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Microsoft Gaming Revenue Q2: Gaming (-9%), Hardware (-32%), Content and Services (-5%); Operating expenses increased driven by impairment charges

lol so they ported everything to PS5, saw a 30% decline in hardware, and still managed to sell fewer games. Had Phil done nothing, they wouldve probably posted better numbers.

What a joke Phil Spencer has become. Every decision he's made has blown up in his face. A true jackass. One of the worst executives of all time, if not the worst. Literally ran Xbox to the ground.
I tried to say it at the time. Going 3rd party is not some saving grace people think it is. Being a healthy platform is much much safer right now than being a big 3rd party publisher. Let them take the risk of selling\making games and you just take in 30% of whatever sales.
 
lol so they ported everything to PS5, saw a 30% decline in hardware, and still managed to sell fewer games. Had Phil done nothing, they wouldve probably posted better numbers.

What a joke Phil Spencer has become. Every decision he's made has blown up in his face. A true jackass. One of the worst executives of all time, if not the worst. Literally ran Xbox to the ground.
Would have been vastly worse, they needed to port en masses to justify the gaming divisions existence.

These ports are what keeps the lights on now for the MS Gaming division.
 
What do they mean Operating Income is down -3%? I thought MS didn't give out profit numbers for gaming.
That's for the "More Personal Computing" division which also includes Windows OEM, search and news advertising sales, which are profit centers. Microsoft never give specifics for gaming seperately.
 
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Can somebody tell me how Double Fine can withstand this beating Xbox is taking? I wish MS would just sell them off to somebody.
We all knew they gonna get closed after launch of their next title we saw few days ago on xbox dev direct:
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With all due respect, there is a diference between 'let's give up because it's not working' and 'lets try to burn this market first and emerge as the savior and, ops it did not work'.
That ⬆️, that… also he was the person that led their Game Studios for eons… the moment people point to as when they remember XGS starting to become worse and worse basically coincides with Spencer taking charge and making decisions…
 
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also impressive they are able to tank %30 every year, while selling nothing already.
you'd assume there must be an end to the death spiral.
they'll start buying people's consoles back at this rate
 
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How does it comes that MS name the revenues of their cloud services only in combination with other services?
Aren't the cloud services the huge success they want their share holders to believe?
Maybe because Copilot (web) is still stuck at 1% market share?


And the Xbox is dead..
Yes they've never stated exactly what's going on with Azure, only ever percentage growth bullshit. Apparently it's actually quite small in comparison to AWS. And constant problems with stability. Just a joke.
 
Microsoft needs to start promoting its stuff in actual gaming and platform-focused shows, their own marketing is just not viewed enough.

They also need to start inking deals with Sony and Nintendo for timed exclusivity of DLC or even entire games.

A big part of why EA ate their lunch this year is they took over Sony's deal with COD and switched it over to BF6. Ending that deal was a spectacular failure on that retard Spencer's part (he even went up on stage and tried to cast shade on dealings that made COD big to the point where he wanted to take it over).

Right now Microsoft Gaming is composed of a limping, almost dead platform business and a 3P publishing play that's working with one hand behind its back. Either that changes or the firings will continue until morale improves.
The firings still would happen even if Xbox was operating in the green 🤭. They need to fire around 8k people regardless.

What keeps Xbox around now is the idea of implementing AI AND deliver at the expectations (ain't gonna happen)

Xbox is headed to... "Puff" out of reality.
 
I'll say it took a VERY long time for Xbox to fail like this. If it were Playstation or Nintendo with this history, everyone would say it was a "crime against humanity" to let them buy Bethesda and Activision (referring to Halo "Monkey" Craig and the "12TF" crap that can't beat the PS5's 10TF).

The internet and consumers were VERY patient with Phil Spencer; perhaps because they thought he was "the poor, good guy in the gaming world" and Xbox the underdog.

The best example of Phil Spencer and his subordinates' true competence is seen with Halo Infinite and the "12TF full RDNA2" Xbox.

They don't know how to build hardware, celebrating for a whole year with "fixed clock speed," "full RDNA2," "sustainable performance," and clearly they DIDN'T know what they were talking about.

In the software department, we had the Halo "Craig" Infinite fiasco... the Xbox box even had Master Chief on it... That's the biggest fiasco in console history.

I'm amazed at how complacent people are, and many are perhaps bought off, by the Xbox.

Every week there was an "article" saying that Nintendo would go bankrupt and become a third-party developer because of the Wii U.
Even today we have the "arrogant Sony" because of the PS3, and it's been almost 20 years since that happened.

That clown Phil Spencer messed everything up with the Xbox Series X and the games, and people were like, "Oh, it's a good idea for them to buy Bethesda and Activision." Phil Spencer NEVER knew how to make games or hardware, and when they got it right, it was by copying Sony (the Xbox One X is much more similar to the PS4 than the Xbox One) or pure luck.
 
lol so they ported everything to PS5, saw a 30% decline in hardware, and still managed to sell fewer games. Had Phil done nothing, they wouldve probably posted better numbers.

What a joke Phil Spencer has become. Every decision he's made has blown up in his face. A true jackass. One of the worst executives of all time, if not the worst. Literally ran Xbox to the ground.
So you think they would've done better if they had continued the path from Xbox One gen?

I think they would've closed down completely.

Every single thing they've done the last 8 years or so is a reaction to their platform's rapidly shrinking popularity. Phil took over to turn things around. And he kinda did for awhile but it clearly hasn't worked out and now they're trying to survive with a software focus.
 
  • What happened: They "wrote down" the value. For example, if they bought a gaming studio for $2 billion but now realize it's only worth $1.5 billion, they must record that $500 million difference as an expense.
  • Investor Takeaway: This is "Non-Cash Spend." No money actually left the bank account this quarter, but it signals that a previous investment in Gaming isn't paying off as expected.
Makes sense after the last COD...
 
Reading this and it doesn't seem unexpected.

Hardware cratered, as expected. At this point, only xbox die hards moving from the Xbox One are buying the Series consoles. The PS5 is the more sensible buy.

This year's COD sold MUCH worse than 2024 COD that actually sold well. Which would explain the commentary about weaker first party revenue.

They also had Indiana Jones launch holiday 2024.

Outer Worlds 2 seems to have been a dud.
 
Wasn't he the only one who convinced Nadella to invest in the Xbox division instead to sell it?

We all know that no one would buy the Xbox division and only the IPs and a few studios.

I mean, he still fucked up, but the Xbox division was already 6ft under because of Don Mattrick and the One.
thats what he wants you to believe. X1 sold very well the first few years. You can see it outselling the PS4 in several november and decembers in the early years. it all started to go haywire when he cancelled Fable, Scalebound and the Coalition new IP, started porting everything to PC, introduced Gamepass, went all in on jerking off to GaaS at a time Sony and Nintendo were releasing big SP games like Horizon and Zelda. People just slowly tuned out.

Satya gave him a hundred billion to buy new studios and entire publishers. Dont believe people who say Satya didnt believe in gaming.
 
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