Xbox revenue was 12.4 Billion in 2020

[Biggzy (Hassan)]

@ElPutoXD

Nintendo has always been behind Xbox in terms of revenue, as a matter of fact. It’s only last year - 2020 - that Nintendo surpassed Xbox. I think Xbox is bound to surpass Nintendo again within the next 5 years or so.

You are totally right in what you say.

I don’t tend to follow Nintendo a lot so it just surprised me a little because the Switch has obviously been in the news a lot the past 2/3 years. I would also concur that Xbox will probably overtake them in terms of revenue considering I see more growth opportunities with Xbox than I do with Nintendo.

[Roronoa_Zoro90]

@Biggzy

…t on though.

That should be a very good indicator to people how big Tencent is when they are making far more money than Sony when it comes to gaming even though I thought PlayStation was the center of the gaming universe .

Microsoft and Nintendo are shockingly close despite the Switch being a sales monster and Nintendo dominating the game sales charts.

The traditional console makers are doing extremely well and echos Phil’s sentiments that Xbox does not have to destroy the competition to do well. There is an interesting observation though in that PlayStation has outsold the Xbox by more than 2:1 but it is not quite reflected in the revenue generated indicating that Phil’s current strategy is working in terms of expanding the customer base for XBox and there is plenty of room to grow.

Once Game Pass will surpass a certain threshold, MS will beat even Sony in revenue in 5-10 years, the revenue generation from these type of subscription is astronomical (double/triple of Gold/Plus per user), Sony is simply raking if the PS4 profits and mindshare, but that will not last forever.

Tencent has ties in mobile and dominates Asia and Netease, which is the second player over there, is not casually in top five before Apple, Google, Acti-Bliz or EA (which are the other ones of top 10).

The fact that MS has found a way to free itself from the old console only business is the real indicator that Sony and Nintendo business is really outdated nowadays and it is effective only because of brand awareness, in terms of real value offered is terrible (pay premium for our big games every 3-4 months and even the medium games cost like a kidney in black market, see Returnal or the full price 1:1 port of N).

[dehnus]

@Roronoa_Zoro90

…eration from these type of subscription is astronomical (double/triple of Gold/Plus per user), Sony is simply raking if the PS4 profits and mindshare, but that will not last forever. Tencent has ties in mobile and dominates Asia and Netease, which is the second player over there, is not casually in top five before Apple, Google, Acti-Bliz or EA (which are the other ones of top 10). The fact that MS has found a way to free itself from the old console only business is the real indicator that Sony and Nintendo business is really outdated nowadays and it is effective only because of brand awareness, in terms of real value offered is terrible (pay premium for our big games every 3-4 months and even the medium games cost like a kidney in black market, see Returnal or the full price 1:1 port of N).

Nintendo is not outdated, they simply have a different market. Namely: Toys. And they are not ashamed to admit that either. Were other console makers, like Sony, act like it’s a media branch (Which it is of course), Nintendo has no problem with an image of being a “for kids all ages!” brand. And that really helps them create new fans for life. Now price wise the Switch is a bit too expensive for my taste. I love the bugger, but not as much as the Wii U for some odd reason heh.

So I think once Nintendo creates a “Switch Pro” (Which the Hardcore people are begging for, for some reason ), they will also make sure the old Switch stays around and can go down in price. Nvidia certainly will have a product for them too replace the Tegra X1 they are now phasing out. If the performance is the same, but with a lower power draw they can also save money on batteries. A bit like a New 3DS, 3DS and 2DS kind of thing.

So I really don’t think their “outdated”, I think their market is just very different from what electronic gamers per majority think it is.

[Roronoa_Zoro90]

@dehnus

… being a “for kids all ages!” brand. And that really helps them create new fans for life. Now price wise the Switch is a bit too expensive for my taste. I love the bugger, but not as much as the Wii U for some odd reason heh. So I think once Nintendo creates a “Switch Pro” (Which the Hardcore people are begging for, for some reason ), they will also make sure the old Switch stays around and can go down in price. Nvidia certainly will have a product for them too replace the Tegra X1 they are now phasing out. If the performance is the same, but with a lower power draw they can also save money on batteries. A bit like a New 3DS, 3DS and 2DS kind of thing. So I really don’t think their “outdated”, I think their market is just very different from what electronic gamers per majority think it is.

I mean, online services worse than the OG Xbox and reselling literally the same games over and over again at full price are a little outdated practices, don’t you think? They leverage their brand awareness to the fullest, it is Sony’s wet dream to be able to sell literally thin air at full price as Nintendo does very often, but their brand games are not as powerful as Mario, Pokemon, Zelda, not even close, so they cannot (but they are trying hard, as we see with the TLOU remake story).

[dehnus]

@Roronoa_Zoro90

I mean, online services worse than the OG Xbox and reselling literally the same games over and over again at full price are a little outdated practices, don’t you think? They leverage their brand awareness to the fullest, it is Sony’s wet dream to be able to sell literally thin air at full price as Nintendo does very often, but their brand games are not as powerful as Mario, Pokemon, Zelda, not even close, so they cannot (but they are trying hard, as we see with the TLOU remake story).

OMG, that is absolutely true. The Wii U was so much better than the Switch at that, and even free. One of the reasons I had so much more fun with it was that I could just take my Wii U with me to my sister’s house or a friends house, plug it in the wall and play Mario Kart vs Online (or Splatoon). Were as with the Switch, I have to pay and I need a separate app and … sigh. it’s just a hassle! So I have to pay for less convenience. :(.

Although you can download some of their old libraries, that is nice, but I rather would have liked a Gamepass like subscription for that instead. Something I suggested (either here on Team Xbox), that I wouldn’t mind paying for Nintendo online if I could get all their old games. BUT: Not with a service that is worse than the Wii U’s and then Gamepass came and just blew it out of the water with day one releases :(.

I can understand that they do not wish for voice chat, considering their main market is “kids of all ages”, and abuse is really hard to fight on that. But that is no excuse for the return of “friend codes”, a separate app and far worse service than your previous console had for free.

[AllianceOfficer]

@Xplainin

Not sure what the total revenue was for Microsoft gaming across PC and console, but console alone was 12.4 Billion. Playstation still the big daddy. People thinking MS doesn’t want to increase their console sales are fooling.

Take a look at Playstation profitability though. They had a huge increase in revenue but have hardly increased profits.

[TLLDOB]

@ElPutoXD

It’s true. Xbox official figures were of a bit less than 12 billion for fiscal year 2020 - ending June 2020 - . Revenue for calendar year should be higher, so 12.4 sounds plausible. We know they made 5 billion only in Q4CY20.

). Not to mention NSO is a joke and excessively cheap compared to Gold and that Xbox has additional revenue streams like Steam and PC, where Nintendo doesn’t operate.

Xbox also has Minecraft which is a huge money maker on its own. And COD, Assassin’s Creed, etc. They get 30% of those games and they are huge. And those are not on Switch.

I think the 2019 Q4 spike was Fortnite right? I think now we’re starting to see strong secular growth for Xbox. They don’t need any Fortnites to be strong now.

[Biggzy (Hassan)]

@TLLDOB

I think the 2019 Q4 spike was Fortnite right? I think now we’re starting to see strong secular growth for Xbox. They don’t need any Fortnites to be strong now.

I believe you are right because I can remember MS specifically mentioning the game by name in one of their earnings calls.

I will mention again that Phil has turned the Xbox division into a healthy business for MS and that the investment is not being poured into a black hole, but a business that is seeing growth and from a good starting point.