spookyfish
Gold Member
"No no NO -- I mean +33 PERCENT margins!!"
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Hey Guest. Check out your NeoGAF Wrapped 2025 results here!
Microsoft Gaming Revenue Q2: Gaming (-9%), Hardware (-32%), Content and Services (-5%); Operating expenses increased driven by impairment charges
Topher
Identifies as young
It's all about AI. MS is behind the competition
DeepEnigma
Gold Member
Even Apple has a much more elegant and non-intrusive approach.
LordCBH
Member
I get harassed by copilot anytime I sign into a PC. At least when I tell apples ai to fuck off it leaves me alone.
DenchDeckard
Moderated wildly
"We are happy to announce that hardware sales are flat year on year, in a market where competitors are seeing small declines!"
MrTired
Member
The audacity.
They made a point to call out that their operating expenses increase this quarter thanks impairment charges. Revenue decreased but somehow they are more profitable?
Prior to the ABK deal Sony operating margins were double Xbox accordingly to Phil testimony. Why would anyone believe that would change significantly when we're getting the numbers we're getting.
LordCBH
Member
The audacity.
They made a point to call out that their operating expenses increase this quarter thanks impairment charges. Revenue decreased but somehow they are more profitable?
Prior to the ABK deal Sony operating margins were double Xbox accordingly to Phil testimony. Why would anyone believe that would change significantly when we're getting the numbers we're getting.
This is why Xbox has existed until today...
Xbox One was always sold for a lower price than PS4.
Game Pass "sold" for $1.
While they could do that, they managed to remain relevant. The moment they demanded a profit margin equal to or greater than Playstation, the house of cards collapsed.
It was always like that, everyone knew... But Xbox defenders and Phil came up with those delusional lies about "Game Pass increasing game sales."
Phil's rhetoric was that selling the Xbox One cheaper than the PS4 and Game Pass for $1 was sustainable and profitable; and that Sony was evil for selling games at "normal" prices. This pressure would then force Sony to release God of War "day one on Plus" and bankrupt Playstation.
Baemono
Member
It's incredible how every word is wrong.
Nah, only you
You don't
Definitly not that one
At this stage it's more "was" than "is"
Like nearing backwards ?
21 billion vs 27 billion in revenue, not even profits (which are non-existant for Xbox), after 100 billion worth of acquisition, and they're still not even there, and declining.
PS5 Pro is selling at a profit, PS5 was selling at a profit until 2023, but the loss is nowhere near Xbox's losses on hardware. The very expensive CPU of the Series X, which is the same on Series S, makes the Series S the real loss leader of the gen.
Nah, not even you
No you can't
It's not even safe to think it
You really shouldn't
You can't say "more" when it never was
Guess which company actually shows profits
Neither this, nor before, nor after.
DeepEnigma
Gold Member
Skifi28
Member
Microsoft, mostly.
PauloRoberto
Member
They way the run gaming business.
- Paying influences and shills instead of trying to continue making good games (and Forza Horizon is THE exception and confirms the rule, strangely...)
- Creating a personality CULT instead of a healthty business
- Believing that money, by itself, resolves every problem and can crush any kind of competition
- Trying to change the whole market, deflecting blame and posing as victim when everything fails.
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DeepEnigma
Gold Member
Do you need a heavily Xbox moderated safe space? Because that's what happens on other sites.
Gaf speaks freely. Everyone gets shit on here, from Sony to Nintendo to Steam and everything in between.
All of the above gets their fair share of defenders as well.
LordCBH
Member
Have you seen Microsoft?
DeepEnigma
Gold Member
Even with all the self-infliction MS does, there's always at least one to make the trillion dollar baby out to be a victim.
LordCBH
Member
I'm gonna ask copilot to make me a picture of a crying Phil Spencer
Tobimacoss
Member
Ok, so there will always be a console market. But you can speak for tens of millions of users eh?
Is a PS really the obvious pick for the 35 million Gamepass users? Is it really the obvious pick for xCloud users? Is it really the obvious pick for those that enjoy the xbox ecosystem? You are falsely assuming every console user cannot wait to play the handful of Sony timed exclusive games.
Essential and Premium didn't get a price increase. So Ultimate which got a 50% price increase could lose half the customers and still be making the same amount.
It is 100% due to COD. Gamepass revenues will eventually increase to $6-7 billion yearly.
Klayzer
Member
Magic-DEI-Hire
Member
TheThreadsThatBindUs
Member
Fucking yikes!!! This looks like Xbox is approaching rock bottom, fast...
Time for another Phil Spencer promotion, I guess.
Time for another Phil Spencer promotion, I guess.
ChorizoPicozo
Member
Jez Corden?
Jaybe
Member
I'm not sure to be honest.
Trogdor1123
Member
Could they ever convert a series x or s into a super cheap steam/windows machine? Is that possible?
DR3AM
Dreams of a world where inflated review scores save studios
Sony fanboys
Nintendo fanboys
People that hate American companies
GamePass haters
Real gamers, like me, love every gaming company.
JohnnyFootball
GerAlt-Right. Ciriously.
Yep. How Spencer, Greenberg and Booty weren't sacked years ago is beyond me.
Unknown Soldier
Member
$MSFT getting fucking slaughtered today, you hate to see it
I'm actually an investor so yes I do
I'm actually an investor so yes I do
In stores, in the "real" market, the Xbox One was always sold on "sale" for less than the PS4. And Microsoft always made bundles.
Baemono
Member
did you see the episode of the Office where Michael drives his rental car into a lake as he was following the faulty GPS while Dwight was screaming at him « THERE IS A LAKE » ?
Well Phil is Michael, the car is the Xbox division, Dwight is the gaming community, and the lake is their current situation, and the faulty GPS is the online community of chills
ShaiKhulud1989
Gold Member
Double-checked for irony tag
Microsofts slide only further makes it more likely they exit gaming.
The entire economy rides on the Mag 7 at this point not to mention their own futures.
MS is gonna need to catch up on AI and I'd bet they spend more money on it. Why not sell gaming. Its small potatoes for them profit wise and the futures of consoles isnt even clear right now. Especially with shortages in compute power for consumers.
Its scary to think what happens, to the economy, if a Chinese company wins the AI race and how it would effect MS, Google, Amazon, Tesla, etc.
Gaming seems like a waste of assets for them.
The entire economy rides on the Mag 7 at this point not to mention their own futures.
MS is gonna need to catch up on AI and I'd bet they spend more money on it. Why not sell gaming. Its small potatoes for them profit wise and the futures of consoles isnt even clear right now. Especially with shortages in compute power for consumers.
Its scary to think what happens, to the economy, if a Chinese company wins the AI race and how it would effect MS, Google, Amazon, Tesla, etc.
Gaming seems like a waste of assets for them.
PeteBull
Member
As an og xbox owner from back in 2002, the reason i dbought it as playstation fanatic was- console was substantially more powerfull from my trusty beloved ps2 and had hdd, on top it had tons of timed/console only and true exclusives of very high quality.
Current xbox series has nothing on pc or other consoles, they losing on power/new gamebreaking features but most importantly on software front- 0 true exclusive since everything is day1 on pc looking better and running smoother, and on top they started porting their games to direct competitor- sony console.
To add insult to injury they trained their own customer base aka xbox owners to never buy games at launch coz of day1 gamepass xD
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mayham2199
Member
Yes it's the obvious pick for all those users. Especially when it's time to upgrade and their only options are an expensive Xbox console or the PS console which we know will be cheaper and by a good margin.
HerjansEagleFeeder
Member
Apart from the people losing their jobs; what'd we be missing? Sure some of their games aren't shit, but they're also not great. I think I would barely notice if the MS games studios disappeared. Acti/Blizz/Beth is another thing, of course.
skit_data
Member
Nothing against the game (we need more studios like Double Fine tbh) but;
It's funny imagining the look on Satya and Amy Hoods face seeing this trailer when asking what banger-products the gaming division have in the pipeline
This had zero to do with gaming btwBusiness Insider headline:
Sethbacca
Member
Most of us are old enough to have hated MS since before they got involved in gaming.
Topher
Identifies as young
Copilot is just shit. I use AI heavily, primarily for research (personal and professional), and copilot has sent me down the wrong path so many times that I literally end the session cussing it out. Microsoft can try to force it down people's throat all they want but they are not doing themselves any favors when their AI is more A than I.
Humdinger
Member
Sure didn't help.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
I'd assume Sony got some of that 30% money back from BF6 though.
memoryman3
Member
Negative hardware revenue was a deliberate strategy from MS to increase operating profit. The CFO even suggested it was a tactic used alongside layoffs.
Topher
Identifies as young
Sure it did. Not the only reason, but More Personal computing didn't meet expectations and that's because of gaming.
Quote/link where Amy Hood said that.
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It was 100% irrelevant. They had an amazing quarter profit wise. It was the fact that investors are worried about the gazillion of dollars they've invested into data centers and when they will stat to see a return on that money. Also Azure growth slowed to a paltry 38%. These investors are focused on AI and its infrastructure, not gaming.
I think MS invested almost $70B on data centers that quarter alone. And it's not looking like they are up to par with the competition in the AI race.
azertydu91
Hard to Kill
I wasn't criticizing the game...just joking that MS was smoking pots