These numbers need context. MachineGames is a subsidiary of ZeniMax, and isn't a standalone entity, so we can't use this info to really determine the direct success (or lack thereof) of any game or project. These figures aren't straightforward because of the business hierarchy to which they belong. It's unclear how ZeniMax manages its books, and even more unclear how this fits into Microsoft's numbers...
This. Also, their last game was Day 1 on Gamepass. As a first party studio, I'm guessing Microsoft isn't exactly writing $100m cheques to Machinegames. Probably not even to Bethesda or Zenimax.These numbers need context. MachineGames is a subsidiary of ZeniMax, and isn't a standalone entity, so we can't use this info to really determine the direct success (or lack thereof) of any game or project. These figures aren't straightforward because of the business hierarchy to which they belong. It's unclear how ZeniMax manages its books, and even more unclear how this fits into Microsoft's numbers...
It's 15k per employee - nothing to be envious about.I wish I had 2.6 million after I'd paid everyone.
Only if it sells above expectation.They released a game this year, it would have been weird for them not being profitable this year. What about the following 7 years until the next game?
They are paid for this tooImagine 2 million profit even after putting their games on gamepass.
How much?They are paid for this too
Probably at the average rate MS pay to 3rd party. Otherwise it would be a pain to deal with tax authorities.How much?
Seems like fairly challenging environment within MS.
Studios certainly are not coasting simply cause they have gamepass safety net.
The question is, will Nadella be happy with these results?MachineGames is owned by the $4 trillion company Microsoft, and unlike most of the Xbox/MS Gaming division companies, they are turning a profit
They'll be just fine lol
Exactly. People reporting this kind of stuff don't work in finance so they don't really see the bigger picture.Still profitable after expenses, I don't see anything bad...
For a brand new IP, you're probably right.Still profitable after expenses, I don't see anything bad...
If Youngblood is anything to go by then yes...Wolfenstein trilogy final chapter is fucked isn't?!
It is only for a 12-month period.Still profitable after expenses, I don't see anything bad...
A few points to note:
But before drawing big conclusions, read point #1 again. Things may be better or even worse for Machine Games, but we lack data right now.
- Accounting for subsidiaries is a bit different, so this may not provide the full picture or context.
- Having said that, this is for FY 2024 if I'm not wrong? In that case - assuming there is no important info in Zenimax books - this would not look good. Because Indiana Jones released in 2024, and the profitability and margins are miniscule. What would happen in 2025 and 2026 or 2027 when they wouldn't release any new games. The profit for Indiana Jones should have been enough to cover them for the next few years, at least until the next game releases (which once again generates enough profits to coast them for the next 5-6 years, so on and so forth).
P.S. Also the operating expenses are for only 12 months. But Indiana Jones took more than 12 months to create. I think the most important information here is the operating expenses figure. Multiply that by 5-6 years, and you'll have a rough but close idea of how many copies their games need to sell for breakeven.
It's hit driven business. You are not going to survive on 6% profit margin on your launch year.
The question is, will Nadella be happy with these results?
If I were him, I'd cut them loose. The brand is declining anyway.
Maybe they could be replaced by AI?![]()
So you're looking at only 1 year of operating expenses, the bulk of the revenue from Indiana Jones games sales (pre-order and launch sales), and still only a $2 million profit.
Again, the $2 million profit is only for this 12-month period, in which the game launched.
You must know given recent and not so recent events this particular comment has the strong potential to age like milk yes?They seem to be surviving just fine.
Kinda like how much effort it takes for Nadella to cut into the Xbox division.2/10 for effort.
They don't have anything announced, do they?3) What's your source on the claim that they have no planned games for release between now and 2027, given that we know they're working on multiple unannounced projects?
Read, bro.Source for your point that it made $0 on PS5?
So you're looking at only 1 year of operating expenses, the bulk of the revenue from Indiana Jones games sales (pre-order and launch sales), and still only a $2 million profit.
Again, the $2 million profit is only for this 12-month period, in which the game launched.
Kinda like how much effort it takes for Nadella to cut into the Xbox division.
What is it with some of you that you guys just can't seem to accept the reality of the state of Xbox?
Mindblowingly dense...
They don't have anything announced, do they?
What's YOUR source that they're releasing stuff between now and 2027?![]()
Read, bro.![]()
I never said anything about what should happen.The 'reality of the state of Xbox' is that MachineGames should be closed down and everyone replaced with AI?
Imagine thinking this is something you thought this was a good idea to say.Imagine 2 million profit even after putting their games on gamepass.
You must know given recent and not so recent events this particular comment has the strong potential to age like milk yes?
With giant corporations it's never just about Profit. It is about Profit Profit Profit !!!MachineGames is owned by the $4 trillion company Microsoft, and unlike most of the Xbox/MS Gaming division companies, they are turning a profit
They'll be just fine lol
Funny. You get mad at me for pointing out that MS seems to be ready to cut studios off if they feel it's in their interest.MS seems to have taken an axe to struggling studios or projects. Notable that there were no reported layoffs at Machine Games.
But yeah, those crazies at MS can't be trusted after what they did to Tango. Though it's generally harder for MS to lay devs off in the EU
Depreciation of asset for Indiana will largely take place in first year, reducing expenses in following years.The operating expenses will remain roughly the same for 2026, 2027, etc. But the revenue will obviously decrease in those years without a game launch.
So why dispute my statement then? They currently don't have anything announced as of yet, so we will assume they don't have anything coming. Once they announce a new game is coming, that'll change.I can't say if they're releasing anything for 2027. Which is why I'm not making that claim with certainty like you are.
So are you saying that PS5 revenue (even after the timed-exclusivity period) will be much higher than Xbox sales + PC sales + Game Pass revenue?The game was not up for preorders on PS5 in 2024. The platform where you lot frequently claim the bulk of the audience resides.
Read?![]()
So are you saying that PS5 revenue (even after the timed-exclusivity period) will be much higher than Xbox sales + PC sales + Game Pass revenue?![]()
Wolfenstein trilogy final chapter is fucked isn't?!
They went full woke after the first oneWolfenstein trilogy final chapter is fucked isn't?!
What do you think was the budget for Indiana Jones and the great circle? Do you think $2.6M is going to sustain them until their next game? Somebody has to eat that cost.Imagine 2 million profit even after putting their games on gamepass.
The 'reality of the state of Xbox' is that MachineGames should be closed down and everyone replaced with AI?
![]()
Never said anything remotely close to this.Well, you're talking to someone who's been announcing for almost two years that Ninja Theory's closure would be announced next Wednesday,
Would be wiped out? Or could be on the chopping block?and who claimed to have no doubt that MachineGames, Compulsion, DoubleFine, and Obsidian would be wiped out without a doubt yesterday...
I never said Sony was wrong for closing any of their studios.Funny how he never has the same sense or drive to predict Sony's numerous studio closures...
There is one simple logical reason:The reality is that the reasons why MS is closing XBOX studios are anything but logical. There's isnt a common criteria. Which makes predicting the Next Studio closure little more than a lottery.
Square Enix posted loss in years they released their big games. FF16 and Rebirth. What's going to happen to them in the future?What do you think was the budget for Indiana Jones and the great circle? Do you think $2.6M is going to sustain them until their next game? Somebody has to eat that cost.
Square Enix Ltd. – the European branch of Final Fantasy developer Square Enix, saw worsening financial losses in the fiscal year ended March 31, 2025 (as reported by GameBiz).
Headquartered in London, UK, Square Enix Ltd. develops, publishes, distributes and licenses Square Enix content in Europe and other PAL territories. In the past fiscal year, the company posted an operating loss of 12.57 billion yen (over $87 million USD) and a net loss of 12.64...