StreetsofBeige
Gold Member
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Microsoft’s Office, Surface, and cloud businesses lead Q2 results
Gaming is down just as Windows 7 upgrades help earnings
www.theverge.com
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Xbox revenue dives as next generation looms in Microsoft Q2 2020 earnings
- Thread starter DanielsM
- Start date
www.theverge.com
chemical boy
Member
Disastrous results for the Xbox brand.
Gamernyc78
Banned
Don't need to be a rocket scientist to know tht thts why movie pass failed hard, thts why Netflix hasn't made much profit with all its subscribers at full price although Netflix is better off as thy have the numbers and are just on a perpetual spending spree.
Shin
Banned
Writer split their earnings into 2* articles, only one was posted by 2 different users.
Good thing N4G still exists, it's my hub for gaming news of all sorts as this one is one-sided.
Microsoft Boasts Record Xbox Live MAU in Q2; Xbox Game Pass Users "More than Doubled" Year on Year
During Microsoft’s quarterly financial conference call, CEO Satya Nadella and CFO Amy Hood talked about the company’s gaming business.
twinfinite.net
Butz
Banned
Azelover
Titanic was called the Ship of Dreams, and it was. It really was.
I probably shouldn't say this, but I'm expecting a change in overall momentum this year.. maybe I'm totally wrong, but even broken clocks are right twice in one day so...
I think we might move away from this paradigm where Sony dominates everything. I just don't know how or when. Maybe I'm being very foolish. It will be a learning experience, if nothing else..
I think we might move away from this paradigm where Sony dominates everything. I just don't know how or when. Maybe I'm being very foolish. It will be a learning experience, if nothing else..
its_justJEFF
Member
Woot? I don't think these number are really anything to be worried about. Xbox has been gearing up for next gen. They have not expected this much loss, but you know that's markets for you.
But in terms of how the overall company is doing, yes, MS is going really good as a whole but the higher ups will be more than willing to cut a division if it's under performing, which I don't see Xbox trending this way. Why would you hold on to a divisions that is hemorrhaging money? Even if you're not hurting for $$$ MS won't cut Xbox anytime soon. They look at Xbox as a very key product that attracts a very specific demographic.
KingdomHeartsFan
Member
The $1 per month deals weren't even good enough. Recently they did a $2 for 2 months and a $1 for 3 months deal.Quite often means every god damn month or probably every month. That's quite often for 1 month sub. Before Ultimate there was probably every damn month Game Pass for 1$.
April 2018
Xbox Game Pass: State of Decay 2, Pro Evolution Soccer 2018, Overcooked, and More Coming in May - Xbox Wire
Hello, fellow gamers! Welcome to your May Xbox Game Pass update. We’re incredibly excited to bring State of Decay 2 to Xbox Game Pass members on May 22, the same day as its global release, as we continue to build our commitment to deliver the ultimate gaming membership for our fans. We’re also...news.xbox.com
May 2018
Get Xbox One Game Pass For $1, Includes State Of Decay 2
Get access to over 100 Xbox One games, including recent exclusives like Sea of Thieves, for just $1.www.gamespot.com
June 2018
Microsoft Store Coupon: Save 80% Off With August Promo Codes | 2021 Deals & Discounts
Use today's limited 80% off Microsoft promo codes and coupons. Find trending discount codes on all your favorite games, software and productivity apps.slickdeals.net
and so on
CitizenX3639
Banned
In the old days consumers, especially the OG xbox gold, would buy it and never cancel. Well, it was a pain in the butt to cancel the crap. However today, the consumer is a lot smarter with a helluva lot more choices. I know a lot of people who bought the $1 GP or got it thru upgrading their PCs or thru games and cancelled it right away. Same with others, they paid the $15 for a month to play x game and cancel. MS and their queens always want to think its 2000. Its not.
Hobbygaming
has been asked to post in 'Grounded' mode.
I'm kidding but these figures aren't good. MS needs Series X to bring people to the platform
alabtrosMyster
Banned
This is fine, they are on top, gamepass is gaming's future!
I recall seeing a graph somewhere that was showing the total number of consoles sold per year, if this is accurate there has been a steady decline since around 2010 if my memory is correct, PS4 + xbox one never caught up (well the xbox console did not perform enough to get the momentum back)... however now with the Switch it could be back on an increase, but then again, there is no more mobile consoles per say, so I bet the total console units sold is not close to what it was 10 years ago.
People have so many other ways to play games, many kids want tablets/phones not consoles.
What counts is profit (not very idealist, but realist in some way)... There are many ways to get to it, Nadella (I think this is the new CEO) likes to offer "services", hence the Azure and gamepass push, so in that sense the consoles are only a means to get to the subscriptions.
I recall seeing a graph somewhere that was showing the total number of consoles sold per year, if this is accurate there has been a steady decline since around 2010 if my memory is correct, PS4 + xbox one never caught up (well the xbox console did not perform enough to get the momentum back)... however now with the Switch it could be back on an increase, but then again, there is no more mobile consoles per say, so I bet the total console units sold is not close to what it was 10 years ago.
People have so many other ways to play games, many kids want tablets/phones not consoles.
I know. I cant wait for playstation 5 so I can play some good next gen games.
MiyazakiHatesKojima
Banned
And they said my friend was burning his money when buying a pre-built PC.
fran.fernandez
Member
Console warrior
xbox is a joke and people who buy it are clowns.
I would say Phil has a few years to prove me wrong, I just don't see all this services (in gaming) stuff working out for them...especially going nowhere with deployment to other devices/platforms...which is what the cloud boy Nadella wants. This is based on game streaming which I think will continue to be a disaster.
I wouldn't say it's a flawed strategy, more like a nonexistent strategy... my bet Nadella figures out the glitch and fixes it.
I think Nadella has been fooled on this one, he'll eventually fix his mistake.
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CyberPanda
Banned
JustP_Gaming
Banned
You do realize this is the 19th year the Xbox brand has been in existence right. They can continue on this trajectory indefinitely. Every other company would have long left the business by now.
JustP_Gaming
Banned
The only difference is none of those companies have the incredibly large financial war chest MS has to stay afloat for however long they see fit.
Agnostic2020
Member
21% Xbox revenue down , 44% hardware down,
but Xbox fans told me Xbox is at an all time high momentum going into next gen and everyone is buying them because game pass is an amazing deal and power of x1x means everything and so on?
so they lied to us ?
but Xbox fans told me Xbox is at an all time high momentum going into next gen and everyone is buying them because game pass is an amazing deal and power of x1x means everything and so on?
so they lied to us ?
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Aceofspades
Banned
Aren't MS lumping Surface revenues snd other shit with gaming? That makes those figures even worse.
All in all, the drop is expected this late in the generation, but Xbox didn't have a great bar to drop from. It was performing bad throughout the generation.
All in all, the drop is expected this late in the generation, but Xbox didn't have a great bar to drop from. It was performing bad throughout the generation.
it_wasn't_me
Banned
Microsoft’s Office, Surface, and cloud businesses lead Q2 results
Gaming is down just as Windows 7 upgrades help earnings
I see. So it can be a 65 million MAUs as a new record since they don't give number for a while now like i said
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Jigsaah
Gold Member
Ill raise your 3 sources with my personal experienceQuite often means every god damn month or probably every month. That's quite often for 1 month sub. Before Ultimate there was probably every damn month Game Pass for 1$.
April 2018
Xbox Game Pass: State of Decay 2, Pro Evolution Soccer 2018, Overcooked, and More Coming in May - Xbox Wire
Hello, fellow gamers! Welcome to your May Xbox Game Pass update. We’re incredibly excited to bring State of Decay 2 to Xbox Game Pass members on May 22, the same day as its global release, as we continue to build our commitment to deliver the ultimate gaming membership for our fans. We’re also...
May 2018
Get Xbox One Game Pass For $1, Includes State Of Decay 2
Get access to over 100 Xbox One games, including recent exclusives like Sea of Thieves, for just $1.
June 2018
Microsoft Store Coupon: Save 80% Off With August Promo Codes | 2021 Deals & Discounts
Use today's limited 80% off Microsoft promo codes and coupons. Find trending discount codes on all your favorite games, software and productivity apps.
and so on
Panajev2001a
GAF's Pleasant Genius
That is the definition of competition not working in a way. Business stay afloat or wins thanks to the money made elsewhere.
Still, unless the area they are investing is really critical to their core model, even those large companies like to ensure money generates lots of more money so they seldom pursue this strategy, etc...
Silent Viper
Banned
Nothing can hurt MS. They have enough money to run a country
Silent Viper
Banned
P
You buying their shares? Why you need details?
You buying their shares? Why you need details?
Silent Viper
Banned
It is but unfortunately some members not smart enough to realise that or they just love trolling and posting bs
Agnostic2020
Member
No everything in MS is doing amazing . The only division in ms with loss is Xbox . Everything else is positive yoy
TBiddy
Member
This thread is embarrasing. A bunch of the usual suspects, who clearly demonstrate that they have absolutely no financial knowledge, trying to present this as "Xbox is doomed".
Hardware sales is down. How extremely unexpected, now that we're on the verge of a new generation. On the other hand, there's a record number of MAUs, Game Pass subscribers have doubled and xCloud is ready soon, adding an additional monthly revenue stream.
I wonder if the above-mentioned usual suspects will enter with the same ridiculous doom and gloom, when Sony announces that they also are down YoY in terms of sales. I doubt it.
At least have the decency to read the numbers before making such claims. Here, I'll help you:
Hardware sales is down. How extremely unexpected, now that we're on the verge of a new generation. On the other hand, there's a record number of MAUs, Game Pass subscribers have doubled and xCloud is ready soon, adding an additional monthly revenue stream.
I wonder if the above-mentioned usual suspects will enter with the same ridiculous doom and gloom, when Sony announces that they also are down YoY in terms of sales. I doubt it.
At least have the decency to read the numbers before making such claims. Here, I'll help you:
FY20 Q2 - Press Releases - Investor Relations - Microsoft
www.microsoft.com
- · Windows OEM revenue increased 18% (up 18% in constant currency)
- · Windows Commercial products and cloud services revenue increased 25% (up 27% in constant currency)
- · Surface revenue increased 6% (up 8% in constant currency)
- · Search advertising revenue excluding traffic acquisition costs increased 6% (up 7% in constant currency)
- · Xbox content and services revenue decreased 11% (down 9% in constant currency)
Mattyp
Gold Member
Nah the usual suspect will just sit here screaming about MAH SERVICCCCCESSSSS and gamepass and there wont be xbox for much longer like he has for the past 3 years, apparently his windows phone was killed off? and he’s still butthurt about it.
The rest of sit here making bank on Microsoft shares while enjoying gamepass. Remember the accounts and financial experts at Microsoft have no idea what they're doing with gamepass.
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michaelius
Banned
They were only usefull as long as they could be shown to be higher than number of PS4 sold. But since now Microsft can't even get to similar numbers despite counting everyone who logged to their service on every platform they released games on it need to be obscured like console sales.
It's funny but they probably would count me as active user since i logged to my old xbox/GFWL account to play Halo on steam
Gavin Stevens
Formerly 'o'dium'
It’s all doom and gloom for Xbox! And if it isn’t, let’s find a way to make it so!
Sorry, I can’t take a thread like this seriously on Gaf of all places. Let’s be honest you guys are hardly unbiased
Sorry, I can’t take a thread like this seriously on Gaf of all places. Let’s be honest you guys are hardly unbiased
SaucyJack
Member
So Fortnite generated so much revenue last year that this year is poor by comparison. Really
I'm sure we’ll see the same trend in Sony's results then because the same phenomenon should apply.
Team Andromeda
Member
It does and BTW the Xbox isn't losing money, The division again 'made' a profit. No doubt people keep telling you that Cloud isn't real too
SaucyJack
Member
The challenge for Xbox remains the same, as a division they have to satisfy the board that they are a worthwhile investment, either by being sufficiently profitable or by being strategically important. If they don’t do so then the board will be ruthless.
Microsoft is an incredibly profitable and cash rich company, internal investments have to demonstrate a return on capital that exceeds whatever internal hurdle rate they’ve set. Microsoft is not in the habit of chucking money at loss making ventures - unless theres an upside later. Whilst they are capable of significant investments (Mojang) the entire reserves of Microsoft are not available to the gaming division.
Part of the pitch this gen, from a corporate perspective, was to get Windows into the living room And that hasn’t really worked. However, as it stands Xbox is probably profitable enough to satisfy the board that it’s worth supporting.
Persian buttercup
Member
Guess they’ve never been able to recover from the 2013 debacle.
Coulomb_Barrier
Member
Gamepass trojan horse tactics are not sustainable.
TBiddy
Member
Absolutely agree, and I don't think anyone at Microsoft is happy with the results, and I think this is the last shot. If Game Pass, xCloud and XSX fails to generate a reasonable profit for Microsoft as a whole, we might see an exit strategy in the coming years.
But we need to take into account that the Gaming Division pays the Cloud Division (internally in Microsoft). This means that if the Gaming Division as a whole generates a small deficit, it's most likely a very good business for Microsoft in the bigger picture, since the Cloud Division is making a lot of money here.
The worst part is that we have posters in this thread, who seriously seem to think that Phil Spencer has somehow "fooled" Nadella. That shit is ridiculous.
nikolino840
Member
Is software revenue for them
You have to buy Xbox games studios titles on PC first (or gamepass) ,and not Just say i don't Need an Xbox becouse they are on PC
Do you have gamepass? Or titles?
GHG
Member
A transition to the model they want is gonna take time , at least 2 generations, like I said before... but Sony is following with PC releases so MS isn’t the idiot some think ...
But for hardcore / hardware loving old generation gamers it is a rude awakening the coming decades ...
But for hardcore / hardware loving old generation gamers it is a rude awakening the coming decades ...
Coulomb_Barrier
Member
If these results look bad then it's going to get much worse before it gets better as Xbox has two more quarters of financial results to present.
I agree that if Series X doesn't drastically improve revenues for the division, MS will slowly exit the console business and at best, remain a multiplatform publisher (similar to how SEGA went). The problem is they don't have the i.p of SEGA outside of Minecraft, which is possibly the biggest one, to compete with the likes of EA, ActiBlizz and Rockstar.
(what's precarious is Minecraft is in a steady decline, so they won't be able to rely on that printing money forever.)
So I don't see why such a mega rich company like MS will persist in a losing war against Sony and Nintendo in the console space.
Hobbygaming
has been asked to post in 'Grounded' mode.
Sony will have a ton of momentum
TLOU Part II
Ghost of Tsushima
Final Fantasy 7
Dreams
Nioh 2
Persona Royal