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Xbox FY24 Q2 gaming revenue up 49% year-over-year, driven by impact of Activision Blizzard acquisition
- Thread starter adamsapple
- Start date
FunkMiller
Gold Member
Yes. Because you DIDN‘T MAKE ANY GAMES FOR IT, YOU ASSHAT.
What were these fucking idiots thinking was going to happen?
You can’t have zero exclusives and expect good console sales.
It feels like I’m in Crazy Town when I see so many people not realising and accepting this!
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bender
What time is it?
Ass of Can Whooping
Member
James Sawyer Ford
Member
Amy Hood
Amy Hood always up to no good
Amy Hood always up to no good
Luminoth-4545
Member
Ouch! Microsoft expecting a 40% drop from last Jan to Mar which was their worst quarter of the generation (estimated 1.2 million) so around 720K. Not quite Wii U levels but really bad, actually i looked up the data (below) and Wii U's best non holiday quarter was exactly 720K in Q2 FY 2015/16. Selling less than 1 million in a regular quarter is for console's considered commercial flops like Dreamcast, Sega Saturn, Gamecube, Wii U and PS Vita.
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twilo99
Member
Not to mention Spain and Portugal..
Kacho
Member
They're on their way out regardless. They more they underperform the quicker it happens.
Starfield failed to deliver, a complete lack of exclusives in general, an undesirable Game Pass strategy. Xbox appeals to barely anyone at this point.
Unknown?
Member
It's okay, no one will know with their cooked stats.Ouch! Microsoft expecting a 40% drop from last Jan to Mar which was their worst quarter of the generation (estimated 1.2 million) so around 720K. Not quite Wii U levels but really bad, actually i looked up the data (below) and Wii U's best non holiday quarter was exactly 720K in Q2 FY 2015/16. Selling less than 1 million in a regular quarter is for console's considered commercial flops like Dreamcast, Sega Saturn, Gamecube, Wii U and PS Vita.
LavitzSlambert
Member
Imagine if Xbox performed anywhere near their highs of the 360 era. They would be raking it in. I am pretty impressed they did so well considering how awful their output has been the last decade.
GHG
Member
I liked my windows phone.
Sometimes liking something on an individual basis isn't enough.
Kacho
Member
I kept holding out hope but it never materialized. RIP Xbox hardware.
You might like it but it's pretty much obvious at this point where they're heading.
They are taking all the steps and business decisions to try to become a leading third party content/services publisher in gaming and on paper if they start managing their studios properly with some good creative control, I think they have a good chance to be successful at that.
Hardware console business instead is obviously toast with the main culprit being their decision to kill their console exclusives.
They obviously knew that but their plan was to offset this negative impact with their hardware becoming a cheap entry gate to Gamepass (the whole Series S strategy). This hasn't worked out because Gamepass hasn't found a viable market as big as they hoped, Series S hasn't attracted casuals and they have been left just with the downsides of their original plan.
Probably Xbox hardware won't disappear but it's really likely to become an optional hardware gaming line and not a key platform.
JohnnyFootball
GerAlt-Right. Ciriously.
Did Starfield not exist?!
{insert code here}
Member
How much of that 2.33B was profit? Trying to figure out how many decades it will take to recoup that 75B.
Kacho
Member
They weren’t expecting lower console sales. I suspect Starfield being a dud killed their chance at moving hardware this holiday. Everything was riding on it. Now the Xbox ecosystem is back to zero compelling exclusives for the next few months.
Meanwhile PlayStation continues to sell well and Nintendo has shiny new hardware on the horizon. Xbox Series hardware is toast.
Topher
Gold Member
That is applied in the balance sheet, not the income statement. So basically, cash on hand took a hit.
Baki
Member
I was talking about my personal preference as a consumer.
The business headwinds do not look good for the core console business. However, under different leadership, I think Xbox has a good chance at a resurgence.
Think of 'buying' ABK like 'buying' a house. It's an investment. ABK will have a book value based on the fundamentals of the business. The book value will likely be less than the purchase price because they had to pay a "premium" to get the company. TLDR: They don't need to recoup $75B. They need to recoup the difference in the book value (probably $50B) and the purchase price ($75B). But that is recouped by improving the business. Same as buying a house, wait for the market to go up or make improvements to the house to increase it's value.
Wulfer
Member
Yea, I think Diddy X is right. MS isn't Sega and their not going away!
James Sawyer Ford
Member
Xbox Series is 2M behind Xbox One, launch aligned?
JohnnyFootball
GerAlt-Right. Ciriously.
That time has LONG passed. If it had happened in 2016 they might have had a chance. Sony gave them a Blueprint with the PS3
freefornow
Gold Member
So you will be around for a long time then! Great to hear
SlimySnake
Flashless at the Golden Globes
They had hifi rush, redfall, starfield and forza. They made the games, they just didnt deliver on the quality.
This was supposed to be Xbox's year. After almost a decade of 1-2 exclusives, and sometimes none, they finally had a decent line up and couldnt capitalize.
poppabk
Cheeks Spread for Digital Only Future
No one better misread this graph. Took days to make people understand it last time this got posted.
Also - $6.2 billion on S&M - maybe cut back on the bondage parties Microsoft.
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Baki
Member
This gen is done bar some radical moves. Next gen they have a shot.
Crayon
Member
That's a terrible thought, man. Let one of us do it for you.
Unknown Soldier
Member
LOL they spent $70 billion to gain $3 billion in annual revenue
I'm not pants on head retarded so I know that you actually can't pretend cost of acquisition doesn't exist when considering forward revenue expectations
I'm not pants on head retarded so I know that you actually can't pretend cost of acquisition doesn't exist when considering forward revenue expectations
James Sawyer Ford
Member
Little Chicken
Member
People carrying on about hardware like its 1999...
Huge services growth for xbox, congrats!
Huge services growth for xbox, congrats!
Unknown Soldier
Member
LOL yeah just like the huge margins that Disney+, Paramount+, HBO Max, etc. make LMAO
The onlys streaming company which isn't eating heavy losses and dying is Netflix and that's only because they have quite literally 250 million subscribers
ReBurn
Gold Member
Microsoft isn't the only company expecting a decline in hardware sales. AMD is also predicting a double-digit decline in their gaming revenue according to The Verge.
PS5 and/or Xbox sales may have just peaked.
Sony shipped 10 million PS5s in just five months last year, and Xbox hardware sales were up 3 percent last quarter. But AMD, whose gaming business provides their chips, is forecasting a “significant double-digit percentage” decline in gaming revenue now that we’re in “the fifth year of what has...
www.theverge.com
DaGwaphics
Member
Even though they sold more X units this holiday they sold them at $150 less than the standard price and the fire sales were consistent this year vs. being tightly time limited like last year. XSS units were also frequently $100 less than last year. Makes it harder to make a guess about the unit numbers.
DaGwaphics
Member
Xbox seems to be horrifically bad at transitioning between systems, probably sold more of the XSX units this holiday than they figured and now won't have much stock until the round unit hits. They all but quit selling the X1 almost a full year before the series launch, there were so few units that people were scalping them.
Mortisfacio
Member
My favorite part of this graph is all the people that can't figure out how to read it.
Generic
Member
I'm ready for Nintendo games on PC!
HeisenbergFX4
Gold Member
But if you believe the leaks they won’t transition to another system until 2028
What will sales be like in 3 years time
Topher
Gold Member
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reinking
Gold Member
Generic
Member
Nintendo is its own ecosystem. They don't pressure Sony nor Microsoft.
reinking
Gold Member
I forgot. Nintendo doesn't compete with the other two consoles. (except they do)
I have said it before and I will say it again, both Sony and Nintendo have been around before the Xbox. They were both innovative and price conscious before the Xbox came along. Xbox is not the Saviour of console gaming and I would argue it is currently trying to accelerate its demise.
Kssio_Aug
Member
He's most likely talking about some replies on the 'lays off' thread, like this.
The thing is that some people were mistakenly reading it as if "More Personal Computing" segment had a cost of revenue of 19,6B dollars, which is not the case. Because everything that comes after the black bar (total revenue) is actually about the whole pie.
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yazenov
Member
Generic
Member
Nintendo actually stopped directly competing with PlayStation and Xbox since the Wii. But even the Wii put pressure on the competition (see: Playstation Move and Kinnect). The Switch simply didn't cause any response from Sony or Microsoft. They aren't interested in releasing a portable/console hybrid.
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