• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
  • Hey Guest. Check out the NeoGAF 2.2 Update Thread for details on our new Giphy integration and other new features.

Microsoft Q2 2021 Destroys Sales and Profits (Xbox +40%)

Oct 26, 2018
17,536
24,387
795
MS just released news.





Earnings Release FY21 Q2​

  • · Revenue was $43.1 billion and increased 17%
  • · Operating income was $17.9 billion and increased 29%
  • · Net income was $15.5 billion and increased 33%
  • · Diluted earnings per share was $2.03 and increased 34%

Revenue in More Personal Computing was $15.1 billion and increased 14% (up 13% in constant currency), with the following business highlights:
  • · Windows OEM revenue increased 1%
  • · Windows Commercial products and cloud services revenue increased 10% (up 8% in constant currency)
  • · Xbox content and services revenue increased 40% (up 38% in constant currency)
  • · Surface revenue increased 3% (up 1%in constant currency)
  • · Search advertising revenue excluding traffic acquisition costs increased 2% (up 1% in constant currency)
Gaming

Improved with the Age community in mind, Age of Empires III: Definitive Edition launched worldwide with Xbox Game Pass for PC, Xbox Game Pass Ultimate, Windows 10, and Steam. Celebrate one of the most beloved real-time strategy franchises in definitive form with enhanced features, modernized gameplay, 4K Ultra HD graphics, updated multiplayer, new civilizations, and with a fully remastered soundtrack.

Cloud gaming (beta) with Xbox Game Pass Ultimate launched 10 new titles available with Xbox touch controls in Xbox Game Pass Ultimate. Touch controls have been one of the top-requested features for cloud gaming, so the cloud gaming team worked closely with players and game designers to create a familiar experience and support a level of play that gamers are used to with a physical controller.

Xbox launched Xbox Series X, the fastest and most powerful Xbox console ever, and Xbox Series S, which delivers next-generation performance at an affordable price in the smallest Xbox ever. The consoles are available across 40 countries and feature the largest launch lineup in Xbox history: 40 new games were playable on day one, 30 with Smart Delivery that are upgraded automatically, as well as thousands of backward-compatible titles across four generations. Xbox Series X|S were also made available with Xbox All Access, which includes the choice of an Xbox Series X or Xbox Series S console plus 24 months of Xbox Game Pass Ultimate, starting at 24.99/month for 24 months with no upfront costs. Xbox All Access is available in 12 countries.

Xbox launched the new Xbox Wireless Controller in Carbon Black, Robot White, and Shock Blue, which feature more inclusive, ergonomic designs and performance-boosting updates like textured grip on the bumpers, triggers and back case, hybrid D- pads, and a new integrated Share button. The controllers are compatible with Xbox Series X|S, Xbox One, Windows 10 PC, and mobile devices.

Xbox Game Studios launched Gears Tactics for Xbox consoles and with Xbox Game Pass. The fast-paced, turn-based strategy game features an immersive and character-driven story, in which gamers can customize their squad’s membership and equipment to succeed in missions against an unstoppable, swarming enemy, complete with massive boss battles.

EA Play became available on Xbox consoles, including Xbox Series S and Xbox Series X, as part of Xbox Game Pass Ultimate. This year, members with an Ultimate or PC subscription will be able to download and play games from the EA Play library on Windows 10 PCs. Some EA Play titles are also available on Android via the cloud, including “Mass Effect™: Andromeda,” “Mirror’s Edge™ Catalyst,” “Dragon Age™: Inquisition,” and “Plants vs. Zombies™ Garden Warfare 2.”

Mojang Studios released the biggest DLC mash-up in the history of Minecraft—the Minecraft Star Wars DLC, developed in partnership with Disney. Available in the Minecraft Marketplace, the pack includes content from A New Hope, The Empire Strikes Back, Return of the Jedi, and The Mandalorian, spread out across 12 different planet dioramas. Mojang Studios also introduced cross-platform play to “Minecraft Dungeons,” empowering players across Xbox, Windows, Nintendo Switch, and PlayStation to play together for the first time. Additionally, Mojang Studios released the “Minecraft Dungeons” Season Pass, which covers the four upcoming DLC packs, including the most recent Howling Peaks DLC, an action-packed trek to the mountain top that features dazzling new armor, weapons, and artifacts, as well as new enemies and challenges for players.

343 Industries announced that “Halo 4”—the final installment in “Halo: The Master Chief Collection” on PC—arrived on Xbox Game Pass for PC, the Microsoft Store, and Steam. “Halo: The Master Chief Collection” Optimized for Xbox Series X|S also launched, featuring a host of newly Optimized and updated features including Smart Delivery and Quick Resume, and 4K resolution on Xbox Series X.

The Gears 5: Hivebusters DLC launched across Xbox consoles and PC with Xbox Game Pass Ultimate, while also being made available as a separate purchase in the Microsoft digital store. In the new expansion, players join Lahni, Keegan, and Mac—heroes first introduced in Gears 5’s Escape mode—in their first mission as Scorpio Squad. The Gears 5: Hivebusters DLC features optimizations for the Xbox Series X|S and new gameplay formats and includes 16 new achievements.

Microsoft released the free Virtual Reality update for Microsoft Flight Simulator, compatible with most VR headsets for PC and offering simmers the deepest and most immersive virtual flight experience in the new simulator to date. This free update is compatible across a wide range of supported devices, including most Windows Mixed Reality headsets (including the HP Reverb G2), Oculus, Valve, and HTC headsets
 
Last edited:

Chukhopops

Member
Mar 5, 2020
496
1,052
445
Killing profit margins? Bragging about revenue is telling, but it is one part of the equation. I can sell $1B worth of Teslas at $10k each...
That’s why they show both revenue and net income, so you can calculate their profit margin?

If you sold those Teslas at that price your income would be massively in the red, which isn’t the case for MS.
 

TBiddy

Member
Mar 16, 2015
4,635
6,306
830
Denmark
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 love how we apparantly have a financial analyst in our midst. Care to elaborate on how you arrived at your conclusion?

Congrats on Xbox revenue, i guess. What are the profits for XSX/S?

Even though we both know you have zero interest, outside adding fodder for your war, we also both know that the profit margins on new consoles are extremely low.
 
Last edited:

Genx3

Member
Jun 23, 2019
644
1,002
380
Killing profit margins? Bragging about revenue is telling, but it is one part of the equation. I can sell $1B worth of Teslas at $10k each...
Would you do us all a favor and provide us a credible link to GP killing profit margins.
As far as what's been reported GP helps sales of games.
 

fermcr

Member
Mar 24, 2017
793
1,176
470
Don't get it. Those numbers have too many zeros... are they good or bad?
 
Dec 10, 2020
1,197
2,436
370
Even though we both know you have zero interest, outside adding fodder for your war, we also both know that the profit margins on new consoles are extremely low.

I have interest in profit numbers surely. Why not publish it? But don't accuse me for something i didn't do it nor mean for console warring
 
Last edited:
  • Like
Reactions: Zones

Chukhopops

Member
Mar 5, 2020
496
1,052
445
$15B in the bank and that's just for one quarter, right? They can buy a Bethesda every quarter and still have $8B leftover to party on. Or they could just pay cash to buy Sony.
Well that’s the income for all of MS, based on revenue split the personal computing part is 1/3rd of the total revenue. We don’t know if it’s 1/3rd of the income or more or less.

If it’s the same ratio then that would be +/-5 billion or 0.66 Bethesdas.
 

Dr Bass

Gold Member
Jun 6, 2013
1,000
2,809
815
$15B in the bank and that's just for one quarter, right? They can buy a Bethesda every quarter and still have $8B leftover to party on. Or they could just pay cash to buy Sony.

That's not how it works (pay cash for Sony what are you on?), and MS doesn't exist to flush profits on video game acquisitions.

I agree with people saying the numbers aren't impressive really. Remember how abysmal Xbox has been performing, 40% increase on low numbers isn't really where they want to be. MS has a looooong way to go before having performance of note. Of course as a shareholder, and someone who just likes games, I would be more than happy to see them keep improving, but this isn't it. They need to grow by multiples, not fractions.
 

TBiddy

Member
Mar 16, 2015
4,635
6,306
830
Denmark
I have interest in profit numbers surely. Why not publish it? But don't accuse me for something i didn't do it nor mean for console warring

But of course you do.

That's not how it works (pay cash for Sony what are you on?), and MS doesn't exist to flush profits on video game acquisitions.

I agree with people saying the numbers aren't impressive really. Remember how abysmal Xbox has been performing, 40% increase on low numbers isn't really where they want to be. MS has a looooong way to go before having performance of note. Of course as a shareholder, and someone who just likes games, I would be more than happy to see them keep improving, but this isn't it. They need to grow by multiples, not fractions.

Remember, that the 40% is only on services. That's a 40% increase in revenue in a year. I'd argue that's pretty decent.
 

CatLady

Member
Jun 12, 2018
4,156
13,537
670
Well that’s the income for all of MS, based on revenue split the personal computing part is 1/3rd of the total revenue. We don’t know if it’s 1/3rd of the income or more or less.

If it’s the same ratio then that would be +/-5 billion or 0.66 Bethesdas.

I should have been clearer I meant all of MS not Xbox and it was a joke. I don't really see MS or Xbox actually buying a Bethesda every quarter or paying cash for Sony.
 

TBiddy

Member
Mar 16, 2015
4,635
6,306
830
Denmark
The challenge for a company Microsoft's size is what to do with that money, given there's so much. And to the clown saying 40% revenue increase isn't impressive, there are half billion quid firms that would away their left nut for anything in double digits. 40% is new startup numbers. Mental.

Agreed. Not many companies would turn down a 40% revenue increase. Especially not considering the services were most likely bringing in a decent amount of money already.
 

chonga

Member
Aug 17, 2020
242
346
240
That’s why they show both revenue and net income, so you can calculate their profit margin?

If you sold those Teslas at that price your income would be massively in the red, which isn’t the case for MS.
Unless they're putting it in white font on the white background, they don't show numbers for individual business units. So you, nor they, don't know what the Xbox margins are like.
 

Dr Bass

Gold Member
Jun 6, 2013
1,000
2,809
815
But of course you do.



Remember, that the 40% is only on services. That's a 40% increase in revenue in a year. I'd argue that's pretty decent.

Yes, but they are in third place and losing ground. They are off to a worse start, comparatively, than Xbox One. So they might have some growth, but they are growing slower than the competition, and no real plan to change that. "Game Pass games in two years" isn't it, and the recent debacle with the Live Gold shows the management is basically out to lunch in terms of what users want.

I just don't get the point of celebrating this stuff as someone who wants better games and better quality. Growth is good for shareholder(yay), but as a fan they are going the wrong direction. IMO at least.
 

TBiddy

Member
Mar 16, 2015
4,635
6,306
830
Denmark
Yes, but they are in third place and losing ground. They are off to a worse start, comparatively, than Xbox One. So they might have some growth, but they are growing slower than the competition, and no real plan to change that. "Game Pass games in two years" isn't it, and the recent debacle with the Live Gold shows the management is basically out to lunch in terms of what users want.

I just don't get the point of celebrating this stuff as someone who wants better games and better quality. Growth is good for shareholder(yay), but as a fan they are going the wrong direction. IMO at least.

What are the growth numbers for Nintendo and Sony on the services front this year compared to last?

I think investing in more studios and allowing them the time to work on their ideas is the right way to go. We'll see if it works out for them.

Like every other normal people has an interest in numbers without accusing it allegedly for some console warring by other

There are plently of numbers for you to dive in to.
 
Last edited: