Xbox quarterly revenue up 51%; Game Pass now has 18 million subscribers

[No-1HoloLens-Fan]

@Zappy5

Think its safe to say factually that the Xbox series launch was a huge success and has smashed through all expectations. MS forecasted a 40% bump in hardware yet it’s 86%. The numbers all round is just insane. Microsoft are absolutely killing it all round and Xbox is now central to all this. Exciting times. But they absolutely nailed the series launch. Still very hard to buy one. Thank god they didn’t rush Halo out the door because it would have made absolute no difference. Imagine the money they will make when HI releases?

I believe they should manage there supply keeping HI launch in mind.

HI can move millions of consoles. The demand could be same at launch of Halo Infinte as it was on launch of consoles.

[StevenPaniagua]

I was surprised initially how low that number eag but I then I started doing the math.

18 million subscribers and gamepass isn’t sold at a discount so they $120 each subscriber. And I’m going to just assume that the majority of those have Ultimate since I’m going to imagine few people have gamepass and not Xbox live Gold.

So really that’s 18 millions Ultimate subscribers and 82 million Gold subscribers.And at 3x the price of Gold, those 18 million subscribers bring as much revenue as 54 million Gold memberships.

Gold(after 18 years) - 82 million subscribers

Ultimate(4 years) - 54 million subscribers

If Ultimate keeps its 1 million subscribers a month increase it will match gold revenue by May

But this is one extreme end. If we assume the other extreme where every gamepass subscriber does not have Ultimate or Gold. Then that’s a 2x difference

Gold(after 18 years) - 100 million subscribers

Ultimate(4 years) - 36 million subscribers

And they will reach the same revenue of gold by September 2023, since in this senerio Gold only memberships wouldn’t be converted to Ultimate.

[Ruthwik_Rao]

@StevenPaniagua

I was surprised initially how low that number eag but I then I started doing the math.

18 million subscribers and gamepass isn’t sold at a discount so they $120 each subscriber. And I’m going to just assume that the majority of those have Ultimate since I’m going to imagine few people have gamepass and not Xbox live Gold.

So really that’s 18 millions Ultimate subscribers and 82 million Gold subscribers.And at 3x the price of Gold, those 18 million subscribers bring as much revenue as 54 million Gold memberships.

Gold(after 18 years) - 82 million subscribers

Ultimate(4 years) - 54 million subscribers

Interesting, but there’s zero chance that most of these subs are Ultimate. Your reasoning might work on the console side but remember, gamepass pc comes with live gold bundled in, so there’s no reason to get ultimate on pc right now outside perks and soon, Xcloud. Big important things that are part of ultimate on console like live gold and EA play, are included in the base game pass pc sub, although the EA play is still nowhere to be found. I’m sure they’d have a lot more subs than 18 mill if they didn’t fuck up the EA play launch… On launch day lol

[StevenPaniagua]

@Ruthwik_Rao

Interesting, but there’s zero chance that most of these subs are Ultimate. Your reasoning might work on the console side but remember, gamepass pc comes with live gold bundled in, so there’s no reason to get ultimate on pc outside perks and soon, Xcloud.

Your right and PC would bring $120 per subscriber (2x gold). Wish we would get the breakdown by platform.

I also don’t feel like MS is completely marketing xcloud on Gamepass Ultimate as hard as they could but that may be becuase they are still beta testing in certain countries?

[Ruthwik_Rao]

@StevenPaniagua

Your right and PC would bring $120 per subscriber (2x gold). Wish we would get the breakdown by platform.

I also don’t feel like MS is completely marketing xcloud on Gamepass Ultimate as hard as they could but that may be becuase they are still beta testing in certain countries?

Yeah I wish they showed platform discrepancies in subscriptions too, maybe they’ll do it once gamepass pc actually leaves beta and not just say it did.

And yeah I suspect the Xcloud marketing shall ramp up this year when they launch it on pc and iOS and smart tvs and shit. That’s where they need to spend a lot more resources convincing people of this new paradigm. Gamers already know of it for the most part and get the tech, but it’s those with just mobile phones or tvs who want to get in on gaming but not want to spend too much money on consoles or PCs.

[StevenPaniagua]

@Ruthwik_Rao

Yeah I wish they showed platform discrepancies in subscriptions too, maybe they’ll do it once gamepass pc actually leaves beta and not just say it did.

And yeah I suspect the Xcloud marketing shall ramp up this year when they launch it on pc and iOS and smart tvs and shit. That’s where they need to spend a lot more resources convincing people of this new paradigm. Gamers already know of it for the most part and get the tech, but it’s those with just mobile phones or tvs who want to get in on gaming but not want to spend too much money on consoles or PCs.

Which mobile is a whole other beast entirely. Then they will be playing with Netflix numbers.

[TeamAndromeda]

Awesome set of results.

[LifeForms]

Impressive.

There growth rate of game pass will grow as there first party start delivering, and there xcloud rollout increases to more devices + mindsare,

I think 60-75million subs is possible by 2023.

And to put things into perspective 60 million subs with an average $12/month spend

Is $720 million/month

Other companies will be hitting themselves for not doing the same strategy.

[LifeForms]

@StevenPaniagua

Which mobile is a whole other beast entirely. Then they will be playing with Netflix numbers.

I think if they really want to destroy they should do a ‘gamepass basic’ tier of $4.99/month for low income people, entitleling them to 40hrs gameplay/month.

[Zappy5]

I just want to know - where are all the posters who told us the Series launch was going to be a disaster and Xbox had messed it all up?

[BRiT]

@Zappy5

I just want to know - where are all the posters who told us the Series launch was going to be a disaster and Xbox had messed it all up?

They’re most likely account banned.

[Daniel]

@Zappy5

I just want to know - where are all the posters who told us the Series launch was going to be a disaster and Xbox had messed it all up?

Goes to show launch titles aren’t everything as all the consoles sold out and continue to be sold out. It’s why they were ok with delaying Halo for an entire year.

I think Game Pass will hit at least 25m by the end of the year.

[No-1HoloLens-Fan]

@StevenPaniagua

…ave gamepass and not Xbox live Gold. So really that’s 18 millions Ultimate subscribers and 82 million Gold subscribers.And at 3x the price of Gold, those 18 million subscribers bring as much revenue as 54 million Gold memberships. Gold(after 18 years) - 82 million subscribers Ultimate(4 years) - 54 million subscribers If Ultimate keeps its 1 million subscribers a month increase it will match gold revenue by May

But this is one extreme end. If we assume the other extreme where every gamepass subscriber does not have Ultimate or Gold. Then that’s a 2x difference Gold(after 18 years) - 100 million subscribers Ultimate(4 years) - 36 million subscribers And they will reach the same revenue of gold by September 2023, since in this senerio Gold only memberships wouldn’t be converted to Ultimate.

I believe 18 million includes the PC version and standalone Xbox version.

[Colbert]

@No-1HoloLens-Fan

I believe 18 million includes the PC version and standalone Xbox version.

All Game Pass versions which are GamePass console, GamePassPC and GamePass Ultimate.

[pg2g]

Just wanted to make clear that those Xbox Live numbers are not Gold, it is basically any user interacting with Xbox Live which would also include free tiers, mobile, stuff on other consoles, etc. Its a pretty useleas number.

To put it into perspective, Sony has sold over 100 million PS4 and only has 45ish million PS Plus subscribers. A similar attach ratio for Xbox One would mean it likely only has in the 25 million range.

[SheepDip]

@Zappy5

I just want to know - where are all the posters who told us the Series launch was going to be a disaster and Xbox had messed it all up?

Working on their future posts about how Microsoft will end up in the poorhouse unless they can sell copies of Elder Scrolls VI on PlayStation.

[MaulerX]

@pg2g

Just wanted to make clear that those Xbox Live numbers are not Gold, it is basically any user interacting with Xbox Live which would also include free tiers, mobile, stuff on other consoles, etc. Its a pretty useleas number.

To put it into perspective, Sony has sold over 100 million PS4 and only has 45ish million PS Plus subscribers. A similar attach ratio for Xbox One would mean it likely only has in the 25 million range.

I agree with the first paragraph but the second not so much. Believe it or not there are still many people still with 360s that are Gold subscribers taking advantage of those free monthly games. I know a few personally.