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

Dang! I'm like you with my reasons to use it, but GPT5.2 is workable. I still rather use Grok and Gemini though, but my job has banned those to be used on our network since we are a Microsoft house.

Yeah, at work I'm all over .Net development with Azure and such, but thankfully we don't have bans on any AI. using Claude which really kicks ass from a developer standpoint. Almost too good, if you know what I mean.

nervous k&p GIF by myLAB Box
 
Yeah, at work I'm all over .Net development with Azure and such, but thankfully we don't have bans on any AI. using Claude which really kicks ass from a developer standpoint. Almost too good, if you know what I mean.

nervous k&p GIF by myLAB Box

Bro......who you telling?! Writing Powershell scripts using Grok has honestly made me twice as efficient. I present it to my boss as a needed tool, since I (the human) still needs to think up the ideas on when and how to do stuff lol.
 
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Fuck Xbox. Zero empathy. Rarely has a company made so many dumb ass decisions.
Useless morons. When I think of Phil and that Sara Bond corporate robot chick I think of Phil getting pegged by Sara. And he's smiling while getting it.
 
Might be the end of XBOX. If they blame the gaming division.


When you actually analyse everything around Xbox it's incredible how much they have failed in this business and everything they touch turns to ruins.

They had Bungie and Halo...they let Bungie go and gave the IP to an incompetent studio, making it irrelevant. IPs such as Gears went dormant and stopped being relevant. The only actual relevant IP they have from their actual studios is basically Forza Horizon. They release 2 console models, one of them got huge complains from multiple studios and ended up delaying the release of some games for the entire Xbox brand. They buy Bestheda and the only game that was at least...good was Indiana Jones. Even the highly anticipated Starfield ended up a huge disappointment. Then managed to buy Activision / Blizzard, one of the biggest publishers out there and in like 2 years managed to turn COD into an underperformance after devaluing it on Gamepass last year (and losing supposedly over 300M in sales) and now this year it's even worse. When you think about the fact that they: Have their internal studios, buy major publishers (i'm not even mentioning stuff like Minecraft), turn into a 3rd party publisher instead of releasing only on Xbox and somehow their gaming division is losing...how is that even possible? How many billions were thrown into this black hole for them to end up losing anyway? At this point they could buy the entire industry that's not Sony and Nintendo and lose anyway...
 
Even a pc with xbox sticker is way too risky with a dead brand like xbox. The numbers show that they are not desirable at all in any market.

Yep. Only way Xbox Magnus has any chance to move somewhat decent numbers is to just call it Magnus

C. The C is for Condom.

Microslop doing serious damage to their brands all in the name of AI that no one really cares for.

I wonder where Xbox would be today if they didn't abandon exclusivity and didn't bother with GamePass.

A much better spot.

Isn't MS supposed to be the biggest juggernaut in gaming now? Even as a third party they still fail, lol.

Like others said, they were never the biggest publisher, unless maybe going by cumulative owned IP and their historical cumulative revenues since inception or some metric like that.

But money COD brought in back in 2006 or 2008 doesn't mean squat for the IP in 2026.

So how many consoles did they sell? I once read, that xbox is now selling less then dreamcast or wiiu back then?

Definitely below 2 million for 2025. Most estimates are between 1.2 - 1.7 million, depending on who you ask.

Pretty dreadful quarter. It didnseem obvious as to the state of Xbox gaming when even with Activision they were basically at a standstill/declining the last couple of quarters( if you subtract the Activision added revenue).

Their best bet is to abandon hardware completely, train the fat and remove non-performing studios and start fully leaning on third party deals with platform holders. Do they still have the cod deal that Activision had with Sony? If not, re-negotiate.

They have a couple of big releases this year and they have a good chance to perform extremely well. So next quarters have a chance of doing better if we ignore the hardware part of the buisness.

Finally no wonder they didn't have the budget for year-in reviews and celebrations.

Yeah, I can 100% see Compulsion and inXile getting shut down this year, unfortunately for the employees involved. Compulsion especially; they just haven't delivered sales results to justify operations. Turn 10 is also probably on the chopping block; Forza Motorsport shat the bed and Playground Games has better tech, so they make Turn 10 redundant.

Ninja Theory I don't think will be closed, but they could definitely be downsized to just a technical support studio, because they have very good tech for animations and photogrammetry among other things. Double Fine will probably remain "fine", but I can see MS spinning them off like they did Toys for Bob versus shutting them down, because that'd go down even worst than when they closed Tango Gameworks.

Obsidian will likely be merged into Bethesda Softworks; they have talent, but their games don't sell anywhere near what Bethesda's IPs do. Seems like a natural studio merger.
 
Sure


It's incredible to see how their games reach almost always 90+ on MC
Most of those are ancient. Their output is pathetic
 
Sure


It's incredible to see how their games reach almost always 90+ on MC
lol not sure what flex you thought this was supposed to be, but single game in last 15 years is not doing it much favors.
hope it was sarcasm
 
When you actually analyse everything around Xbox it's incredible how much they have failed in this business and everything they touch turns to ruins.

They had Bungie and Halo...they let Bungie go and gave the IP to an incompetent studio, making it irrelevant. IPs such as Gears went dormant and stopped being relevant. The only actual relevant IP they have from their actual studios is basically Forza Horizon.

These problems can be traced back to the Xbox 360. People like to say that the 360 was the heydey for Xbox - and I guess relatively speaking, it was - but as turbo milf Shania Twain once sang, "that don't impress me much".

Even back then, the brand was kept afloat by many timed-exclusive moneyhats. They were also incredibly lucky that Sony fumbled the bag so badly in the PS3's early days.

They were pretty much finished in 2010. Go back and watch some of the E3s from around the time they pivoted so hard into Kinect. All they had was Halo, Gears and Forza. Absolutely fuck all else for many years.

Say what we will about how Phil-sama has been handling Xbox since then, I do not envy the task of rebuilding that brand. You can only get by on moneyhatting your way into the industry and relying on competitor fuck ups for so long before you run out of road.
 
I truly don't believe there's really any way for Microsoft or Xbox to come back from this. Xbox is deader than SEGA at this point. New hardware isn't going to do anything for them, especially at the price that's rumored and especially if Steam Machine releases this year.

This is the Xbox we all expected when Microsoft first introduced the concept of a MS game console. It just took a bit of time for them to show their true colors.

What an absolute mess.

The original Xbox team insisted that it be a separate brand from Microsoft for a reason.
 
Relax.

Its just a quarter.

COD needs a reset, if it wants to survive and keep up with competitors.

It sold so less is clear indication they didn't try to attract all potential customers it can get. A lot of casual crowd.
 
Relax.

Its just a quarter.

COD needs a reset, if it wants to survive and keep up with competitors.

It sold so less is clear indication they didn't try to attract all potential customers it can get. A lot of casual crowd.
Xbox doesn't do well in non Holiday quarters (or holiday quarters anymore).
 
Xbox doesn't do well in non Holiday quarters (or holiday quarters anymore).

Not just any quarter.
The biggest consumer purchases are made in that quarter each year.
Hardware decline is inevitable.

Content and services are where they are focused. So a drop there is questionable. Its explained by drop in COD. Which is expected to undergo bigger changes due to this. Its not viable long term.

Play the game, they cannot be launching GTA sized game on yearly basis.
 
Hardware decline is inevitable.

Content and services are where they are focused. So a drop there is questionable. Its explained by drop in COD. Which is expected to undergo bigger changes due to this. Its not viable long term.

Play the game, they cannot be launching GTA sized game on yearly basis.

So how are they going to fill that Gap if Call of Duty starts to release every two or three years?
 
The sad part of the story will be that they will make cuts in studios and games when this is what they really need to make a comeback.

Quality first party Xbox games is the only way to return. Without of course giving them to cheap mofos in Gamepass.

The industry was performing fine before the subscription bullshit. They committed suicide.
 
So how are they going to fill that Gap if Call of Duty starts to release every two or three years?
Am assuming fewer but more fleshed out modes could be released.

Public is trained to buy a new one every year. Messing with that would be foolish. No one can realistically play all the modes that release every year.

This year they have campaign, multiplayer, zombies mode, Endgame. Easily sink 200-400 hrs, not really needed.
 
They were pretty much finished in 2010. Go back and watch some of the E3s from around the time they pivoted so hard into Kinect. All they had was Halo, Gears and Forza. Absolutely fuck all else for many years.

Say what we will about how Phil-sama has been handling Xbox since then, I do not envy the task of rebuilding that brand.
So you are telling me in 2010 and beyond or so their games production side sucked…

Phil… you know he took over Xbox Games Studios in 2007 (EMEA)/2008 (Worldwide) right ;)?
Never his fault, Teflon Phil is always blameless because people above and below him. No matter his position in the company for many years or the evidence. Why is there this cult of personality with him?
 
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Hardware decline is inevitable.

Content and services are where they are focused. So a drop there is questionable. Its explained by drop in COD. Which is expected to undergo bigger changes due to this. Its not viable long term.

Play the game, they cannot be launching GTA sized game on yearly basis.
That's typically their best quarter of the year for anything, content included.

As the saying goes, it's all downhill from here.
 
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MS will do what Activision was afraid to do. Making changes to COD is not for faint of the heart.

They may run it into ground while doing that. But its not happened yet.

The product is quiet strong though. I have uninstalled it cause its a time sink. But already looking forward to next year release.

Because there's a reason Activision made it e very year. It sold 20+ million every year lol. It easily made ABK $4 Billion a year.

That's now 20% of all the Xbox Brand's revenue combined. There's just no way COD can skip a year.
 
Because there's a reason Activision made it e very year. It sold 20+ million every year lol. It easily made ABK $4 Billion a year.

That's now 20% of all the Xbox Brand's revenue combined. There's just no way COD can skip a year.
Would suck if they skipped a year.

I think those explosive campaigns would be first to go.

Would like to see Division 2 style campaign, but smaller, that feeds into Endgame, their extraction style mode. (Not sure what exact genre is).

That should alone save them like 100 million on development lol.
 
So you are telling me in 2010 and beyond or so their games production side sucked…

Phil… you know he took over Xbox Games Studios in 2007 (EMEA)/2008 (Worldwide) right ;)?
Never his fault, Teflon Phil is always blameless because people above and below him. No matter his position in the company for many years or the evidence. Why is there this cult of personality with him?
People are obsessed with them because he gave them GP and i'd bet its the same kind of people who have been stacking GP subscription for years with the "trick" for cheap upgrade or buying it through VPN.
The kind of people who cannot understand economics and why together with MS leadership they made the company unable to compete with blockbuster high quality games due to lack of sales and poor GP revenue.
 
So you are telling me in 2010 and beyond or so their games production side sucked…

Phil… you know he took over Xbox Games Studios in 2007 (EMEA)/2008 (Worldwide) right ;)?
Never his fault, Teflon Phil is always blameless because people above and below him. No matter his position in the company for many years or the evidence. Why is there this cult of personality with him?
I genuinely can't wrap my head around people defending someone who's been at the top of the division for nearly 15 years and was handed over $100 billion to burn through. At that point, you're not "struggling," you're mismanaging a generational opportunity.

Honestly, give me a fraction of that budget and I could rebuild the entire brand from scratch and still stumble into better results. It's wild that anyone looks at this mess and calls it anything except what it is: a massive, textbook management blunder.
 
So you are telling me in 2010 and beyond or so their games production side sucked…

Phil… you know he took over Xbox Games Studios in 2007 (EMEA)/2008 (Worldwide) right ;)?
Never his fault, Teflon Phil is always blameless because people above and below him. No matter his position in the company for many years or the evidence. Why is there this cult of personality with him?
They even build temples where they can worship his attributes.

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The sad part of the story will be that they will make cuts in studios and games when this is what they really need to make a comeback.

Quality first party Xbox games is the only way to return. Without of course giving them to cheap mofos in Gamepass.

In the PS1-PS3 era it was still possible to change course during a generation and reap the rewards because the development time for a game were still short (1-2 years). That's not going to work anymore now it takes five years to release an AAA game. Any new game that's starting development in 2026 will launch perhaps in 2031. That's half way during the next gen Xbox' generation if that Xbox on PC hybrid launches in 2027. Far too late too change anything.
 
In the PS1-PS3 era it was still possible to change course during a generation and reap the rewards because the development time for a game were still short (1-2 years). That's not going to work anymore now it takes five years to release an AAA game. Any new game that's starting development in 2026 will launch perhaps in 2031. That's half way during the next gen Xbox' generation if that Xbox on PC hybrid launches in 2027. Far too late too change anything.

I agree but there are a couple of points we need to address:

1. It's around 10 years since MS started going downhill. If we accept a 5 year dev cycle for a "AAA" game, their new IPs would have either a second entry already released or very close to release. Their established IPs would have 2 releases and a sequel in the making.

2. Dev cycle is not inherently increased because of the new hardware. Part of it is due to bad management which can then be subcategorised to many other reasons.
They should have cleaned house long ago and hired people with the right skills.
The Activision and Bethesda buyouts showed us they intended to throw serious money into the industry, but instead of addressing their internal disease, they brought others in and infected them too.
 
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