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

DaGwaphics

Member
Microsoft needs to find a way to make more consoles or really hope the series s starts selling more (yeah I know its selling well but its not exactly hard to get at the moment)

Goes to Xbox website to check current status:

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:messenger_winking_tongue:

Hoping that it is readily available for the holiday rush, but unlikely. Would make a lot of folks happy at Xmas.
 

Sanepar

Member
I
I dont see why Xbox Series S/X cant crack 90m+ this gen.

Chip and part shortage will slow it down though.
I don't see how can u think this is possible. Really. They are not leader in any market. Their 2 biggest markets(us and uk) they sell less than PS and Switch(us).

I think they will have a great gen if they reach 60 mi. But I expect around 50 in the end with expansion of xcloud to tvs and pc.
 

M1chl

Currently Gif and Meme Champion
Lockdowns have resulted in higher demand for games and services...
Well that's what I meant, since it's now more open the demand is less. So the improvement, after probably best times for this home entertainment, is still good.
 

Topher

Gold Member
Goes to Xbox website to check current status:

Capture.png
:messenger_winking_tongue:

Hoping that it is readily available for the holiday rush, but unlikely. Would make a lot of folks happy at Xmas.

Best Buy seems to have plenty of them in store right now, at least in my area.

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Well that's what I meant, since it's now more open the demand is less. So the improvement, after probably best times for this home entertainment, is still good.

Yep. MS even highlights that when referencing last year's quarter as there was extremely high demand and this year it not as much. We are going to see a similar reduction in growth with Sony's earnings (today?).
 
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DaGwaphics

Member
For reference the 360 hit 85 million…. Do you actually expect Series to outsell it, given everything we know at this point in time?

360 did those numbers because it had legs. Series consoles have outpaced 360 at this point already, not sure what you are going for there. The X1 easily did as well, but the system couldn't do as well down the stretch.
 

Thirty7ven

Banned
360 did those numbers because it had legs. Series consoles have outpaced 360 at this point already, not sure what you are going for there. The X1 easily did as well, but the system couldn't do as well down the stretch.

Momentum, weaker competition that was late to the party, Halo in its peak prime and Gears of War storming the place and then Kinect. 360 was a gaming culture phenomenon.

I see none of it for Series, odds are stacked against it, 90 mil is a pipe dream.
 
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SlimySnake

Flashless at the Golden Globes
That's been the case forever, even Ubisoft back in the early Xbox One days said each Xbox customer was more valuable than a PS customer.


Everyone mocks Xbox, as the console to play when you have no money and subscribe to gamepass. But time and time again it just shows Xbox players are willing to spend money where they see value, and seem to be more engaged than thier other gaming counterparts.
Yes sir. Thats why I literally said
Their engagement numbers have always been high,
in my post. ;p
 

DenchDeckard

Moderated wildly
Momentum, weaker competition that was late to the party, Halo in its peak prime and Gears of War storming the place and then Kinect. 360 was a gaming culture phenomenon.

I see none of it for Series, odds are stacked against it, 90 mil is a pipe dream.

I think XBox series can hit 70 Mill with PS5 around 100-110. But that's literally pulled from my ass.

I dont see the PS5 ending up quite at PS4 levels but Im probably wrong. haha
 
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DaGwaphics

Member
Momentum, weaker competition that was late to the party, Halo in its peak prime and Gears of War storming the place and then Kinect. 360 was a gaming culture phenomenon.

I see none of it for Series, odds are stacked against it, 90 mil is a pipe dream.

The population, thus the target market, has grown a lot since then as well. 90m by the end of this gen might not mean quite the same thing as 90m at the end of the 360 gen. Also, there is always that chance that the first-party fire is significantly reignited by generations end. Only time will tell.
 

Riky

$MSFT
It will be interesting to see how much Halo and Forza drives Gamepass numbers, will PC owners having day one releases still prefer paying full price on Steam or will they start shifting over.
They will probably announce numbers early next year when these games have hit home.
 
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Andodalf

Banned
Imagine what their growth will look like when the studios they bought finally start putting out exclusives. And not just Bethesda, we haven't seen full AAA exclusives titles from Obsidan, Ninja Theory, inexile, Double Fine, or Compulsion.
 

SlimySnake

Flashless at the Golden Globes
Momentum, weaker competition that was late to the party, Halo in its peak prime and Gears of War storming the place and then Kinect. 360 was a gaming culture phenomenon.

I see none of it for Series, odds are stacked against it, 90 mil is a pipe dream.
PS3 and 360 were actually neck in neck in NA for half of the generation. Then in 2010, the kinect and xbox slim were announced and the rest is history.

What MS did do right was get hardcore to jump on early. Gears, Oblivion, Bioshock, Halo 3 and Mass Effect all in a span of one year. All exclusive. By the time CoD MW came out later that year, all the hardcore were already on xbox and as we all know they are the ones who spend the most money. They didnt even need the casuals. All the casuals ever did was buy consoles with kinect and then set it aside just like they did the Wii. Meanwhile the hardcore were replacing up to 3 xbox 360s month after month. I knew several guys who had at least 3 replacements in the early years. And yet the games were so good and so abundant, no one gave a shit.

I really hope MS goes back and realizes that its not about the hardware or the services or gimmicks, it's about games. Exclusives. It's about getting the biggest spenders on your platform. In your eco system. I dont see how both Sony and MS allowing the hardcore to go to PC helps them get into the xbox and psn eco system.
 

DaGwaphics

Member
I really hope MS goes back and realizes that its not about the hardware or the services or gimmicks, it's about games. Exclusives. It's about getting the biggest spenders on your platform. In your eco system. I dont see how both Sony and MS allowing the hardcore to go to PC helps them get into the xbox and psn eco system.

If someone has the $$$$ to spend on a gaming rig and wants the best experience, they will do that regardless of what MS and Sony are doing with exclusives. Sure this gamer might pickup a console on the side for exclusives but that will be all the box is for. What Sony/MS has really done in that case is sold them a loss leader product just to sell a handful of exclusive titles. They can still sell that handful of exclusives to this customer without the upfront losses of the console sale, it will net them more.
 

Neo_game

Member
I hope the estimate of SS higher than SX is wrong. Pretty depressing IMO and shame if Microsoft made more SS. than SX. SS is on par with gtx 1060 which is a 2 generation old gfx card. That is pretty lame TBH. I am not a fan of 500$ + gfx cards as well. But really wanted people to embrace higher end console. I would love to see a 699$ console in future or even Pro models. Those SS numbers are not good signs IMO 🤦‍♂️
 

yurinka

Member
Also important: The 37% GP growth from July '20 to June '21 put max Gamepass numbers at 20 million. Now, we know that (by applying 1% of the 2% growth to GP), the numbers would be a max 20.2 million as of September 30, 2021.

Edit: This is not necessarily correct. See below.
GP had 10M in March 2020 and 15M in Sept. 2020. I think it's fair to assume that at the end of June 2020 they were around 13M. Adding 37% is around 18M at the end of June 2021. Pretty much the same they had in January 2021.

I think XBox series can hit 70 Mill with PS5 around 100-110. But that's literally pulled from my ass.
PS4 sold more than these 100-110 and will still sell some more. Launch aligned PS5 is selling better than PS4 and could sell way more if not limited by the lack of chips. Sony is growing their internal teams to make them develop multiple games at the same time instead of only one, and are acquiring new studios. Plus they will improve stuff like VR and their subscriptions. I think it's fair to assume PS5 will sell more than 120M.
 
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Andodalf

Banned
I hope the estimate of SS higher than SX is wrong. Pretty depressing IMO and shame if Microsoft made more SS. than SX. SS is on par with gtx 1060 which is a 2 generation old gfx card. That is pretty lame TBH. I am not a fan of 500$ + gfx cards as well. But really wanted people to embrace higher end console. I would love to see a 699$ console in future or even Pro models. Those SS numbers are not good signs IMO 🤦‍♂️

Keep this in mind


The SS is replacing last gen consoles. Would you rather have a series S or an xbox one x? What about a PS4 pro? Fun fact, the Series S is actually cheaper than the PS4 pro!
 

xHunter

Member
It will be interesting to see how much Halo and Forza drives Gamepass numbers, will PC owners having day one releases still prefer paying full price on Steam or will they start shifting over.
They will probably announce numbers early next year when these games have hit home.
People that are waiting for these titles probably already have a gamepass subscription. Or most of them. Dont think we will see a sudden rise in subscribers until Microsofts studios release high quality games in a short amount of time (like every 2-3 months one AAA game).
 

Neo_game

Member
Keep this in mind


The SS is replacing last gen consoles. Would you rather have a series S or an xbox one x? What about a PS4 pro? Fun fact, the Series S is actually cheaper than the PS4 pro!

But why would anyone want to buy an alternative to last gen console now anyways ?

That does not even make sense. Are people buying gtx 1060 now ? That is not very bight or is it 🤦‍♂️
 

wolffy71

Banned
Game pass has to be near its max. There simply can't be many people who have an xbox but not gamepass, right? At least if u have internet.
 

NickFire

Member
Game pass has to be near its max. There simply can't be many people who have an xbox but not gamepass, right? At least if u have internet.
I don't think either assumption is correct. GP is still on the verge of getting big hitters, so there's definitely room to grow there. And guaranteed there are a ton of last gen Xbox owners who haven't jumped aboard yet. For current gen the majority might already have it, but even that is not guaranteed. Simply put, there is a ton of room to grow. Halo will be a great test here, plus Forza.
 
Microsoft needs to find a way to make more consoles or really hope the series s starts selling more (yeah I know its selling well but its not exactly hard to get at the moment)
The time of the Series S will come when 1st and 3rd party developers stop making crossgen games. Then casuals have to move on and they usually go for the cheapest console.
 
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Chukhopops

Member
Game pass has to be near its max. There simply can't be many people who have an xbox but not gamepass, right? At least if u have internet.
The takes get worse and worse all the time lol.

You’d think GP subs are collapsing if you believed the people here, when it gained +/- 3 times more subs than PS+ in the June20-June21 period where it missed targets.
 

Kacho

Gold Member
Game pass has to be near its max. There simply can't be many people who have an xbox but not gamepass, right? At least if u have internet.
I'm someone on Xbox who doesn't have a Game Pass sub. I'd rather just buy what I want. Also, most of the people on my 70+ friends list aren't playing Game Pass titles. Not sure if they're subbed or not, but it's something I noticed.

While I don't think the ceiling for Game Pass is super high, there's definitely room to grow when the heavy hitters launch. Starfield alone will move subs.
 

Andodalf

Banned
But why would anyone want to buy an alternative to last gen console now anyways ?

That does not even make sense. Are people buying gtx 1060 now ? That is not very bight or is it 🤦‍♂️
They don't have the money i guess. 360 and PS3 sold well into last gen.
 
Game pass has to be near its max. There simply can't be many people who have an xbox but not gamepass, right? At least if u have internet.
Xbox Live MAUs are at around 100m players (estimated). Even if we assume that a decent chunk of those are Minecraft players on other platforms, Gamepass is still no where near full saturation.
 

reksveks

Member
The time of the Series S will come when 1st and 3rd party developers stop making crossgen games. Then casuals have to move on and they usually go for the cheapest console.
I think Phil might be proven right, not just for that reason that you have stated but also maybe for developing markets.
 

elliot5

Member
I hope the estimate of SS higher than SX is wrong. Pretty depressing IMO and shame if Microsoft made more SS. than SX. SS is on par with gtx 1060 which is a 2 generation old gfx card. That is pretty lame TBH. I am not a fan of 500$ + gfx cards as well. But really wanted people to embrace higher end console. I would love to see a 699$ console in future or even Pro models. Those SS numbers are not good signs IMO 🤦‍♂️
Series S has very different components inside. Similar APU yes, but very scaled back, and the other parts are extremely simple compared to the Series X configuration (cooling, assembly, disc drive, etc).

Series S can simply be made more efficiently. Probably like 3 S for every 1 X but that's just a guess. Thus, more can be shipped and sold.

It's like baking cupcakes vs cakes.
 

SlimySnake

Flashless at the Golden Globes
I hope the estimate of SS higher than SX is wrong.
It's not though?



I still think 60:40 split is way too high and MS should be prioritizing their premium console because otherwise whats the point of winning every face/off against the PS5 when almost 40% of your userbase is not going to see that advantage?
 

Iced Arcade

Member
PS3 and 360 were actually neck in neck in NA for half of the generation. Then in 2010, the kinect and xbox slim were announced and the rest is history.

What MS did do right was get hardcore to jump on early. Gears, Oblivion, Bioshock, Halo 3 and Mass Effect all in a span of one year. All exclusive. By the time CoD MW came out later that year, all the hardcore were already on xbox and as we all know they are the ones who spend the most money. They didnt even need the casuals. All the casuals ever did was buy consoles with kinect and then set it aside just like they did the Wii. Meanwhile the hardcore were replacing up to 3 xbox 360s month after month. I knew several guys who had at least 3 replacements in the early years. And yet the games were so good and so abundant, no one gave a shit.

I really hope MS goes back and realizes that its not about the hardware or the services or gimmicks, it's about games. Exclusives. It's about getting the biggest spenders on your platform. In your eco system. I dont see how both Sony and MS allowing the hardcore to go to PC helps them get into the xbox and psn eco system.
yeah, you were either too young or misinformed. the 360 was always widely ahead of the PS3 in NA. worldwide they were neck and neck though.
 

FrankWza

Member
I still think 60:40 split is way too high and MS should be prioritizing their premium console because otherwise whats the point of winning every face/off against the PS5 when almost 40% of your userbase is not going to see that advantage?
Also, heading into the holidays with a smaller HD and no disk drive. figure that halo, forza and vanguard will be on most machines. Will all 3 games even fit? If not or barely, you’re looking at a mandatory purchase of that expensive expansion drive and a buy in price too close to the series x. After 1 year we shouldn’t be in the “tide me over” territory where you get an s and upgrade later when x is available.
They knew these games were coming so maybe they really did need to pivot and create more s consoles because something would be better than nothing and they were able to source those components easier. Otherwise, it doesn’t really make much sense
Edit: you want to put your best foot forward with 2 franchises that are as close to being synonymous with your brand as any.
 
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elliot5

Member
Also, heading into the holidays with a smaller HD and no disk drive. figure that halo, forza and vanguard will be on most machines. Will all 3 games even fit? If not or barely, you’re looking at a mandatory purchase of that expensive expansion drive and a buy in price too close to the series x. After 1 year we shouldn’t be in the “tide me over” territory where you get an s and upgrade later when x is available.
They knew these games were coming so maybe they really did need to pivot and create more s consoles because something would be better than nothing and they were able to source those components easier. Otherwise, it doesn’t really make much sense
Edit: you want to put your best foot forward with 2 franchises that are as close to being synonymous with your brand as any.
I know COD is popular and all but it's funny how every storage space discussion that pops up just immediately assumes every Series S owner must download Warzone+Campaign+MP+Zombies to eat up 200 GB. There is no alternative and no compromise. It's like COD must come bundled with a Series S just because Activision can't get their bloated install sizes down (though Vanguard allegedly is smaller).
 

Iced Arcade

Member
Also, heading into the holidays with a smaller HD and no disk drive. figure that halo, forza and vanguard will be on most machines. Will all 3 games even fit? If not or barely, you’re looking at a mandatory purchase of that expensive expansion drive and a buy in price too close to the series x. After 1 year we shouldn’t be in the “tide me over” territory where you get an s and upgrade later when x is available.
They knew these games were coming so maybe they really did need to pivot and create more s consoles because something would be better than nothing and they were able to source those components easier. Otherwise, it doesn’t really make much sense
Edit: you want to put your best foot forward with 2 franchises that are as close to being synonymous with your brand as any.
"mandatory purchase of that expensive expansion drive " sure if you are allergic to using an external drive and hot-swapping games out that you are currently playing... then yeah I guess it's mandatory.
 
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DaGwaphics

Member
I know COD is popular and all but it's funny how every storage space discussion that pops up just immediately assumes every Series S owner must download Warzone+Campaign+MP+Zombies to eat up 200 GB. There is no alternative and no compromise. It's like COD must come bundled with a Series S just because Activision can't get their bloated install sizes down (though Vanguard allegedly is smaller).

Also, kind of ignores the fact that cold storage is a thing and most users probably have a usb spinner around the house somewhere that can be used for that purpose. On 360 you could even use a flash drive or a large SD card and reader for cold storage, not sure if those are still options for X1 or XSS/X, never tried it.
 
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"mandatory purchase of that expensive expansion drive " sure if you are allergic to using an external drive and hot-swapping games out that you are currently playing... then yeah I guess it's mandatory.
A lot of concerned people who don't own the XSS don't realize you can connect an inexpensive external drive and store tons more games. Casual gamers aren't likely to have lots of games to store anyway and if they are there are several solutions to remedy the smaller internal storage size. XSS remains the best value of the current console generation regardless.
 

Lone Wolf

Member
It's not though?



I still think 60:40 split is way too high and MS should be prioritizing their premium console because otherwise whats the point of winning every face/off against the PS5 when almost 40% of your userbase is not going to see that advantage?

I’m sure most people buying the Series S don’t care about face offs and console wars.
 

Banjo64

cumsessed
Also, heading into the holidays with a smaller HD and no disk drive. figure that halo, forza and vanguard will be on most machines. Will all 3 games even fit?
Yes, comfortably.

Forza Horizon 103gb.

Halo Infinite (multiplayer) is estimated at 60gb on the MS Store.

Vanguard 61gb confirmed today (https://gamingintel.com/call-of-duty-vanguard-launch-file-sizes-disc-space/)

224gb used out of the available 364gb, 140gb left over.

You could even add Battlefield 2042 which is also 60gb and still have 80gb left over.
 
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Akuji

Member
Didnt see any info about gaming in general?
Did gaming grow 16% and so did Xbox or did Xbox outgrow / grow slower then the overall market?
 
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