever shitty profits or net loss Xbox does to MS, their $16.7 billion quarterly profit already has that baked into it.

Not only that but putting $80 billion into gaming acquisitions with maybe more to come. They are obviously here for the long haul.
 

StreetsofBeige

Gold Member
They could release any number of exclusives and still refuse to give hardware and software numbers.
Exactly.

Some companies do, some dont.

Apple doesn't break out profits by product line either. For a company like Apple with every single product they sell being akin to shopping for Hugo Boss at giant profits where an adapter is like $40, they don't tell you how much profits Mac, iPhones or iPads. It's all lumped into one giant Products P/L. And then their "Services" whatever that involves, is a separate line.

That's it.

Apple's gazillion dollars of profits are broken down into a vague Products chart and Services chart.
 
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Faithless83

Banned
Nobody outside MS knows the current profit of the gaming division, but it was profitable in 2019 and its revenue has increased by around 30% total since that point. They're not losing money.

External acquisition costs don't go into a company's P&L so the only impact of the acquisition in the profit structure would be the increased operational costs, but since both Bethesda and AB were profitable themselves their revenue is significantly larger than their costs.

I don't know what you're trying to say about the new PSPlus, both services have been growing in the past so I don't see why they would suddenly cannibalize each other.
Consumer base.
I know a few people that jumped ship because of gamepass and are now looking to jump back to PS.
Not really. One is try before you buy, the other is play the full game and never buy if you don't want to.
One is selected games, the other is every full priced game at launch (not just first party ones). It's a lot more useful (to me) than gamepass.
 

Hezekiah

Banned
Exactly.

Some companies do, some dont.

Apple doesn't break out profits by product line either. For a company like Apple with every single product they sell being akin to shopping for Hugo Boss at giant profits where an adapter is like $40, they don't tell you how much profits Mac, iPhones or iPads. It's all lumped into one giant Products P/L. And then their "Services" whatever that involves, is a separate line.

That's it.

Apple's gazillion dollars of profits are broken down into a vague Products chart and Services chart.
Except Microsoft used to.

Then things went less well for them and they decided to hide the numbers.

They took their ball and went home. OK fair enough, their preogative. But then you have a senior exec referencing VGChartz of all things 😁
 
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