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Microsoft Gaming Revenue Q2: Gaming (-9%), Hardware (-32%), Content and Services (-5%); Operating expenses increased driven by impairment charges
winjer
Member
MicroSlop is probably using Copilot to make their decisions at Xbox.
GOKUSSJ2
Neo Member
Calendar year (shipments)
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bitbydeath
Member
It's going to be a lot more difficult to get that over the line now with PC prices rising.
At the end of the day they're all just gamers who happen to enjoy gaming on a different platform
Adamsapple especially is a proper games fan
Ellis
Member
Adam isn't stupid. He doesn't limit himself to a single platform, even if he favours one over the other. Games first, platform second.At the end of the day they're all just gamers who happen to enjoy gaming on a different platform
Adamsapple especially is a proper games fan
Some people take this bullhsit a step too far by religiously refusing to buy alternative products. Cult mentality that I find incredibly weird.
CentralScrutinizer
Member
It's always about the games. I've always been a multiplatform console owner and it's the best way to be. I still have the most nostalgia for Nintendo, but that doesn't stop me from playing everywhere.
JohnnyFootball
GerAlt-Right. Ciriously.
Xbots still have their community that is convinced that Microsoft is winning gaming and Sony will fold.
Ellis
Member
Exactly. I ended up buying and selling on a couple of GameCubes within a few years just for a few RE games. I did the same with Xbox for Ninja Gaiden. I knew the machines would barely ever get used outside of those few games, but I was no way going ging to limit myself and miss out on them.
Bark
Member
I find it sus you are defending him so much.
Ellis
Member
I take the piss too, but I have a feeling he really doesn't give much of a fuck about the whole situation around Xbox as much as others think he does.
If he stopped defending Xbox around here people would feel lost and ask him to start back up. He can't if he wanted to lol
Bark
Member
Fucking making him sound like Batman. he is not the fanboy we need, but the one we deserve.
Ass of Can Whooping
Member
He only gives half a fuck hence why he only takes one testicle
Ellis
Member
I'm still on my first. Can't get two yet.
No it doesn't necessarily mean they are still losing money per series console.
Purely for example, say the series x being sold at $650 costs $500 to produce, and is sold to retailer at $600.
Each unit they sell generates $600 in revenue, but also increases their cost of goods by $500. There is still a profit of $100.
Basically by producing less units, they aren't spending as much making them,
Hyper_hyper
Member
It is even worse. Some still thinks they aren't go third party. Being this level obtuse delusional fandom is something else
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PeteBull
Member
There is a reason tons of ps4 owners(including myself, and im playstation fanatic from mid 90s) are asked/reminded to buy ps5 now and we refuse to do it
bighugeguns
Banned
Are you having a stroke?It is even worse. Some still thinks they aren't go third party. Being this level obtuse delusional fandom is something else
Hyper_hyper
Member
drian_vanden
Neo Member
I've arrived at the point I'm looking at that Xbox Q2 revenue, and ask myself how in the blue hell is Xbox still making 6bn in a single quarter.
When their hardware has allegedly tanked somewhere around 20-28M units, when GP subs stalled and their hardware kept dropping ever since Q422.
How is that even possible?
When their hardware has allegedly tanked somewhere around 20-28M units, when GP subs stalled and their hardware kept dropping ever since Q422.
How is that even possible?
Merline
Neo Member
This should also be a clear warning for Sony. Releasing games on competing platforms does not automatically mean earning more money. In fact, it risks the same thing that happened to Xbox: the devaluation of the core ecosystem.
If there is no longer a strong reason to buy a PlayStation, Sony does not just lose hardware sales. It undermines the 30% platform cut, which has always been the backbone of the business. Fewer consoles mean fewer active users, fewer third party sales, and ultimately less stable revenue.
Xbox is a warning sign. The attempt to save the brand with multiplatform releases hollowed out the console ecosystem. If Sony continues pushing PC ports, they risk the same fate.
Klayzer
Member
Not going to lie, I would miss his takes. I've grown accustomed to all users viewpoints, biased or not. The back and forth banter is the lifeblood of this place.
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OLED_Gamer
Member
I don't believe in limiting anywhere where possible. 9070xt, PS5 Pro and Switch 2 here- all are used equally.
Sony likely has numbers on who has both platforms with mandatory PS logins on console and PC. If they see people buying less on their consoles and more on PC, I could see them re-evaluating the PC port gig.
Hector Hall
Member
With COD weak performance it was clear their numbers would be affected. Also, FH5 has been a big hit on PS5, but most of its numbers were assigned to prior quarter.
We should from now on separate MS Gaming from Xbox. The first one will continue even when Xbox is dead, and the analysis of its numbers must be done differently.
Xbox is toasted. The hardware is always around 30% down year on year since 2022, it can barely be seen in retail, phisical games have disappeared, game sales are quite poor because install base and GP. and so on.
If we saw the income of Xbox, only Xbox (hardware, accesories, game sales a and royalties of third party, subscriptions) we would be terrified. I am pretty sure it's on the 8 billion ballpark at very best and assigning to it the PS5 sales of Playground and former Xbox only first party developers.
Then there's MS Gaming, with lots of income coming from Ips from other platforms, as Minecraft, COD, Diablo, King mobile games, Doom etc. Some of those Ips were owned by Xbox before the acquisitions, others not, but key concept is those Ips and revenue are not tied to Xbox and their relevance would totally dissappear would they depend on income on Xbox.
Xbox division is on a planned collapse. They didn't want to confront 30 or 40 million angry Xbox fans. But with a decrease rate of 30% yearly, it's games not exclusive anymore and offering a consolized PC able to run a good selection of backwards Xbox games, they will only have to face a small chunk come 2027 or 2028.
As for MS Gaming, it will with time adjust itself to a around 15 to 20 billion businesses centered on third party releases and some services platform as GP and XCloud and some small hardware revenue of their consolized PC (as Steam with the Deck). They will try to keep alive Games for Windows under the new Xbox PC name so keep having some platform holder revenue from PCs and Xbox diehards who buy Magnus and buy in Xbox PC store, but it's fortune will depend on the success of their third party games, and for that they need something other than Keeper, South of Midnight, Grounded 2, Outer Worlds 2 or Avowed. They need big games selling at least 5/6 million full price, and keep the relevance of the legacy ones as Minecraft, COD, Fallout or Diablo. They can't keep a 18-20 billion business with 75/80 games who sell peanuts and most people play on GP.
We should from now on separate MS Gaming from Xbox. The first one will continue even when Xbox is dead, and the analysis of its numbers must be done differently.
Xbox is toasted. The hardware is always around 30% down year on year since 2022, it can barely be seen in retail, phisical games have disappeared, game sales are quite poor because install base and GP. and so on.
If we saw the income of Xbox, only Xbox (hardware, accesories, game sales a and royalties of third party, subscriptions) we would be terrified. I am pretty sure it's on the 8 billion ballpark at very best and assigning to it the PS5 sales of Playground and former Xbox only first party developers.
Then there's MS Gaming, with lots of income coming from Ips from other platforms, as Minecraft, COD, Diablo, King mobile games, Doom etc. Some of those Ips were owned by Xbox before the acquisitions, others not, but key concept is those Ips and revenue are not tied to Xbox and their relevance would totally dissappear would they depend on income on Xbox.
Xbox division is on a planned collapse. They didn't want to confront 30 or 40 million angry Xbox fans. But with a decrease rate of 30% yearly, it's games not exclusive anymore and offering a consolized PC able to run a good selection of backwards Xbox games, they will only have to face a small chunk come 2027 or 2028.
As for MS Gaming, it will with time adjust itself to a around 15 to 20 billion businesses centered on third party releases and some services platform as GP and XCloud and some small hardware revenue of their consolized PC (as Steam with the Deck). They will try to keep alive Games for Windows under the new Xbox PC name so keep having some platform holder revenue from PCs and Xbox diehards who buy Magnus and buy in Xbox PC store, but it's fortune will depend on the success of their third party games, and for that they need something other than Keeper, South of Midnight, Grounded 2, Outer Worlds 2 or Avowed. They need big games selling at least 5/6 million full price, and keep the relevance of the legacy ones as Minecraft, COD, Fallout or Diablo. They can't keep a 18-20 billion business with 75/80 games who sell peanuts and most people play on GP.
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Physiognomonics
Member
The problem is you can always spin the numbers to tell you the story you (the managers) want. When they won't be able to spin the numbers, it will be too late like it's too late for MS now. At least MS have trillions dollars in the bank to buy the biggest publishers and to deal with the losses. Sony don't have that. At some point they'll probably sell Playstation to either MS or a CCP backed chinese company. Like they already did with their TV brand.
The future of home gaming is Steam + Nintendo.
GHG
Member
yogaflame
Member
Looks like Sony learned there lesson. Exclusives is what entices customers to buy PS console whether they buy it or not. Only gaas we might see become multiplatform. MS wasted opportunity to take advantage with there very good 1st party games to make it exclusives. It results too, Xbox was not enticing to buy anymore.
OLED_Gamer
Member
Why would Sony sell one of their most important divisions?
MisterXDTV
Member
Valve doesn't even make games, Steam is just a store that sells them...
Keep dreaming
LOL
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pudel
Member
bighugeguns
Banned
The mind of a grizzled console warrior is a vast and frightening void.
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Baemono
Member
Sure
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It's incredible to see how their games reach almost always 90+ on MC
Emmy Ator Best
Member
Their few games are exclusive and well the fact that both Sony and Microsoft gave them their entire lineup means that now they don't need to try too hard
memoryman3
Member
And Microsoft loses money on your purchase. They would much rather you buy the game and subscribe to Game Pass on your preferred platform if you aren't going to use the Xbox as your main platform with their subscription.
As for the Xbox PC release, they actually have a reason to push sales of that device as it will be profitable from day 1. Helps that APU based devices are cheaper to produce so such a device would be competitive in pricing against similar profiles. The Xbox Ally beat their expectations.
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he probably has some epstein level dirt on nutella.
there is no other explanation, dude is setting record after record at failing.
memoryman3
Member
This slump in revenue can basically be attributed to the Call of Duty development team not delivering with Black Ops 6, which had consequences for Black Ops 7 sales.
I wouldn't pin it on Phil Spencer or the high ranking execs….yet.
I wouldn't pin it on Phil Spencer or the high ranking execs….yet.
JohnnyFootball
GerAlt-Right. Ciriously.
Most Sony games are NOT on the PC. If they start putting PS3 and PS4 games out on PC then you can make that claim. Most of thir 1st party PS5 games are on PC.
I am still waiting for Ghost of Yotei, but with there recent shift in strategy, I have no clue when that will come to PC.
As of right now, the only Xbox exclusive games that i can think of that aren't on PC are Gears 2, 3 and Judgment.
memoryman3
Member
It's the same for Microsoft. You will likely never see Fable 1,2,3 or the older niche games like Powerstar Golf on PS5.
Sony has set their third party strategy up so that virtually all of their new games aside from select blockbusters go to Steam and Epic on day 1.
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Baemono
Member
LordCBH
Member
LordCBH
Member
Bruh they just released a new half life game a few years ago and are doing invite only tests of a new online game NOW lol.