The expectations for these tech companies are sky high right now, even with great earnings companies are dropping.
When MS spends $7.5 billion on Zenimax pretty sure the Xbox division is fully funded. That's more than Sony's entire corporate net profits.
This is just your assumption. An investment of 7.5 billions is still peanuts for MS. This investment is obviously part of a very long term plan and long term plans always involve a lot of risk. It might succeed it might not. But if it doesn't they will still be fine. I'm not saying they are not profitable at all. They may be very profitable and they may be not as profitable as you and others may think. My point is we don't really know how much and the increase in revenue doesn't say anything when we have no clue about the costs i mentioned before. Even Greenberg had said that Gamepass business model is not easily sustainable.
Context. The amount of profits MS makes and the amount of money they've sunk into studios shows they got cash to fund.
See above reply.
Even the traditional console model takes 4-5 years to turn green. When PS chief said exclusives is not a profitable business model, He meant that the investment takes long time to mature.
As I've said numerous times, "game pass" in and of itself will never be profitable. It's not designed to be. It's designed to bring more than it loses to the overall company/division. Someone paying $60 a year for game pass isn't just going to not spend a single other cent on games. They're now in the xbox ecosystem. Say they buy the next COD on Xbox now that they're in the ecosystem - that's profit that won't show on any spreadsheet for Game Pass. That DLC they then buy? Profit that only exists because of Game Pass, but won't show in their spreadsheets under game pass.
ToadMan
noted, no one should be making investment decisions based on the Xbox division. Their placement in the cloud server space is much more important, and they face some incredibly stiff competition there from Google and Amazon.
A gaming forum is really not the right place to get proper analysis on company earnings. I see there are a few other investors in here though. As
Its so stupid, but until these people get hard numbers, Xbox is a failing business to them. Hell even if Microsoft gave hard numbers, people would still say its failing. I mean this is what, Xbox's 20th year?, big businesses dont usually keep a failing division open for 20 years lol.
People simply hate MS and are scared for their own favorite company. They should be just enjoying video games because I haven't seen anyone here yet who knows business better than MS. MS managed to survive without their advice.
Even if Microsoft said Xbox revenue was up 1000%, certain people would still be like 'Xbox is da failing wivout hard nvmbers!'
Xbox is HIGHLY profitable. Has most likely the highest profits of any platform holder, because they have low hardware sales. (you know the stuff with the bad margins)
Cloud is a duopoly. the distant third player is not google BUT Alibaba.A gaming forum is really not the right place to get proper analysis on company earnings. I see there are a few other investors in here though. As
You do not undestand how companies are valued, Azure leads the enterprise cloud. Enterprise market share is a complicated business. AWS and Alibaba Cloud (1st and 3rd) are also driven by their e-commerce business. I can go as far as say that valuation of MSFT wrt to cloud business, it is still undervalued. All cloud businesses are undervalued at present. It is the prime real estate of the internet and people are just moving in.
TBH to me real estate is more attractive than stock markets. Lot of factors deciding my choice. Like, My native being close to one of the biggest metropolis in the world.
You seem...so...angry. Calm down, Microsoft gaming division doing well only keeps other companies on its toes. It benefits the consumer. This is a reading of the pulse of the gaming industry. Its great to see its in good health
Without naming names there was a certain user on here that lost his shit when Microsoft bought Zenimax, and literally said he was so pissed off because 'Sony had a chance to end Xbox but didnt take it'.
They don’t care about the industry, they care about Sony.
I'm not angry at all, I have no stake in it. Microsoft makes more or less money does not affect me as I'm not in that ecosystem. What I said was all true. Without competition, Sony wouldn't get the PS Plus Collection.
So does this confirm Xbox is dead yet? anyone? *cricket noises intensify*
Where are all the usual GAF analysts predicting Xbox's impending doom?
The idea that Xbox has no games is false. Maybe they have no games that you're interested in...thats your opinion and you're welcome to it. But alot of people love the exclusives they do have.
Give me the line-up of launch that has worth-while games that aren't Medium? Which isn't even a full game to begin with? Might they have good games down the road? Possibly, as for right now, they have nothing.
That's not the argument here first of all. You said "Xbox has no games"...a Sony fanboy talking point that been rehashed over and over for years. Since you wanna change the argument though, it could be said that neither launch is absolutely fantastic. The Medium...not a full game..what does that even mean? Is Demon's Souls not a full game because it's a remake? Is Miles Morales also not a full game because a 12 hour expansion? I don't see it that way.
