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Xbox Financial Results January - March 2026

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You should be worried about those xcloud numbers lol
Lol, I'm not worried about either. I'm just happy when a game is Play Anywhere and on xCloud, and/or Gamepass. And I'm happy for you that you get to play the game too. So why are you not happy for me? What more do you want?

Would you prefer to spend money on Xbox consoles instead? Would you be happy spending that money?
 
This is why you don't go down that path. Getting rid of exclusives kill your brand and there's no coming back.

Exactly! And I'm happy to see playStation never go all in with their PC strategy. And even happier that they are pulling back from that previous strategy. The only thing I can promise you that it will do, is that it will kill your brand long-term.
 
So far all she's done: GPT-style empty manifest, new glass filter on an old logo and internal Exchange email domain change to @xbox.com (The latter will be probably used for soon to be sent layoff letters.).

The only substantual change was CoD GP day one removal and 'lowering' the price on two GP tiers (that will result in even lower results in Q4 per guidance), and even then GP is still substantially more expensive than it was before CoD.

Yep. Gamepass is only popular on Xbox, but Xbox hw sales keep falling. The number of people leaving/dropping out of the Xbox ecosystem is undoubtedly higher than the number of new Xbox owners signing up.
 
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Telling everyone you dont need to buy an xbox.... and then talking about reduced Xbox sales? I dont get it.

They are basically saying they dont even want to either make or sell consoles but then being surprised when people say ok and dont buy any.

Of course nobody is going to invest in a product the maker doesnt even want to support.
 
This is why you don't go down that path. Getting rid of exclusives kill your brand and there's no coming back.

The problem was that the brand was already dead when MS made the decision to go multiplatform.

I've said it a few times before, but MS is selling less Xbox consoles right now than Nintendo sold Wii U consoles in 2015 when they decided to pull the plug. This thing is DEAD. And yet MS will have to pretend like Xbox is alive and kicking for another 16 months before they can finally try again - but now with a PC in disguise.
 
And Asha really believes that they can still release $200 million budget exclusives to these receding numbers.

It's over.

She doesn't really believe anything of the sort, it's just PR fluff to rile up what remains of their network of fans by giving them false hopes to convince them to support them yet another cycle.
The best she'll be allowed to do by Nadella and the financial executives will be a few selected timed exclusives ala FH6 around the launch of Helix.
How many years Spencer promised that next year would be the year of Xbox? A decade? :messenger_grinning_sweat:
It's their way to do marketing, which includes aggressive online shilling and spreading fud on the competition.

Oh the numbers are obviously terrible, but that was expected.
 
Everyone tunnels on exclusivity when the key word was there right in front of you. 'Windowing'. Exclusivity is not coming back, timed exclusivity on the other hand, they are going to leverage that for all its worth.

Correct strategy btw. Even works with higher priced hardware. If you want it now pay for it. From a marketing perspective lean in to it hard. If you want to play it now, get an Xbox, you know you want it!

Shame that from a consumer point of view you are better off waiting on games these days lol, perhaps if they do hold 'early' access up as the reason to be in the XBox ecosystem fully, they prioritise release quality as well.....
 
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DAMN

Xbox is as dead as Sony's Games as a Service Initiative.

That's dead as fuck.

I want to see how this gets spun. Tell us all how Asha inheritted a complete fucking train wreck but how Phil did an amazing job before she got hired..... somehow..?

Pop Flick GIF by Xbox



Jez, entertain us like the clown you are.
Greenberg:

"Pre-season doesn't count"....
 
Not IF microsoft wants to use hardware emulation (which will be part of other devices for obvious reasons) as a way to get out of this market.
Yes if ultimately they can just say hey buy an xbox compatible pci-e AIB from best buy, Amazon etc and thats the console of the future etc......almost no financial investment needed at all in terms of distribution from Microsoft themselves. Basically embedded xbox back comp with compatible aibs and dx 13 in 2028 for zero dollar price premium.
 
There really is no other way. They have to do it on every game they are allowed to do.

Even if it drops software sales off a cliff. They are dead without changes so they might as well.

That's a worst of both worlds situation. The Xbox faithful don't bring in any additional money (since all of them are already gamepass subscribers), the number of new customers buying an Xbox will remain low (since previous Xbox exclusives have never been system sellers) and they'll lose software sale revenues from the only audience that does buy games (PS owners).

This will make hardcore, delusional Xbox fans happy while speeding up the demise of their favorite console brand with even worse financial results.
 
Down, down, down but delusion is up, up, up!!!!
I already was critical of Windows earlier but this kind of delusion is we're going on for a long time and cheerleading all the purchases of these companies to see the effect that it has caused it just looks irrational and hindsight.

But you got to give it credit there's still some pretty hard for fans that will just accept anything they do and honestly as a software publisher they're not the worst but for the hardware, they've heard the industry more than helped. At least the last two generations.

Words talk, numbers scream.
 
What's crazy is that MS can have a YOY quarter now that is 3% up from its previous year's numbers, and that can be dressed as a win.....

Not taking into account, though, that the previous quarter was like 30% down from its YOY adjacent... and that was 20% down from the year before it.
 
We are talking sub 1 million units globally for 2026. That's catastrophic levels. Even less again for 2027....Helix in Nov 2027 seems doubtful.

I think they'll clear 1 million sold, if maintain their 300,000 per quarter rate.

There really is no other way. They have to do it on every game they are allowed to do.

Even if it drops software sales off a cliff. They are dead without changes so they might as well.

That particular change will make matters worse though.
 
Genuinely curious to see the impact of Forza Horizon 6 in a few weeks.

Also interesting how they have decreases in content+services when they have everything multi platform now... like are their actual sales of their games on PS5 that low, or is Game Pass just hemorrhaging that many users?
 
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I already was critical of Windows earlier but this kind of delusion is we're going on for a long time and cheerleading all the purchases of these companies to see the effect that it has caused it just looks irrational and hindsight.

But you got to give it credit there's still some pretty hard for fans that will just accept anything they do and honestly as a software publisher they're not the worst but for the hardware, they've heard the industry more than helped. At least the last two generations.

Words talk, numbers scream.
I have said that Phil Spencer's biggest accomplishment was sustaining a brand through PR; that, in itself, It's weirdly impressive

Now, regarding Xbox as a publisher/developer....I kind of understand when people praise them/ talk positively about them (because they are talking from a personal, more emotional-subjective point of view)....But objectively speaking, they are the worst without a doubt. And now that they have lost a relevant status as a platform holder (Storefront). The financial pressures faced by EA, Ubisoft, Rockstar (any other third-party publisher) will hit Xbox+Zenimax+ABK even more severely, and this is the biggest challenge Asha has to solve; without the money from third-party sales, now their games NEED to perform like never before; those titles carry the entire division now.
 
Disastrous results as per usual. Guiding down in the Forza Horizon 6 quarter is particularly diabolical.

People need to remember that Xbox controllers are still selling good, so HW will never really go down to 0.
 
Yep. Gamepass is only popular on Xbox, but Xbox hw sales keep falling. The number of people leaving/dropping out of the Xbox ecosystem is undoubtedly higher than the number of new Xbox owners signing up.
Fuck dude, how many times has MS openly said that GP subscribers have either stagnanted or straight up dropped? Unless MS can pull something magical out of their butts and do something insane like make GTA6 exclusive (HAHAHAHA), then they're basically done.

Not even COD/sports casuals can save them and that's their main demographic for GP. Most hardcore gamers would rather own these games because we have backlogs beyond just GP games. We want to be able to play them whenever we want or have the time, not feel rushed to complete them within a month or however long they're on GP.

I can see GP being great for the normies/casuals who only play sports/COD/RocketLeague etc, but I just don't see GP casuals saving Xbox at this point.
 
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Poor Xbots can't catch a break, can they?

Two days dancing with joy thinking Sony has made a grave mistake with DRM, and the third day it's false and to compliment that they get another disastrous quarter...
 
This is not remotely surprising.

I am enjoying seeing those saying that going back to exclusive to an ever shrinking base will save them.

Pure fucking comedy gold.

If they want to go to exclusive, they should go exclusive to Playstation.
 
If they want to go to exclusive, they should go exclusive to Playstation.
One thing that Kotick consistently did was strike temp exclusivity deals with Sony and Xbox.

Microsoft needs to follow the same tack and start partnering up with Sony/Nintendo on promoting games. Asha has an opportunity to start focusing Microsoft as a 3rd party publisher.
 
Genuinely curious to see the impact of Forza Horizon 6 in a few weeks.

Also interesting how they have decreases in content+services when they have everything multi platform now... like are their actual sales of their games on PS5 that low, or is Game Pass just hemorrhaging that many users?

Game Pass has lost that many subscribers. It also explains why they are predicting at least -13% revenue drop in Game content and services next quarter.
 
That's a worst of both worlds situation. The Xbox faithful don't bring in any additional money (since all of them are already gamepass subscribers), the number of new customers buying an Xbox will remain low (since previous Xbox exclusives have never been system sellers) and they'll lose software sale revenues from the only audience that does buy games (PS owners).

This will make hardcore, delusional Xbox fans happy while speeding up the demise of their favorite console brand with even worse financial results.
They are gonna a have to remove them from game pass, at least for a period.

And yeah it probably wont work but neither is just doing what they've been doing. Something has to give with exclusives.
 
I think they'll clear 1 million sold, if maintain their 300,000 per quarter rate.



That particular change will make matters worse though.
Yeah being completely dead is worse than slowly death. But they either shock the patient or just let it die.

Its highly unlikely that anything can save them. Buts its insanity to keep doing what they've been doing.
 
Well it's not 30% per quarter, but it's 30% per quarter relative to the previous year's quarter.
Well true, but where do we start counting that 300k from? Eg... we have 3 years' worth of Q3s. 24Q3, 25Q3 and 26Q3... All down by 31%, 6%, and 33%, respectively.
One thing that Kotick consistently did was strike temp exclusivity deals with Sony and Xbox.

Microsoft needs to follow the same tack and start partnering up with Sony/Nintendo on promoting games. Asha has an opportunity to start focusing Microsoft as a 3rd party publisher.
Exclusive deals are only worth it when there is actual competition. Sony and Nintendo aren't really competing in the same space... well, interestingly, that may change come the PS6 gen. At least on the handheld front.
 
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