Yeah, due to certain leaders in power and the laissez faire attitude the likes of Zuckerberg have approached their platforms with, expertise and reality is now subjective.
N.b. that coronavirus has resulted in an gaming industry bump for every company basically - disentangling that effect from the aggregate results will be challenging.
138 billys in the bank. Woof.
It puts the Zenimax acquisition in perspective XD About 5.4% of what they currently have available lol
So basically MS recovers 7.5 billion in two months when counting just net income.
Yah, they have the ability to buy anyone who they want.
Game Pass and good results from first party software on Xbox and PC. You can see it also in the yearly revenue numbers from 2017 when Game Pass started and Xbox games arrived regularly on PC and Steam. It works.
Oh yes, the acquisitions will continueâŚ
BUY ALL OF THEM!
How Phil Spencer turned around this division is very similar to how Tom Kalinske turned around Sega.
And this is being done before the launch of their next-gen consoles. They are in prime position to explode this thing when the games from their acquisitions start landing.
Getting a strong vibes that Microsoft is about to go on another serious shopping spree.
Funny you mention Sega
Not an insider by any means, just a hopeful that Microsoft will bring Sega into the fold given their history and the symbiotic benefits that would result.
These 1st party sales bolstered by PC have been so important to the overall ecosystem. The reception of Xbox Studios on Steam has given Microsoft near 3rd party reach and thatâs before streaming kicks in. All parts of their ecosystem feed off each other. They donât have to be as precise in investments. A studio bolsters the attractiveness of their console and the attractiveness of the subscription service. As the subscription service grows, it bolsters the mindshare of their IPs and is helping traditional salesâŚwhich is creating a cycle. In other words, each studio investment has far more opportunities to pay off than in the traditional console model and ironically it makes their console more valuable.
FY2021Q1
Gaming revenue: 3090 million
Hardware revenue: ~275 million
Software revenue: ~2815 million
Also profits for the MPC division that Gaming is part of continue to rise
Impressive numbers!
The insane part about these results is that Xbox sales are super low because there are no more X being made and even S is constantly out of stock.
Which means they are reaching record profits for the division despite barely selling any consoles.
Phil is a freaking genius.
WOW, that was basically what I was talking about.
Phil took a division that basically had no profits and made its profits skyrocket in just the spam of 4 years. And he did that despite the overall revenue not increasing that much just on the shift to services (which are way more lucrative).
With the growth gamepass is having I can see the profits curve trending way up for a little while still.
Exactly, and the whole ecosystem benefits because 3rd parties also benefits from stronger sales and audiences.
The Xbox future is looking really bright. I canât begin to imagine how good of a generation this is going to be for us
Itâs Windows + Search + Surface + Gaming profits.
Hard to know the exact ratio of profits. We can only make guesses based on other companies in the same sector and their margins.
Xbox profits this quarter should be somewhere between 0.5 and 1 bn $
Sort of ridiculous how these amazing numbers are spun into doom for Xbox every single time. Especially when you look at MS top line figures and the company is going from strength to strength.
Obviously it wonât happen, but MS could if they chose buy the entire Playstation Brand, full kit and caboodle without blinking. This is often forgotten. Xbox is a part of why MS are hugely successful and in the league of Apple, Google etcâŚSony are nowhere near this and consequently PS is more or less propping them up. But if the console market declines, Sony are in big big trouble. Which is why they are so desperate to keep and grow their market share so that they can transition that into the new digital future - in a straight race Sony are doomed in this regard.
But there is no turning point on the other segments, while on Xbox we are seeing traction with Gamepass. Thatâs why I think most of that profit growth is driven by that.