Agreed, nowhere near as bad as one was expecting and when you’re making 18 billion in a quarter MS can ride the low point. Hopefully come June and more so September, the deal will be done and StarField will be selling million of systems
Hope that is real, but what got me hyped was SEGA saying in got Super games in development and how on Twitter Hideki Naganuma said he was back working with Ryuta Ueda
So let’s hope we all soon Understand the concept of love 
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The numbers are actually better then I was expecting in gaming. I was expecting the console sales to be a bit better but still significantly down(in the 20-25% range) but I was expecting overall gaming to be down 7 or 8%. Starting to see subscription flatten the curve when things aren’t going as well in the hardware side which is good for the long term.
Yes the console numbers suck and it’s what is going to get talked about but despite all that gaming is doing OK considering a lack of first party AAA games for the last 18 months. They do need to get that fixed because that will provide the biggest boost to console, software and subscription growth
Those numbers don’t include the surge after hours. They beat expectation across the board and had positive forecast numbers that were good enough to raise the share price $23(8.5%) which is massive(to put it into context, they added the equivelant of 1½ times Sony’s total value in a few hours).
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That’s the third biggest company in the world for you.
2nd again, they passed aramco who are valued at about 2.1 trillion
What does “a good chunk” even mean?
Maybe Jez should substantiate these claims with sources and hard numbers. I highly doubt that there are millions of Series X chips in xCloud server blades.
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Why? I suspect that is absolutely the case. I also suspect MS have chosen to limit production to an extent till they have big hitters to sell with but we don’t know for sure. But why would the cloud blade thing be at all surprising?
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Because you don’t need to install millions of xCloud server chips to support their customer base. Its also not like xCloud had massive problems with wait queues the last months. This only occasionally happened when Fortnite got on xCloud for free. And this was 1 year ago. Why are they allegedly still ramping up xCloud server capacity massively when its not needed?
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They are expanding their data centres round the world and upgrading existing ones with series X blades…are we really saying that won’t take up considerable production time because there is ‘no queue’ for the service?
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I didn’t say they are not expanding. Sure they do. But they are also not at the limits of capacity and they don’t need millions of Series X for that. That would mean they had massively increased some of their data centers and we have not a single word from Microsoft in their blog posts or earning calls to indicate any of that. Only Jez.
For me this just reads like fan fiction from Jez to address the shortage problem 
The shortage and its reason should be a good investigation for a journalist. I hope somebody does.
Personally I don’t know what they’d need numbers wise but given they say they are supply constrained and given there are reports a part of that is down to their server blade upgrade and expansion - I’m not convinced that is totally unbelieveable?
The numbers needed to make this real are whats unbelievable for me. The only data we have is: xCloud lifetime number of users (not monthly active, daily active or concurrently active), in a span of 6 months jumped from 10 million to 20 million thanks to Fortnite. You don’t need millions of server chips to support that demand.
But they aren’t building for demand now - they are building so they can scale…
I don’t know how many they need but I’m guessing its not trivial…
These are all just words, not data. I don’t know what to tell you.
Xbox were able to scale their server capacity to the demand from Fortnite in a couple of weeks last year.
So i highly doubt they need now 30% or what of their hardware numbers to scale up to some imaginary demand.
What demand? Series x? Absolutely a huge demand. And ms need to address it.
Zappy and me were discussing xcloud capacity and demand.
I think you’re missing that we’re talking about them replacing existing blades with series X ones and expanding their data centres…there is a difference between spinning up short term demand and the big infrastructure upgrade we are talking about.
I don’t know but how many server blades do they need per data centre? To have the capacity they are trying to hit - which is not the demand NOW but to make it future proof.
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Well MS wasted 1,5 years without any big game, big acquisition etc due to this deal, now they can just accept it and move on and continue to work on purchasing studios like back in 2018-2019, try to get some deals with third parties and show their guns or just keep going low profile while they appeal for this CMA blocking, which could take… years? i don’t really know.