Microsoft FY16 Q1: Xbox HW rev down 17%, live rev up 17%, XBL MAU users up 28% to 39M

Is it though? Almost everyone I know used their 360 as a Netflix machine in addition to games, maybe even more often than for games. MS was on track with owning the living room, at least in NA, making money from Gold subscriptions, games, ads and everything else in the ecosystem. But they blew it pushing this idea past well its breaking point (HDMI in, Input One, TV TV TV, NFL NFL NFL, the next water cooler) and created a console almost no one wanted.

Yeah, the "living room doesn't matter" myth doesn't make sense, Netflix disclosed that the PS3 was the most used device for Netflix, even higher than PC & iOS.
 
The trouble is if they do post the xb1 shipping numbers somebody will point out they're not as good as the PS4

The talk will be doom and gloom and selling off the xbox division...but by not posting the numbers it's led to the same discussion...
Dammed if you do, dammed if you don't. ..
 
The trouble is if they do post the xb1 shipping numbers somebody will point out they're not as good as the PS4

The talk will be doom and gloom and selling off the xbox division...but by not posting the numbers it's led to the same discussion...
Dammed if you do, dammed if you don't. ..
The trouble? Why should MS care what a few people on the internet think about the health of the Xbox brand?

It is pretty simple from my point of view. If the numbers were good, they would mention them. They didn't so...
 
What the hell? We didn't get any shipment numbers at all?! Just revenue? Makes me wonder if 360 shipments were so low that Microsoft didn't want to publish relatively low shipment numbers of the XB1, which would form a vast majority of the XBox family shipments.
 
When post about how much money Microsoft is worth or how much they have start popping up, you know it's bad news for the Xbox brand.
 
Hm, i'm not so sure. Buying a console is a good way to lock someone into an ecosystem, which is what Microsoft wants to do more and more with the unification of all their various platforms.

That's the issue... Locking someone to their ecosystem on PC and mobile rather than having them go with the ecosystems of Valve et al on the PC side, and Apple and Google on the mobile side where online multiplayer is free and games are F2P.

Why would they do that? XB1 software sales are higher than Steam for most AAA games, and that's very early in the gen. So even if they somehow get as many users on W10 as Steam, they would still suffer decline in software sales.

Then again, W10 means lower overhead, so less software sales can still mean higher profit margins. BUT...they would basically surrender the living room to Sony, and I don't think they want to do that.

Well to be clear, MS is still going to make a box that can be plugged into a TV to play games. Even Apple and Google do that. It'd probably be more like those set top devices or a Steam Machine. Also don't limit to it to AAA games... After all, MS is making massive bank from Minecraft according to this very report and that is about as non-AAA as a game could get.
 
This is why the console wars stuff is so pointless. Games are Nintendo's core business. They're a big part of Sony's business but not their core. They're barely a pet project in Microsoft's business.

Yep , I work for a multinational group that owns some companies , the big ones are what the shareholders care, the small ones are kept just because some top guy or group like the business or even becuase the wife of our CEO likes it; by example we have an orchid greenhouse company that exports to the US but basically is a pet toy for our CEO's wife , the company hardly has earnings its only goal is not to have red numbers and they are fine.

MS videogame division is like our orchid business.
 
Is it though? Almost everyone I know used their 360 as a Netflix machine in addition to games, maybe even more often than for games. MS was on track with owning the living room, at least in NA, making money from Gold subscriptions, games, ads and everything else in the ecosystem. But they blew it pushing this idea past well its breaking point (HDMI in, Input One, TV TV TV, NFL NFL NFL, the next water cooler) and created a console almost no one wanted.

Almost no one?
 
X1 would be lucky to sell half what X360 sold, I see X1 hovering around 40m by the end of the gen.
They sell most of their consoles on NA and possibly won't even be the best selling console in the region, 40m is probably a good estimate if even that.
 
They won't win the war though....at least not this time...

Nah, the main goal IS making money.
The way to get there was by conquering the living room.
But if finally you see that you might not get there, that you constantly lose money instead and the old vision of an al-in-one entertainment monolith under the TV is eroding thanks to smart TVs, USB sticks, tablets, phones and whatever, and in the end your product is just wanted as a gaming console (something you did not want to be in the first place, no matter what your PR suddenly says) and you even have to change your plans of always online, kinect mandatorial and so on - what's the war's worth?

We're not just talking video games here. MS wants to own home computing. Sony isn't the competitor, not really. Apple and Samsung are. Sony is just getting in the way.

Xbox is a giant marketing product targeted at kids and young adults to get the name out there.
 
1. Microsoft is an extremely successful company no doubt but it's kind of funny that some posters think Microsoft consider xbox as a "rounding error" or "pet peeve". So pouring BILLIONS of dollars and losing money constitute these two ideas? Yea - OK. There's alot of effort that goes into gaming and that's being watched by Nadella if not by the investors.

2. I'm sure Sony will let their hardware numbers out next week to let everyone know how they're dominating WW. Comparisons will be awesome.

3. I think Microsoft are doing the right thing by buying up the Minecrafts, HAVOKs, etc. IMO - this fits Microsofts portfolio better and should be very lucrative for them. They should seek these types of acquisitions as their "revenue stream". Licensing pays.

Just some of my thoughts.
 
Why would they do that? XB1 software sales are higher than Steam for most AAA games, and that's very early in the gen. So even if they somehow get as many users on W10 as Steam, they would still suffer decline in software sales.

Then again, W10 means lower overhead, so less software sales can still mean higher profit margins. BUT...they would basically surrender the living room to Sony, and I don't think they want to do that.

Because that route doesn't mean spending millions or billions in R&D every 4-6 to years mostly.
 
No way, they're not going to abandon the Xbox brand name.

The next Xbox could look like an Alienware alpha however.

We don't know this though, or as someone mentioned move it into a service some way or another.

I don't think they will, but time will tell. This holiday will be crucial for them. Do they need to win it? No, but they need to perform well.
 
Steam Machine route can work. All they need to do is make a hardware spec for devs to target similar to Oculus Rift instead of whatever Valve is doing that clearly is going nowhere.
 
Because that route doesn't mean spending millions or billions in R&D every 4-6 to years mostly.

I already covered that, lower overhead doesn't mean it's ideal for MS as a company, they would be surrendering the living room, which was the main reason MS created the Xbox division in the first place.

Xbox is not going anywhere.
 
No way, they're not going to abandon the Xbox brand name.

The next Xbox could look like an Alienware alpha however.

I wasn't completely serious but the next Xbox is still a couple years off and by then the surface brand could be the stronger of the two. Xbox would live on as Xbox Live or something.

I could at least see them unifying it in some way.

I wouldn't be too mad if Xbox got merged with Surface, if it meant beefy Nvidia and Intel chips for the next console :O

even if that meant surface prizes. Those don't come cheap, even if they are masterpieces of compact design.
 
Xbox surface? Or surface xbox?

Xbox Surface - comes with an Xbox console and a Surface that is dockable/portable/"NX type thingie majigie" to the console. Can play the "basic" indies/arcade games when undocked. When docked, the two GPUs make use of SLI. :O :O :D
 
What are the chances of 20 million shipped this year?
It's definitely possible, but it may also fall slightly short of 20 million. We don't even have an estimation of the shipments for Q3 2015, so estimating the shipments for 2 quarters will be really hard. Right now, I'd say 19.5 million shipped by the end of the year, but I will change my predictions the closer we are to the end of the year.
 
I already covered that, lower overhead doesn't mean it's ideal for MS as a company, they would be surrendering the living room, which was the main reason MS created the Xbox division in the first place.

Xbox is not going anywhere.

They wouldn't though. What exactly does Microsoft lose by Sony selling an extra 40 to 50 Million boxes? Halo and Forza would sell just as well on PC. IF they can get numbers of Xbox live on C and Mobile up to where they have on the Xbox devices or above they still have that constant revenue stream. The only thing they'd be losing would be software royalties and I'm not sure that covers the investment if R&D plus opportunity costs...
 
1. Microsoft is an extremely successful company no doubt but it's kind of funny that some posters think Microsoft consider xbox as a "rounding error" or "pet peeve". So pouring BILLIONS of dollars and losing money constitute these two ideas? Yea - OK. There's alot of effort that goes into gaming and that's being watched by Nadella if not by the investors.

2. I'm sure Sony will let their hardware numbers out next week to let everyone know how they're dominating WW. Comparisons will be awesome.

3. I think Microsoft are doing the right thing by buying up the Minecrafts, HAVOKs, etc. IMO - this fits Microsofts portfolio better and should be very lucrative for them. They should seek these types of acquisitions as their "revenue stream". Licensing pays.

Just some of my thoughts.
Of course it's being watched. They're not one of the most successful companies in the world by losing money. If the next xbox regresses again, I'll bet they'll cut their losses. That said, it's a fact that xbox is just a tiny blip for their overall business.

It's also pointless to compare Sony and Nintendo financial calls and reports to Microsoft. Gaming is a core business for both, and they are small potatoes compared to MS as a whole. Sony/Nintendo are in the 20-30 billion market cap range. Microsoft is at 400 billion.
 
They wouldn't though. What exactly does Microsoft lose by Sony selling an extra 40 to 50 Million boxes? Halo and Forza would sell just as well on PC. IF they can get numbers of Xbox live on C and Mobile up to where they have on the Xbox devices or above they still have that constant revenue stream. The only thing they'd be losing would be software royalties and I'm not sure that covers the investment if R&D plus opportunity costs...

Software royalties are BY FAR the vast majority of revenue from the console business, it's not something you can call "it's the only thing they'd lose".

Even ignoring the revenue here, MS never entered the market only for revenue, the Xbox division is still in the red, they entered it specifically to prevent Sony from dominating the living room, and there are far more monetization options right now than there were in the PS2 days.
 
This is the whole FY report?

So no shipment numbers? Fuck you Microsoft, man up or at least combine them with those tablets or whatever is in this division.

Why are you so upset?

MS, like any corp, will fashion the data to suit them.
 
Microsoft wouldn't be abandoning the living room. You buy a Windows 10 PC with the Xbox UI SKU and plug it into your... TV!
 
Halo and Forza would sell just as well on PC.

Halo on PC would be gigantic, here's the thing though, MS doesn’t actually care about PC gaming so its not happening. Which is weird they keep talking constantly in all of their releases about how they are unifying their ecosystem.

Its like no you aren't. Stop saying it unless you have something to back that up.
 
Of course it's being watched. They're not one of the most successful companies in the world by losing money. If the next xbox regresses again, I'll bet they'll cut their losses. That said, it's a fact that xbox is just a tiny blip for their overall business.

It's also pointless to compare Sony and Nintendo financial calls and reports to Microsoft. Gaming is a core business for both, and they are small potatoes compared to MS as a whole. Sony/Nintendo are in the 20-30 billion market cap range. Microsoft is at 400 billion.

How is it pointless on GAF? We're comparing HW sales not the overall company. We do this every month in the NPD threads. Whether it's Microsoft's core business or not - they're in the game so they'll be compared (as they're also direct competitors with Sony/Nintendo).
 
Of course it's being watched. They're not one of the most successful companies in the world by losing money. If the next xbox regresses again, I'll bet they'll cut their losses. That said, it's a fact that xbox is just a tiny blip for their overall business.

It's also pointless to compare Sony and Nintendo financial calls and reports to Microsoft. Gaming is a core business for both, and they are small potatoes compared to MS as a whole. Sony/Nintendo are in the 20-30 billion market cap range. Microsoft is at 400 billion.

Wait what!?
 
I wouldn't be too mad if Xbox got merged with Surface, if it meant beefy Nvidia and Intel chips for the next console :O

Maybe you are young and didn't live through it, but that exactly what sunk the original Xbox. It's a receipt for an overpriced disaster.
 
NPD does both but it only releases a software top 10 to the public anymore. Numbers are only given by the companies anymore unless you have a leaker.
So NPD threads will be a little less fun now without XBO numbers, eh?
 
So NPD threads will be a little less fun now without XBO numbers, eh?

They may still give numbers if they have a huge holiday again but they only really announced things when they won bi this gen anyways. Sony usually doesn't announce numbers during NPD either just we won and announce global numbers at milestones or in their financials
 
So how will GAF get its numbers now? NPD does only software, right?

We will get US (NPD) hardware numbers, so no worries about that. However WW is out of the question now that MS stopped reporting XBO shipment numbers.
 
Halo on PC would be gigantic, here's the thing though, MS doesn’t actually care about PC gaming so its not happening. Which is weird they keep talking constantly in all of their releases about how they are unifying their ecosystem.

Its like no you aren't. Stop saying it unless you have something to back that up.

When was the last time a PC game outsold it's console counterpart? I keep hearing this but the numbers haven't borne it out.
 
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