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

Shelookdlvl18

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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 that business doesn't work that way.
I'm sure you're being sarcastic, and just doing a little harmless trolling, but you really need to make it more obvious. If I didn't know any better, I'd think you were actually trying to be serious here. Why go to all the trouble of posting if it'll just end up with people thinking less of you, and therefore not take you serious in the future?
 
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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.
If they wanted to they could also stop dividend payments to bank even more cash. They currently pay out $15 billion in dividends. And over the course of history over $100 billion. Probably closer to $150 billion. In 2004, they paid out a special $32 billion dividend alone (10 billion shares @ $3 per share).
 
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ThatGamingDude

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Yeah
Surface growth
For the fucking old ass accounting dude at your office that "Likes working on the couch with a full keyboard," and complains the touch keyboard is too flexible
 

SirTerry-T

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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.
 
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Microsoft is showing big revenue growth, but I do wonder how much they are losing in the division in terms of hardware and GP deals. We'll never know, but MS seems more aggressive in terms of spending than even the early Xbox 1 days.
 
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Warnen

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Microsoft is showing big revenue growth, but I do wonder how much they are losing in the division in terms of hardware and GP deals. We'll never know, but MS seems more aggressive in terms of spending than even the early Xbox 1 days.


face it they making bank stop the FUD
 

lh032

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Mar 8, 2021
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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…..
i see no relation with the profit with gamepass here? it mentioned gamepass but did not say how much profit was coming from gamepass.( i mean just revenue grow 33%)
Not trolling just curious.
 
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Heisenberg007

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i see no relation with the profit with gamepass here? it mentioned gamepass but did not say how much profit was coming from gamepass.( i mean just revenue grow 33%)
Not trolling just curious.
Revenue growth for Gamepass is impressive and a positive sign. But as you said, it is the ROI that matters eventually and MS keeps blanketing the important data.

YoY revenue growth isn't meaningful at this stage at all because it's a console launch year. Of course revenue is going to up. That's why we need more data like operating profit + net profit by segments (hardware, software sales, gamepass), etc.
 

Bo_Hazem

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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.

You see? Mobile gaming is where the money at. Fate/Order is a property of Sony Music, has nothing to do with PlayStation Division. Tencent is actually making more money than PlayStation as well, thanks to the mobile gaming. PlayStation has made reportedly only $3.3B profit out of $25.53B last year. Console/PC gaming is extremely expensive with so little ROI without so much MTX and "surprise" mechanics.

PlayStation Division is probably jealous of that game that they made a whole new sub-division now, which is a very low risk plan with usually high profit margins. I myself think the game is crap, but there is a massive market for that "crap".

Anyway, in the meantime if PlayStation, Nintendo, and Xbox don't make mobile branches they might end up in Tencent's pocket.



Also I said it made more profit than the entire Xbox Division last decade, not PS4. But very competitive against Sony and Nintendo, which is embarrassing for just a one game competing against large entities.
 
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e&e

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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.

Xbox content and services up 34% isn't great given the circumstances. Especially given the huge amount of money they are burning in order to strengthen their line-up.
I’m still new to GAF but I swear you guys do this on purpose!
 
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longdi

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To give an idea of how YoY has been. 34% in q3 is far more than normal.

big Q3(jan-mar) for xbox, biggest for last 3-4 years iirc. and despite the stock shortages!

the gamepass train is unstoppable still. am waiting for the doomsayers predictions to materialize 🤷‍♀️
 
Oct 30, 2011
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Microsoft is showing big revenue growth, but I do wonder how much they are losing in the division in terms of hardware and GP deals. We'll never know, but MS seems more aggressive in terms of spending than even the early Xbox 1 days.

face it they making bank stop the FUD

Growth drivers to WHOM? Yes, the people signing deals with MS are not doing so out of charity.

Microsoft absolutely is spending lots of $$$$$ eating deals to drive up growth. This is the same gameplan as Netflix.

Stop the straw man arguments.
 

e&e

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No one is denying Xbox's growth. My comment was not in relation to that. It was in relation to the other guy stating Xbox doesn't need to beat PS which makes 0 sense.

They are both in the same market, after the same customers. One has massively huge market share lead and the other doesn't. I'm sure you know which is which.

Saying Xbox doesn't need to compete with PS is asinine and borderline retarded.
They don’t need to beat anyone period! They just need to make money for their shareholders. There is only ever one market leader in every space but that doesn’t mean you can’t make a shitload of money still!

Edit: Tell me, who is the market leader, Sony or Nintendo?
 
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Dec 29, 2018
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They don’t need to beat anyone period! They just need to make money for their shareholders. There is only ever one market leader in every space but that doesn’t mean you can’t make a shitload of money still!

Edit: Tell me, who is the market leader, Sony or Nintendo?
Right. You mean just like Xbox didn't need to invest in 1st party studios. Yet we have them throwing around $$$ to get that part of their business competing with PS.

If you can eat into the market share of your nearest competitor especially one as large as PS, share holders would be a ton more happier than they are now. Make sense?
 
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e&e

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Right. You mean just like Xbox didn't need to invest in 1st party studios. Yet we have them throwing around $$$ to get that part of their business competing with PS.

If you can eat into the market share of your nearest competitor especially one as large as PS, share holders would be a ton more happier than they are now. Make sense?
Learn to argue better. And work on using you dictionary too. They don’t NEED to be market leader to make money (as seen in their current financials). It’s good to strive for like any other company. Try addressing my post directly next time.
 
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DaGwaphics

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We all know that business doesn't work that way.

MS isn't a VC firm. This is exactly the way most businesses do work. LOL

The traditional ROI on something like this would be around 75yrs or more if Zenimax numbers averaged what they have over the last 4 or 5 years. Maybe less if new releases drive things up. You don't spend this much if you don't value the asset itself.
 
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Gravemind

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By the tone of this thread you would think that Xbox and MS is on it last leg and are about to go bankrupt lol

You'd think from reading the desperate spins from the usual warriors on here that they punch holes in their walls and scream cry into their pillows every time they read something positive about "the competition".

The emotional investment people have in these companies is just comical.
 

Robb

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Seems like good numbers. It's going to be more interesting to see what happens once all their new first party studios start to put out content though.

It's going to be fun/interesting to follow MS this gen!
 
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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.

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.



You mean 4.5-5 mil. from Nov.-March.
 

Shelookdlvl18

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This is a weird place.
Let me try… Microsoft is on the verge of financial failure, and UK retail sales of physical discs is an important KPI. Am I doing this right?
Almost.

You forgot to include Japan being the largest indicator of sales and software use worldwide. Except in relation to Nintendo, which doesn't count for
un
obvious reasons.
 

Dr Bass

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Microsoft is showing big revenue growth, but I do wonder how much they are losing in the division in terms of hardware and GP deals. We'll never know, but MS seems more aggressive in terms of spending than even the early Xbox 1 days.


Growth drivers to WHOM? Yes, the people signing deals with MS are not doing so out of charity.

Microsoft absolutely is spending lots of $$$$$ eating deals to drive up growth. This is the same gameplan as Netflix.

Stop the straw man arguments.

Thank you for calling this stupid tweet out. It's amazing to me how much people are trying to deny basic facts when it comes to this stuff. Insisting that GP rakes in profit, that ZeniMax will cover its own purchase with it's profits (wtf? lol), that MS doesn't spend money on big purchases unless it knows what it's doing (Nokia anyone? Skype?), That MSFT is somehow the most valuable company in the world, like ... what in the actual hell? People are literally just making things up and declaring them as widely known facts. MS is actually driving its fans to some form of mild insanity. :messenger_grinning_smiling:

I honestly don't get it. I don't get the "rah rah" of it all if you're just on the sidelines. First off, you should only care if you are a shareholder. And if you ARE a shareholder you should care very much about how they are managing their expenditures, and they don't have a great track record here. And of course the economics of GP still do not make sense, from what we can see. That's been clearly spelled out and MS themselves that GP doesn't make them money "yet". The Xbox numbers have been, and remain, very lackluster. That's just the bottom line.

Once again ... MS needs games. They need games .... Games. Only then will they potentially see the kind of growth that might ACTUALLY matter.
 
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Dr Bass

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This is a weird place.
Let me try… Microsoft is on the verge of financial failure, and UK retail sales of physical discs is an important KPI. Am I doing this right?
No, the correct take is MS makes a ton of money, but not from the Xbox, which is basically subsidized by ... everything else the company does.
 
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geary

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Operating income increased $967 million or 27%.
•Gross margin increased $892 million or 14%, driven by growth in Windows, Gaming, and Search advertising. Gross margin percentage decreased, driven by sales mix shift to Gaming.
•Operating expenses decreased $75 million or 3%, driven by reductions in retail store expenses and marketing.
 

Kerotan

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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…..
Covid + new console launch was always going to see an increase over the pathetic numbers of the last 6 years. How does it compare to 7 or 8 years ago when the Xbox one launched?
 

Shelookdlvl18

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Thank you for calling this stupid tweet out. It's amazing to me how much people are trying to deny basic facts when it comes to this stuff. Insisting that GP rakes in profit, that ZeniMax will cover its own purchase with it's profits (wtf? lol), that MS doesn't spend money on big purchases unless it knows what it's doing (Nokia anyone? Skype?), That MSFT is somehow the most valuable company in the world, like ... what in the actual hell? People are literally just making things up and declaring them as widely known facts. MS is actually driving its fans to some form of mild insanity. :messenger_grinning_smiling:

I honestly don't get it. I don't get the "rah rah" of it all if you're just on the sidelines. First off, you should only care if you are a shareholder. And if you ARE a shareholder you should care very much about how they are managing their expenditures, and they don't have a great track record here. And of course the economics of GP still do not make sense, from what we can see. That's been clearly spelled out and MS themselves that GP doesn't make them money "yet". The Xbox numbers have been, and remain, very lackluster. That's just the bottom line.

Once again ... MS needs games. They need games .... Games. Only then will they potentially see the kind of growth that might ACTUALLY matter.
What alternate reality do you live in where what you said is true? Because that's certainly not the case here.

Do you have a source that GP doesn't make a profit? Of course you don't.
Do you have proof that Zenimax won't cover it's own purchase? Nope.
Did you likely claim the exact same thing regarding Minecraft when MS purchased it? Almost certainly.
Do you have another company in mind that's likely worth more than MS? Not that's realistic.
Do you have evidence of MS failing to make money with your supposed "Nokia and Skype" suggestions that fail to prove anything? Not if you can even use a basic calculator.


Your concern trolling aside, the basic facts absolutely prove unequivocally that you're full of bs. You say that MS has a bad track record at managing it's expenditures? If that's the case then why do they have cash coming out their ears? Even elementary math would dictate that you're wrong, yet you feel compelled to believe otherwise. The economics of Gamepass don't make sense to YOU because at this point it's obvious that a lot of things most people take for granted probably don't make sense to you.

All that being as it is... Almost every adult knows that if you routinely make irresponsible expenditures and economics that don't make sense, that your credit will ultimately reflect that. Yet MS maintains a better credit rating than any company not named J&J. How does that work?
 

modiz

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These are great numbers all around. What is there to say besides "Congrats, MS"? If you try to find negatives in this release, this tells more about you than you want.
 
Oct 30, 2011
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Thank you for calling this stupid tweet out. It's amazing to me how much people are trying to deny basic facts when it comes to this stuff. Insisting that GP rakes in profit, that ZeniMax will cover its own purchase with it's profits (wtf? lol), that MS doesn't spend money on big purchases unless it knows what it's doing (Nokia anyone? Skype?), That MSFT is somehow the most valuable company in the world, like ... what in the actual hell? People are literally just making things up and declaring them as widely known facts. MS is actually driving its fans to some form of mild insanity. :messenger_grinning_smiling:

I honestly don't get it. I don't get the "rah rah" of it all if you're just on the sidelines. First off, you should only care if you are a shareholder. And if you ARE a shareholder you should care very much about how they are managing their expenditures, and they don't have a great track record here. And of course the economics of GP still do not make sense, from what we can see. That's been clearly spelled out and MS themselves that GP doesn't make them money "yet". The Xbox numbers have been, and remain, very lackluster. That's just the bottom line.

Once again ... MS needs games. They need games .... Games. Only then will they potentially see the kind of growth that might ACTUALLY matter.

Indeed

bragging about huge revenue growth is a bit of a mirage when you don’t reveal the profitability.

if a car company that was underperforming spent $20,000 dollars making a vehicle suddenly offered it to the market for only $5,000....sales (and revenue) would go through the roof due to the huge subsidy the company was making.

this company would not be in business very long because they’d be losing money hand over fist. However, Microsoft has the corporate mothership to just throw money at problems in hopes that one day in the future their “investment” in active user base subscribers can eventually extract a profit.

time will tell if they can. But they have purchased tens of billions of dollars in studio acquisitions and content licensing agreements for GamePass. It’s a big gamble that frankly only a company like Microsoft in a profitable environment like this one can make, but it is done so precisely due to poor performance of the division relative to competitors.
 
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Bernd Lauert

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Indeed

bragging about huge revenue growth is a bit of a mirage when you don’t reveal the profitability.

if a car company that was underperforming spent $20,000 dollars making a vehicle suddenly offered it to the market for only $5,000....sales (and revenue) would go through the roof due to the huge subsidy the company was making.

this company would not be in business very long because they’d be losing money hand over fist. However, Microsoft has the corporate mothership to just throw money at problems in hopes that one day in the future their “investment” in active user base subscribers can eventually extract a profit.

time will tell if they can. But they have purchased tens of billions of dollars in studio acquisitions and content licensing agreements for GamePass. It’s a big gamble that frankly only a company like Microsoft in a profitable environment like this one can make, but it is done so precisely due to poor performance of the division relative to competitors.
Implying that Xbox spends a dollar for every 25 cents of revenue...

Donald Trump GIF by CBS News
 
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12Dannu123

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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.

Because Microsoft investors haven't pressured them to be more transparent with their Xbox numbers. That's a fact. What makes you think some era forum will pressure MS?
 
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H-I-M

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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!

I don't think anyone would argue with the fact that Microsoft as a whole make a lot of money.

But all those trillions didn't help them save their Windows Phone division.

They're investing massively into the gaming division right now, which is a good thing, but at some point it will have to be profitable!
 

DenchDeckard

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This thread is amazing.

the covid bump is very real for all companies. All the people bringing it up in here, let’s see if they have that same energy when Sony posts their numbers.

can’t we all be happy that everyone is doing well?
 

Jemm

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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.
Christian Bale GIF by PeacockTV


(I know it's just a typo, but it was funny)
 
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Bo_Hazem

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Bernd Lauert

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Learn to argue better. And work on using you dictionary too. They don’t NEED to be market leader to make money (as seen in their current financials). It’s good to strive for like any other company. Try addressing my post directly next time.
You had me on edge all this time but that just turns me on. I love it when you talk dirty. I'll be just a sec...