adamsapple
Banned
I mean .. that's weird.
Cash only or not, you'd assume there would be at least ONE person with concerns/questions about a 70 Billion dollar sale.
I'd have had at least a few questions if I was on that investor call.
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I mean .. that's weird.
Cash only or not, you'd assume there would be at least ONE person with concerns/questions about a 70 Billion dollar sale.
I'd have had at least a few questions if I was on that investor call.
SoloKingRobert
Member
Long term growth is the most important aspect, like Xbox Game Pass subscription services that constantly brings in revenue.
BennyBlanco
aka IMurRIVAL69
These megacorps want to spend big money before inflation causes their money that is just sitting there to be worth less.
StreetsofBeige
Gold Member
If I was a MS stockholder I wouldnt care either. MS just made $18.8 billion profit in one quarter. At this rate, thy could fully pay for Activision in about 2.5 more quarter earnings. Given how MS earnings are always going up too, that $70B price tag will be fully paid for before end of the year.
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MOTM
Member
Yet Gaf armchair analysts demand precise figures on anything related to the Xbox division.
Kagey K
Banned
Yet it still managed to chart at #2 on Dec NPD.
Kdad
Member
You're not teaching me anything. Seriously. I'm well aware of MS's sub model...its existed before GP.
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Buggy Loop
Member
BUt hOw aRRe tHeY makIng MoNeY witH GamPass!?
StreetsofBeige
Gold Member
Dupe. Replied instead of editted.
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StreetsofBeige
Gold Member
Zok310
Member
James Sawyer Ford
Gold Member
Them markets are crazy right now
Zok310
Member
They wasted a ton of money in gaming. investors still want them out of gaming, the division has done nothing but force them to spend spend spend.
Kdad
Member
More like it did...then they had their conference call and guidance calmed the seas
R3claimer117
Member
Lmao
Jesus
adamsapple
Banned
This is a really poor post in a quarter where both their Gaming and Xbox divisions show growth.
I mean .. come on.
but how about their gaming division in general cause they cant keep losing money and with 25 million i expected alot more suscribers with in the years.
Well that pretty much kills that "ms has to recoup that 70b asap" narrative.
Zok310
Member
Growth but no profit, it's all fine with me but there are investors that just sees gaming as a black hole for their money at ms.
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yurinka
Member
Do you know how much money makes GamePass? Did they mentioned it?
Sales of a single month on the physical sales (which are less than half of the total) of a country that has less than a third of the total sales of the world.Yet it still managed to chart at #2 on Dec NPD.
Not very representative of total worldwide sales, and not very helpful to compare vs GP, which people can get for $1.
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Goalus
Member
Kagey K
Banned
If they feel that strongly about it, they can pull thier investments put at any time and put it in one of the other billion companies out there.
Something tells me they won't though, because they don't actually feel that strongly about it and like seeing growth numbers.
SenjutsuSage
Halo TV Series Promoter - Live from: Reach
HAHHAHAHAAH I LOVE THIS DUDE!
You live 7 years ago right?
We have spent all those years without reading any investor asking to liquidate XBOX or the gaming business. The extraordinary state of the company in general sure helps, but it is that the largest investment of MS is being in the game business and it turns out that no investor asks, much less criticizes, investments of 70Billions in today conferece call.... That should give you an idea of what's going on today
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adamsapple
Banned
I don't think anyone will say how much, but it earned more revenue year over year, so it's safe to say it's working out decently.
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SenjutsuSage
Halo TV Series Promoter - Live from: Reach
Investors unbothered with the money making machine.
JackMcGunns
Member
Too much money creates rot... too much profit means next quarter will be a lesser gain... Too much success means they'll rest on their laurels...
Keep it going...
Oddvintagechap
Member
It doesnt. actually.
Case Study of a Failed M&A— Introduction to Microsoft’s Acquisition of Nokia
On September 3, 2013, Microsoft announced that it would acquire Nokia’s mobile phone division for $7.2 billion. Through a series of missteps, many of them cultural mismanagement, Microsoft informed the public in May 2016, of its intention to write off most of the $7.2 billion it paid for Nokia...
www.internationalhub.org
Sony gaming division constantly carrying other unprofitable divisions for almost a decade already is an example of this.
Microsoft doesnt release numbers for Xbox is because its unprofitable, its being carried by Windows. Shareholders would push to sell a division like that, like they have to Sony for its film business.
Sony Pictures Not for Sale, Says CEO Yoshida Kenichiro
The WarnerMedia-Discovery merger and Amazon's blockbuster deal for MGM have heightened industry curiosity about the future of Sony's film and TV unit.
www.hollywoodreporter.com
This Activation purchase will prolly save Xbox as a platform. Having COD makes Gamepass becoming a failure pretty hard.
ReBurn
Gold Member
There's some fear over their cloud stuff that's the cause of a lot of that and it just resonated today. MS charges too much for many of their Azure services, particularly in the data space, and they're being undercut in a few key areas by companies like Snowflake and Sigma. I'm moving some data warehouse stuff to Snowflake and it's going to save $200k per year. And I'm not even using that much Synapse.
yurinka
Member
Yes, they did grow recently because in hardware they released a console and in software now they added the Zenimax revenue there. In a couple of years its software part will grow more because they'll ad Activision Bizzard.
Nothing of that info is related to Gamepass.
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Batiman
Member
Ya that’s hilarious lol
SenjutsuSage
Halo TV Series Promoter - Live from: Reach
No investor complains about more money. That's exactly what this deal means, a shit ton of money. Nobody with a straight face that hears you own Call of Duty, Diablo, world of warcraft, overwatch, Blizzard Entertainment, King and Candy Crush would ever doubt it. Nobody questions making more money.
adamsapple
Banned
yurinka
Member
Yes, we knew that GP is now 25M and that Zenimax is now first party. So yes, obviously it increased. But how much revenue does make Gamepass?
Clear
Member
They have Zenimax revenue, but also running costs, plus returns on a sunken cost $7b investment. Still deep in the heavy subsidy phase. Which makes me wonder how much deeper they are willing to dig offsetting the acquisition cost of ABK in terms of rejigging the pipeline.
Starfield is going to be an interesting test case because whether it underperforms or overperforms in terms of uplift to services is going to impact their planning going forwards.
oldergamer
Member
Who cares we are talking cash on hand dude.
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adamsapple
Banned
I don't think any company reveals numbers in this level of minutiae.
Hell, MS doesn't reveal console hardware sell through numbers either.
ReBurn
Gold Member
That $70B in cash sitting on the balance sheet doesn't generate much value for shareholders. Investing it in the purchase of a company with a solid revenue stream that can immediately add earnings to the bottom line is exactly what they want management to be doing. There aren't many downsides to the acquisition. Hopefully Phil can manage those studios well.
Kerotan
Member
Weird how they never say.
yurinka
Member
Sony reveals the revenue of 'network services' (Plus + Gold revenue) for their gaming division. GP+Gold revenue combined would be nice to compare them.
adamsapple
Banned
yurinka
Member
Now with ABK (if they continue releasing their games for PS), MS gaming division will be making almost the same revenue than Sony gaming division.
So if EA, Take 2, Valve or Ubisoft for some reason in the future they need or want (I think this won't happen) to sell MS would acquire them to pass Sony and maybe Tencent too, to become the top gaming company in revenue of the world (even if with massive loses, nobody would knew that part).
Sony will pretty likely doubling their userbase on console market, and if Spartacus is real in game subscriptions too, plus Sony is growing in most areas, to they MS continue wanting to acquire big.
Mattyp
Gold Member
At the growth Microsoft continues to grow it will soon reach a point where any other company under a certain value is attainable and failure is impossible.
You start seeing $100 billion profit a year how many companies are actually valued over $100 billion around the globe excluding big oil and military? I’m sure someone somewhere has done a paper on this.
As for me but, I’ll keep riding these stock to the fucking noon.
You start seeing $100 billion profit a year how many companies are actually valued over $100 billion around the globe excluding big oil and military? I’m sure someone somewhere has done a paper on this.
As for me but, I’ll keep riding these stock to the fucking noon.
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DaGwaphics
Member
Plus the gaming division revenue is continuing to move forward, which is a good indicator for GP. If the service was kneecapping the gaming division at every turn, the revenue numbers would be going in the wrong direction.
Aguero9320
Member
Insane numbers. Even more insane attempts to downplay them.
When a company of this size that’s this profitable turns it’s attention to something (in this case gaming) competitors better duck.
Can’t wait to see what they do next.
When a company of this size that’s this profitable turns it’s attention to something (in this case gaming) competitors better duck.
Can’t wait to see what they do next.
ManaByte
Gold Member
Well that pretty much kills that "ms has to recoup that 70b asap" narrative.
It was always ridiculous.
nikolino840
Member
Gravemind
Member
They really really really need those game sales from Playstation though!
That money would be fuckin pocket change.