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Xbox FYQ1 (July~September) Results: Gaming division grew 16%

EdGalTBR

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It’s nearly been a year since Microsoft’s Xbox Series X and Series S consoles have been on the market, and they’ve been continually growing hardware revenue for Xbox in recent months. Hardware revenue is up again this quarter by 166 percent, thanks to continued demand for Xbox Series X and Series S consoles.

Microsoft’s overall gaming revenue is also up by 16 percent, nearly $3.6 billion for the quarter and a record Q1 for Xbox. But Xbox content and services revenue has only increased by 2 percent. Microsoft says there has been some “growth in Xbox Game Pass subscriptions,” but the company isn’t listing a new figure for its subscriber count. The last publicly disclosed one was 18 million Xbox Game Pass subs in January 2021.
 
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reksveks

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My graphs on xbox revenue and growth



 

Topher

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Pls some mod fix the title: it's "grew", not "free".


Estimated numbers are interesting. Series S outselling Series X by quite a bit. But these are estimates and not sure who this John Welfare guy is although he is "followed" by Mat Piscatella of NPD.

Is this good or bad news?

16% growth in gaming is good news
 
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reksveks

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Is this good or bad news?
Hard to tell yet until we see more numbers from others in the industry but it did beat expectations so you could say good news on that front.

Content was flat but hard to analyse that based on a possible covid bump last year
 

elliot5

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Good quarter for hardware. 3rd party releases in a slump. Maybe due to delays?
 

reksveks

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Good quarter for hardware. 3rd party releases in a slump. Maybe due to delays?
MS didn't really have any big hitters between July and September but I think we need to see the wider industry to see if content rev slowed


Growing more than Playstation and Nintendo.
Wait for 2 days to see Sony's numbers and 2 weeks for Nintendo's.
 

DarkMage619

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Estimated numbers are interesting. Series S outselling Series X by quite a bit. But these are estimates and not sure who this John Welfare guy is although he is "followed" by Mat Piscatella of NPD.



16% growth in gaming is good news
This certainly goes against the narrative that the XSS is a failure and no one is buying it. It's always better for gamers to have more options when it comes to gaming hardware. Nvidia makes more than just the RTX 3090 and no one complains.

Series S with that big dick energy.

suck my dick dicks GIF
It's good to see the success all around. More people gaming is a good thing.
 

Elios83

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So they really stopped reporting Gamepass numbers?
Also only revenues are discussed but no profits for the gaming business?
Hardware sales are always hidden behind percentages and only if those are good.
It would be nice if Microsoft tried to be trasparent with this stuff.
 

elliot5

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So they really stopped reporting Gamepass numbers?
Also only revenues are discussed but no profits for the gaming business?
Hardware sales are always hidden behind percentages and only if those are good.
It would be nice if Microsoft tried to be trasparent with this stuff.
I can almost guarantee they will share GP numbers in January
 

Tutomos

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Xbox FY22 Q1's revenue is about $3.6bn, in comparison, last year Playstation's revenue in the same period was $4.77bn. I believe Sony's earnings report for this year comes out tomorrow, and it's pretty safe to assume Playstation will beat last year's revenue.

We can also guess how well Game Pass is doing because at the end of the day everything gets converted to revenue. It's obviously not enough to beat Playstation.
 
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reksveks

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So they really stopped reporting Gamepass numbers?
Also only revenues are discussed but no profits for the gaming business?
Hardware sales are always hidden behind percentages and only if those are good.
It would be nice if Microsoft tried to be trasparent with this stuff.
Gaming probably has a lower margin than the rest of the company, Microsoft overall margin is better than Apple typically. I think that's why they don't say anything, I don't think we get margin of any of the more personal computing segment. I also think the incorrect numbers of subscribers has scared them from releasing numbers but if shareholders really want it, they will get it.

Xbox FY22 Q1's revenue is about $3.6bn, in comparison, last year Playstation's revenue in the same period was $4.77bn. I believe Sony's earnings report for this year comes out tomorrow.

It's the 28th 15.30jst so 28th morning here in the UK. Yeah, that revenue looks right.
 
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[Sigma]

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So they really stopped reporting Gamepass numbers?
Also only revenues are discussed but no profits for the gaming business?
Hardware sales are always hidden behind percentages and only if those are good.
It would be nice if Microsoft tried to be trasparent with this stuff.
It's why I always laugh when they report their stuff these days. It's obfuscate city.
 
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reksveks

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We can also guess how well Game Pass is doing because at the end of the day everything gets converted to revenue. It's obviously not enough to beat Playstation
I don't think it was ever going to do that in a short term, Microsoft need to get another minecraft in terms of revenue. Microsoft is probably going to be the clear number 2 platform holder in terms of revenue. I don't know what a realistic time frame is or what Microsoft is expecting.

believe Sony's earnings report for this year comes out tomorrow, and it's pretty safe to assume Playstation will beat last year's revenue.
I think they should but the real question is buy what percentage?
 

DaGwaphics

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Those series s sales are interesting. They say it is slow moving, it is selling more than the x....

I love my series s so I understand it's appeal

It's not surprising that they can get more S units out the door, seeing that the system uses less of every major component. Both systems are still selling out whatever stock is available almost a year in (stunningly good for Xbox), so the breakdown in S vs. X is really just how many S systems did they get out the door in comparison to X. Same with Sony and the DE/regular skus. You really can't make any assumptions about the market demand for the different skus until all skus are readily available.
 

chonga

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Aug 17, 2020
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Constant Currency, as noted in the tiny text. Idk what that really means though.
They sell globally. Exchange rates change all the time. Constant currency is an attempt to keep that a constant to allow for better comparisons.

For example if in 2020 £1 was worth $1 and they sold ten items for £1 revenue would be $10. But if in 2021 £1 for worth $2 and they sold ten items again then revenue would be $20, sounds like good growth in dollar amounts, but no growth with constant currency.
 

DarkMage619

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It's not surprising that they can get more S units out the door, seeing that the system uses less of every major component. Both systems are still selling out whatever stock is available almost a year in (stunningly good for Xbox), so the breakdown in S vs. X is really just how many S systems did they get out the door in comparison to X. Same with Sony and the DE/regular skus. You really can't make any assumptions about the market demand for the different skus until all skus are readily available.
This is true but it still pushes back against the idea that people would prefer to just not have a console vs picking up the XSS for a low price. The XSS' SOC has a much higher yield and is easier to build than the XSX. If MS hadn't made the design decision to make two systems with different specs they'd be even further behind in hardware sales and market penetration. There is really has been no downside to the presence of the XSS on the market. This has been true of the PC market forever where differences in hardware hasn't had major negative impacts on gaming. It provides more consumer choice and everyone should be in favor of that.