Microsoft quarterly results show Xbox revenue up, but hardware revenue down

[SuikerBrood]

@MasterChief

Why was January-March of this year so good? I don’t recall anything besides Hi fi rush.

We all know Age of Empires II on consoles sold hundred million copies.

[KakkaKarrotKake]

@AtticusFincher

Microsoft sees Xbox hardware as just another entry point into the ecosystem. The fix for the hardware revenue is simple; Force people to buy the hardware through old school console only exclusivity. Since that’s not their MO, the hardware is going to continue to slide because that forced “incentive” to buy a console isn’t there.

This

I have no doubt that Xbox hardware would/will do better with more consistent big titles/CoD on GP etc but people need to accept that when Xbox pushes more platforms like Steam/PC/cloud etc there is simply less incentive for people to buy an Xbox but revenue continuing to climb every year suggests they are doing something right

It’s also important to remember that the console market has been stagnant for decades and sell roughly the same amount every gen, so if Playstation and Nintendo are selling better than ever, that’s likely going to lead to less Xbox sales as there’s only a certain amount of consoles sold for each gen based on past trends

@MasterChief

Why was January-March of this year so good? I don’t recall anything besides Hi fi rush.

GP growth mostly I’d imagine, HI-Fi Rush, AoE2 and a bunch of big third parties in GP like Wo-Long, Atomic Heart etc

[euV2]

https://x.com/EconomyApp/status/1716911982547484752?s=20

Microsoft’s profit margins are crazy.

[Sparda3g]

A bit worth mentioning that Sony is struggling to deliver what seems to be overpromised goal and they’re the giant. It’s not to say console is dying, nothing like that, but when you have other form of entertainment, don’t be surprised they don’t move as fast or faster than you’re hoping.

[Kals_Els]

@euV2

https://x.com/EconomyApp/status/1716911982547484752?s=20

Microsoft’s profit margins are crazy.

[Staffy]

@Zappy5

It’s good for Microsoft. Great for their gaming bet.

It’s bad if you want MS to still care about their console and making it as strong and vibrant as possible on an ongoing basis and next gen.

Which I absolutely do. I really want a great new Xbox console when the next generation starts. As a huge Xbox fan I honestly couldn’t give a rats ass about all the options they offer to play their games anywhere but the console. Don’t get me wrong, the options are great for those looking for it, but for me personally I want the console to thrive. I will be a very sad panda if they were to quit with hardware.

So far they have been caring about bringing a great console with One X and XSX, and I hope they keep doing that, even though it does mean losses for them. Which is a shame.

[Zappy5]

@Andodalf

if they buy gamepass for a year, or two games, that’s a profit.

It’s not because gamepass or any service or game isn’t zero operating cost and for example a third party game MS would only get 30% cut at best.

You are potentially talking close to 1000 dollar spend on stuff to break even against hardware.

[Zappy5]

@MasterChief

So the numbers aren’t bad but the console numbers are and I just wish they would find a way to sell more consoles, that seems to bother some people here but some of you just have to accept and make peace with the fact that there are fans who want to see Xbox hardware doing better, it’s kind of a shame too because Series S/X should be doing better numbers than the Xbox One but it just hasn’t for a while now, I don’t know how they can get back to at least Xbox One numbers at this point though, I feel like they would need like 5 AAA high quality exclusives a year to get back to that.

People are going to learn the hard way that exclusives don’t really sell consoles……

[peter42O]

Great results overall and I do think that Microsoft should go back to the one console SKU approach for next generation. This generation, made more sense due to Covid and whatnot but there’s a lot of consumers and gamers that want the Series X but if they can’t find one, they automatically default to the PlayStation 5. While more options are always better, when it comes to consoles, I believe the opposite is simply better.

Nevertheless, looking at the profit, Microsoft will get back the $70B from acquiring ABK in less than a year. Shit is insane.

[nursegamer20]

Even in the future where Microsoft makes nearly double the profit that PlayStation does, people would still look at hardware and be like “ Xbox is in trouble, they would need to go third party to make up profits” lol. I think some people just wants everything on their PlayStation, that’s fine(selfish though) but they need to be honest lol.

Although I’m tired of hearing all this hardware talk, I can see the reason now why ARM has been considered for the next console. ARM is cheaper to manufacture but still have the same amount of gains X86 would get, while also being power efficient. I think we are heading in that direction, and that would answer people’s question/fear about the “uncertain” future of consoles.

@Zappy5

People are going to learn the hard way that exclusives don’t really sell consoles……

Yeah, it comes down to marketing and value of the product.

[TheLegendaryGamer]

I have not care about numbers that much anymore.

As long as Microsoft continue to offer me the best deal in gaming in terms of my money spent. I will be a happy gamer.

[Sparda3g]

https://x.com/tomwarren/status/1716940614833672255?s=46&t=O_AGT9SEnlptKOF_2SxtqQ

[howlingmosquito (mosquito)]

@nursegamer20

Even in the future where Microsoft makes nearly double the profit that PlayStation does, people would still look at hardware and be like “ Xbox is in trouble, they would need to go third party to make up profits” lol. I think some people just wants everything on their PlayStation, that’s fine(selfish though) but they need to be honest lol.

Truth

[Zappy5]

@nursegamer20

…Even in the future where Microsoft makes nearly double the profit that PlayStation does, people would still look at hardware and be like “ Xbox is in trouble, they would need to go third party to make up profits” lol. I think some people just wants everything on their PlayStation, that’s fine(selfish though) but they need to be honest lol. Although I’m tired of hearing all this hardware talk, I can see the reason now why ARM has been considered for the next console. ARM is cheaper to manufacture but still have the same amount of gains X86 would get, while also being power efficient. I think we are heading in that direction, and that would answer people’s question/fear about the “uncertain” future of consoles.

Yeah, it comes down to marketing and value of the product.

That and brand desirability.

[Sparda3g]

https://x.com/hazzadorgamin/status/1716940246041211197?s=46&t=O_AGT9SEnlptKOF_2SxtqQ

THE MAN

[Sparda3g]

https://x.com/benjisales/status/1716939528915894662?s=46&t=O_AGT9SEnlptKOF_2SxtqQ

Haters. You have one job. Tell everyone in the world to not buy MW3.

Good luck.

[Biggzy (Hassan)]

Even closing a $69 billion acquisition is not enough for investors to ask a single question about gaming. Amazing.

[howlingmosquito (mosquito)]

@Sparda3g

https://x.com/hazzadorgamin/status/1716940246041211197?s=46&t=O_AGT9SEnlptKOF_2SxtqQ

THE MAN

Feels surreal to see Call of Duty and First party together.

[Kals_Els]

@Biggzy

Even closing a $69 billion acquisition is not enough for investors to ask a single question about gaming. Amazing.

Microsoft:

Investors:

[nursegamer20]

@Biggzy

Even closing a $69 billion acquisition is not enough for investors to ask a single question about gaming. Amazing.

Consoles live another day lol