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[cormack12]

Source: https://www.windowscentral.com/gaming/xbox/xbox-fy23-q4-gaming-revenue-increased-1-year-over-year
(.....more at link)


Xbox revenue is staying steady this quarter.

Microsoft shared its financial results for the FY23 Q4 period ending June 30, 2023, revealing that gaming revenue is up 1% year-over-year, or $36 million. Xbox content and services revenue was up 5%, driven by growth in third-party content and Xbox Game Pass. This offset a decline in Xbox hardware revenue, which was down 13%.......

 

[Salty Popsicle]

 

[graywolf323]

wasn’t this during the quarter where they said they fixed the ‘supply’ issue on hardware?

 

[Imtjnotu]

This thread won't end well

 

[Captain Toad]

wasn’t this during the quarter where they said they fixed the ‘supply’ issue on hardware?

Yeah, they could only meet 99% of the demand the previous year. It was rough.

 

[yazenov]

Hardware revenue down 13% this early into the new generation is extremely alarming for MS. At this rate, it's better for them to go 3rd party sooner rather than later for them to succeed in the gaming sector.

Phil said he wanted to reach a much wider audience and for them to do so, there are no other options available.

 

[Thirty7ven]

Xbox needs that Q4 win

 

[Thick Thighs Save Lives]

Microsoft also makes Xbox devices, which are separated from its other hardware. Xbox hardware revenue has dropped 13 percent in Q4, so it’s likely that Microsoft continues to suffer with hardware supplies and softer demand for its Xbox Series S / X consoles. Or it could be related to Microsoft’s long-term strategy and balancing the costs of hardware against content and cloud potential.

Why are The Verge saying that when Phil stated in the most recent showcase that supply should no longer be an issue for Xbox HW?

Windows and devices take a hit in Microsoft’s Q4 earnings, but Xbox is mostly up

The PC market is still down and impacting Windows and devices revenues.

www.theverge.com

 

[ByWatterson]

This thread won't end well

Bro it's not STARTING well!

 

[FalsettoVibe]

Not good but,
In a few quarters:
Xbox revenue up 60%!
(After ATVI is complete)

 

[jroc74]

This thread won't end well

Hell, it didn't start well....

 

[Pelta88]

"That's separated out into Xbox hardware revenue, which has dropped by 30 percent this Q3"

 

[adamsapple]

I have a feeling their revenue situation is gonna get better soon ( ͡° ͜ʖ ͡°)

 

[Thief1987]

Why are The Verge saying that when Phil stated in the most recent showcase that supply should no longer be an issue for Xbox HW?

Windows and devices take a hit in Microsoft’s Q4 earnings, but Xbox is mostly up

The PC market is still down and impacting Windows and devices revenues.

www.theverge.com

Because it's The Verge and the article is written by Tom Warring

 

[Thirty7ven]

Honestly why is it that only when it grows significantly can it be considered a success?

This idea that businesses need infinite growth sucks.

 

[ByWatterson]

Hardware revenue down 13% this early into the new generation is extremely alarming for MS. At this rate, it's better for them to go 3rd party sooner rather than later for them to succeed in the gaming sector.

Phil said he wanted to reach a much wider audience and for them to do so, there are no other options available.

You're gonna get some laugh emojis for this, but it's pretty obvious that Gamepass everywhere is a better bet than Gamepass as an Xbox adjacent brand, tied, in the eyes of the average consumer, to a single set of boxes.

 

[Roxkis_ii]

I wonder how negative they would have been in the red if they had to foot the bill for Activation.

 

[ChorizoPicozo]

hurry up and close the deal!!!

 

[ChorizoPicozo]

wasn’t this during the quarter where they said they fixed the ‘supply’ issue on hardware?

not demand tho

 

[Thief1987]

I have a feeling their revenue situation is gonna get better soon ( ͡° ͜ʖ ͡°)

How do you think will they recoup activision cost by the end of this century?

 

[Punished Miku]

Honestly why is it that only when it grows significantly can it be considered a success?

This idea that businesses need infinite growth sucks.

You can stay private and do that. Investors only bother for growth.

 

[Fake]

Gonna pass.

 

[ChorizoPicozo]

sony's dirty tactics what else

 

[DeepEnigma]

Why are The Verge saying that when Phil stated in the most recent showcase that supply should no longer be an issue for Xbox HW?

Windows and devices take a hit in Microsoft’s Q4 earnings, but Xbox is mostly up

The PC market is still down and impacting Windows and devices revenues.

www.theverge.com

Microsoft also makes Xbox devices, which are separated from its other hardware. Xbox hardware revenue has dropped 13 percent in Q4, so it’s likely that Microsoft continues to suffer with hardware supplies and softer demand for its Xbox Series S / X consoles. Or it could be related to Microsoft’s long-term strategy and balancing the costs of hardware against content and cloud potential.

"Supply issues" on a softer demand product that is available everywhere. Mental gymnastics 101.

 

[ChorizoPicozo]

I have a feeling their revenue situation is gonna get better soon ( ͡° ͜ʖ ͡°)

is nice to have feelings...i don't

 

[ByWatterson]

I have a feeling their revenue situation is gonna get better soon ( ͡° ͜ʖ ͡°)

It's gonna take like 15 years of that new revenue to make up what they spent, though. Microsoft already covered it, but it's not going to be a black entry in the Xbox ledger for a loooong time.

 

[yazenov]

not demand tho

Wait for Starfield which will probably boost their PC Gamepass subs more than their console subs. Hardware? Maybe a little.

I wonder what will sustain the sales momentum after Starfield though? It's gonna a long wait till the next big Xbox game.

 

[ChorizoPicozo]

Wait for Starfield which will probably boost their PC Gamepass subs more than their console subs. Hardware? Maybe a little.

I wonder what will sustain the sales momentum after Starfield though? It's gonna a long wait till the next big Xbox game.

I think there is not doubt about that. the issue for MS/Xbox is: How much they expect the growth to be?.

 

[Flabagast]

Man hardware sales are disastrous.

It wont surprise me if down the line some exclusives end up releasing on PS5 only to recoup the dev costs

 

[twilo99]

I wonder how negative they would have been in the red if they had to foot the bill for Activation.

Oh man, one can only dream!

 

[diffusionx]

Honestly why is it that only when it grows significantly can it be considered a success?

This idea that businesses need infinite growth sucks.

Because somebody is growing, in this case their main competitor is growing significantly

 

[Salty Popsicle]

Hardware revenue down 13% this early into the new generation is extremely alarming for MS. At this rate, it's better for them to go 3rd party sooner rather than later for them to succeed in the gaming sector.

Phil said he wanted to reach a much wider audience and for them to do so, there are no other options available.

Seems Jim Ryan is trying to do exactly that. He wants PlayStation games to reach an audience of many hundreds of millions of people and knows it will never do that confined to a single platform...

https://gamerant.com/sony-jim-ryan-playstation-game-access-platforms-comments/

"Ryan indicates in the interview that he considers a "successful" PlayStation game as one that reaches up to twenty million people, but would like to see that number increased to the level that other media spreads at. Music and movies are two examples that are cited as the range of numbers he aims for..."

 

[graywolf323]

Because somebody is growing, in this case their main competitor is growing significantly

same way that the NPDs usually are something like ”PS5 and Switch are up while other platforms are down YOY”

 

[Salty Popsicle]

Wait for Starfield which will probably boost their PC Gamepass subs more than their console subs. Hardware? Maybe a little.

I wonder what will sustain the sales momentum after Starfield though? It's gonna a long wait till the next big Xbox game.

Putting the next COD entry on GamePass Day One would make many people consider Xbox over PlayStation during Holiday season.

 

[diffusionx]

same way that the NPDs usually are something like ”PS5 and Switch are up while other platforms are down YOY”

Yea, if the pie is growing and your slice isn’t, you’re actually shrinking.

 

[Go_Ly_Dow]

They best buy 3 more AAA publishers before Sony releases the PS5 Slim at $399.

 

[squarealex]

"Supply issues" on a softer demand product that is available everywhere. Mental gymnastics 101.

Microsoft continues to suffer with hardware supplies

lmao, the ride never ends...

 

[Salty Popsicle]

They best buy 3 more AAA publishers before Sony releases the PS5 Slim at $399.

There's been a $400 version of PS5 available since launch.

 

[Horseganador]

They are bad results, after billions invested they still do not reach the objectives, the services barely grow and xbox continues to drop, a management disaster.

 

[Spitfire098]

Where are the people lining up to buy xboxs in anticipation for Starfield? Console still continuing the 3rd place meme in the monthly NPD list so close to lauch of Starfield.

 

[DenchDeckard]

Consoles and PC? What is Microsofts goal here....is PC up enough to be covering this loss in hardware sales?

 

[MatrixReloaded101]

This offset a decline in Xbox hardware revenue, which was down 13%.......

Acquisition talk isn't going to sell consoles, they need more AAA games.

I wonder what Starfield's impact will be for console sales.

 

[thicc_girls_are_teh_best]

They are, essentially, stagnant as that 1% growth is within a margin-of-error and could effectively be 0% or even a 2-3% decrease in overall revenue, who is to truly say.

Bad numbers all around, and I'm assuming more PC Game Pass subscriptions is the only reason Game Pass has had any effect in negating further erosion of the numbers. Even there, the ARPU hasn't likely increased very much at all, considering the other numbers here.

This is what years of brand mismanagement leads to especially when you have many of the same people responsible for that mismanagement getting promotions and remaining in charge of the show.

Acquisition talk isn't going to sell consoles, they need more AAA games.

I wonder what Starfield's impact will be for console sales.

I don't see Starfield doing beyond 3 - 4 million in its debut month and at least 60% of those sales will be on PC. There are no Series X console bundles or limited editions for the game we know of at current, so that doesn't help.

In short, I don't see it having too much of a material difference on console sales, though it'll at least stop any drop in console sales numbers YoY.

Consoles and PC? What is Microsofts goal here....is PC up enough to be covering this loss in hardware sales?

Nope. But Minecraft Legends, Minecraft content, Elder Scrolls Online and Fallout '76 sub revenues are (at least ATM), as well as their large range of controllers and that workshop for custom controllers, and other peripherals.

 

[Banjo64]

Anyone else feel a bit sad that we don’t even get to laugh at the mental gymnasts trying to ‘well ackshually’ explain away Xbox’s poor figures anymore?

It’s as if they are all so beaten down that they can’t even take joy from lying anymore.

 

[yazenov]

Putting the next COD entry on GamePass Day One would make many people consider Xbox over PlayStation during Holiday season.

The people had already decided and choosen the console they and their friends will play the latest 3rd party games, and exclusives. The software share ratio is overwhelmingly in favor of the PS5, and it's not even close (check the sales threads).

The gap is widening. It's called the snow ball effect. People will buy the most popular console to play with their friend and not feel left out.

Its already too late for MS this generation.

 

[Chukhopops]

It's gonna take like 15 years of that new revenue to make up what they spent, though. Microsoft already covered it, but it's not going to be a black entry in the Xbox ledger for a loooong time.

In 2020 people pretended to understand technology for console war purposes, now they pretend to understand accounting and it’s even sadder imo.

 

[FIREKNIGHT2029]

Ooof!

Hardware down by 13% as well? Yikes!

 

[Katatonic]

Rejected platform.

 

[Snake29]

Where are the people lining up to buy xboxs in anticipation for Starfield? Console still continuing the 3rd place meme in the monthly NPD list so close to lauch of Starfield.

Starfield is just not a game for the big public or casuals. It doesn't excist really that much outside the hardcore gamers. It will "sell" or not really but t won't sell consoles.

 

[DaleinCalgary]

They aren't dead yet. And nobody should want them dead. Competition is good.