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Microsoft reports strong Surface, Xbox, and cloud growth for Q3 2021

Azurro

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Jun 11, 2018
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Alot of assumptions and 'anecdotal' evidence here. I would like to reinstate its okay to say we don't know.

The first part that it's losing money is from MS. The second part, about the collapse in Xbox retail sales, that is fact, but the link to GamePass is speculation on my part.
 

Papacheeks

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Jan 30, 2013
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Best quarter results (Gaming department) OF THE LAST 6 years. The turnaround is happening 🤟


But but but gamepass is loosing money. LMAO…..

What do you think their operating profit /costs is? Deduct that from the revenue and you might get a close number to profit. With the deals they make monthly to quarterly with companies especially MLB/ Square those are not cheap.

IT'S days and night better than previous gen though. It shows interest in xbox is at least in good health.
 
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TaiLopezFan

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This is only Year over Year revenue. Microsoft’s gaming revenue was down in Q1 2021 from Q4 2020. From 5.0 Billion in revenue to 3.5 Billion.


That’s why their stock is going down after hour.
 
Dec 10, 2020
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I never knew Xbox Wire PR articles written by Will Tuttle should be part of Microsoft's quarterly earnings reports to Wall Street.

That is just example how proper is comparison different console generations launch aligned.

 

yazenov

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Only people who wants to know this stuff are concern trolls like you
1. Nobody in Xbox division right now cares about profits. They are in growth phase and they ade putting all profits back into ecosystem for future growth. They don't need to be profitable because Microsoft had 15 billion profits which is more than half of Playstation yearly revenue
2. Providing console sold numbers is meaningless because Xbox business is not entirely dependent on number of consoles sold since their services and games are also available on PC and in the cloud
3. Which software numbers? Even if Microsoft released first party game this quarter, they are putting all their games onto subscription service... And if they are providing number of players people like you are bitching about that....

So yeah. Only reason why you want to know this stuff because you are desperate to brag about fact that Sony sold more consoles. Which is funny if it wasn't so sad...

1- What are you even taking about that nobody cares about profits WTF? Xbox has been in the console business for 4 generations now and they were previously reporting numbers when they were doing well during the Xbox 360 days. They only stopped reporting numbers after they got demolished by Sony. LOL at the growth period comment.
2- Its not meaningless to provide hardware numbers when you release 2 hardware and compete in the same console business with Sony and Nintendo. If they didn't release hardware, and are on PC exclusively, then id agree. But they are competing in the same console space so the amount of hardware sales is relevant.
3- MS sells both packaged and digital software. They are also in the Game pass business. They could be transparent and give both software sales and Game pass subs and profit? One doesn't have to be exclusive to the other since they are giving the consomers a choice to either buy software or rent it via Game pass.

Whats wrong with being more transparent and showing more proof of your successful? And LOL at being called a concern troll for being interested in hard facts. Numbers done lie.
 
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Renozokii

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Looking good!

The typical few as usual who have to try and turn a positive into a negative.

It's okay kids. We see you!

Nothing positive about a 2 trillion dollar company getting bigger by being able to out buy and out spend all their competition. Y’all keep saying MS is competing with Amazon and google but aren’t going to be happy if those companies see the insane valuations MS is forcing on to the industry and decide its now or never.
 
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That is just example how proper is comparison different console generations launch aligned.

Great article from 2014. You're a treasure trove of internet sleuthing.

Now let's keep on topic about MS' latest earnings and not Xbox Wire articles from 2016 or random pages from 2014.

I get it. You don't like seeing MS have blowout earnings and big jumps in Xbox rates.
 
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reksveks

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The first part that it's losing money is from MS. The second part, about the collapse in Xbox retail sales, that is fact, but the link to GamePass is speculation on my part.
GamePass is effectively the prime video of gaming, its made to break even and give xbox more touch points to upsell products.

This is only Year over Year revenue. Microsoft’s gaming revenue was down in Q1 2021 from Q4 2020. From 5.0 Billion in revenue to 3.5 Billion.


That’s why their stock is going down after hour.
Honestly not sure the stock market made sense before and still doesn't after the gamestonks incident. Companies typically don't do well even after positive earning calls imo.
 

massivekettle

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Jun 2, 2013
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Lets see:

  1. No profit numbers for Xbox division
  2. No Hardware numbers
  3. No software numbers

A bunch of nothing. No transparency whatsoever unlike the Sony and Nintendo financials where they don't hide numbers.

Difference is gaming is a drop in the bucket for Microsoft. They don't technically owe investors any more than they are currently disclosing, especially for what is, and remains a secondary or tertiary segment of their overall business. I'm sure they'd disclose more numbers if Xbox overall sales figures were greater, but it is what it is. Apple has long stopped disclosing unit sales of iPhone/iPad/Mac for that reason too.

Solid quarter all things considered, as I imagine gaming revenues remain materially affected by supply constraints.
 
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jhjfss

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-Its year over year so xbox series S/X werent out hence the huge jump in revenue for hardware
-Again year over year and growth is 50 percent, not bad but not earth shattering either. Better than going down.
-Theres 0 context for what these percentage jumps mean.
im salty rooster teeth GIF by Achievement Hunter
 

Calverz

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-Its year over year so xbox series S/X werent out hence the huge jump in revenue for hardware
-Again year over year and growth is 50 percent, not bad but not earth shattering either. Better than going down.
-Theres 0 context for what these percentage jumps mean.
Thanks for the insight.
 

TaiLopezFan

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Feb 5, 2021
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GamePass is effectively the prime video of gaming, its made to break even and give xbox more touch points to upsell products.


Honestly not sure the stock market made sense before and still doesn't after the gamestonks incident. Companies typically don't do well even after positive earning calls imo.
It’s about analyst expectations. They expected revenue to be bigger than what was given. If a company presents announces amazing quarter and exceeds analyst expectations then the stock is definitely going up.
 

Dr Bass

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Jun 6, 2013
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The absolute most shit of takes :LOL: ...

Not really.

34% increase year over year when last year was totally dead for the company (video game wise) seems pretty poor to me.

Funny I was just thinking of selling my MSFT stock earlier today thinking I don't see them going much higher, and now they are down after hours. Whoops.

Hopefully their E3 showcase is good.
 

Clear

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The absolute most shit of takes :LOL: ...

Care to explain why?

Take your fanboy goggles off, its 34% YoY, think what Sony was releasing in the same quarter last year and how bad Xbox sales were during that period for both hardware and software.

Bear in mind how GP subscription numbers have ballooned over the last year and ask yourself why the revenue being generated by subscriptions, software and services have only risen by a third year over year despite offering multiple SKU's of new gen hardware, the launch of XCloud, etc.

Its not particularly impressive for a company that's betting the fucking house on software and services!
 

massivekettle

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This is only Year over Year revenue. Microsoft’s gaming revenue was down in Q1 2021 from Q4 2020. From 5.0 Billion in revenue to 3.5 Billion.


That’s why their stock is going down after hour.

Nobody looks at quarter-over-quarter though for seasonal businesses (yes, even tech has seasonality).

Doubt stock is down because of poor gaming quarter-over-quarter performance... stock literally hit all-time high today ($263 and nearly hit $2 trillion market cap), so it's a case of buying the rumour and selling the news.

EDIT: I am on the MSFT earnings call. Gaming is such an afterthought for MSFT overall that Satya only touched on it for 30 seconds at the very end after having spoken for over 20 minutes straight lmao.
 
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Great article from 2014. You're a treasure trove of internet sleuthing.

Now let's keep on topic about MS' latest earnings and not Xbox Wire articles from 2016 or random pages from 2014.

I get it. You don't like seeing MS have blowout earnings and big jumps in Xbox rates.

Oh, cut the crap, man. I'm pretty sure you know that proper comparison with different console generations is launch aligned. Link i've provided you is an example, date of the article isn't matter.


+232% would be much impressive if we didn't know that One S and One X sold very low numbers the last FY. And that's a fucking fact
 

reksveks

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It’s about analyst expectations. They expected revenue to be bigger than what was given. If a company presents announces amazing quarter and exceeds analyst expectations then the stock is definitely going up.

Microsoft Corp.’s earnings easily surpassed estimates on Tuesday, but shares still fell in after-hours trading following a string of record closing prices.


So it seems they beat the average expectations and still the price dropped.
 
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Dnice123

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This is only Year over Year revenue. Microsoft’s gaming revenue was down in Q1 2021 from Q4 2020. From 5.0 Billion in revenue to 3.5 Billion.


That’s why their stock is going down after hour.
You think their stock is going down because of gaming revenue? Historically gaming has been around 10% of revenue. Stock is down because Alphabet (Google) beat their revenue estimates by a larger margin.
 
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Oct 26, 2018
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Oh, cut the crap, man. I'm pretty sure you know that proper comparison with different console generations is launch aligned. Link i've provided you is an example, date of the article isn't matter.


+232% would be much impressive if we didn't know that One S and One X sold very low numbers the last FY. And that's a fucking fact
Since you're so great at internet research, then compare the latest quarterly Xbox gaming stats to the same quarter when Xbox One released.
 
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Godot25

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1- What are you even taking about that nobody cares about profits WTF? Xbox has been in the console business for 4 generations now and they were previously reporting numbers when they were doing well during the Xbox 360 days. They only stopped reporting numbers after they got demolished by Sony. LOL at the growth period comment.
2- Its not meaningless to provide hardware numbers when you release 2 hardware and compete in the same console business with Sony and Nintendo. If they didn't release hardware, and are on PC exclusively, then id agree. But they are competing in the same console space so the amount of hardware sales is relevant.
3- MS sells both packaged and digital software. They are also in the Game pass business. They could be transparent and give both software sales and Game pass subs and profit? One doesn't have to be exclusive to the other since they are giving the consomers a choice to either buy software or rent it via Game pass.

Whats wrong with being more transparent and showing more proof of your successful? And LOL at being called a concern troll for being interested in hard facts. Numbers done lie.
Yeah. Numbers don't like. Xbox is financially in best condition it's ever been in in history. That's all you need to care about. They invested heavily into first party output in last years and bought Bethesda for 7,5 billion.
1. Because right now they are focused in growth. Meaning that all money available are probably funnelled back into ecosystem to grow it even more. Same, what's Netflix and Amazon has been doing for years. Xbox division is in luxurious position. Microsoft don't need Xbox to be profitable right now. They need to grow Xbox business. And also that comment was valid. Btw. Microsoft has larger profit in one quarter then Playstation division in entire PS4 lifecycle... (just interesting fact)
2. You are forgetting one simple fact. Those financial reports are not for console fanboys. They are for shareholders. That's why Microsoft is focusing on numbers that matter. They don't need to provide number of consoles sold, because consoles are fraction of their business. So by releasing number of consoles sold they are providing their shareholders with number that isn't telling them anything. Also, truth is that companies tend to stick to their strong points. That's why Sony isn't talking about number of PS Now subscribers every quarter...
3. Same for this point. By stating "Forza Horizon 4 sold XY copies" they are telling pointless number, because main goal for Microsoft is growing Game Pass which mean not selling games but keeping them subscribed. That's why Nadella has compensation package which is influenced by Game Pass growth, not by number of copies that Halo Infinite will sell.

Just admit it. You want to know numbers because you want to say "PS is better." Don't worry, you can say that, because it's true. But fact is, that this reports are not meant for you and it's containing numbers which are most important to show how healthy Xbox business is.
 

DenchDeckard

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its Not uncommon for stock prices to fall after a positive earnings call, it happens all the time.

also there is no denying these numbers are great, no matter how much spinnin people are trying to do in this thread. Just be happy our hobby is seeing strong performances from all its key players.
 
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itsjustJEFF

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Apr 12, 2018
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Congratulations to my fellow shareholders!
I stopped trying to play earnings calls... this market is so weird. Microsoft beat, but apparently... they didn't beat enough. They're down during after-hours trading. Such a weird market. I think once the suits realize that these are really good numbers, it'll get that money back and then some... maybe time to play some option calls 🤔
 
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Especially when said stock hit all-time high today. We've the same with Apple, and other big tech firms in the past. Nothing newsworthy here. Microsoft (Azure + Office) train can't be stopped

Yeah people look into these pull backs too much

When a stock reaches an all-time high people are going to sell for profit. Naturally it's going to go back down
 
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Yeah. Numbers don't like. Xbox is financially in best condition it's ever been in in history. That's all you need to care about. They invested heavily into first party output in last years and bought Bethesda for 7,5 billion.
1. Because right now they are focused in growth. Meaning that all money available are probably funnelled back into ecosystem to grow it even more. Same, what's Netflix and Amazon has been doing for years. Xbox division is in luxurious position. Microsoft don't need Xbox to be profitable right now. They need to grow Xbox business. And also that comment was valid. Btw. Microsoft has larger profit in one quarter then Playstation division in entire PS4 lifecycle... (just interesting fact)
2. You are forgetting one simple fact. Those financial reports are not for console fanboys. They are for shareholders. That's why Microsoft is focusing on numbers that matter. They don't need to provide number of consoles sold, because consoles are fraction of their business. So by releasing number of consoles sold they are providing their shareholders with number that isn't telling them anything. Also, truth is that companies tend to stick to their strong points. That's why Sony isn't talking about number of PS Now subscribers every quarter...
3. Same for this point. By stating "Forza Horizon 4 sold XY copies" they are telling pointless number, because main goal for Microsoft is growing Game Pass which mean not selling games but keeping them subscribed. That's why Nadella has compensation package which is influenced by Game Pass growth, not by number of copies that Halo Infinite will sell.

Just admit it. You want to know numbers because you want to say "PS is better." Don't worry, you can say that, because it's true. But fact is, that this reports are not meant for you and it's containing numbers which are most important to show how healthy Xbox business is.
Hey FatKingBallman.

Read Godot25's post above. Now think of that Xbox Wire 2016 article you posted written by MS employee Will Tuttle you want embedded into MS quarterly reports.
 
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DJTaurus

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Latest rumours are that on E3 Ubisoft will be the next big thing on gamepass…. same model with EA. It’s pretty obvious from today’s earnings/results. Sky is the limit from now on….. unlimited growth.
 
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massivekettle

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So who you think? they gone to buy next it seem they made back a 7.5 billion purchased in 1 quarter like it nothing to them so they got like unlimited money to spend.

Well they are acquiring Nuance for $20bn, but they definitely have firepower for more especially given the amount of cash on hand (as of March 31, cash and equivalents on hand was $125bn)
 

ManaByte

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What do you think their operating profit /costs is? Deduct that from the revenue and you might get a close number to profit. With the deals they make monthly to quarterly with companies especially MLB/ Square those are not cheap.

IT'S days and night better than previous gen though. It shows interest in xbox is at least in good health.

Microsoft is nearly a $2 TRILLION company. People thinking something like GamePass will impact them negatively don't seem to see the bigger picture of who they're talking about.


But but but the Series S is collecting dust on the shelves!
 
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Three

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All people really need to think about is Microsoft made enough net profit in one quarter to buy two Bethesda’s and they are seeing extremely strong growth for Xbox hardware and services with absolutely no first party games or what we call the ever so important exclusives. If this continues and then they land halo and star field it’s going to be insane.

basically ms is killing it. Sure it may not be as killing it as the competition but Phil Spencer has doubled revenue since he got promoted in 2017 And xbox is performing extremely well.

we should all be happy that the big three are performing well and carving their own path.

gonna be crazy to see what day one halo and star field do to gamepass and their future figures.
Phil was head of xbox since 2014. He was promoted to head of gaming but what has he done there for revenue for xbox?
He has had 7 years for xbox. That title has changed now because it's not so much about xbox anymore as it is gamepass on PC and games on PC too hence head of gaming.
 

GHG

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You think their stock is going down because of gaming revenue? Historically gaming has been around 10% of revenue. Stock is down because Alphabet (Google) beat their revenue estimates by a larger margin.

Nothing to do with that either.

Microsoft's share price has had a huge run up over the last couple of weeks due to their recent acquisition of Nuance and the Hololens contract with the US Army.

The drop in price is a "bump back to reality" since in order for them to justify the recent share price run up which put their market cap close to $2 trillion (1.97T) they would have needed to exceed expectations by a huge margin.

Also anyone thinking their gaming revenue has anything to do with the current movement in share price is delusional. Gaming is such a small part of their overall business, it's almost a footnote.

Stock pull backs are the norm especially after a positive earnings report

Well they are these days with everything being so overvalued. Quarterly earnings now act as a much needed reality check.
 
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Iced Arcade

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Damn that's

-Its year over year so xbox series S/X werent out hence the huge jump in revenue for hardware
-Again year over year and growth is 50 percent, not bad but not earth shattering either. Better than going down.
-Theres 0 context for what these percentage jumps mean.
Are you ok? Like not meant as a dig, legit question.
 
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yazenov

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Yeah. Numbers don't like. Xbox is financially in best condition it's ever been in in history. That's all you need to care about. They invested heavily into first party output in last years and bought Bethesda for 7,5 billion.
1. Because right now they are focused in growth. Meaning that all money available are probably funnelled back into ecosystem to grow it even more. Same, what's Netflix and Amazon has been doing for years. Xbox division is in luxurious position. Microsoft don't need Xbox to be profitable right now. They need to grow Xbox business. And also that comment was valid. Btw. Microsoft has larger profit in one quarter then Playstation division in entire PS4 lifecycle... (just interesting fact)
2. You are forgetting one simple fact. Those financial reports are not for console fanboys. They are for shareholders. That's why Microsoft is focusing on numbers that matter. They don't need to provide number of consoles sold, because consoles are fraction of their business. So by releasing number of consoles sold they are providing their shareholders with number that isn't telling them anything. Also, truth is that companies tend to stick to their strong points. That's why Sony isn't talking about number of PS Now subscribers every quarter...
3. Same for this point. By stating "Forza Horizon 4 sold XY copies" they are telling pointless number, because main goal for Microsoft is growing Game Pass which mean not selling games but keeping them subscribed. That's why Nadella has compensation package which is influenced by Game Pass growth, not by number of copies that Halo Infinite will sell.

Just admit it. You want to know numbers because you want to say "PS is better." Don't worry, you can say that, because it's true. But fact is, that this reports are not meant for you and it's containing numbers which are most important to show how healthy Xbox business is.
Saying the Xbox business is healthy or financially in best condition it's ever been in in history is baseless and fanboy drivel as you do not have any proof to back this up without hard numbers such as profit, software and hardware numbers and gamepass profitability. Microsoft hides these numbers for this very reason.

And funny you keep mentioning MS entire business having more profit than the PS division since its not relevant to the discussion (gaming). You feel the need to compensate for the lack of Xbox numbers?
 

massivekettle

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Microsoft CFO just said they expect Xbox content and services to decline by mid-single digit year-over-year in the next quarter.

Saying the Xbox business is healthy or financially in best condition it's ever been in in history is baseless and fanboy drivel as you do not have any proof to back this up without hard numbers such as profit, software and hardware numbers and gamepass profitability. Microsoft hides these numbers for this very reason.

And funny you keep mentioning MS entire business having more profit than the PS division since its not relevant to the discussion (gaming). You feel the need to compensate for the lack of Xbox numbers?

Real life isn't about console warring. Microsoft isn't hiding shit; we've already told you why Microsoft isn't disclosing numbers in details.

What about Apple? Are they not disclosing iPhone or iPad sales because they are afraid of Samsung's or Huawei's sales?
 
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