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[dotnotbot]

The way Phil explained in court to the FTC lawyers was that MS wasn't "spending" $70 billion. They were exchanging cash for an asset that (in Microsoft's opinion) was worth more than $70 billion.

Yeah I know, but that logic really only works for companies having a lot of money laying around (money earned from other much profitable divisions of Microsoft, not Xbox) so not investing this money means making losses. Still, it's bending reality a bit cause they could've spent that money elsewhere.

 

[ShadowkillXNA]

Xbox ain't going anywhere, sorry guys

Your post was the 8th post in this thread and the very first that mentioned "xbox going anywhere".
What exactly are you trying to do here?
Besides disengenous trolling, shitposting and putting your persecution complex on full display?

 

[Tiago Rodrigues]

Way to dunk on all those people who claimed they were trying to dominate and monopolize gaming in the Activision purchase thread.

You don't need to have the best selling console to "dominate and monolopize gaming". If someone thinks that then their vision is short sighted and clearly need to leave their bubble more. In fact you don't even need to build consoles to dominate gaming.

The console market is actually quite small when you think about gaming as a business. MS now also have mobile games, already had cloud gaming, they also release games on PC, etc. They literally have one of the biggest games ever even without Activision: Minecraft. Now they have multiplatform COD. They also have King...one of the biggest mobile game makers.

 

[TheGodfather07]

Cool. Any growth in hardware Microsoft or do we just conveniently ignore that? What happened to the PR about being the best selling xbox? What happened to PR about outselling PS5 in the US for 3 quarters in a row? Now it's all about revenue and content and service growth after they just bought the biggest publisher in the industry. Well no fucking shit! Stating the obvious there. Classic Microsoft.

 

[Ozriel]

Cool. Any growth in hardware Microsoft or do we just conveniently ignore that? What happened to the PR about being the best selling xbox? What happened to PR about outselling PS5 in the US for 3 quarters in a row?

When you build your own megacorp, you can make a name for yourself by being the first CEO to consistently focus on the downsides to your shareholders.

You people never fail to crack me up.

Now it's all about revenue and content and service growth after they just bought the biggest publisher in the industry. Well no fucking shit! Stating the obvious there. Classic Microsoft.

Should they have under-predicted their anticipated next quarter revenue to their shareholders to please forum people?

 

[Negotiator101]

When you build your own megacorp, you can make a name for yourself by being the first CEO to consistently focus on the downsides to your shareholders.

You people never fail to crack me up.



Should they have under-predicted their anticipated next quarter revenue to their shareholders to please forum people?

It's the same on every Xbox thread, anything positive and it's downplayed into a negative

 

[Hudo]

That mus mean that Age of Mythology: Retold is releasing next quarter, then!

 

[adamsapple]

Cool. Any growth in hardware Microsoft or do we just conveniently ignore that? What happened to the PR about being the best selling xbox? What happened to PR about outselling PS5 in the US for 3 quarters in a row? Now it's all about revenue and content and service growth after they just bought the biggest publisher in the industry. Well no fucking shit! Stating the obvious there. Classic Microsoft.

Yes, how dare they talk about revenue and content services growth in their

*checks note*

fiscal financial report ...

 

[StealthGoblin]

It's the same on every Xbox thread, anything positive and it's downplayed into a negative

Or they could be honest and talk about the positives and the negatives, so shareholders have the full picture.

 

[Kilau]

My local weather channel also forecasted clear weather today and look how that turned out.

Name checks out.

 

[Kagoshima_Luke]

You know what they say, if you can’t beat ‘em, buy ‘em.

 

[Jboemios]

But what are the profits? Xbox, what are you hiding?

 

[ChuckeRearmed]

ABK effect. ABK is crazy profitable.

 

[semiconscious]

'mid to high 40%'. translation?...

 

[thicc_girls_are_teh_best]

Phil will be getting 100% of my Call Of Duty money instead of 30%.

Same for millions of others.

Not mine .

Look...

look...

looook...

I thought the Xbox Partners showcase today was pretty good, okay? I'll give Good Guy Phil™ a clap for that.

Cool. Any growth in hardware Microsoft or do we just conveniently ignore that? What happened to the PR about being the best selling xbox? What happened to PR about outselling PS5 in the US for 3 quarters in a row? Now it's all about revenue and content and service growth after they just bought the biggest publisher in the industry. Well no fucking shit! Stating the obvious there. Classic Microsoft.

Same thing that always happens: when it's convenient to boast, they report it. When it makes them look bad, the metrics change. Other companies do it to some extent but Microsoft have mastered this art. They're very fluid with it.

 

[Ozriel]

Or they could be honest and talk about the positives and the negatives, so shareholders have the full picture.

Shareholders care about money. They’re forecasting plenty money coming in next quarter. Single biggest thing on the balance sheet. Why would they give equal prominence to (perhaps) a single digit hardware decline when there’s an upcoming massive hike in gaming revenue?

Not mine .

 

[Topher]

Phil will be getting 100% of my Call Of Duty money instead of 30%.

Same for millions of others.

 

[gokurho]

Would be nicer to compare MS+Activison Blizzard revenue from before to MS+Activision Blizzard revenue for this quarter. Activision and the rest of Xbox could both decline but because they're combined it would still be reported as growth lol.

Guess we're going to have to wait until the next fiscal year for the growth percentages to actually be worthwhile comparisons again.

Edit: Combined them myself. MS is forecasting decline here. (Edited again when I realised it was "mid to high 40" not 40%.)

Xbox Revenue (Quarter Ending Dec 31st 2022) - $4.76 Billion
Activision Revenue (Quarter Ending Dec 31st 2022) - $2.33 Billion
Combined Revenue (Quarter Ending Dec 31st 2022) - $7.09 Billion

Taking "mid to high 40" to mean anywhere from 44% to 49% then MS is expecting:

Combined Revenue forecast (Quarter Ending Dec 31st 2023) - $6.85 Billion ($4.76 billion +44%) (3.4% lower than Xbox+Acti 2022)
Combined Revenue forecast (Quarter Ending Dec 31st 2023) - $7.09 Billion ($4.76 billion +49%) (flat compared to Xbox+Acti 2022)

So basically they are forecasting a small decline here.

You don't know Internal Erasure .
ABK's sales to Xbox are deleted for accounting purposes.

 

[gokurho]

Xbox is huge and growing!

 

[Oddvintagechap]

No shit it's gonna "grow", they spent 70 billion

wrong. it’s the…

The Starfield and Game Pass effect.

 

[StealthGoblin]

Shareholders care about money. They’re forecasting plenty money coming in next quarter. Single biggest thing on the balance sheet. Why would they give equal prominence to (perhaps) a single digit hardware decline when there’s an upcoming massive hike in gaming revenue?

If they are making a loss then I assume a shareholder wants to know. It doesn't have to be equal billing if the outlook is positive, but I think a full picture should be given. That goes for any company.

 

[Red5]

Shhhh, no sensible analysis allowed.

Only positive spin.

Whichever way you spin it, MS scored one of the largest gaming IP's from COD to WOW and is definitely going to make a lot of money, only negative would be if COD and other IPs just stop selling.

 

[ReBurn]

Or they could be honest and talk about the positives and the negatives, so shareholders have the full picture.

They do. That's how we knew that MS senior executives missed their performance targets.

They just don't talk about the negatives that get made up and gesticulated over by people who want to convince everyone that the positives are actually negatives.

 

[Edmund]

Phil will be getting 100% of my Call Of Duty money instead of 30%.

Same for millions of others.

You're weird.

 

[SHA]

What happens after every xbox user bought every worthy game on store sales?

 

[Nubulax]

Shareholders care about money. They’re forecasting plenty money coming in next quarter. Single biggest thing on the balance sheet. Why would they give equal prominence to (perhaps) a single digit hardware decline when there’s an upcoming massive hike in gaming revenue?

The massive spike in gaming revenue due to.... * checks notes* spending 70 BILLION cash on hand into the xbox division instead of AI and CLOUD

 

[StealthGoblin]

They do. That's how we knew that MS senior executives missed their performance targets.

They just don't talk about the negatives that get made up and gesticulated over by people who want to convince everyone that the positives are actually negatives.

Or, they could provide all the facts. Which isn't an unreasonable thing to do. It's baffling that we don't have subscriber numbers, how much profit or loss, how many subs gained in September etc. That's basic stuff.

All companies should provide that granularity.

 

[Ozriel]

The massive spike in gaming revenue due to.... * checks notes* spending 70 BILLION cash on hand into the xbox division instead of AI and CLOUD

Lmao, do you people not follow anything about tech at all?

They’ve heavily invested in AI and Cloud. Azure is one of Nadella’s Crown Jewels, and they’ve been putting in billions into OpenAI.

Investments are meant to drive revenue and profit. The activation deal does both.

If they are making a loss then I assume a shareholder wants to know. It doesn't have to be equal billing if the outlook is positive, but I think a full picture should be given. That goes for any company.

They just signaled a significant rise in revenue and - correspondingly - profit.
Why would they be making a loss?

 

[T-0800]

Wow this must be from all the Redfall sales.

 

[Null Persp]

Yeah they own CoD and King now

 

[Mattyp]

Not really... Unless this industry is unlike every other industry on the planet MS will pay Sony to market their product. It's an advertising expense.
Sony will take a certain percentage discount on every unit they sell as a coop advertising discount, is how it works in the real world.

What? That’s not how it works at all, MS/ACTI do not pay Sony for the advertising.

CoD moves consoles, it makes absolute bank for consoles just in percentage share of digital sales and cosmetics.

Both Sony & Microsoft have been in bidding wars constantly to win the advertising rights, Sony won the last decade and it ends next year. Microsoft will not be renewing that contract as its massive for each console to have, it’s in part why the 360 did so well. Microsoft even offered to extend the deal to get the merger signed Sony refused thinking it wouldn’t go through.

 

[lh032]

Nadella and Phil is sweating now

 

[devilNprada]

What? That’s not how it works at all, MS/ACTI do not pay Sony for the advertising.

CoD moves consoles, it makes absolute bank for consoles just in percentage share of digital sales and cosmetics.

Both Sony & Microsoft have been in bidding wars constantly to win the advertising rights, Sony won the last decade and it ends next year. Microsoft will not be renewing that contract as its massive for each console to have, it’s in part why the 360 did so well. Microsoft even offered to extend the deal to get the merger signed Sony refused thinking it wouldn’t go through.

You sure about that?
If you say coop ad discounts don't exist in the video game industry when they do in every other industry on the planet, I will have to take your word for it.. but I am a CFO and have been corporate controller in several MFG industries and I am telling you.. I think you're wrong.

When you see COD on the Best Buy mailer best buy takes a coop discount for that. That's what is in the contract.

 

[Ozzy Onya A2Z]

The massive spike in gaming revenue due to.... * checks notes* spending 70 BILLION cash on hand into the xbox division instead of AI and CLOUD

GAF is so misinformed it's annoying.

MS just announced $5Billion investment in specifically AI and Cloud for just Australia alone.

Microsoft will invest A$5 billion in expanding its hyperscale cloud computing and AI infrastructure in Australia over the next two years – the single largest investment in its forty-year history in the country. This investment will also grow Microsoft’s local datacentre footprint from 20 sites to a total of 29 spread across Canberra, Melbourne and Sydney.

 

[Schmendrick]

Almost as if they`d recently had a big acquisition or sth.....

 

[havoc00]

After integration with ATVI, Xbox actually owns the rights to at least 17 separate video game franchises that have made $1 billion in lifetime revenue.​

Xbox owns at least 17 video game franchises with $1 billion lifetime revenue

After integration with ATVI, Xbox actually owns the rights to at least 17 separate video game franchises that have made $1 billion in lifetime revenue.

www.tweaktown.com

 

[LordBlodgett]

Revenue is up everywhere. It's called inflation. Profits don't equal revenue. Margin is more important. This is damage control from their news yesterday and that clown tweeter is a defense for MS.

If year 1 I sell a hamburger for $1 and year 2 I sell a hamburger for $2, thats me doubling my revenue. But if year 1 that hamburger cost me $0.50 to make and now it's $1.50 to make? I've made nothing extra.

Damage control for what? Their stock is popping, and as a shareholder I'm a happy man. Growth is good, and Microsoft is growing.

 

[Ansphn]

Microsoft out here buying revenue

 

[Goalus]

The way Phil explained in court to the FTC lawyers was that MS wasn't "spending" $70 billion. They were exchanging cash for an asset that (in Microsoft's opinion) was worth more than $70 billion.

That's what happened, yes.

 

[Torrent of Pork]

 

[Mattyp]

You sure about that?
If you say coop ad discounts don't exist in the video game industry when they do in every other industry on the planet, I will have to take your word for it.. but I am a CFO and have been corporate controller in several MFG industries and I am telling you.. I think you're wrong.

When you see COD on the Best Buy mailer best buy takes a coop discount for that. That's what is in the contract.

You don’t need to take my word google it, Microsoft bid the advertising rights away for 360 and Sony won them back for the PS4.

PlayStation's Call Of Duty Deal With Activision Ends In 2024, Microsoft President Says - GameSpot

There’s a reason you see CoD bundles exclusively on one platform each generation with call of duty slapped all over the packaging. Sony pay them for that right, not the other way round.

Why would Activision limit themselves to one console for advertising if they’re the ones paying?

 

[Deerock71]

Ye'ah go on? Let's see h'ow we'll you'r commen't age's?

FTFY

 

[devilNprada]

"The fee that PlayStation pays to Activision for this, and other terms, is unknown."

This is what I am saying .. so laugh all you want. I am trying to tell you how it works.
Everyone keeps saying Sony pays this and that but don't really know and simply cite some internet article.

 

[Jboemios]

"The fee that PlayStation pays to Activision for this, and other terms, is unknown."

This is what I am saying .. so laugh all you want. I am trying to tell you how it works.
Everyone keeps saying Sony pays this and that but don't really know and simply cite some internet article.

You said that Activision paid to Sony for COD Marketing. Mattyp told you is the other way. He is right, you are wrong.

 

[devilNprada]

You said that Activision paid to Sony for COD Marketing. Mattyp told you is the other way. He is right, you are wrong.

fair enough I can accept that..

 

[supernova8]

Would be nicer to compare MS+Activison Blizzard revenue from before to MS+Activision Blizzard revenue for this quarter. Activision and the rest of Xbox could both decline but because they're combined it would still be reported as growth lol.

Guess we're going to have to wait until the next fiscal year for the growth percentages to actually be worthwhile comparisons again.

Edit: Combined them myself. MS is forecasting decline here. (Edited again when I realised it was "mid to high 40" not 40%.)

Xbox Revenue (Quarter Ending Dec 31st 2022) - $4.76 Billion
Activision Revenue (Quarter Ending Dec 31st 2022) - $2.33 Billion
Combined Revenue (Quarter Ending Dec 31st 2022) - $7.09 Billion

Taking "mid to high 40" to mean anywhere from 44% to 49% then MS is expecting:

Combined Revenue forecast (Quarter Ending Dec 31st 2023) - $6.85 Billion ($4.76 billion +44%) (3.4% lower than Xbox+Acti 2022)
Combined Revenue forecast (Quarter Ending Dec 31st 2023) - $7.09 Billion ($4.76 billion +49%) (flat compared to Xbox+Acti 2022)

So basically they are forecasting a small decline here.

Yeah there we go. Exactly what I wanted (but couldn't be bothered) to do

 

[LordOcidax]

Some Gafers really want to watch Xbox burn

 

[3liteDragon]

Activision Blizzard is first party Xbox now, so it’s all their work now.

Try to keep up.

 

[Taur007]

Xbox the console or...?

Yes, you know what he meant, next gen cloud hybrid already in the works

 

[Three]

When you build your own megacorp, you can make a name for yourself by being the first CEO to consistently focus on the downsides to your shareholders.

You people never fail to crack me up.



Should they have under-predicted their anticipated next quarter revenue to their shareholders to please forum people?

For somebody so against "stating the obvious" in other threads you sure like going after people for mentioning that buying a major publisher resulting in more revenue is only stating the obvious.

Actual shareholders could do with more info regarding performance, like how many consoles you've sold, how many subs you have, what profit are you making , etc. Not the obvious "we bought ABK, our revenue will be up 40%!"