Crayon
Member
That's only true in online console wars. Stories we tell ourselves.
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Xbox FY24 Q2 gaming revenue up 49% year-over-year, driven by impact of Activision Blizzard acquisition
- Thread starter adamsapple
- Start date
That's only true in online console wars. Stories we tell ourselves.
reinking
Gold Member
Judge Corley would disagree with you.
Heisenberg007
Gold Journalism
Heisenberg007
Gold Journalism
Everything is a competition nowadays. Even Netflix is a competitor to PS and Xbox.
If folks are spending more time on Netflix watching movies and playing mobile games and, because of that, spending less money and time on PS and Xbox games, that's also direct competition. Even that will have a direct negative impact on PS revenue.
I think Jim Ryan also mentioned it once.
Same principle applies to Nintendo and PC games. Folks have a limited amount of time and money. And the audience overlaps.
Generic
Member
What was Sony's response to the Switch? That $200 controller with a screen?
Torrent of Pork
Banned
The Accounting major in me doesn't give much of a damn about revenue. Cash flows, and gross profit are a far more useful number.
DaGwaphics
Member
Weren't they supposed to have the all digital at the end of this year?
ChuckeRearmed
Member
The results are pretty good, but hardware sales are not that great.
DaGwaphics
Member
We don't agree on much (almost shocks me when it happens), but this seems completely reasonable. Time is a limited commodity for everyone and no amount of wealth can buy you more.
Topher
Gold Member
Well, it isn't a common graph and, frankly, it explains an income statement poorly. It is probably confusing to people because it looks like the bottom revenue stream continues into cost of revenue rather than the "whole pie" as you said.
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Heisenberg007
Gold Journalism
And that's okay. Different opinions keep it interesting
Yep. Limited money, too. And we have seen how companies seek QoQ and YoY revenue growth. If folks are spending money elsewhere (it doesn't have to be gaming), these corporations will not see growth, may even see a decline in revenue, and these gaming companies will have their asses on fire.
StreetsofBeige
Gold Member
Really, anything entertainment wise that takes up people's time is competition. Its just not a direct industry competition, but time is still time.
Anyone who posts a ton on social media accounts can be seen as competition too. The more they post online, the less movies, games, TV, board games etc... they do. You can already see it as cable TV usage has dropped, but not because they arent interested in it per se. They prefer just talking about it on Twitter after streaming a but than actually sitting there on a couch for two hours straight.
It actually doesn't even have to be entertainment. When covid hit and people were stuck at home, gaming and digital stuff went up. So did home renovations. Covid passes and a lot of people are back to the office and shopping and all that digital stuff dropped. Every minute people spent more on commuting, shopping, and taking their kids to school, means less chance to play video games. It's physically impossible unless someone wants to jam it all into as much Clash of Clans and Fortnite mobile as possible on a coffee break.
Same goes for my company. When covid hit and a lot of people stayed home, any of our products that were related to going out and travel sunk like a rock. BUT, anything related to using it at home jumped to record sales. Turns out our biggest factors of sales isn;'t even from direct competing products. Instead it was covid and mandatory WFH and people afraid to go out.
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bitbydeath
Member
The same response they gave to Xbox, an amazing stream of exclusives.
MrTired
Member
This why I believed subscription serviced wouldn't become the predominant model of accessing games. You need time to extract the value needed to maximise the cost of the service. And that's on top off the time spent on ala cart purchases.
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Killjoy-NL
Member
Maybe, but Sony has been offering the same experience since PS3 and PSP.
Anyway, the only reason Nintendo is in it's own bubble, is because it was smart business. With Sony and MS going head to head, it makes it more difficult to be a third party chasing the same demographic.
The moment MS stops selling consoles, Sony and Nintendo will automatically go head to head like PS1 vs Nintendo 64.
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twilo99
Member
Top right figure and the percentage below it is the significant bit.
Imagine how much more money they will be making if they stopped making plastic boxes for gaming!!
FunkMiller
Gold Member
All of those are available on PC, though. There isn't a single, solitary game in existence you can only play on Xbox Series. There's no USP for the product. At all. It's quite incredible they ever thought it would sell well with that strategy.
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ChuckeRearmed
Member
It is perfectly understandable why would Microsoft exec want to release the games on other platforms - though I don't see them selling that much as aside big names (like Hogwarts, COD, Fortnite) and some first parties like (GoW or SM), the games don't sell much on Playstation either. In home consoles, Xbox has no chance to recover - granted even achieving a little bit lower result than Xbox One is not that bad but there is no chance that folks from PS will migrate to Xbox.
jm89
Member
ChuckeRearmed
Member
What was the last game that did not flop on PS that is not the part of FIFA, COD cycle? GoW and SM2. But everything else is either succeeded everywhere (like RE4 or Elden Ring or HP or BG3 so we don't know the sales of BG3) or did not sell that well at all.
Some games sell the same amount as they were in PS4 era despite being more expensive
The new Death Stranding is more expensive than the original one, yet will it even sell the same amount?
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MrTired
Member
So don't take into account anything that succeeds. Apart from that everything flops. Even though Playstation platform is the largest revenue source for a lot of these Publishers/Studios. Harry Potter did records sales because of the sales on the Playstation platform, same with FIFA etc.What was the last game that did not flop on PS that is not the part of FIFA, COD cycle? GoW and SM2. But everything else is either succeeded everywhere (like RE4 or Elden Ring or HP or BG3 so we don't know the sales of BG3) or did not sell that well at all.
Some games sell the same amount as they were in PS4 era despite being more expensive
jm89
Member
So let's ignore the yearly big sellers, all the successful first party games and all the successfull third party games
ShaiKhulud1989
Gold Member
This is a turbo delulu. Nice bait tho.What was the last game that did not flop on PS that is not the part of FIFA, COD cycle? GoW and SM2. But everything else is either succeeded everywhere (like RE4 or Elden Ring or HP or BG3 so we don't know the sales of BG3) or did not sell that well at all.
Some games sell the same amount as they were in PS4 era despite being more expensive
GHG
Member
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Ar¢tos
Member
Digital.
As software becomes digital, so will Xbox hardware become digital. Xbox Series consoles will be downloadable soon, cheaper, less packaging, easier distribution, but no download numbers will be reported.
veterangamerUK
Member
Yep the old saying applies, turnover is vanity, profit is sanity
systemr123
Member
Xbox content and services revenue, which includes Xbox Game Pass, is up by a massive 61 percent. That’s largely because of the Activision Blizzard revenues, so it’s difficult to understand immediately how Xbox did without this giant addition.
Microsoft says the net impact from the Activision Blizzard acquisition is just over $2 billion in revenue, but the cost of integration, transaction costs, and other costs of revenue all total $930 million. With other operating expenses ($1.59 billion) it works out to an operating loss of $440 million.
Soooo long story short, a 61% increase in revenue due to takeover Activision/blizzard, yet 440 million loss under the line. Something tells me Xbox isn’t doing too well.
Also a 3% increase in revenue of consoles sold doesn’t mean they sold more consoles. Didn’t MS up their prices somewhere during the year? If so, it means less consoles sold but a tiny revenue increase because of the price hike.
Microsoft says the net impact from the Activision Blizzard acquisition is just over $2 billion in revenue, but the cost of integration, transaction costs, and other costs of revenue all total $930 million. With other operating expenses ($1.59 billion) it works out to an operating loss of $440 million.
Soooo long story short, a 61% increase in revenue due to takeover Activision/blizzard, yet 440 million loss under the line. Something tells me Xbox isn’t doing too well.
Also a 3% increase in revenue of consoles sold doesn’t mean they sold more consoles. Didn’t MS up their prices somewhere during the year? If so, it means less consoles sold but a tiny revenue increase because of the price hike.
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DenchDeckard
Moderated wildly
Suffering from success......
Heisenberg007
Gold Journalism
And $440 million of operating loss.
John Wick
Member
Google and Apple aren't worried nor is Samsung.
Rollingrock
Neo Member
They increased gamepass ultimate price from $15 to $17. Game prices from $60 to $70. Released some games (starfield and forza) the last few months and without ActiBliz increased gaming revenue by 5%. Seems to me they didn't really grow. Maybe it's enough for MS though.
HeisenbergFX4
Gold Member
Supposed to but adorably all digital at the same great price of $499 with how current sales are raise your hand if anyone thinks this machine will fly off the shelves
RickMasters
Member
So nothing has come close to selling or breaking the old PS2 and NDS records of 150M from the early 2000s........ Maybe console sales really did plateau a long time ago.The larger Series S share last year was offset by the big discounts in December this year so i think price per hardware purchase is very similar to last year. This means we should expect unit sales to also be around 3% higher, based on this I'm estimating 3.6 million for the Oct to Dec quarter for Xbox Series and just below 29 million lifetime to date.
EDIT: the consensus on InstallBase is despite the revenue increase the unit sales are likely to be marginally down yoy so i'm now estimating 3.4 million.
Shipments (millions of units)
If you are wondering the Nintendo earning's report is on February 6th and the Playstation earning's report is on February 14th. From the data we have from Circana / GSD / Famitsu i am predicting 6.4 million for Switch and 9.6 million for PS5.
Cyberpunkd
Member
Ar¢tos
Member
Revenue.... engagement.... Number of downloads... It's almost a pattern.
ReBurn
Gold Member
People even latched on to the "high performance console market" the FTC tried and failed to define just so they could make Nintendo not count.
Topher
Gold Member
There is not nearly the competition between PlayStation and Nintendo as there is between PlayStation and Xbox. The games that are popular on Nintendo are dramatically different than the games that are popular on PlayStation\Xbox.
They should have highlighted the games, not performance.
ByWatterson
Member
Honestly I think they're waiting on good cell tech to natively run core games. That's closer to being fully realized than, you know, breaking the laws of physics to make data streaming faster.
Topher
Gold Member
He didn't say "multiple platforms". He said "PC, mobile and cloud". No idea where that "games available on all platforms" quote is coming from.
Timestamped.
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