MS 2021 Q3 Results

[TechnicPuppet]

These supply constraints are a real pisser. If they somehow had managed to get more XSX made they would likely be still selling every one.

[beastmode10]

@TechnicPuppet

These supply constraints are a real pisser. If they somehow had managed to get more XSX made they would likely be still selling every one.

They might be making more, I suppose, but a substantial chunk of silicon supplies would be utilised for populating data centres with Series X blades too.

[Zappy5]

The numbers for gaming all round are just absolutely crazy right now. Its an absolute boom period for all three console manufacturers and presumably all major publishers too.

Suspect that this will be a growth cycle generation - and the industry overall will expand. And I think the major driver of said growth will be gamepass and xcloud (and other analogous services).

[hanspampel]

@SuikerBrood

That is so good data. Thanks for sharing.

[LucasTaves]

@bcatwilly

Xbox Game Pass has become the real exclusive for the Xbox ecosystem at this point, driving record revenues for gaming even prior to when their 23 first party studios really start putting out the content. That is the most impressive thing in this in general and the reason to think that the ceiling for them is really high going forward when all of the content starts to flow in from first party too.

Yep. And the effect is both on consumer side and Ms side. Meaning any deal or game Ms makes is not gauged on it’s own but rather how it helped gp grow or keep some subscribers that would otherwise let the sub slip for a while.

Ms realizing that early on has led to the insane investments in content we’ve seen, but the good news is that with the growth rate increasing so fast we will also see the investments themselves growing too.

[ElPutoXD]

Xbox is the second fastest growing division of Microsoft

[TheRayTracer]

[No-1HoloLens-Fan]

@TheRayTracer

[GamepadX]

Xbox Hardware Revenue Blowout

[beastmode10]

@TheRayTracer

Super!

[Khalid117x]

@ElPutoXD

Xbox is the second fastest growing division of Microsoft

Oh wow, you are right. This is awesome to see. Very good for the future of Xbox!

[Branthrax]

Those numbers for Teams blew me away, I don’t know anyone that uses it, it’s all Slack.

[pg2g]

@Branthrax

Those numbers for Teams blew me away, I don’t know anyone that uses it, it’s all Slack.

Lota of corporate Office 365 subscriptions out there i guess. My company still uses Skype business but i gotta imagine they’ll roll over into teams.

[fanger]

With Xbox content and services revenue up 34% y/y this dispels the PlayStation fanboy narrative that gamepass is losing money. You can’t grow revenue if your losing money each quarter. Unfortunately Microsoft don’t break down their reports for each division with ebit and ebita.

[ElPutoXD]

@fanger

With Xbox content and services revenue up 34% y/y this dispels the PlayStation fanboy narrative that gamepass is losing money. You can’t grow revenue if your losing money each quarter. Unfortunately Microsoft don’t break down their reports for each division with ebit and ebita.

Phil Spencer said in Larry Hryb’s Podcast two months ago that Xbox was profitable. Microsoft doesn’t disclose the profit of their services, but they do disclose the profit of their three divisions and Xbox usually represents 33% of More Personal Computing’s revenue and that division is highly profitable.

Could Xbox not be profitable while the other products within that division are and are making up for Xbox’ losses? I guess, but it would be really complicated because Xbox is the second biggest segment within that division (only behind Windows) and there are services and products within MPC that are probably not profitable like Surface, Edge, Bing or Hololens.

[SuikerBrood]

@fanger

With Xbox content and services revenue up 34% y/y this dispels the PlayStation fanboy narrative that gamepass is losing money. You can’t grow revenue if your losing money each quarter. Unfortunately Microsoft don’t break down their reports for each division with ebit and ebita.

Revenue =/= profit.

You can 100% grow your revenue while losing money each quarter. And to be honest, I didn’t expect Microsoft to break even on Game Pass yet.

A) they aren’t investing enough B) the subscriber numbers are growing faster than they expected

Hope they don’t become complacent.

[Boosted_Gear]

@SuikerBrood

Revenue =/= profit.

You can 100% grow your revenue while losing money each quarter. And to be honest, I didn’t expect Microsoft to break even on Game Pass yet.

A) they aren’t investing enough B) the subscriber numbers are growing faster than they expected

Hope they don’t become complacent.

A is already not true, not in the light of all the deals they are making and the focus they have on Game Pass.

[LucasTaves]

@Boosted_Gear

A is already not true, not in the light of all the deals they are making and the focus they have on Game Pass.

Enough is relative. If they are investing say 1bi/year in those deals but they are already making over 2 you could say they are not investing enough.

I do think that GP and xbox right now is on let’s reinvest every money that we make into growing faster, but they need to be profitable as in make the money in the first place.

Like, they don’t need to make 7.5bi of profits to pay for bethesda now. But they must make enough money to support all their teams producing games and expandind, and still be in the blue so they can take that extra money and expand further

[Boosted_Gear]

@LucasTaves

Enough is relative. If they are investing say 1bi/year in those deals but they are already making over 2 you could say they are not investing enough.

I do think that GP and xbox right now is on let’s reinvest every money that we make into growing faster, but they need to be profitable as in make the money in the first place.

Like, they don’t need to make 7.5bi of profits to pay for bethesda now. But they must make enough money to support all their teams producing games and expandind, and still be in the blue so they can take that extra money and expand further

That is true, but I’m pretty sure they already are doing it, Nadella after all knows a thing or two about Netflix.

[Zip]

@pg2g

Lota of corporate Office 365 subscriptions out there i guess. My company still uses Skype business but i gotta imagine they’ll roll over into teams.

Can confirm. Our company used Slack up through last summer and then we moved over to Teams (with a bit of kicking heels… They’re very different). Still, at this point we’re using it quite heavily and enjoying it some. Still want them to do notifications differently like I could do keywords in Slack…

But it makes sense if you’re paying for office for 1000+ people for us to not use another tool that also costs about the same as office 365. I’m fully expecting us to cut Zoom once that contract is up as well. Why pay 2-3 times for stuff that is included in something that lets your people do spreadsheets and docs and email and presentations as well.