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

Bodomism

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True. But not all products have to be profitable. And not necessarily any time soon.

My company has sold products for over 10 years that breaks even at best, but most years it loses. In dairy, most companies don't make anything selling the cheap milk or shitty low price cheese blocks. They make profits on higher priced brands and specialty variations.

If profit was the ultimate goal, Sony wouldn't be selling TVs. They must had had a 10 year stretch where they lost $10 billion, but stuck it out and now they make money. Long term game.
I just want to point about the same people that downplaying XBOX division revenue are going to be the same people that are going to downplay Nintendo record profits in video game history for FY2020.
 

yazenov

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I just want to point about the same people that downplaying XBOX division revenue are going to be the same people that are going to downplay Nintendo record profits in video game history for FY2020.
Who downplayed the revenue? We are saying the financials are missing a lot of details such as the profits which you have pointed out.
 
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DaGwaphics

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I need a gamer with zero financial services experience or understanding of Microsoft's businesses to tell me how good or bad these results are.


Will Do GIF by CBC


The numbers look good SenjutsuSage SenjutsuSage .
 

ZehDon

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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.
This post is just absolute cringe. Apparently there's 0 context... for a year on year comparison presented in percentages. Good Lord, please stop posting.
 
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Nintendo don't need to be defended since they're the richest company of Japan and the most profitable gaming company in the world.

Then stop defending that which don't need to be defended lmao

And no they're not the richest company in Japan, whatever you think that means
 
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And I'm sure Ferrari would love it if they got the other 99.99% of global car sales.

Or if Ford (who skews heavy to pick ups) suddenly got people who buy Honda Civics to switch.

You make it sound easy and sales can easily switch it up per brand like there is one homogenous target audience that can be all or nothing. Not that easy. Companies do what they want to focus on.
I'm sure that's why Fiat bought them and why the Ferrari brand would soon move to SUV models just like Lamborghini and Porsche. You move with the industry or you risk falling behind.

The same for Xbox and PS. Xbox is moving to a services strategy and PS WILL follow. So are they still competitors? Of fucking course they are.
 
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DaGwaphics

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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.

They are repeatedly posting some of their best results quarter by quarter, built mostly on strong third-party revenue. Yep , that seems to square with their sales going to shit overall.

Well Done Congratulations GIF by America's Got Talent
 

Bodomism

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Then stop defending that which don't need to be defended lmao

And no they're not the richest company in Japan, whatever you think that means
Oh boy
 
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Oh boy

What am I looking at here? Cash on hand?
 

Bodomism

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I hope they will buy more studios like SQE, Bandai Namco, Ubisoft, and etc for the betterment of gaming industry.
 
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Papacheeks

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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!
Also keep in mind XBox manufacturing started much later. SO in terms of production Sony had extra time to make more, and still is selling out, and out selling xbox.
 

Azurro

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They are repeatedly posting some of their best results quarter by quarter, built mostly on strong third-party revenue. Yep , that seems to square with their sales going to shit overall.

Well Done Congratulations GIF by America's Got Talent's Got Talent

Well, I was commenting on the last few releases that have seen a disproportionate split between physical unit sales on PS platforms vs Xbox, almost a 90% to 10%. That obviously doesn't include digital sales and it's a European chart, so it's probably not as bad in NA.

However, the reported figures are year to year if I recall correctly, the pandemic lockdowns started in march or around that time and entertainment money shifted over to streaming, videogames and other such activities.

The increased revenue is just that, revenue, it doesn't mention how much money MS invests in GamePass, which is losing money nor am I aware on how they would calculate acquisitions like Bethesda, which were mainly gotten to provide content for it.

Perhaps I am wrong, but I do like to comment on the state of the industry. I have very little interest in console wars, so you can continue to put on your cheerleader uniform and pompoms and cheer on MS.
 
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Right I understand your list now B Bodomism

Nintendo is the richest company in Japan if you exclude banks, securities companies, insurance companies and any other company that adopts the IRFS

Basically your list is worthless
 
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Aceofspades

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Well Duh! Of course Revenue (sales) of xbox would be higher than last year Xbox one! Are people surprised by that? Last year Xbox one was struggling to move units!

$13b including Surface and Cloud would be less than half of Playststion ONLY numbers! Still respectable though .
 

yazenov

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Well Duh! Of course Revenue (sales) of xbox would be higher than last year Xbox one! Are people surprised by that? Last year Xbox one was struggling to move units!

$13b including Surface and Cloud would be less than half of Playststion ONLY numbers! Still respectable though .

You dont need to know the details duh. All you need to know is Gamepass is the best value in gaming, and Xbox is thriving because of reasons. You are not a shareholder. Only fanboys want hard numbers.
 

Bodomism

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Right I understand your list now B Bodomism

Nintendo is the richest company in Japan if you exclude banks, securities companies, insurance companies and any other company that adopts the IRFS

Basically your list is worthless
Read again 😸 that's why profits is the ultimate business goals.
 

Bodomism

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You need to read it

Your list excludes all companies that have adopted the IFRS, which includes Sony, Toyota, Panasonic among other Japanese giants
Sony was included as well, you need to take a look at Ree analysis about why Sony is trailing far behind on that list.
 

yazenov

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Read again 😸 that's why profits is the ultimate business goals.

So the PS1 was a failure since I presume it was not as profitable as the Nintendo 64? Who was the market leader that generation? Sony or Nintendo?

Also bear in mind, that the success of the ps1 lead to the domination of the PS2. without the revenue and all the profits hit due to Sony selling the consoles at a loss, and all those exclusive 3rd party games deals which cost them money at the expense of profit, Sony would not have dominated the console industry.

See, I told you that profits are only part of the equation.
 
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Bodomism

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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.
Suddenly profits matter to you when reading Microsoft financial report and ignoring Nintendo nearly double the PS division profits at the same time.

I hope you're ready for profits comparison of FY2020 after Nintendo reports next week.

We are going to get PS profit report today.
 
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JLB

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That feeling when I scroll down and theres just a quarter of the messages displayed on a Microsoft positive thread. Tools on Gaf working.
 
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Bo_Hazem

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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…..

Now how much of that is pure profit, because revenue only shows one side of the equation and they don't seem to be transparent in that regard. They've definitely spent more than $15B, at least.
 
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Bo_Hazem

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Gaming revenue increased $1.2 billion or 50%, driven by growth in Xbox content and services and Xbox hardware. Xbox content and services revenue increased $739 million or 34%, driven by growth in third-party titles, Xbox Game Pass subscriptions, and first-party titles. Xbox hardware revenue increased 232%, driven by higher price and volume of consoles sold due to the Xbox Series X|S launches.

You know that if they sold ~4M series consoles that alone is spending around $2B as both being sold at a loss? So saying you've brought back $1.2B "just from that" means you've lost around 800M? Not calculating everything, nor the elephant in the room ($7.5B). People need to use their brains more. This report is pretty vague and should be more transparent, at least for shareholders if they're educated enough.
 
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You know that if they sold ~4M series consoles that alone is spending around $2B as both being sold at a loss? So saying you've brought back $1.2B "just from that" means you've lost around 800M? Not calculating everything, nor the elephant in the room ($7.5B). People need to use their brains more. This report is pretty vague and should be more transparent, at least for shareholders if they're educated enough.
Who knew you're an accountant. MS just made $15 billion profit. And that even takes into account Xbox. They can spare some money. They just bought Nuance for $20 billion.

Where were you when Sony was losing billions of dollars years back when their TV division was a drag on Sony. Sony still hasn't made back all the TV division losses back when Samsung and LG took over HD TV sales.
 
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Bo_Hazem

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Who knew you're an accountant. MS just made $15 billion profit. And that even takes into account Xbox. They can spare some money. They just bought Nuance for $20 billion.

Where were you when Sony was losing billions of dollars years back when their TV division was a drag on Sony. Sony still hasn't made back all the TV division losses back when Samsung and LG took over HD TV sales.

Thank you for not answering anything.
 

DaGwaphics

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Not calculating everything, nor the elephant in the room ($7.5B).

In what way is Zenimax an elephant? I'm sure MS thinks that Zenimax was worth $7.5b, so, they traded $7.5b in cash for an asset they believe is of equal value. Unless they close down Zenimax tomorrow, this isn't really an issue. They never need to make back that $7.5b, they have Zenimax to square that. Profits from Zenimax would equate to their interest on this investment.
 
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Bo_Hazem

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Maybe you should look into numbers a big more.

Who knew MS sold 4 million next gen Xbox systems in the Jan-Mar quarter.

"Assumption" according to an unreliable source. No official reports as usual from MS. PS sold around 7.4M (official target by March) which translates into around $3.7B with probably a total loss of around 500M from console sales/logistics.

What MS as a whole made isn't really important, it's how much will they tolerate losses from the xbox division as it's been under the threat of being sold for some time, along with Bing. So that's why we need to know the whole thing by knowing the net profit, which shows how much they've spent and how healthy the business is.

PS been losing a lot of money during PS3 time but the company values this division and it's near impossible to let go, and now they're expanding with a new mobile division. Before laughing, one single game that cost $100K only have made more than $4 in late 2019 and still being the top 3 highest revenue in 2021 which probably means that it made more than $5B, mostly net profit. That little game should be more profitable than the whole Xbox division last decade, and so competitive profit-wise against Nintendo and even PlayStation Division.

BTW, the game is owned by Sony Music division, not PlayStation.


In what way is Zenimax an elephant? I'm sure MS thinks that Zenimax was worth $7.5b, so, they traded $7.5b in cash for an asset they believe is of equal value. Unless they close down Zenimax tomorrow, this isn't really an issue. They never need to make back that $7.5b, they have Zenimax to square that. Profits from Zenimax would equate to their interest on this investment.

We all know that business doesn't work that way.
 
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"Assumption" according to an unreliable source. No official reports as usual from MS. PS sold around 7.4M (official target by March) which translates into around $3.7B with probably a total loss of around 500M from console sales/logistics.

What MS as a whole made isn't really important, it's how much will they tolerate losses from the xbox division as it's been under the threat of being sold for some time, along with Bing. So that's why we need to know the whole thing by knowing the net profit, which shows how much they've spent and how healthy the business is.

PS been losing a lot of money during PS3 time but the company values this division and it's near impossible to let go, and now they're expanding with a new mobile division. Before laughing, one single game that cost $100K only have made more than $4 in late 2019 and still being the top 3 highest revenue in 2021 which probably means that it made more than $5B, mostly net profit. That little game should be more profitable than the whole Xbox division last decade, and so competitive profit-wise against Nintendo and even PlayStation Division.

BTW, the game is owned by Sony Music division, not PlayStation.




We all know business doesn't work that way.
It's your assumption MS sold 4 million next gen consoles in the Jan-Mar period. So your math trying to make them latest look bad is totally wrong. But good try.

That link you provided estimates sales from launch week which started Nov (which is MS Q2 2021).

You bringing up a mobile game has nothing to do with the MS hardware guess you did, but if your estimate for Fate/Order profits is that high at $5 billion over the years, it means the rest of the PS division isn't doing as good as people think as during the PS4 era the combined net income is about $11 billion profits since Fate/Order released in 2015. So Fate/Order is about 40% of Sony's entire PS4 era profits since 2016? Ok, if you say so.

Or since it's a Sony music publishing arm and profits go there, Fate/Order is probably all that division's profits the past 5 years.

 
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Shelookdlvl18

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As they always do. MS is probably one of the most valuable companies in the world right now.
MS is most likely the most valuable company on the planet. MS, Apple, and Saudi Aramco trade places among the top three pretty regularly. But if one were to put an actual price tag on them, MS would come out on top by a large margin. It's far more diversified than the other two, and it's stability is second to none. The top companies in the world such as Amazon, Apple, Google, fb, etc... all point to MS and say, "that's where we wish we could be." MS is one of 2... That's right 2... US companies that currently enjoy an absolute perfect AAA S&P credit rating. The United States as an entire country is by all measures, far more likely to default and go bankrupt than MS is. That's not impressive, that's staggering. It's no coincidence that MS has been almost completely excluded from all the Senate hearings, and monopoly hoopla recently. It's not by accident.