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Sales-Age Microsoft Q1: Gaming revenue up 9%, Content & Services up 13% and Xbox hardware down 7%

N

NEbeast

Member
But it gets to a point where you you can't justify making the hardware anymore. Then what happens to everyone in the xbox ecosystem playing on a console?
As for the numbers, they aren't bad but who cares when they had to gobble up 3rd party publishers. Its also hilarious to see the usual people cheering on consolidation and wanting more!
Pull It Together Come On GIF by Outside Watch
 
StreetsofBeige

StreetsofBeige

Gold Member
Solid gaming financials. And the company did fantastic as always. If this quarterly trend keeps up going forward, they'll make about $90 billion profit over a FY.


Earnings Release FY24 Q1
Microsoft Cloud Strength Fuels First Quarter Results

REDMOND, Wash. — October 24, 2023 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2023, as compared to the corresponding period of last fiscal year:

· Revenue was $56.5 billion and increased 13% (up 12% in constant currency)

· Operating income was $26.9 billion and increased 25% (up 24% in constant currency)

· Net income was $22.3 billion and increased 27% (up 26% in constant currency)

· Diluted earnings per share was $2.99 and increased 27% (up 26% in constant currency)

"With copilots, we are making the age of AI real for people and businesses everywhere," said Satya Nadella, chairman and chief executive officer of Microsoft. "We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers.”

“Consistent execution by our sales teams and partners drove a strong start to the fiscal year with Microsoft Cloud revenue of $31.8 billion, up 24% (up 23% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Business Highlights

Revenue in Productivity and Business Processes was $18.6 billion and increased 13% (up 12% in constant currency), with the following business highlights:

· Office Commercial products and cloud services revenue increased 15% (up 14% in constant currency) driven by Office 365 Commercial revenue growth of 18% (up 17% in constant currency)

· Office Consumer products and cloud services revenue increased 3% (up 4% in constant currency) and Microsoft 365 Consumer subscribers grew to 76.7 million

· LinkedIn revenue increased 8%

· Dynamics products and cloud services revenue increased 22% (up 21% in constant currency) driven by Dynamics 365 revenue growth of 28% (up 26% in constant currency)

Revenue in Intelligent Cloud was $24.3 billion and increased 19%, with the following business highlights:

· Server products and cloud services revenue increased 21% driven by Azure and other cloud services revenue growth of 29% (up 28% in constant currency)

Revenue in More Personal Computing was $13.7 billion and increased 3% (up 2% in constant currency), with the following business highlights:

· Windows revenue increased 5% with Windows OEM revenue growth of 4% and Windows Commercial products and cloud services revenue growth of 8%

· Devices revenue decreased 22%

· Xbox content and services revenue increased 13% (up 12% in constant currency)

· Search and news advertising revenue excluding traffic acquisition costs increased 10% (up 9% in constant currency)

Microsoft returned $9.1 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2024.
 
Luminoth-4545

Luminoth-4545

Member

Welfare​

Luminoth 4545 said:
What do you think for the total units shipped this quarter? 1.8 million?
Click to expand...
~1.7M

The estimation for this quarter although down year over year is up over last quarter which is to be expected, Xbox Series has now likely to have outsold the original Xbox. Nintendo's and Sony's earnings reports are on the 7th and 9th of November.
sREBU6J.png
 
Last edited:
GHound

GHound

Member
Duchess said:
Microsoft: We're going to buy the publishers of your favourite games, so you'll move over to Xbox to play them.

Gamers:

d97.jpg
Click to expand...
Pretty much. Not that I would even have to since putting together a PC this year but it's definitely the thought that counts.
 
W

wolffy66

Member
X-Wing said:
No one is buying Xbox to play their exclusives anyway. It's the downside of making everything available day 1 everywhere.
The writing is on the wall. Software and services (including cloud) is their main business now.
Click to expand...
I still don't think this is quite right. While I'm sure there are some people who just decide to go PC and play xbox exclusives. But if people are gonna buy a gaming pc instead of xbox they would probably do the same for PS. And with Sony moving in that direction it tells me that neither MS or Sony are really worried about this.

I think it's more xbox is just lagging behind consoles sales to Sony and the money they are making from PC is money that they would have missed out on otherwise.

At the end of the day I think MS is fine without selling consoles as they are expensive to make and not very profitable. They more see consoles as a necessary evil to be seen as a player in the game market. They are the backbone of your customer base and a floor for revenue.
 
ReBurn

ReBurn

Gold Member
jorgejjvr said:
Goes to show Xbox isn't all about console
Click to expand...
People want to fight over console unit sales being the most important number because it's fuel for their silly warring. But you're right, for Microsoft it isn't the most important number. They knew at the start of the generation they wouldn't sell the most boxes so by selling games day 1 on PC they could leverage that base to sell software.
 
DaGwaphics

DaGwaphics

Member
TheBomb said:
So they still made money with declining hardware?
Click to expand...

Software and services covered it. We'd already seen the estimated declines in hardware YoY for the proceeding two months (at least according to NPD estimates). Starfield obviously helped regain some of the lost ground but not all of it, though September was the best September for Xbox sales in units since 2016 and in dollars since 2014 according to Brad Sams. Starfield clearly did its thing.

They just need consistent software releases over a period of time, then they should make some statistical headway.
 
RyanEvans21

RyanEvans21

Member
ReBurn said:
People want to fight over console unit sales being the most important number because it's fuel for their silly warring. But you're right, for Microsoft it isn't the most important number. They knew at the start of the generation they wouldn't sell the most boxes so by selling games day 1 on PC they could leverage that base to sell software.
Click to expand...

www.cbr.com

Xbox Series X|S Are The Best-Selling Consoles in North America

Microsoft’s Satya Nadella reveals Xbox Series X and S consoles have been out-selling Sony's PlayStation 5 for three consecutive quarters.
www.cbr.com www.cbr.com

Sure! :messenger_winking_tongue:
 
DForce

DForce

NaughtyDog Defense Force
ReBurn said:
People want to fight over console unit sales being the most important number because it's fuel for their silly warring. But you're right, for Microsoft it isn't the most important number. They knew at the start of the generation they wouldn't sell the most boxes so by selling games day 1 on PC they could leverage that base to sell software.
Click to expand...

Let's not pretend that Xbox fans were celebrating Microsoft's strategy for a 2 console approach to generate more console sales before this generation started.

Let's also not pretend that Xbox fans were celebrating wins over PS5 and ignored the fact that PlayStation 5 was suffering due to supply constrains while the Xbox Series S consoles were not. Every time someone tried to point this out, people accused Ps fans of damage controlling and not praising Microsoft.


Now?

Console sales are completely irrelevant because they're struggling.
 
ReBurn

ReBurn

Gold Member
DForce said:
Let's not pretend that Xbox fans were celebrating Microsoft's strategy for a 2 console approach to generate more console sales before this generation started.

Let's also not pretend that Xbox fans were celebrating wins over PS5 and ignored the fact that PlayStation 5 was suffering due to supply constrains while the Xbox Series S consoles were not. Every time someone tried to point this out, people accused Ps fans of damage controlling and not praising Microsoft.


Now?

Console sales are completely irrelevant because they're struggling.
Click to expand...
I honestly couldn't care less what Xbox fans were celebrating. Xbox fans aren't making decisions for Microsoft. It really doesn't make any difference what fanboys think about it. Console wars are stupid and framing anything in the context of what console warriors care about is a waste of time.

Console sales aren't irrelevant and I never said they were irrelevant. They're absolutely relevant to all 3. They're just currently more relevant to Nintendo and Sony because they're not pursuing any other avenues but their own hardware for selling their first party games at launch. Their ability to sell copies of new games is directly dependent upon how many consoles they have sold. Console sales are also still relevant to Microsoft, but in a different way. Theoretically Microsoft's software sales potential isn't limited by the number of consoles they've sold because PC gamers can fill in the software sales gap day 1. But people without a gaming PC need to buy a console or stream via the cloud to play Xbox first party games. I don't know how many people are streaming as the primary way to play Xbox games but I'd wager it's a minority. So Microsoft needs to sell consoles to sell a portion of their software.
 
XesqueVara

XesqueVara

Member
The fun fact is that even after a 70$ billion dollar acquisition for Xbox, the Shareholders just asked about Cloud and AI haha.
 
DForce

DForce

NaughtyDog Defense Force
ReBurn said:
I honestly couldn't care less what Xbox fans were celebrating. Xbox fans aren't making decisions for Microsoft. It really doesn't make any difference what fanboys think about it. Console wars are stupid and framing anything in the context of what console warriors care about is a waste of time.
Click to expand...
We know how Microsoft felt going into this console generation and they believed they had a winning strategy.

You don't automatically ignore this because their strategy failed. Do you think the Xbox Series S wasn't designed to sell more consoles? Do you think having the power narrative wasn't important for Microsoft? Why do you think Phil was anxious about the PS5 spec reveal?

Because he was worried about Sony. They want to win. Period and you have to treat it as important.

ReBurn said:
Console sales aren't irrelevant and I never said they were irrelevant. They're absolutely relevant to all 3. They're just currently more relevant to Nintendo and Sony because they're not pursuing any other avenues but their own hardware for selling their first party games at launch. Their ability to sell copies of new games is directly dependent upon how many consoles they have sold. Console sales are also still relevant to Microsoft, but in a different way. Theoretically Microsoft's software sales potential isn't limited by the number of consoles they've sold because PC gamers can fill in the software sales gap day 1. But people without a gaming PC need to buy a console or stream via the cloud to play Xbox first party games. I don't know how many people are streaming as the primary way to play Xbox games but I'd wager it's a minority. So Microsoft needs to sell consoles to sell a portion of their software.
Click to expand...

Sony has been pushing cloud gaming, rumored PS trophies on PC, and they talked about releasing their GaaS games on day one on PC. They pushed cloud gaming before MS, so what are you talking about that they're not pushing any other avenues?

You guys are pushing the same argument.

"Microsoft is pushing outside of consoles so it's not as important."

Growth is important on PC, Cloud, and Console. You don't spend billions of dollars manufacturing a console to not treat it as important as the others.

They invested billions in cloud gaming
They invested billions in the console market
They invested billions in the PC gaming market
They invested billions in the mobile gaming market.

Their strategy is to defeat the competition and they want to see growth in console despite what you're saying.

I said this many times before;
 
BoxFresh123

BoxFresh123

Member
Can hardware revenue be down and still have sold more consoles if there's just an even greater skew toward the Series S?

Finance people can tell me where I'm wrong.
 
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