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Xbox is forecasting a big revenue growth next quarter. overall gaming revenue up mid to high 40% content and services up mid to high 50%
No, it’s not ‘the obvious’ for shareholders. They didn’t just forecast an increase. They forecast the expected magnitude of the increase for the next quarter, with variables taken into consideration.
Not exactly rocket science, even for you.
And yet actual shareholders aren’t asking for this info. Doesn’t that tell you something?
It's a good thing I mention the 40% increase in magnitude as obvious then. It's less than doing an addition of ABK 2022 revenue. So a decline is the not so obvious info.
I just found it funny you're here having a go at somebody for asking for other performance metrics too instead of stating the obvious ABK + MS revenue. You know, considering you don't like people stating the obvious in other certain occasions.
As for shareholders. I'm sure a lot of them would love more info but it's not like xbox is making a huge difference to a lot of MS shareholders anyway. so those who don't care couldn't care less about this revenue increase to the gaming division when you include ABK any more than they would the information the other user wanted. Other shareholders who want to get a better picture of performance metrics to make predictions and estimations of certain businesses within MS would love that info though. Lets not pretend they wouldn't.
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Stooky
Member
it’s like you standing on street corner cheering every billionaire driving their Bentley. we know microsoft bought a company that makes money. xbox is acting like they woke up one morning and found 30billion game franchise under their pillow.
Obviously ABK.
But it's pretty funny how non-reliant on hardware sales Xbox has become. Which is basically the ultimate goal of the Xbox division currently. You can buy a hardware, but it isn't absolutely neccesary.
Holiday 2014
Xbox hardware - 2,17 billion
Content and services - 1,35 billion
Holiday 2022
Xbox hardware - 1,37 billion
Content and services - 3,38 billion
ABK will only weigh more towards content and services.
It's even clear when you compare it with Sony. Just look at the last quarter
Sony
Hardware sales - 1,3 billion
Content and services - 2,83 billion
Xbox
Hardware sales - 595 million
Content and services - 2,89 billion
But it's pretty funny how non-reliant on hardware sales Xbox has become. Which is basically the ultimate goal of the Xbox division currently. You can buy a hardware, but it isn't absolutely neccesary.
Holiday 2014
Xbox hardware - 2,17 billion
Content and services - 1,35 billion
Holiday 2022
Xbox hardware - 1,37 billion
Content and services - 3,38 billion
ABK will only weigh more towards content and services.
It's even clear when you compare it with Sony. Just look at the last quarter
Sony
Hardware sales - 1,3 billion
Content and services - 2,83 billion
Xbox
Hardware sales - 595 million
Content and services - 2,89 billion
Duh?
In 2022 ABK had Modern Warfare 2 and Overwatch 2 in one quarter
This year they "only" have Modern Warfare 3.
So it will obviously be down YoY.
Shubh_C63
Member
Sure, that's somewhat obvious too, especially if you look at ABK forcasts instead. Was kind of my point though.
Some guy was complaining that in typical MS fashion they shared the obvious revenue addition from ABK but we don't have the not so obvious info that they've gone back to refusing to share, like subscription numbers or hardware figures. Somebody else was upset he pointed this out though and suggesting they should try becoming a CEO and sharing info with sharholders
.
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Considering fact that there was 0 question about gaming from investors during recent investors call after Microsoft closed biggest merger in tech industry, you can see how much they care about "subscription numbers and hardware figures."
They only care about "line going up," currently. And that line is going up almost constantly.
And only reason why people here wants to hear hardware figures is to have "who has bigger dick" contest with PlayStation.
There were gaming questions at the earnings call though. Kind of non-specific answers regarding it. As I said Xbox doesn't make a dent in MS' financials so they care as much about those as they do this "40%" information. As you said, line goes up they are happy. Others who do more detailed market analysis would certainly care though, even devs.
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Yeah. I mean. I would care like to have numbers too. But I have no doubts that dev can access infos like numbers of Game Pass subs or numbers of consoles sold. But it's all under NDA.
Sony doesn't have much of a choice since PlayStation is one of the main moneymakers of Sony, so it's obvious that investors would be asking for more info. But even Sony tries to hide stuff they don't want to show, like number of PS Plus subs.
I don't think this is shared even under NDA. It's obfuscated and they have to pay for trackers like NPD, GfK etc. There is even a famous example of Rockstar saying incorrect figures for subscribers.
Do you really think that if you as a dev are putting your game into Game Pass, Microsoft would not allow you to have information of how big of an audience will you have access to? I find it very strange if that was true. Same for console sales.
Like. I have no doubts that big publishers like EA/Take Two have updated info about console sales and subs numbers, but I fully expect that even indie devs can have access to those type of information.
Why in the world would you expect them to add Activision’s entire 2022 revenue when the forecast provided is only for the next quarter?
Have I…overestimated you?
“I’m sure shareholders would love to get more info but the revenue generated is small so they don’t care”
And all they need to do is ask, if they cared.
I think the lack of questions speak volumes.
As far as Shareholders are concerned, seeing the impact of Microsoft’s biggest ever investment is extremely relevant. And that’s what the CFO has provided.
Not really, why would you? The big publishers have their own estimated data and you would need to do your own due diligence unless that stat is something that could be a benefit to Sony/MS in a sales pitch in which case there would be no reason to hide it in reports too.
If the devs deciding if developing on your install base is financially viable isn't the reason and shareholders couldn't care what those numbers are either, who are you obfuscating it from? The console warrior?
BbMajor7th
Member
I mean, it's a forecast 
They might hit it, miss it, or exceed it. I'm not sure it's really news. Global exchange rates can change a company's fortunes from profit to loss all by themselves.
Most big tech companies fudged their forecasts after the pandemic bonanza and now most of have them been forced into aggressive cost-cutting to balance the books (even while they're making solid profits). We can all get our war on when the numbers come in - as many have pointed out, execs aren't going to tell shareholders shit's going down like a lead balloon, even if it might look that way.
They might hit it, miss it, or exceed it. I'm not sure it's really news. Global exchange rates can change a company's fortunes from profit to loss all by themselves.Most big tech companies fudged their forecasts after the pandemic bonanza and now most of have them been forced into aggressive cost-cutting to balance the books (even while they're making solid profits). We can all get our war on when the numbers come in - as many have pointed out, execs aren't going to tell shareholders shit's going down like a lead balloon, even if it might look that way.
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Ehh. Because when you are putting your game in Game Pass (for example), you need to know the subs number so you can estimate how big/small addressable market is outside of subscription.
Like. There is a big difference if you are putting your game in Game Pass when Game Pass had 5 million subs vs. when Game Pass has 25 million subs, because there is smaller market of potential buyers. Especially since on of the ways Microsoft is paying devs/publishers for Game Pass deals is cash upfront.
Fill in the blanks you pedant. When I say from "Activision 2022" I obviously mean to figure out their YoY increase in the quarter using last years figure.
I know it's difficult but there are those who do market analysis and make predictions on future market trends and there are those who invest in MS without any of that and don't give a shit about MS side hustles as long as the line is going up.“I’m sure shareholders would love to get more info but the revenue generated is small so they don’t care”
.
And all they need to do is ask, if they cared.
Most do not care about market analysis or that information but dismissing the small percentage that do care, who are asking for that info and suggesting that if they were CEO they would be just as secretive is counter to that and frankly asnine.
And what impact is this 40% revenue increase showing you regarding Microsoft's biggest investment?
As I said you could have got most of this from simply adding ABKs forcast for the quarter. The real insight into the impact you have no information about, and you seem happy to have no information about, going as far as to attack others who complain for that sort of information.
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How does it benefit MS to share that info so openly?
MS will try and pay as low a price as it can for the content. It's up to you to do your own due diligence regarding potential installbase for your game unless MS wanted to boast about the installbase to attract you to the service or hardware exclusively, and if that is so good why hide it in reports in the first place?
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No. That’s not how this works. ABK has different products this holiday season compared to the previous season. You’re not going to copy and paste 2022 data into a 2023 promise.
You really need me to point out to you that you’re not the target audience for that earnings forecast? That the CFO isn’t going to tailor their message for gaming forum enthusiasts?
Complaining about a message that was tailored for a specific audience, with the information that audience requires…
PeteBull
Member
Best to clarify it with that one hogwarts legacy/former dildo reviewer, just to make sure, leave such deep dive to the pr0s ;D
Copy paste 2022 data into a 2023 promise? Wtf are you talking about? I was talking about YoY growth of ABK + MS actually being a decline.
Do you need me to explain that I've already pointed out the audience cares just as little about this fairly obvious message as they do the real insightful information? That those who actually do care about what the gaming division is doing and want the real insight have that information completely obfuscated and you're jumping at them for complaining about the lack of info.
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King Dazzar
Member
If this growth continually doesn't come from the console hardware. Does this not mean the Xbox focus becomes less and less focused on the console itself. And more focused on cloud, mobile, PC and GamePass as a service everywhere. If so, does that not mean a change in strategy on big AAA titles and what the classic gamer of today expects the Xbox experience to be?
As an XSX owner, I'm an old school buy and build library kind of gamer. And the lack of a Pro coming and the decline in the brands hardware growth, gives me concern for the future. In short growth is good, but if its growth pushes focus further away from the console itself. Is that really a good thing? I'm sure many here will embrace the Xbox move to cloud and away from console, but for me it just makes me want to invest less in the eco system. Demo stuff and rent every now and then, but try to reduce my spend on anything permanent within it.
As an XSX owner, I'm an old school buy and build library kind of gamer. And the lack of a Pro coming and the decline in the brands hardware growth, gives me concern for the future. In short growth is good, but if its growth pushes focus further away from the console itself. Is that really a good thing? I'm sure many here will embrace the Xbox move to cloud and away from console, but for me it just makes me want to invest less in the eco system. Demo stuff and rent every now and then, but try to reduce my spend on anything permanent within it.
Mephisto40
Member
I think people need to start getting used to the idea that the Series S and the Series X are going to be the last xbox consoles produced
We heard this exact same spiel last gen when the Xbox One was floundering.
Nadella was heard saying he regrets giving up so easily on Windows phone. The console is still a significant basis for the GamePass numbers, still generates a ton of revenue from third party games royalties and generates significant subscription revenue from what used to be Xbox Live Gold. Not to mention it represents the fixed hardware that underpins any of their Cloud aspirations.
It’s not likely it’s going anywhere. And lacking console leadership doesn’t mean it doesn’t generate profit.
Mephisto40
Member
The problem is you have to be generating more profit than losses, something xbox hasn't done for years
As someone who’s interested in high-end console gaming I can’t get excited about a company who’s focus is low-end console hardware, mobile, cloud, PC.
I grew up with PlayStation and can’t see me switching platforms/ecosystems. It’s for that reason I hope & expect Microsoft will become a 3rd party publisher.
It won’t be an overnight switch. But it is inevitable. As a software company the goal is to sell your software and services to as many customers as possible.
And you know what. I’m sure the hardcore Xbox console crowd would be quite happy to play MS Studios titles on high-end PlayStation consoles over PC, Mobile, Cloud.
Xbox was built on console gamers wanting the best console experience. They aren’t numerous enough to support Microsoft’s growth strategy. But they’d be welcomed onto the PlayStation platform. Just as PlayStation gamers would welcome MS titles on their console.
Everyone’s a winner and we can move on from silly console wars.
I grew up with PlayStation and can’t see me switching platforms/ecosystems. It’s for that reason I hope & expect Microsoft will become a 3rd party publisher.
It won’t be an overnight switch. But it is inevitable. As a software company the goal is to sell your software and services to as many customers as possible.
And you know what. I’m sure the hardcore Xbox console crowd would be quite happy to play MS Studios titles on high-end PlayStation consoles over PC, Mobile, Cloud.
Xbox was built on console gamers wanting the best console experience. They aren’t numerous enough to support Microsoft’s growth strategy. But they’d be welcomed onto the PlayStation platform. Just as PlayStation gamers would welcome MS titles on their console.
Everyone’s a winner and we can move on from silly console wars.
Zathalus
Member
Well, except consumers.
adamsapple
Or is it just one of Phil's balls in my throat?
Consumers benefit when content, be that music, games, movies, TV are available on multiple platforms.
Zathalus
Member
They also don't benefit from less competition, nor do those who have heavily invested in the Xbox ecosystem benefit from loosing the entire library.
I'm all for having content availably on multiple platforms. let me know when Nintendo and Sony decide to release all the games on Xbox as well.
adamsapple
Or is it just one of Phil's balls in my throat?
Source? Because it looks like you’ve just made that up
LordBlodgett
Member
And you know this how?
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
This is a corporate businessman lie. Spending $70 Billion is still buying something for $70 Billion. It's not like acquiring ABK means the get to enjoy the spoils of the revenues, but it doesn't count as an expense on any level.
It doesn't truly work that way. BS accounting trickery may be confusing some of you guys.
Solidus_T
Member
Was the use of the word "Excel" intentional? Because that is the story of Excel itself too.Taking cred for other peoples work is what MS excels at.
