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[StreetsofBeige]

And Nintendo stopped doing consoles after the Wii U sales??

Ya. They streamlined switch to be hybrid was a fantastic decision since Nintendo has always been humongous in handheld gaming.

Wii U failure seemed odd too.

- It was still value priced product. Compared to 360/PS3 it was roughly parity, but still cheaper than upcoming X1 and PS4
- It had great first party games as always
- It had a number of high profile third party games like FIFA, COD, Batman, Mass Effect etc...
- At the time, tablets were the rage and people were going gonzo buying iPads. Wii U tablet gameplay seemed like a good fit for the new gameplay trend like how Wii motion controls were a hit
- Gave gamers choice between low HDD and bigger HDD systems

Somehow still bombed.

I remember people saying a big reason is the casual crowd got confused thinking Wii U was just an overpriced add-on. I'd like to assume people arent that stupid, but who knows. Maybe the typical Wii waggler didn't know better.

 

[adamsapple]

Boom!

 

[Mr Moose]

Microsoft reports strong cloud earnings, with Windows and Xbox up too

Azure has grown massively over the year

www.theverge.com

20M GPU @ $240/Y.

 

[Unknown?]

They merged their consoles because they wanted, not because they needed. Nintendo has enough cash to survive 3 or 4 consecutive Wii U "failures".

The same can't be said for Sony that 100% killed their handheld division and had to start using laptop APUs because the PS3 almost bankrupted them.

No, they did it because it was a failure and didn't want to create failures.

 

[rodrigolfp]

Ya. They streamlined switch to be hybrid was a fantastic decision since Nintendo has always been humongous in handheld gaming.

Wii U failure seemed odd too.

- It was still value priced product. Compared to 360/PS3 it was roughly parity, but still cheaper than upcoming X1 and PS4
- It had great first party games as always
- It had a number of high profile third party games like FIFA, COD, Batman, Mass Effect etc...
- At the time, tablets were the rage and people were going gonzo buying iPads. Wii U tablet gameplay seemed like a good fit for the new gameplay trend like how Wii motion controls were a hit
- Gave gamers choice between low HDD and bigger HDD systems

Somehow still bombed.

I remember people saying a big reason is the casual crowd got confused thinking Wii U was just an overpriced add-on. I'd like to assume people arent that stupid, but who knows. Maybe the typical Wii waggler didn't know better.

Safe to assume that having exclusives don't necessarily save a console from "failure" then. It's various factors.

 

[Kikorin]

It is.

No different than ultra profitable Walmart and Amazon hiring endless numbers of workers to work the Xmas rush. Hire workers when they are needed, keep ones that are worth keeping around for years or decades, and sometimes you got to get rid of dead weight.

Or in the gaming realm, Sony's last earnings report had incredible profits back to the covid spike. And they still fired 40 people from Bend. Ya, 40 people. A google check says Sony's gaming division has about 12,000 people, yet they couldnt even bother trying to fit in 40 people somewhere else to keep them on the payroll.

Nobody said private businesses are charities. In fact, at least businesses pay money. A lot of charity jobs are volunteers and not paid a dime, yet the CEO or President can somehow make millions.

Is not. Make profit by reducing costs is good on the very short terms and for investors, but is not a strategy that can work on the long term.

 

[Tobimacoss]

Except for the one you truly care about deep down in your heart, and you know it

Also almost $5 billion for Game Pass doesn't mean much without knowing the sub count. Last sub count was 41 million (including like 11 million GP Core who were XBL Gold converts), so ~ $121/year average per sub or ~ $10/mo per sub.

40 million subs at ARPU (Average rate per user) of $10 month gets you close to $5 billion. If the sub count is less, then the ARPU would be bigger.

But it's very safe to say the sub count is 40 million subscribers.

 

[adamsapple]

40 million subs at ARPU (Average rate per user) of $10 month gets you close to $5 billion. If the sub count is less, then the ARPU would be bigger.

But it's very safe to say the sub count is 40 million subscribers.

Unless the proportion of users who are on the Ultimate tier is bigger.

In either case, iirc when the Activision thing was going on, leaked docs showed that it made around $2.9bn / annual. It's increased around $2bn over that since then, no doubt a big part thanks to CoD but still an admirable increase.

 

[Mr Moose]

Unless the proportion of users who are on the Ultimate tier is bigger.

In either case, iirc when the Activision thing was going on, leaked docs showed that it made around $2.9bn / annual. It's increased around $2bn over that since then, no doubt a big part thanks to CoD but still an admirable increase.

The 20-25% price increase would've helped too. And getting rid of the $1 thing.

Would love to know actual sub numbers, their $/Y is weird. They used to have like 25M GPU if I remember correctly.
Never mind, that was all GP. Before they changed Gold to GP Core.

 

[Magic Carpet]

If that 5 billion per year Gamepass Revenue was all PC Gamepass then 32 million subs.
Is it going up at all? I remember when the number was 25 million. Seems several years ago.

 

[John Wick]

Double digit growth in just about every department, nice.

Double digit layoffs!
Nice

 

[owandeseis]

5 billion revenue from GP seems massive, specially seeing the best selling games lists lately with their games everywhere.

Glad GP seems to be doing some good money, it's a good service that hopefully will last long, and honestly, pretty much no MS game is worth being bought at full price day1 lately

 

[tanners]

Ya. They streamlined switch to be hybrid was a fantastic decision since Nintendo has always been humongous in handheld gaming.

Wii U failure seemed odd too.

- It was still value priced product. Compared to 360/PS3 it was roughly parity, but still cheaper than upcoming X1 and PS4
- It had great first party games as always
- It had a number of high profile third party games like FIFA, COD, Batman, Mass Effect etc...
- At the time, tablets were the rage and people were going gonzo buying iPads. Wii U tablet gameplay seemed like a good fit for the new gameplay trend like how Wii motion controls were a hit
- Gave gamers choice between low HDD and bigger HDD systems

Somehow still bombed.

I remember people saying a big reason is the casual crowd got confused thinking Wii U was just an overpriced add-on. I'd like to assume people arent that stupid, but who knows. Maybe the typical Wii waggler didn't know better.

Biggest problem about WiiU in hardware is lack of internal storage and Powerless CPU,which really stuggle when running even 7 gen ports
The CPU architecture inside wiiu is essentially just same as GC's(PPC750 family)

 

[MrTired]

Nadella claimed that Game Pass alone made nearly $5 billion in revenue for the first time. For extra context, Nintendo's total revenue in 2024 was $8 billion.

As previously been stated Nintendo use different accounting method than Microsoft and Sony. Nintendo only calculate the the 30% revenue cut they take from 3rd party sales, whereas the other two add 100% to the revenue number and then subtract the 70% or more that they have to give the publisher.

 

[StreetsofBeige]

As previously been stated Nintendo use different accounting method than Microsoft and Sony. Nintendo only calculate the the 30% revenue cut they take from 3rd party sales, whereas the other two add 100% to the revenue number and then subtract the 70% or more that they have to give the publisher.

Interesting accounting if thats the way they do it. To me, Sony/MS way is more logical. Then again, I'm not an accountant. I just go on what I remember from school and reading company income statements when I skim stocks.

It's like Walmart selling something for $10 sales with $7 COGs. So $3 net revenue.

Doing it the Nintendo way, Walmart would cut to the chase and just say their net revenue is $3 right off the bat without bringing up they actually charged gamers $10 to begin with.

 

[EN250]

I thought they were going to try and disrupt again going full PCMR?, wth, the good news then, it's that the handheld fad is not releasing, because whoever thinks that anyone not called Nintendo can make bank on that trend is wrong

 

[poppabk]

As previously been stated Nintendo use different accounting method than Microsoft and Sony. Nintendo only calculate the the 30% revenue cut they take from 3rd party sales, whereas the other two add 100% to the revenue number and then subtract the 70% or more that they have to give the publisher.

What's that got to do with gamepass revenue?

 

[tanners]

As previously been stated Nintendo use different accounting method than Microsoft and Sony. Nintendo only calculate the the 30% revenue cut they take from 3rd party sales, whereas the other two add 100% to the revenue number and then subtract the 70% or more that they have to give the publisher.

But big N has clearly less 3rd party support than $ony and M$, but it might explain that Big N has bigger profit rate cause of this

 

[HeisenbergFX4]

I thought they were going to try and disrupt again going full PCMR?, wth, the good news then, it's that the handheld fad is not releasing, because whoever thinks that anyone not called Nintendo can make bank on that trend is wrong

We have good intel on the chip being used in the next gen Xbox on these very forums

Rumor Hype  Thread '[MLID] Zen 6 Magnus Leak: AMD's MASSIVE APU for next gen console (+ Medusa Point Specs)'

Jul 18, 2025

Chapters:
0:00 (NEW Leak) AMD Zen 6 Medusa Gets 22 Cores!
3:21 How this design saves MONEY
7:00 Why Eight Compute Units Makes Sense
11:20 (NEW Leak) Zen 6 Specs Update
15:28 (NEW Leak) AMD Magnus Gaming APU for PS6?!

• Lunatic_Gamer
• Replies: 420
• Forum: Gaming Discussion

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[adamsapple]

We have good intel on the chip being used in the next gen Xbox on these very forums

Rumor Hype  Thread '[MLID] Zen 6 Magnus Leak: AMD's MASSIVE APU for next gen console (+ Medusa Point Specs)'

Jul 18, 2025

Chapters:
0:00 (NEW Leak) AMD Zen 6 Medusa Gets 22 Cores!
3:21 How this design saves MONEY
7:00 Why Eight Compute Units Makes Sense
11:20 (NEW Leak) Zen 6 Specs Update
15:28 (NEW Leak) AMD Magnus Gaming APU for PS6?!

• Lunatic_Gamer
• Replies: 420
• Forum: Gaming Discussion

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And the fact that Sarah literally said they're working with AMD on new console hardware just a month or so ago.

 

[Tobimacoss]

I thought they were going to try and disrupt again going full PCMR?, wth, the good news then, it's that the handheld fad is not releasing, because whoever thinks that anyone not called Nintendo can make bank on that trend is wrong

MS and OEMs are doing a portfolio of devices, 5 different form factors.

Xbox PCs

Xbox Consoles (including MS first party device aka Xbox Prime)

Xbox Laptops (may extend to Surface Pro Tablet)

Xbox Handhelds

Xbox Cloud (handled by MS only).

All running on the same set of AMD APUs with console library BC and compatibility and third party PC store access.

This is what convergence looks like. A unified, universal Windows Xbox platform.

 

[Seomel]

Lmao is this dude still around.

 

[Robb]

Xbox Hardware -22%

 

[Baemono]

Nintendo's Earnings report is on Friday August 1st and Playstation's is on Thursday August 7th. My quick hardware predictions: Switch: 0.9m, Switch 2: 5.4m and PS5: 2.7m.

You mean Sony

 

[Baemono]

I don't know who loses weight faster, Phil or hardware revenue

 

[adamsapple]

Lmao is this dude still around.

Which dude? Satya, Tom Warren, Kidsmoove or me?

 

[DiscoDave]

Double digit growth in just about every department, nice.

I feel dizzy boss.

 

[DenchDeckard]

Damn. Its crazy to see the amount vitriol Microsoft generates on this board.

Go have a wank or something, let off some steam.

 

[MidGenRefresh]

Microsoft being top publisher on PlayStation is wild.

 

[Baemono]

Which dude? Satya, Tom Warren, Kidsmoove or me?

You're all the same person, we all know that

 

[DenchDeckard]

Even if they are operating gamepass on a 5% machine thats 250 million profit in the bank.

But tbh, if they are making a loss that is not bad for a subscription service this early in its lifetime.
It looks like the xbox division is moving in the right direction.

We know why hardware has dropped so much. They've been winding down production and increased prices astronomically.

They are killing this gen just like they did with the og xbox so they can get out ahead of Sony next time.

 

[drganon]

Even if they are operating gamepass on a 5% machine thats 250 million profit in the bank.

But tbh, if they are making a loss that is not bad for a subscription service this early in its lifetime.
It looks like the xbox division is moving in the right direction.

We know why hardware has dropped so much. They've been winding down production and increased prices astronomically.

They are killing this gen just like they did with the og xbox so they can get out ahead of Sony next time.

 

[Baemono]

Even if they are operating gamepass on a 5% machine thats 250 million profit in the bank.

But tbh, if they are making a loss that is not bad for a subscription service this early in its lifetime.
It looks like the xbox division is moving in the right direction.

We know why hardware has dropped so much. They've been winding down production and increased prices astronomically.

They are killing this gen just like they did with the og xbox so they can get out ahead of Sony next time.

The data shows the opposite actually, they are more successful when they don't try to compete with Sony, rather than being their biggest partner. They have less incentive than ever to sell their own hardware. They're slowly become Sega

 

[Cakeboxer]

I'm surprised that hardware hasn't declined much more. Prices and availability are a bad joke.

 

[Ar¢tos]

COD was well recieved last year and a big deal was made out of it going to GP. I don't think this years will have anywhere near the same impact, if indeed it did do numbers last year of course.

It was well received at release, but now it looks more like the Muppet Show than COD, so people are going to be more apprehensive when the next one is announced.

 

[clarky]

It was well received at release, but now it looks more like the Muppet Show than COD, so people are going to be more apprehensive when the next one is announced.

That's what I'm saying.

 

[Baemono]

I'm surprised that hardware hasn't declined much more. Prices and availability are a bad joke.

They increased the price, so the shipped units' numbers should be even lower, Installbase says around 500k for the whole quarter WW, which is Wii U level.

 

[Elios83]

Hardware is clearly dead. With the price increase they just repositioned it as a profitable option left on the market as a low volume product.
It's basically discontinuation without taking the PR hit.
The third party strategy is obviously working, they have now put their games on platforms where people actually buy them, see the Forza success on PS5.
The elephant in the room is that third parties aren't going to support Xbox for long, they'll all focus on PS5, PC, Switch 2 unless Microsoft directly funds Xbox ports.
This will become more apparent as decisions are being taken as we speak and it takes two years to see the results.

 

[FoxMcChief]

Microsoft being top publisher on PlayStation is wild.

Is it though?

 

[jm89]

They are killing this gen just like they did with the og xbox so they can get out ahead of Sony next time.

He never learns

 

[MidGenRefresh]

Is it though?

According to this X post, yes. Obviously I didn't verify it myself, just commenting on what's in the thread.

 

[Negotiator101]

-22% Hardware and people still think MS is releasing another console next gen

Microsoft themselves have said they're releasing a next generation Xbox, so they're lying to themselves? Is that the people you're referring to?

 

[FoxMcChief]

According to this X post, yes. Obviously I didn't verify it myself, just commenting on what's in the thread.

I guess what I mean is, Sony is clearly having their worst generation ever with first party titles. Hell, this place has had numerous polls where the consensus is that the PS5 generation is their worst one ever. So it's easy to see that any publisher would be outperforming them.

I just think Sony's worst enemy is themselves trying to pretend they're invincible.

They're the MCU of gaming. Sells a ton, but crap quality.

 

[DavidGzz]

If you're not a shareholder and you think this is good for the platform, you are an idiot. the money will go into pockets not game development.

How will MS keep delivering the best-selling games on PlayStation without delivering more good games?

PS5 software sales saving them right now.

Also, MS games saving PS5's paltry game lineup.

 

[Kerotan]

How will MS keep delivering the best-selling games on PlayStation without delivering more good games?




Also, MS games saving PS5's paltry game lineup.

The line up was okay. It was enough to convince the vast majority to buy the ps5 and not Xbox. So much that the Xbox games came crawling to playstation.

 

[ProtoByte]

Last sub count was 41 million (including like 11 million GP Core who were XBL Gold converts), so ~ $121/year average per sub or ~ $10/mo per sub.

Last official subs count was actually 34 million post XBL -> Gamepass Core transmission. Most optimistic record number is 35 million.

 

[Astray]

I guess what I mean is, Sony is clearly having their worst generation ever with first party titles. Hell, this place has had numerous polls where the consensus is that the PS5 generation is their worst one ever. So it's easy to see that any publisher would be outperforming them.

The entirety of Playstation was built on being a strong marketplace for 3rd parties, so why would this be new when EA/Rockstar/Activision/etc have been "outperforming" Sony for ages?

None of this is revolutionary, %90 of those exact IPs were top sellers in the PS4 era too.

The only actual news here is Forza Horizon 5 becoming a big hit on PS5, and it actually invites a question: If MS Gaming leadership was so visionary and ahead of the market, Then how come it took until installment #5 for the franchise to hit Playstation? And how much money was left on the table for years because of it?

 

[Luminoth-4545]

What was ps5 this quarter last year?

2.4 million.

 

[MidGenRefresh]

I guess what I mean is, Sony is clearly having their worst generation ever with first party titles. Hell, this place has had numerous polls where the consensus is that the PS5 generation is their worst one ever. So it's easy to see that any publisher would be outperforming them.

I just think Sony's worst enemy is themselves trying to pretend they're invincible.

They're the MCU of gaming. Sells a ton, but crap quality.

This generation is terrible in general, and yes, I agree. It's the worst PlayStation generation in history. The decline from generation to generation is comparable to the drop from Xbox 360 to Xbox One (quality, not sales).

Again, Microsoft being the top publisher on PlayStation is wild. If you had told someone this a few years ago, you would have been laughed into oblivion.

 

[FoxMcChief]

This generation is terrible in general, and yes, I agree. It's the worst PlayStation generation in history. The decline from generation to generation is comparable to the drop from Xbox 360 to Xbox One (quality, not sales).

Again, Microsoft being the top publisher on PlayStation is wild. If you had told someone this a few years ago, you would have been laughed into oblivion.

You got mouth breathers denying it today.