Kagoshima_Luke
Gold Member
Phil Spencer:
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Microsoft loses $357 billion of market cap in one day after disappointing quarterly earnings report
- Thread starter Magic-DEI-Hire
- Start date
DeepEnigma
Gold Member
bighugeguns
Banned
Lol, chill out, John Connor.
DeepEnigma
Gold Member
So slimy and painfully transparent. I hope investors aren't this stupid.
Topher
Identifies as young
MayauMiao
Member
ChorizoPicozo
Member
Well, where is jez's tweet calling everyone ignorant including politicians and industry veterans?
Topher
Identifies as young
Magic-DEI-Hire
Member
Copilot would possibly explain why Black Ops 7 turned out so bad.
ChorizoPicozo
Member
Zacfoldor
Gold Member
First of all mate, my AI companions ain't going anywhere brother. Second of all:
Don't blame AI for this. M$ did this to themselves with or without sweet perfect AI.
mayham2199
Member
Man I just checked the stock it really did fall off hard.
Humdinger
Member
Just to clarify, they blamed Xbox for pulling down the specific category they were in ("Personal Computing," I think it's called), but not for this overall collapse. The collapse is driven mainly by investor concerns about AI profitability. Xbox is just a small part of what happened here.
Well, if you're an MS stockholder, you just lost a lot of money (on paper, anyhow). More broadly, though, it ties into concerns about us being in an "AI bubble," which many people think is going to pop and lead to a recession. If investors are getting nervous and pulling back with MS AI investment, what happens if they start to pull back with other behemoth companies that are also heavily invested in AI (Google, Amazon, NVidia, Meta, etc.)? We could see a big stock market collapse, which would have serious ramifications for the US and other countries.
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BigBeauford
Member
My distain for AI comes from all of the jobs that are actively being replaced, not because I'm some retard who thinks SkyNet is right around the corner.
First of all mate, my AI companions ain't going anywhere brother. Second of all:
Don't blame AI for this. M$ did this to themselves with or without sweet perfect AI.
simpatico
Gold Member
Windows sucks now. Korea just announced they're training everyone in the country to use Linux. EU healthcare already treats it as problematic. There's about to be a giant marketplace full of proven tools that facilitate orgs moving off of Windows. The public sentiment couldn't be worse. And the one last thing Microsoft had that wasn't the business equivalent of a hostage situation, OpenAI stake, is falling behind Google and likely DeepSeek. Apple already left to go the Gemini route. MS announced that OpenAI made up over 40% of their booked computing schedule right before this drop.
The fall of Microsoft is going to move very slowly until it isn't. There's going to be a critical mass intersection of no-faith and finally the options to do something about it. It's an environment that Microsoft hasn't had to operate in for a very long time, and I don't think they have to staff to do it anymore.
The fall of Microsoft is going to move very slowly until it isn't. There's going to be a critical mass intersection of no-faith and finally the options to do something about it. It's an environment that Microsoft hasn't had to operate in for a very long time, and I don't think they have to staff to do it anymore.
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LordCBH
Member
Ronin_7
Member
This is diabolical.
Physiognomonics
Member
Don't give them ideas!
I have the feeling that people here are thinking that Microsoft actually lost money. There quarter was hugely profitable. While they aren't happy about it, they lost market valuation.
The money all these guys are investing into AI is eye watering tho. $70B in one quarter? Like 90 days, lol its crazy.
At some point sane people have to be asking "so how do we turn AI videos of my dog water skiing into actual money?"
The money all these guys are investing into AI is eye watering tho. $70B in one quarter? Like 90 days, lol its crazy.
At some point sane people have to be asking "so how do we turn AI videos of my dog water skiing into actual money?"
Topher
Identifies as young
The loss of valuation is due to the reaction of stock holders, not "people here".
Demigod Mac
Member
Quick, retire the Xbox brand and change it to 'Copilot Gaming'
I didnt say they did. It was about people saying that they lost money. Which is inaccurate technically. Gaming or AI didnt cause them to lose money, they caused them to lose valuation. They still turned a profit of $31B on $81B revenue. Not exactly losing money.
Banjo64
cumsessed
Not enough.
On merit, and pound for pound, Microsoft's gaming division has probably had the worst strategy I've ever seen from a major company in my life time. Spend $100b, whilst every metric has been in free fall for 10 years. Increase prices, numbers continue to tank.
Pretty crazy case study. I do wonder if Egg won't fire Phil because he himself was duped by the '100m subscribers by 2027' projections and firing Phil would be some perverse reflection of his own inadequacy?
On merit, and pound for pound, Microsoft's gaming division has probably had the worst strategy I've ever seen from a major company in my life time. Spend $100b, whilst every metric has been in free fall for 10 years. Increase prices, numbers continue to tank.
Pretty crazy case study. I do wonder if Egg won't fire Phil because he himself was duped by the '100m subscribers by 2027' projections and firing Phil would be some perverse reflection of his own inadequacy?
Topher
Identifies as young
"I have the feeling that people here are thinking that Microsoft actually lost money."
Who here is saying Microsoft lost money?
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yogaflame
Member
Losing there pride and dignity is much worse
Major Insano
Member
And yet the people who get fired had little involvment in the decision making process that led to this.
user friendly
Member
I work at a College in Canada and the software procurement is already seriously talking about dropping Office as a provided license to students as well as Adobe apps. There are much less expensive options and funds are tighter than ever.
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Loomy
Thinks Microaggressions are Real
They should lay off another 15k people like they've been every year the last 2 years. This time should do it.
When was the last time Microsoft actually built a good product? Gaming is being scapegoated here, but this company has been treading water for a long time, The only reason their valuation went up is because their heavy investment in AI - and they're not even leaders there. Google got caught holding their dicks, quickly launched the bullshit that was "Bard", and somehow still ended up ahead of Microsoft.
Apple is in the exact same situation.
And Musk just announced they're ending production on Model S and Model X to converting the factory in Fremont to make robots. Robots....Tesla is now going to make Cybertrucks, that no one's buying, and $30k robots that no one's going to buy because who the fuck wants to buy a $30k robot? Fucking are borderline useless half the time.
When was the last time Microsoft actually built a good product? Gaming is being scapegoated here, but this company has been treading water for a long time, The only reason their valuation went up is because their heavy investment in AI - and they're not even leaders there. Google got caught holding their dicks, quickly launched the bullshit that was "Bard", and somehow still ended up ahead of Microsoft.
Apple is in the exact same situation.
And Musk just announced they're ending production on Model S and Model X to converting the factory in Fremont to make robots. Robots....Tesla is now going to make Cybertrucks, that no one's buying, and $30k robots that no one's going to buy because who the fuck wants to buy a $30k robot? Fucking are borderline useless half the time.
Plague Doctor
Member
The main issue with Xbox is that Game Pass sucks ass.
Now Copolit Pass for Copilot Gaming (best played on Copilot hardware Series X) is where it's at! I just talk to my Copilot controller and BOOM, AAAA slop is streamed right to me!
Join Today fellow gamer!
Now Copolit Pass for Copilot Gaming (best played on Copilot hardware Series X) is where it's at! I just talk to my Copilot controller and BOOM, AAAA slop is streamed right to me!
Join Today fellow gamer!
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simpatico
Gold Member
It will be a domino effect once a few big orgs show they can do it. And again, it's going to snowball since everyone will be putting tools and confidence together along the way.
Roni
Member
Stock market expectations are completely out of whack.
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Danny Dudekisser
I paid good money for this Dynex!
The level to which everything is predicated on AI hype is honestly a little scary. As is the fact that actual results in big tech haven't mattered in a couple years.
Loomy
Thinks Microaggressions are Real
And the fucked up part is politicians of every stripe use the stock market as an indicator for how well the economy is doing.
Faltherion
Member
Maybe if you didn't cancel all these projects after investing so much in game studios and stayed with exclusivity that would have never happened. Oh wait... you did do that.. woops.
archangelmorph
Gold Member
Damn son...
You know you don' fucked up when you lose more value off your shares in one day, than ~98% of listed companies globally are even worth...
You know you don' fucked up when you lose more value off your shares in one day, than ~98% of listed companies globally are even worth...
FIREKNIGHT2029
Member
Couldn't happen to a shittier company, I'm glad.
The layoffs in the gaming division from this year are going to be insane.
The layoffs in the gaming division from this year are going to be insane.
Iced Arcade
Member
- increase the price on already struggling hardware.
- massively jacking the price of gamepass aka the only positive card they had.
- releasing its exclusives on the competitions consoles
what the fuck did they thing was going to happen? lol
- massively jacking the price of gamepass aka the only positive card they had.
- releasing its exclusives on the competitions consoles
what the fuck did they thing was going to happen? lol
//DEVIL//
Member
I am surprised they are even releasing another gen console. its just another PC. like why bother?
Gamepass at this price is a failure. their hardware is a failure. sales data is already proving it. they been trying to spin their shitty numbers for years now. Just ...stop.. its like beating a dead horse. Xbox is long gone.
You are a software company. focus on the software. fable is coming this year, FH6, maybe Gears E day. this is amazing. just release them on everything and we done.