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Xbox FY23 Q4 gaming revenue increased 1% year-over-year (HW down 13%)

cormack12

Gold Member
Source: https://www.windowscentral.com/gaming/xbox/xbox-fy23-q4-gaming-revenue-increased-1-year-over-year
(.....more at link)


Xbox revenue is staying steady this quarter.

Microsoft shared its financial results for the FY23 Q4 period ending June 30, 2023, revealing that gaming revenue is up 1% year-over-year, or $36 million. Xbox content and services revenue was up 5%, driven by growth in third-party content and Xbox Game Pass. This offset a decline in Xbox hardware revenue, which was down 13%.......
 
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Jimmy Fallon GIF by Charlie Wilson
 

yazenov

Member
Hardware revenue down 13% this early into the new generation is extremely alarming for MS. At this rate, it's better for them to go 3rd party sooner rather than later for them to succeed in the gaming sector.

Phil said he wanted to reach a much wider audience and for them to do so, there are no other options available.
 
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Thick Thighs Save Lives

NeoGAF's Physical Games Advocate Extraordinaire
Microsoft also makes Xbox devices, which are separated from its other hardware. Xbox hardware revenue has dropped 13 percent in Q4, so it’s likely that Microsoft continues to suffer with hardware supplies and softer demand for its Xbox Series S / X consoles. Or it could be related to Microsoft’s long-term strategy and balancing the costs of hardware against content and cloud potential.
Why are The Verge saying that when Phil stated in the most recent showcase that supply should no longer be an issue for Xbox HW?

 
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Thief1987

Member

ByWatterson

Member
Hardware revenue down 13% this early into the new generation is extremely alarming for MS. At this rate, it's better for them to go 3rd party sooner rather than later for them to succeed in the gaming sector.

Phil said he wanted to reach a much wider audience and for them to do so, there are no other options available.

You're gonna get some laugh emojis for this, but it's pretty obvious that Gamepass everywhere is a better bet than Gamepass as an Xbox adjacent brand, tied, in the eyes of the average consumer, to a single set of boxes.
 

DeepEnigma

Gold Member
Why are The Verge saying that when Phil stated in the most recent showcase that supply should no longer be an issue for Xbox HW?

Microsoft also makes Xbox devices, which are separated from its other hardware. Xbox hardware revenue has dropped 13 percent in Q4, so it’s likely that Microsoft continues to suffer with hardware supplies and softer demand for its Xbox Series S / X consoles. Or it could be related to Microsoft’s long-term strategy and balancing the costs of hardware against content and cloud potential.
"Supply issues" on a softer demand product that is available everywhere. Mental gymnastics 101.
Serious The Four GIF by Diddy
 
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ChorizoPicozo

Gold Member
Wait for Starfield which will probably boost their PC Gamepass subs more than their console subs. Hardware? Maybe a little.

I wonder what will sustain the sales momentum after Starfield though? It's gonna a long wait till the next big Xbox game.
I think there is not doubt about that. the issue for MS/Xbox is: How much they expect the growth to be?.
 
Hardware revenue down 13% this early into the new generation is extremely alarming for MS. At this rate, it's better for them to go 3rd party sooner rather than later for them to succeed in the gaming sector.

Phil said he wanted to reach a much wider audience and for them to do so, there are no other options available.
Seems Jim Ryan is trying to do exactly that. He wants PlayStation games to reach an audience of many hundreds of millions of people and knows it will never do that confined to a single platform...

https://gamerant.com/sony-jim-ryan-playstation-game-access-platforms-comments/

"Ryan indicates in the interview that he considers a "successful" PlayStation game as one that reaches up to twenty million people, but would like to see that number increased to the level that other media spreads at. Music and movies are two examples that are cited as the range of numbers he aims for..."
 
They are, essentially, stagnant as that 1% growth is within a margin-of-error and could effectively be 0% or even a 2-3% decrease in overall revenue, who is to truly say.

Bad numbers all around, and I'm assuming more PC Game Pass subscriptions is the only reason Game Pass has had any effect in negating further erosion of the numbers. Even there, the ARPU hasn't likely increased very much at all, considering the other numbers here.

This is what years of brand mismanagement leads to especially when you have many of the same people responsible for that mismanagement getting promotions and remaining in charge of the show.

Acquisition talk isn't going to sell consoles, they need more AAA games.

I wonder what Starfield's impact will be for console sales.

I don't see Starfield doing beyond 3 - 4 million in its debut month and at least 60% of those sales will be on PC. There are no Series X console bundles or limited editions for the game we know of at current, so that doesn't help.

In short, I don't see it having too much of a material difference on console sales, though it'll at least stop any drop in console sales numbers YoY.

Consoles and PC? What is Microsofts goal here....is PC up enough to be covering this loss in hardware sales?

Nope. But Minecraft Legends, Minecraft content, Elder Scrolls Online and Fallout '76 sub revenues are (at least ATM), as well as their large range of controllers and that workshop for custom controllers, and other peripherals.
 
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yazenov

Member
Putting the next COD entry on GamePass Day One would make many people consider Xbox over PlayStation during Holiday season.

The people had already decided and choosen the console they and their friends will play the latest 3rd party games, and exclusives. The software share ratio is overwhelmingly in favor of the PS5, and it's not even close (check the sales threads).

The gap is widening. It's called the snow ball effect. People will buy the most popular console to play with their friend and not feel left out.

Its already too late for MS this generation.
 
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