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MS Earnings Call - FY23Q3 | 4% decline for MS Gaming, Xbox HW down 30%

Banjo64

Banjo64

cumsessed
bluecowboys said:
Xbox series consoles is still MS fastest selling console. All MS has to do is get the constraint issue fix (lord knows how long) and make big purchases. I may have to call up my daddy Phil Spencer to buy out From Software. You want that? I think you do.
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It’s the cross-over game you’ve all been waiting for. NeoGAF’s GOTY 2031 - Elden Ring 2: Nuts & Bolts.

JZRCP2M.jpg


Pre-order now to reserve your disappointment.

GHG said:
Just ask Banjo64 Banjo64 what they did to rare.
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OIP.Tp5bsd0IfqeNRVoZy6NBwgAAAA
 
feynoob

feynoob

Banned
TheGodfather07 said:
Why though? It feels like they a giving up already or are they just waiting to complete the acquisition of Activision? The lack of marketing is baffling aswell. Where are the xbox ads? Microsoft Don't have the money to market their own product? None of it makes sense. Meanwhile i see PS and switch ads all the time. The way Microsoft run xbox is strange for such a massive wealthy corporation.
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Because there are no games at this moment.
They had 16 months of no AAA 1st party games. deathloop and ghostwire where timed exclusive to PS.
 
Thirty7ven

Thirty7ven

Banned
TheGodfather07 said:
Why though? It feels like they a giving up already or are they just waiting to complete the acquisition of Activision? The lack of marketing is baffling aswell. Where are the xbox ads? Microsoft Don't have the money to market their own product? None of it makes sense. Meanwhile i see PS and switch ads all the time. The way Microsoft run xbox is strange for such a massive wealthy corporation.
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And what are they going to put on those ads? An Xbox console? Cmon now
 
Mr.Phoenix

Mr.Phoenix

Member
feynoob said:
Can somebody do a math on this one?
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You can say total console sales were anything from 1M to 2M.

1M if assuming a $500M in sales was the XSX, 2M if assuming all sales were the XSS at $250/console.

More realistically, that should put console hardware sales at around 1.3M combining both XSX and XSS because stuff like controllers and other accessories also go into that hardware revenue.
 
SportsFan581

SportsFan581

Member
Sanepar said:
Gp numbers going up... 3% less than 1 million subscribers in one quarter. Yeah awesome. Now it has 26mi at best.
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Cringe Reaction GIF


The revenue for the entirety of "content and services" went up 3%. That's quite different from saying GP had 3% growth. Given the % of revenue GP typically occupies here combine with the fact that hardware units were down (and most people are going to buy some software when they get a new system), GP growth could be quite strong here.
 
D

Darsxx82

Member
ReBurn said:
Lack of major releases is probably one of the main issues with hardware moving. Microsoft needs to release more games.
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I agree, and would add that MS needs to sign more marketing deals with large 3rd party IPs and generally increase spending on XSeries marketing.

It may be a coincidence or not (I guess we'll see soon), but since the ABZ Acquisition process went awry, MS has practically abandoned marketing and advertising of XSeries. It was very different in 2020 and 2021.
 
O

onQ123

Member
Luminoth-4545 said:
OOOOOOOF! That 30% hardware decline is not good, those big AAA exclusives are needed ASAP. Microsoft need Call of Duty to go "Xbox only" just to have chance at this rate, this is like Xbox One all over again and it seems like only a matter of time until the ratio reaches 2 to 1 in favor of PS5. Also Vgchartz estimates were pretty close, they estimated a 25% decline in units from their numbers. For comparison they estimated 1.52 million for Xbox Series and 5.28 million for PS5 for the 1st Jan to 31st March quarter, we will find out how close the PS5 estimate is on Friday. Here is their data, tabulated by calendar year:

Trrpa9g.png


64j8UTP.png
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Would you like to explain why this has PS5 at 30 million when we know for a fact they hit 32 million over the holidays?

https://www.gameinformer.com/2023/0...lion-units-shipped-after-its-best-quarter-yet
 
O

onQ123

Member
TheGodfather07 said:
Why though? It feels like they a giving up already or are they just waiting to complete the acquisition of Activision? The lack of marketing is baffling aswell. Where are the xbox ads? Microsoft Don't have the money to market their own product? None of it makes sense. Meanwhile i see PS and switch ads all the time. The way Microsoft run xbox is strange for such a massive wealthy corporation.
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My only guess is they are still taking a hit on Xbox Series X that they don't want to take right now & they are waiting for a die shrink before pushing the hardware.
 
R

reksveks

Member
Some openai stuff

- Azure OpenAI being using adept and inflection (???)
- 2000 openai service costumers, up 10x
- Unilever went all in on Azure
- OpenAI using CosmoDB for Chatgpt.
- 76% of the fortune500 using github
- bunch of people using Github CoPilot
- Powerplatform usage up 50%
- Cloud for sustainability used by BBC.
- Teams up to 300m MAU, 60% of customers buy Teams room or one of the other additional software like premium or hardware.
- Record monthly windows devices
- 930m LinkedIn users, 100m in India
- Bing up to 100m monthly usage (??)
- Bing grew share in the US and Edge grew for the 8th in
- Q3 record in terms of gaming MAU
- Revenue from subs grew to 1bn
- 500m players across first party titles

Just waiting for the 1/2 gaming comments
 
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reinking

reinking

Gold Member
MatrixReloaded101 said:
Getting Call of Duty in game pass will definitely change things for them.
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The question is by how much? Many COD players are invested in PlayStation at this point. We know COD will probably remain on PS5 (and possibly PS6). It is going to be interesting to see how much COD will be able to pull from PlayStation. I have been interested in that since this whole acquisition was announced.
 
O

onQ123

Member
Mr.Phoenix said:
You can say total console sales were anything from 1M to 2M.

1M if assuming a $500M in sales was the XSX, 2M if assuming all sales were the XSS at $250/console.

More realistically, that should put console hardware sales at around 1.3M combining both XSX and XSS because stuff like controllers and other accessories also go into that hardware revenue.
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Don't forget that Series X is mostly being sold in a $559 bundle
 
FrankWza

FrankWza

Member
analog_future said:
If I was split between deciding on buying a new Xbox or a new PlayStation, and my options were to buy a PlayStation for $500 or an Xbox bundled with a game I don’t really want for $560-$570, the choice would be made for me. Particularly when I could play that same game with Game Pass anyway.
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How are you playing the game before you have the console unless you have a PC with gamepass? Why would that customer want an xbox? Just because a game is available on a sub doesn't mean you shouldn't buy it or support it. That thinking is big reason why tgey came out and said their sales are being hurt by gamepass.
 
D

Darsxx82

Member
mckmas8808 said:
I'm starting to seriously get worried for the Xbox brand now.
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XBOX brand is more than assured its existence. If the acquisition of ABK closes even more. I understand that you mean Xbox Console. My thought is that XSeries would have to sell at original XBOX levels (25 million) for MS to think stop manufacturing consoles.

The XBOX console continues to be a reference product for MS, with a large following and coincides in being the largest channel of revenue in gaming, GPass subscriptions and other content.

I don't think MS is thinking of resigning from console manufacturing (in fact they have already stated that they are developing a new console), at least not until cloud gaming is a reality and competition for physical hardware gaming (and for That's a couple of generations left)
 
Baki

Baki

Member
a multicultural team of v said:
The fun thing with revenue accounting is that those discounted consoles are very likely being counted as full revenue, with the discount being a separate accounting entry.

The other fun thing is that when someone pays $1 for a month of Gamepass, to Microsoft it is likely $10 (or whatever the monthly price is) of revenue with a $9 discount or marketing cost.

And now you know why they only ever talk about revenue.
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I call that the Doordash method.
Leonardo Dicaprio Cheers GIF
 
U

Unknown Soldier

Member
bluecowboys said:
MS second best Q3 results. Hardware down due to series x constraints since they are building their cloud infrastructure more and more.

Just like the CD, DVD, Blu ray, and now cable box consoles are a dying platform.
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LMAO imagine being so deep in your GAF bubble that you don't realize where all the gamers are going.

Hint: It's not the cloud. It's mobile.

If anyone on GAF was under the age of 65 and had a phone they would realize that mobile is the largest and fastest growing and most profitable gaming market and has been for over a decade.
 
ChorizoPicozo

ChorizoPicozo

Member
Unknown Soldier said:
LMAO imagine being so deep in your GAF bubble that you don't realize where all the gamers are going.

Hint: It's not the cloud. It's mobile.

If anyone on GAF was under the age of 65 and had a phone they would realize that mobile is the largest and fastest growing and most profitable gaming market and has been for over a decade.
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a trap
 
Thirty7ven

Thirty7ven

Banned
GHG said:
Yeh well the problem is they can't say anything about it other than "revenue" and MAU because that would expose some truths that I don't think they particularly want out there.

I might need to listen back to it again but I don't recall him mentioning the word "xbox" once.
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And that’s why they will keep pumping out mediocre product.
 
B

bluecowboys

Banned
Unknown Soldier said:
LMAO imagine being so deep in your GAF bubble that you don't realize where all the gamers are going.

Hint: It's not the cloud. It's mobile.

If anyone on GAF was under the age of 65 and had a phone they would realize that mobile is the largest and fastest growing and most profitable gaming market and has been for over a decade.
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Cloud can be played anywhere with a screen. That includes mobile you silly goose.
 
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Astray

Astray

Member
TrebleShot said:
So Activision is sort of their Hail Mary, I’m sure it will work.
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Either that or it's their big crowbar that will unlock Sony and Nintendo consoles for Gamepass business.

I genuinely think that MS is already slowly pivoting into a 3P company, but time will tell..
 
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