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Microsoft Q2 2022 earnings are out

adamsapple

Or is it just one of Phil's balls in my throat?


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.
 
Lol...ok bud. I'm well aware of where MS is going...i'm simply stating from a 'gamer' perspective that their halo/forza quote is disingenuous. Relax.
Long term growth is the most important aspect, like Xbox Game Pass subscription services that constantly brings in revenue.
 

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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Petopia

Banned
Frustrated World Cup GIF


Well that pretty much kills that "ms has to recoup that 70b asap" narrative.
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.
 

Zok310

Banned
This is a really poor post in a quarter where both their Gaming and Xbox divisions show growth.

I mean .. come on.
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
BUt hOw aRRe tHeY makIng MoNeY witH GamPass!?
Do you know how much money makes GamePass? Did they mentioned it?

Yet it still managed to chart at #2 on Dec NPD. 🤔
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.
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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Kagey K

Banned
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.
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.
 

Darsxx82

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.
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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Well that pretty much kills that "ms has to recoup that 70b asap" narrative.
It doesnt. actually.


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.


This Activation purchase will prolly save Xbox as a platform. Having COD makes Gamepass becoming a failure pretty hard.
 

ReBurn

Gold Member
They are but the drop today seemed extremely unnecessary imo.
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
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.


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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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.

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

Or is it just one of Phil's balls in my throat?
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.

- Game Pass + First Party title sales up YoY

It's in the very tweet I posted.
 

Clear

CliffyB's Cock Holster
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 it will grow more because they'll ad Activision Bizzard.

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.
 

adamsapple

Or is it just one of Phil's balls in my throat?
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?

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
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.
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.
 

yurinka

Member
I don't think any company reveals numbers in this level of minutiae.

Hell, MS doesn't reveal console hardware sell through numbers either.
Sony reveals the revenue of 'network services' (Plus + Gold revenue) for their gaming division. GP+Gold revenue combined would be nice to compare them.
 

yurinka

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.
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.
 
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DaGwaphics

Member
MS's story about gaming is engagement; you put 1st party games day one on a sub service that has 25 million folks your sales are going to take a huge hit.

Halo Infinite still charted though.

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.
 
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.
 
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