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[analog_future]

This hasn’t been true for months now, especially in the US and Europe.

No?

For example, I just checked and non-bundled Series X consoles are out of stock at Best Buy, Target, and Amazon right now. PlayStation 5 is available on all 3 of those sites.

It’s been like this for months.

 

[FrankWza]

No?

For example, I just checked and non-bundled Series X consoles are out of stock at Best Buy, Target, and Amazon right now. PlayStation 5 is available on all 3 of those sites.

It’s been like this for months.

Series s wasn't a brilliant move anymore?

 

[GHG]

No?

For example, I just checked and non-bundled Series X consoles are out of stock at Best Buy, Target, and Amazon right now. PlayStation 5 is available on all 3 of those sites.

It’s been like this for months.

If someone wants the console they will get it, bundle or no bundle.

It's in stock and has been all year. I don't know why people are beating around the bush on this topic, it shouldn't even be surprising given their recent output.

 

[DaGwaphics]

Quick, buy two more publishers to compensate!

Nadella is already writing the checks.

Hopefully they stay clear of things that require the kind of scrutiny the ABK deal has brought forward, at least for a minute or two. It really kills the bravado.

 

[Nydius]

Supply constraints.

Not sure I buy that at all.

How did Microsoft manage to avoid supply constraints for the first two years when Sony was struggling? Even at its lowest point, I could find Series S units in stock. Less so with Series X, but still more than PS5s. But now the supply chain is resolved for Sony and PS5s are readily available yet Microsoft is suddenly having issues with their supply chain?

I find the claim suspect. Seems more a case of everyone who wanted a Series S or X has one, and there's been little compelling reason for Series S owners to upgrade to the Series X.

 

[Neo_game]

Wow 30% down.

 

[OmegaSupreme]

Those hardware numbers are especially troublesome.

 

[Ronin_7]

Microsoft hardware is dead

Software side going strong as expected.

 

[reksveks]

Terrible Xbox numbers. The only department for MS with a revenue decline.

Surface and Windows also declined

 

[Baki]

I'm expecting to hear that yet again, PC will be responsible for the vast majority of any GP growth that there was.

I do wonder why content and services grew 3% despite hardware being 30% comparatively to the previous Q3 2022 that was the highest (hardware wise) for Xbox.

Game Pass and game sales I guess (and aside Hi fi Rush they did not release anything - I presume April releases are not included right?)

Because hardware install base increased from last year. The decline is comparing sales from last year. But the total install base has probably increased by 20-25% in the last 12 months. With a 25% increase in install base , a 3% increase in content and services is not surprising.

 

[Kvally]

 

[Baki]

Surface and Windows also declined

Missed that. Pandemic pc boom is over.

 

[Neo_game]

Because hardware install base increased from last year. The decline is comparing sales from last year. But the total install base has probably increased by 20-25% in the last 12 months. With a 25% increase in install base , a 3% increase in content and services is not surprising.

So they did better than expected last year Q3 and this Q3 is more or less expected ?

 

[Ansphn]

That hardware number is concerning if they want to grow more GP subs. I wonder what the console/PC GP split is.

15 million for PC and 10 for Xbox consoles

 

[Bernoulli]

oof hardware is a big problem they need to react fast

 

[Darsxx82]

What is holding them down?

XSX production problems?

If XSS (which is half the price and has had discounts) has been more sold than XSX, that has an effect on Hardware revenue.

30% less hardware revenue does not have to mean that 30% less consoles have been sold.

 

[ADiTAR]

Microsoft is lacking focus. I think people don't know what to make of purchasing a console and then a subscription. Something doesn't translate in their marketing, because on paper it's a great feature that saves you a lot of money.

Yes, they don't have any software that drives sales, so everything rests on Starfield needs to be everything they promised and much much more. In their next showing it needs to blow people away. It literally is a system seller.

 

[Ansphn]

Their next acquisition is already being prepared.

Microsoft ready to Acquire Sony, Nintendo, Tencent, and Steam. Let them compete.

 

[Topher]

Topher
It seems phil was wrong. Gamepass seems to be doing more than 15%.

Where did it say that?

 

[ulantan]

It's a good thing xbox doesn't need to make money, or so I was told.

 

[feynoob]

XSX production problems?

If XSS (which is half the price and has had discounts) has been more sold than XSX, that has an effect on Hardware revenue.

30% less hardware revenue does not have to mean that 30% less consoles have been sold.

Its still confusing.

MS should have sticked with one device. These revenue split is creating confusing headlines.

 

[Topher]

Supply constraints.

 

[TheGodfather07]

We are talking about hardware revenue, which is not indicative of units sold.

Sure, unit sales are lower, but that 30% figure may also be a consequence of XSS selling more than XSX.

But we know actual unit sales are down in the US from NPD reports. Ain't nobody thinking thats gonna be offset by Japan and Europe. Not to mention Microsoft themselves just said its due to supply constraints indicating that unit sales are down from last year. Ain't no way of spinning this one.

Atleast there'll be positive news for xbox tomorrow when the CMA approve the Activision deal.

 

[feynoob]

Where did it say that?

Here

Xbox content and services up 3% (up 5% CC) due to growth in GP

 

[reksveks]

We are talking about hardware revenue, which is not indicative of units sold.

Sure, unit sales are lower, but that 30% figure may also be a consequence of XSS selling more than XSX.

Yep that might be true.

 

[DaGwaphics]

Microsoft ready to Acquire Sony, Nintendo, Tencent, and Steam. Let them compete.

That would be one way to get the old marketshare up.

 

[feynoob]

Software is good, but hardware is bad.

 

[Banjo64]

Just hurry up and make XGS a Nintendo second party publisher.

 

[Topher]

Here

That doesn't say Game Pass accounts for more than 15%. Phil Spencer said GP is between 10 and 15 percent.

 

[onQ123]

30% down in 3rd year is awful. No way to spin this. Even more worrying is how do they improve this? Starfield alone will not change anything. What do Microsoft do if console sales keep declining?

If they are willing to make the right changes they can turn things around but I don't think their heart is in the console business right now they want the mobile market .

 

[adamsapple]

Software is good, but hardware is bad.

Despite the memes and gifs, the quarter wasn't bad.

 

[feynoob]

That doesn't say Game Pass accounts for more than 15%. Phil Spencer said GP is between 10 and 15 percent.

The revenue went up with gamepass growth.
So more gamepass growth, means more revenue for software, which will be higher than initial 10%-15% after a certain number.

 

[Drew1440]

Is this because they banned emulators off the official store?

 

[chonga]

Supply constraints.

Saying the prior year had increased supply is not the same as saying the current year had constrained supply.

Let's make it easy by assuming a constant supply and demand. Let's say you planned to produce 100 products in years 1, 2 and 3. For whatever reason you could only make 50 in year 1. In year 2 you pull out all the stops and make 150. You then revert back to the planned 100 in year 3.

Notice that year 3 is a massive drop compared to year 2, but in no way are you making less than you'd hoped to make, and in turn sell, so it would be untrue to say there were supply constraints.

To really understand if it were the case you need more detail that they never provide.

 

[Woopah]

I do wonder why content and services grew 3% despite hardware being 30% comparatively to the previous Q3 2022 that was the highest (hardware wise) for Xbox.

Game Pass and game sales I guess (and aside Hi fi Rush they did not release anything - I presume April releases are not included right?)

There may be fewer people buying Xbox Series compared to last year, but the people who own Xbox Series are still buying games/subscriptions

Serious question......aside from Starfield what other big exclusive do they have coming?

Forward should also be big this year. There's others like Avowed, Perfect Dark and Hellblade 2, but its difficult to know how big they will be.

 

[Physiognomonics]

Supply constraint is probably true about XSX but it's a definite NO for XSS that has being available with plenty of deals for ages about everywhere.

 

[feynoob]

Despite the memes and gifs, the quarter wasn't bad.

Holiday quarter might be different, since last year it was shit for software side.

 

[Trogdor1123]

am I too late say that ms will become a 3rd party publisher soon?

Am I doing it right?

 

[Topher]

The revenue went up with gamepass growth.
So more gamepass growth, means more revenue for software, which will be higher than initial 10%-15% after a certain number.

We cannot derive what percentage of revenue is from Game Pass from these numbers.

 

[GHG]

Software is good, but hardware is bad.

I'd be interested in knowing how much of that is due to Bethesda.

Edit: the software I mean.

 

[SlimySnake]

30% is awful. In a very busy quarter with lots of big selling games like hogwarts and re4. I am not sure if Redfall, Starfield and Forza are going to provide them a big bump let alone get the sales back on track. This is the type of sales drop we see at the tail end of the gen.

I wonder if they've given up on this gen internally, and are going to focus on next gen when they finally have CoD to themselves.

 

[T-Cake]

Some said in another thread, Series S is readily available for consumers to buy, all the Series X chips are going into the server blades for XBox Cloud Gaming which seems to be gaining more popularity. I've now started to experience wait times to play games which never happened previously.

 

[ChorizoPicozo]

am I too late say that ms will become a 3rd party publisher soon?

Am I doing it right?

more like 4th party publisher

 

[DeepEnigma]

No?

For example, I just checked and non-bundled Series X consoles are out of stock at Best Buy, Target, and Amazon right now. PlayStation 5 is available on all 3 of those sites.

It’s been like this for months.

It must not be that in demand, if bundles are readily available and they are still down 30%.

 

[Mr Moose]

The revenue went up with gamepass growth.
So more gamepass growth, means more revenue for software, which will be higher than initial 10%-15% after a certain number.

MS stopping the $1 GamePass thing to increase revenue.

 

[Crayon]

More like demand constraints.

 

[KrazyKrelian]

Do people really believe MS investors don't care if the gaming division is underperforming and that MS will throw endless dollars at it because they are profitable overall due to other divisions?

Not trying to say Xbox is doomed, but use some common sense people.

 

[Unknown?]

Is FTC so powerless that MS don't even care about them?

FTC is controlled by corporate powers much like most other government agencies like FDA, CDC, EPA, etc.

 

[TheGodfather07]

If they are willing to make the right changes they can turn things around but I don't think their heart is in the console business right now they want the mobile market .

When has a console ever declined so early? When the decline starts, it only gets worse. Not better. Not to mention that it hasn't only been a month or two but from late last year. Last November was the worst for xbox in over 10 years. Since then, it's continued to be in decline. Either xbox is having very bad supply issues or demand has sharply dropped off. It can't be a coincidence that it all started the moment PS5 supply drastically improved.

 

[FrankWza]

We are talking about hardware revenue, which is not indicative of units sold.

Sure, unit sales are lower, but that 30% figure may also be a consequence of XSS selling more than XSX.

And the series s routinely being discounted in the - 30%-ish range

am I too late say that ms will become a 3rd party publisher soon?

Am I doing it right?

xbox* won't because they are backed by microsoft. Most other companies in this position probably would have by now. At the very least there would be investor pressure but they don't reveal their numbers in depth enough.