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[Vasto]

You are correct hardware for the first few years is sold at a loss, however more hardware sold means more software potentially. What makes Microsoft different to Sony is Gamepass, now its obviously making money but they need more subs to attract the big publishers to get the games on release day. If they do that then Sony are in trouble going forward.

They subs wont really start coming in until Xbox Studios starts dropping titles on a regular basis. I think we will get a huge surge in subs when Halo Infinite drops and from then on the 1st party titles should start dropping and subs will start soaring.

 

[The Hamburglar]

Buy high, sell low. Use my financial advice to buy ms shares.

 

[TheThreadsThatBindUs]

so you live in a reality where a 100% increase (a double) of a cent is lesser than a 100% increase (still a double) of a billion

that's some Einstein kind of relativity skyrocketing

No this is a shitty strawman argument you've just concocted.

I live in a universe (i.e. this one) where a "100% increase" from X, with no further qualification of what the fuck X is, is a pretty meaningless statement.

I'm not sure why you're even arguing. The above is an objective fact. You're just being obtuse.

Edit:

Of course an increase of 1 cent is lesser than an increase of $1b... WTF are you even trying to say with that? You're undermining whatever meaningless point you're trying to make. The point is the absolute increase in numerical terms is more important than any abstract percentage increase.

E.g. it's much easier and thus less impressive to double your revenue when you only made $1m in year 1, than to double your revenue from having made $1b. An increase in revenue of $1b is greater and more impressive than an increase in revenue of $1m. Did you do maths at all in school?

 

[Vasto]

Yeah, console sales. And they are important. Like it or not. But i guess you don't because Xbox is outsold easily by Sony and Nintendo

Sony and Nintendo can sell more consoles all day. That does not get you $7.5 Billion to buy more studios. Its all about the money over here.

 

[Great Hair]

More Personal Computing 2020/2021 - $15bln revenue
More Personal Computing segment consists of :

Spoiler

• Windows, including Windows OEM licensing (“Windows OEM”) and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows IoT; and MSN advertising.
• Devices, including Surface and PC accessories.
• Gaming, including Xbox hardware and Xbox content and services, comprising Xbox Live (transactions, subscriptions, cloud services, and advertising), video games, and third-party video game royalties.
• Search.

More Personal Computing/Computing&Gaming 2013 to 2020
est. XBone sold (incomplete, missing data)

Spoiler

Fiscal Year 2020 (+2% SW | -31% HW)
Gaming revenue increased $189 million or 2%, driven by an increase in Xbox content and services. Xbox content and services revenue increased $943 million or 11%, driven by growth in Minecraft, third-party titles, and subscriptions. Xbox hardware revenue declined 31%.

Fiscal Year 2019 (+10% SW | -13% HW)
Gaming revenue increased $1.0 billion or 10%, driven by Xbox software and services growth of 19%,a decline in Xbox hardware of 13%.

Fiscal Year 2018 (+14% SW | XX% HW) *no HW data*
Gaming revenue increased $1.3 billion or 14%, driven by Xbox software and services revenue growth of 20%, mainly from third-party title strength. No mention of hardware.

Fiscal Year 2017 (-5%? SW | -21% HW)
Gaming revenue decreased slightly, Xbox hardware revenue decreased 21%
Xbox software and services revenue increased 11%, driven by a higher volume of Xbox Live transactions and revenue per transaction.

Fiscal Year 2016 (+1% SW | -16% HW)
Gaming revenue increased $132 million or 1%, primarily due to higher revenue from Xbox Live and video games, offset in part by lower Xbox hardware revenue. Video games revenue grew 34%, driven by the launch of Halo 5 and sales of Minecraft. Xbox hardware revenue decreased 16%.


Fiscal Year 2015 (+5% SW | -5%? HW) *no HW data*
Gaming revenue increased $463 million or 5%, mainly due to growth in Xbox Live and video games revenue, offset in part by a decrease in Xbox hardware revenue and third-party video game royalties. We sold 12.1 million Xbox consoles in fiscal year 2015 compared with 11.7 million consoles in fiscal year 2014. Video games revenue increased $265 million, mainly due to sales of Minecraft.

Fiscal Year 2014 (+49% SW | +34% HW)
Computing and Gaming Hardware revenue increased $3.2 billion or 49%. Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One, which was released in November 2013, offset in part by a decrease in sales of Xbox 360. We sold 11.7 million Xbox consoles during fiscal year 2014 compared with 9.8 million Xbox consoles during fiscal year 2013.

Fiscal Year 2013 (-4% SW | -22% HW)
Computing and Gaming Hardware gross margin decreased $1.5 billion or 62%, due to a $1.3 billion or 30% increase in cost of revenue and decreased (4%) revenue. Xbox Platform revenue decreased $1.3 billion or 22%. We shipped 9.8 million Xbox 360 consoles during fiscal year 2013, compared with 13.0 million Xbox 360 consoles during fiscal year 2012.

More Personal Computing (Computing&Gaming HW) revenue 2013 to 2020
(+62% SW | -74% HW "data for 2018 not incl., 2015 unclear data")

Microsoft sold about 30 million Xbox One consoles by the end of 2017, compared to the 73 million-plus PlayStations sold during roughly the same period, according to numbers released by EA chief financial officer Blake Jorgensen.

2018 to 2020
XB1 30mill. -41% (2020, 2019), -xx% (2018,-13% to -20% trend of prev. years), my est. -54% to -61% = sold XB1 42 to 44 million
2018 Sony 2x MS > Nintendo revenue

 

[Dabaus]

40% is the increase in Gaming services only.
This does not include hardware sales.

40 percent increase over the holiday period when everyone is stuck at home and have nothing to do but play games isn’t good. You Xboxers are making mole hills into mountains.

 

[v_iHuGi]

Healthy launch for SX.

SUPPLY issues this quarter already announced.

Wonder what Sony will say about that or will they just hide it hum

 

[FatKingBallman]

Sony and Nintendo can sell more consoles all day. That does not get you $7.5 Billion to buy more studios. Its all about the money over here.

Selling consoles means money too

 

[FatKingBallman]

SUPPLY issues this quarter already announced.

You know that XSS is available across PAL region in bunch of stores??

 

[ChuckeRearmed]

I wonder PS+ numbers

 

[Genx3]

40 percent increase over the holiday period when everyone is stuck at home and have nothing to do but play games isn’t good. You Xboxers are making mole hills into mountains.

Xbox gaming services has brought in more revenue than the entire Xbox division did in the same quarter last year.

If you don't think that's impressive then you need to get your head checked.

 

[G-DannY]

You're just being obtuse.

 

[v_iHuGi]

I wonder PS+ numbers

Around 50Million.

 

[Vasto]

Selling consoles means money too

Never said they dont. That is Sony and Nintendo's main focus, not Microsoft. They just want you on Xbox Live.

 

[waquzy]

Yeah, console sales. And they are important. Like it or not. But i guess you don't because Xbox is outsold easily by Sony and Nintendo

Yep. In summary, Sony dominates in europe, Nintendo dominates in Japan(no one really cares) and Microsoft does well in the US.

 

[e&e]

Maybe console sales???

I know we love to harp on this for console wars, but we are not in 2000; console sales are just a piece of the pie and hasn’t Microsoft been transparent about transcending the box? They want your GP dollars!

 

[Craig of War]

So if Gamepass continue to grow by 1 million subs a month by the time Halo Infinite release which will be in like November so gamepass will be at like 28 million subs by than damn.

 

[Vasto]

 

[waquzy]

Microsoft is one of the richest companies in the world, always has been

 

[KingT731]

I wonder PS+ numbers

Over 50M as of the end of October 2020.

 

[Warnen]

Incoming 30 pages of why this doesn’t matter. Keeping it classy.

 

[ChuckeRearmed]

Apple is 2.4T or something.

 

[FatKingBallman]

Never said they dont. That is Sony and Nintendo's main focus, not Microsoft. They just want you on Xbox Live.

What if MS stop producing consoles because selling consoles it's not MS main focus. Would it bother you? Well, you can subscribe on XBL via phone then and play Medium on shiny little screen via xCloud.
They need consoles to sell games there first and foremost. Saying that Xbox isn't their focus is lame

 

[Hezekiah]

Great numbers.


Still waiting for xbox to go out of business......any day now...lol

Still waiting for profit figures.

"Revenue is vanity, profit is sanity."

 

[Tutomos]

I wonder PS+ numbers

40+million PS+. MAU is 110+million.

 

[Tutomos]

$5bn was achieved by Playstation last quarter, which was not during holiday and without console launch. This upcoming report from Sony will destroy that number.

 

[DarkMage619]

What if MS stop producing consoles because selling consoles it's not MS main focus. Would it bother you?

Is it possible to do multiple things at once? MS can support PC, xCloud, and consoles. They are targeting multiple platforms I thought you knew. Only Nintendo and Sony focus solely on console sales.

 

[driqe]

40 percent increase over the holiday period when everyone is stuck at home and have nothing to do but play games isn’t good. You Xboxers are making mole hills into mountains.

This is correct. Xbox is dying.

 

[FatKingBallman]

Is it possible to do multiple things at once? MS can support PC, xCloud, and consoles. They are targeting multiple platforms I thought you knew. Only Nintendo and Sony focus solely on console sales.

I've edited previous post.
Well, you can subscribe on XBL via phone then and play Medium on shiny little screen via xCloud.
They need consoles to sell games there first and foremost. Saying that Xbox isn't their focus is lame

 

[M1chl]

You know that XSS is available across PAL region in bunch of stores??

Not really... Březen = march. It´s definitelly biggest launch of Xbox ever here. And this shop is really big, they have pretty big distribution network, throughout the europe.

 

[Iced Arcade]

Folks none of that 15 billion came from xbox, and a 40 percent jump in revenue from the xbox division is for the xbox division, not microsoft as a whole. A 40 percent IN REVENUE jump during a console launch, one of which was 500, dollars isnt that great. Theres nothing to celebrate here unless your MS stock holder, but we're talking xbox here.

You couldn't sound saltier even if you were floating in the dead sea with a megaphone after a bag of McDonald's fries

 

[Hezekiah]

But....but everybody tells me Xbox is doing bad? Lol

There are no Xbox profit figures, so how would you know either way?

Xbox made ~$5.024bn this quarter.
And the next holiday season will be the real monster with $8bn

You clearly don't know the difference between revenue and profit.

 

[BlackTron]

Of course revenue is going to be up, they launched two consoles during the quarter! All of gaming is up that goes for every gaming company, a 40 percent jump isnt impressive.

I thought the same thing until I read "content and services". Yeah, a big jump is to be expected, but my first thought was "how much of that revenue was just hardware sales, on a slim margin at that?"

 

[Insane Metal]

This is what I've been saying guys. Gamepass is not working for Micros.... oh

 

[Edgelord79]

This is correct. Xbox is dying.

Awaiting the "Xbox didn't just die, it was murdered" thread by the Wall Street financial pundits on this site.

 

[Tutomos]

This is correct. Xbox is dying.

It got a really rich dad.

 

[Vasto]

What if MS stop producing consoles because selling consoles it's not MS main focus. Would it bother you? Well, you can subscribe on XBL via phone then and play Medium on shiny little screen via xCloud.
They need consoles to sell games there first and foremost. Saying that Xbox isn't their focus is lame

I am a Game Pass Ultimate gamer. If they stopped making consoles I would play Xbox games on my PC like I do now. They do not need consoles to sell games. They have another platform called Windows. Also yes, I game on my phone with my Razor Kishi too.

I am sure its lame because what they are doing now having Xbox on console, pc and mobile is actually working out really well. This is just showing how much better Microsoft is as a company.

 

[FatKingBallman]

Not really... Březen = march. It´s definitelly biggest launch of Xbox ever here. And this shop is really big, they have pretty big distribution network, throughout the europe.

MediaMarkt is retailer and one of the biggest in Europe :

Available in Germany

https://www.mediamarkt.de/de/product/_microsoft-xbox-series-s-512-gb-2677359.html

 

[M1chl]

MediaMarkt is retailer and one of the biggest in Europe :

Available in Germany

https://www.mediamarkt.de/de/product/_microsoft-xbox-series-s-512-gb-2677359.html

Oh we are talking about XSS? Sorry, I though XSX. Yes XSS is readily available, but not many people are buying it. Rightfully so...

 

[FatKingBallman]

Oh we are talking about XSS? Sorry, I though XSX. Yes XSS is readily available, but not many people are buying it. Rightfully so...

The post you've quoted. And when there is a talk about launch of Xbox consoles, it refers to both XSX and XSS. XSS should be out of equation because it is a weaker console and it is available mostly? Nope.

You know that XSS is available across PAL region in bunch of stores??

 

[Bernd Lauert]

This thread gives me life.

 

[KingT731]

Wouldn't this recent launch be the largest launch month because it also was the first simultaneous worldwide launch?

 

[M1chl]

The post you've quoted. And when there is a talk about launch of Xbox consoles, it refers to both XSX and XSS. XSS should be out of equation because it is a weaker console and it is available mostly? Nope.

Well reading is hard for me apparently, I apologize....

 

[Null Persp]

Oh we are talking about XSS? Sorry, I though XSX. Yes XSS is readily available, but not many people are buying it. Rightfully so...

In Italy both models are unavailable and i'm surprised, it's pretty much Sonyland here since PS2.
Not surprised about Germany, they love to play simulators on PC, they never cared about Xbox.

 

[Clear]

40+million PS+. MAU is 110+million.

Also considering they've just launched their first digital-only hardware I'd expect accelerated uptick once supply improves.

Services always look great on balance sheets because its recurring income, however its hard to judge profitability when the content isn't procured specifically for the service and also needs to perform in the physical and digital marketplaces. Not to mention the question of retention in the long term.

 

[3liteDragon]

For anyone looking to get a console.

 

[M1chl]

In Italy both models are unavailable and i'm surprised, it's pretty much Sonyland here since PS2.
Not surprised about Germany, they love to play simulators on PC, they never cared about Xbox.

Here the XSS is readi available, but people writing the reviews are not exactly hyped about it. Based on my info, the ration is like 1:10 XSS:XSX.

Playstation obviously winning by a large margin, but both consoles are suply constrained.

 

[DarkMage619]

I've edited previous post.
Well, you can subscribe on XBL via phone then and play Medium on shiny little screen via xCloud.
They need consoles to sell games there first and foremost. Saying that Xbox isn't their focus is lame

Well Xbox is the platform. It's available through console, PC, and xCloud. Console sales are not their primary focus. There is nothing lame about it.

 

[Concern]

Leave it to fanboys to say 15bn in a quarter is a bad thing lol. Its been a rough week.

Well deserved, at least they seem to be listening to the fanbase and retracted that gold price hike. They literally recouped double the Zenimax acquisition in one quarter.

 

[ZehDon]

Microsoft: *has best launch month in 20 year franchise history. Gains more subscribers for their game sub service in three months than competitors have in total.*
NeoGAF: Ooof. This is really bad; my analysis shows Microsoft are failing, Xbox division is on life support, Series X is DOA, and their deal with Bethesda might actually sink the entire company.