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Xbox reported revenue of $15.37 billion in FY 21 - Best year ever for Xbox
- Thread starter Craig of War
- Start date
kingfey
Banned
Gamepass as of now is 20m+. It was 18m on January, so the numbers should be higher by now. The price of gamepass is 10$-15$. On average, game pass is 10$ a month after 1$ and other stuff. 20m*10=$200m
This month was garbage for gamepass. Flight simulator is on gamepass already, and its 1st party game. Ascent isnt AAA game,s so its very cheap to get it in to gamepass.
In order for deals to happen, they will have to agree on certain copies sold. RE village sold 4m so far from all platform.
Capcom has now sold 4.5m copies of Resident Evil Village.
Resident Evil Village sales pass 4.5m
Capcom has now sold 4.5m copies of Resident Evil Village. That's a steady uptick from the last couple of sales mileston…
www.eurogamer.net
From that article, MS will make a deal with Capcom for securing 1m copies. Since the game is 60$, it will cost them $60m to get it day1 on xbox. Only day1 games for this july are small indies. MS will pay them around $5m-$10m to secure day1 deals. Old games are cheap.
/cdn.vox-cdn.com/uploads/chorus_asset/file/21768198/acastro_20200818_1777_epicApple_0001.0.jpg)
Epic spent at least $11.6 million on free games and gained 5 million new users in return
Over the first 10 months of the Epic Games Store.
www.theverge.com
That chart shows how much epic had to spend for the free games. Gamepass would be the same.
Now you substract all those games from $200m, and you are left with alot of money. We arent counting other form of revenue, Just the sub fees right now.
In order for gamepass to lose money, MS would need tons of AAA games day1 on the service for that month.
As for the infrastructure, its already in the Xbox bill. Gamepass wont pay anything for it, because its using xbox store, and xbox account, with xbox hardware, and pc store. Only bill gamepass has to pay is from Azura for xcloud.
With that breakdown, Gamepass isnt that much a loss lead. Especially with subs getting higher, mtx games being available, people buying games, and more 1st party dlc getting released.
TaylorSwiftFan
Member
We’re talking about the Xbox division here, not MS as a whole.
DarkMage619
$MSFT
The SOC in the XSS is smaller and has higher yields per wafer. It also doesn't have a blu-ray drive. I would be interested to see just how much more the XSS costs to manufacture vs. wholesale cost.
Javthusiast
Banned
twilo99
Member
I think we are going to see a $199 series s
pasterpl
Member
just a quick note;
Every thread like this re. Ms should highlight that;
ms is not reporting Xbox profits (we all know that for years, but it doesn’t stop trolls trying to derail the thread, yes you guys coming in into every ms financial thread and bitching about the same thing is just embarrassing)
Also, growth that we are seeing in revenue is one of the most important metrics for business/division which the main objective is to achieve growth and capture market share, profit would become main objective if ms would have cash flow problems or if the growth would stop.
re some other questions; i think that ms is waiting with game pass numbers update 1)when they reach specific milestone eg. 50m (?) 2) After they can see what growth next 6 months fulll of new games 9i think it is 30 new games on game pass in the next 6 months) deliver (halo, forza h 5 etc.)
I am starting to think that because lack of 1st party games in the h1 2021 ms made a decision to move some of the manufactured hardware to data centres to start xcloud upgrades before, and now with upgrade completed they will increase available stock just in time for big game releases and just before Xmas.
Every thread like this re. Ms should highlight that;
ms is not reporting Xbox profits (we all know that for years, but it doesn’t stop trolls trying to derail the thread, yes you guys coming in into every ms financial thread and bitching about the same thing is just embarrassing)
Also, growth that we are seeing in revenue is one of the most important metrics for business/division which the main objective is to achieve growth and capture market share, profit would become main objective if ms would have cash flow problems or if the growth would stop.
re some other questions; i think that ms is waiting with game pass numbers update 1)when they reach specific milestone eg. 50m (?) 2) After they can see what growth next 6 months fulll of new games 9i think it is 30 new games on game pass in the next 6 months) deliver (halo, forza h 5 etc.)
I am starting to think that because lack of 1st party games in the h1 2021 ms made a decision to move some of the manufactured hardware to data centres to start xcloud upgrades before, and now with upgrade completed they will increase available stock just in time for big game releases and just before Xmas.
They already publicly have said its a profitable division
MrFunSocks
Banned
Highly unlikely with the current market that we're in. The whole point of the Series S was to make a cheaper console from day 1 because this generations isn't going to see many, if any, cost reductions for the console makers. Even the PS4/XB1 generation hardware is still insanely priced for how old it is. There's next to no chance that MS can cut $100 off the price of a $299 console. Best you can hope for is bundled games and subscriptions.
Kagey K
Banned
By this logic every division in MS that doesn't report profit to revenue is losing money, which is basically all the divisions.
So how do they make any money if none of them post profits?
The fact of the matter is gaming is such a small profit/loss to the company that investors don't care because that's not where thier bread and butter comes from.
Only the console warriors care, and even then it means very little.
I always love the earnings reports, because it always let's the clueless expose themselves.
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Heisenberg007
Gold Journalism
Good numbers overall, but I suspect a major portion of this increased revenue will come from the Zenimax revenue (that wasn't present in previous years). That's why it's more important than ever to have P&L statements and operating profit, instead of just revenue.
Very interested to see what % of new entry points xCloud is opening up for Xbox. Could give us insights into how fast the industry is evolving from traditional console experiences to streaming.
Very interested to see what % of new entry points xCloud is opening up for Xbox. Could give us insights into how fast the industry is evolving from traditional console experiences to streaming.
Heisenberg007
Gold Journalism
I am absolutely sure they are not profitable at this stage, not with just $15B revenue.
They could have been profitable a couple of years ago, but not now with all this rapid expansion of the division, the acquisition of Zenimax, and all these games in development pipeline.
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Kagey K
Banned
What game is moving the needle and driving up Zenimax sales at this time?
Gamepass is covering those expenses. They literally should not have to go out of pocket when Gamepass subscribers are footing the monthly bill.
JerryinSoCal
Member
There Series S has significantly less ram and it's quite a bit slower as well. 10GB, 8 of which is 224GB/s plus & 2GB @56GB/s vs 16GB 10 @562GB/s & 6GB @336GB/s. The Series S is not the same as the Series X, it's weaker all around, the CPU is basically the same because it had to be for performance, everything else that could be cut was which is fine it's an entry level console.
Kagey K
Banned
Damn for all those concessions it's still hanging with the big boys.
Ps5 should be embarrassed.
Especially since it can do things like VRR that it's bigger brother consoles seem to be incapable of.
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MrFunSocks
Banned
It's not "more important than ever" to anyone here though lol. Do you think that MS execs don't know their profits and losses? Regular joe fanboy's on gaming forums don't ever need P&L statements and operating profit figures of the company that makes their favourite/most hated piece of plastic. Also what Zenimax games are recording massive revenue at this point exactly?
xCloud will be a fraction of a percentage since it's barely available anywhere and is still in preview.
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Heisenberg007
Gold Journalism
More important than ever, because then we'll be able to see how much revenue Zenimax acquisition brought in and how much expenses it incurred. Otherwise, only higher 'revenues' after a big acquisition of another company is misleading at best. Of course, revenue will be up after you have acquired another big company.
Besides, not anyone who is interested in financials and asking to see more information would be a fanboy or console warrior
xCloud: Yeah, absolutely, it'd be a small percentage. My point was that if they consistently reveal these numbers, we will be able to see a trend of how the industry is evolving/evolved and shifted from traditional gaming console experiences to cloud streaming. It'd be a nice case study.
Memorabilia
Member
News: Xbox posts record earnings and fastest selling Xbox ever.
SonyGAF: Xbox will be leaving the video game business any day now!
SonyGAF: Xbox will be leaving the video game business any day now!
MrFunSocks
Banned
But you're not getting them, we know you're not getting them, and people need to stop feigning outrage when they don't get them and claiming that it means they're bad and being hidden.More important than ever, because then we'll be able to see how much revenue Zenimax acquisition brought in and how much expenses it incurred. Otherwise, only higher 'revenues' after a big acquisition of another company is misleading at best. Of course, revenue will be up after you have acquired another big company.
Besides, not anyone who is interested in financials and asking to see more information would be a fanboy or console warrior
xCloud: Yeah, absolutely, it'd be a small percentage. My point was that if they consistently reveal these numbers, we will be able to see a trend of how the industry is evolving/evolved and shifted from traditional gaming console experiences to cloud streaming. It'd be a nice case study.
MS do not give a shit about console warriors demanding sales numbers on a sony-leaning game forum.
Microsoft as a company keeps going up and up and up in value. They still don't give console sales numbers. Value still goes up. The people that matter do not care about sales numbers for xbox or what percentage of new users are xcloud.
Heisenberg007
Gold Journalism
1. I don't think this worth "outraging" about. I don't see people outraging and honestly they have no reason to "outrage". It's MS's choice whether to reveal those numbers or not. But people can definitely talk about it. That's well within their rights.
2. MS as a company is doing excellent! But this is a gaming forum, so we are more interested in the Xbox division. Same goes for Sony / PlayStation. We'd be more interested in PlayStation numbers, despite how poor or good Sony as a whole or its other divisions are doing.
3. They don't have to give console sales numbers if they think hardware isn't their future.
MOTM
Banned
That’s why I hope they don’t get into VR.
DarkMage619
$MSFT
But they stopped giving hardware numbers last generation. If hardware wasn't their future why release the XSX|S? Could it be they have more vectors to make money than consoles and their business model is different than the Japanese console makers?
Because (some) GAFers don't like to use their brains.
Microsoft don't need to provide number of consoles sold, because that number is telling just part of a picture, not whole picture. It's not that Microsoft is not interested in selling consoles. It's just for Microsoft consoles sold are just one part of their ecosystem. It's clear that they stopped releasing Xbox One number because they got pummelled by PS4, but their business changed. That's why Spencer said, that they won't disclose number even if they will outsold PS5.
Nintendo has to release number of consoles sold because their revenue stream is directly and only tied to number of consoles they have on the market. Same for Sony. Yes, Sony is starting to release their first-party on PC, but their business is 95% tied to consoles sales.
Microsoft on the other hand has an ecosystem that you can access from cloud, PC or consoles. They are releasing their first-party games on PC and cloud day one so it is logical, that shareholders does not care about number of consoles sold when it is just fraction of Xbox's revenue stream. It's same logic why Sony (sometimes) is releasing sales of their games and Nintendo too, while Microsoft is focusing on number of users. Because when you have your game day one in subscription service that has 23+ million subs, number of copies sold is just one part of picture.
Gafers just want to know number of consoles sold so they can measure their dicks compared to PS5. But fact is that way Microsoft is conducting their business is different compared to Sony.
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Silent Viper
Banned
He will become game pass ambassador soon
Silent Viper
Banned
Such intelligent and sensible post on gaf. What you doing bro? You not supposed to do that here. Only concerned trolling is allowed here
sendit
Member
Do you really think they can? This is Year on Year revenue. They have released a new console compared to last year so revenue is up. 32% YoY growth is expected this year but it would be hard to do that with no new console next year.
Oddvintagechap
Member
Everyone is just guessing a bunch, Microsoft keeps the numbers hidden.
All I can get out of this is Nintendo and Microsoft have basically the same revenue. But theres no way Microsoft has anyway near the same profits.
Apple could easily eat. With their Apple Arcade and a decent Apple TV.
All I can get out of this is Nintendo and Microsoft have basically the same revenue. But theres no way Microsoft has anyway near the same profits.
Apple could easily eat. With their Apple Arcade and a decent Apple TV.
They were profitable as a couple of years ago, think they did also mention it in the Epic vs Apple trial. I think Zenimax would have been making a profit so it does really depend on the accounting of the Zenimax acquisition. I do forget how good Microsoft margin is on the other divisions.
Hmm. Apple would eat a chunk out of everyone (ms/sony/Nintendo) but I think they would need to basically create a robust way to all devs to port old games or emulate windows/bits of windows in a way that enables those games to run. I also think that they are going to have to change their story policies but that's more of a hope.
Fart Knight
Al Pachinko, Konami President
daclynk
Member
You Goddamn right!
Oddvintagechap
Member
I think Apple would eat from Nintendo the most. They can use the PS2 model. Where theres a game about every movie and show kids love within months. Doesnt even have to be a apple tv, it can be a iPod GameTouch. A iPod touch as a switch lite.
Bernd Lauert
Banned
Great point until you actually read the financial report and realize that hardware is down 31%.
From the OP:
"Series X|S boosted hardware rev 92% YoY"
Are you illiterate or what?
ChuckeRearmed
Member
I think the profits are around 2bn at most.
We know that Sony's profits are 3.2 out of 25 revenue which translates into 13% margins. So in that case MS profits should be around 2bn because the margins should be similar. However unlike Sony, MS has more service games and also releases the games on PC, so their gaming profits might be bigger %.
We know that Sony's profits are 3.2 out of 25 revenue which translates into 13% margins. So in that case MS profits should be around 2bn because the margins should be similar. However unlike Sony, MS has more service games and also releases the games on PC, so their gaming profits might be bigger %.
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sircaw
Banned
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prinz_valium
Member
Of couse Xbox is profitable at $15.4bn revenue.
Microsoft as a whole company is just spending $45.8bn.
Microsoft has not over 1/3 of their expenses attributed to just Xbox.
They have, Azure, Office, Windows, Surface, LinkedIn, Dynamics, Github and other deloper tools, Bing, AI, Enterprise Services, Hololens, executive expenses, other research.
All that shit combined is 2/3 and that small Xbox division is 1/3?
Xbox is highly profitable. Just not as ridiculous like the rest of Microsoft.
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ChuckeRearmed
Member
It is actually around 10% no?
Felessan
Member
It's not even third. Tencent is number 1 in the game industry now.
45 bil is quarter number for MS and 15 bil is yearly number for Xbox. So not really 1/3All that shit combined is 2/3 and that small Xbox division is 1/3?
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prinz_valium
Member
No.
Microsoft spent just $45.8bn the whole fiscal year on everything.
It's in their 10K
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Topher
Gold Member
Of couse Xbox is profitable at $15.4bn revenue.
Microsoft as a whole company is just spending $45.8bn.
Microsoft has not over 1/3 of their expenses attributed to just Xbox.
They have, Azure, Office, Windows, Surface, LinkedIn, Dynamics, Github and other deloper tools, Bing, AI, Enterprise Services, Hololens, executive expenses, other research.
All that shit combined is 2/3 and that small Xbox division is 1/3?
Xbox is highly profitable. Just not as ridiculous like the rest of Microsoft.
What? Are you trying to say Xbox is 1/3 of MS revenue? How are you deciphering the profitability of one section of one segment of the company from costs of goods sold for the entire company?
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probably this is why they are with Apple one of the few trillion-dollar companies ... while the others are below
Bernd Lauert
Banned
I cropped out and underlined the relevant part from the financial report so that you can understand it. Stay salty, my friend