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Xbox hardware revenue down 42%, content and services up by 61% last quarter
- Thread starter ShaiKhulud1989
- Start date
- Business Sales-Age
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Microsoft’s cloud revenues rule again in Q4, as Surface continues to dip
Office and cloud are strong for Microsoft’s revenues.
www.theverge.com
Topher
Identifies as young
Microsoft’s cloud revenues rule again in Q4, as Surface continues to dip
Microsoft just posted the fourth and final quarter of its 2024 fiscal financial results. The software maker made $64.7 billion in revenue and a net income of $22 billion during Q4. Revenue is up 15 percent, and net income has increased by 10 percent.Microsoft’s Intelligent Cloud revenues, which includes the company’s server products and cloud services, was $28.5 billion overall and up 19 percent year over year. Revenues from this part of Microsoft’s business now make up nearly 45 percent of all revenue. While cloud revenue is strong once again, Microsoft’s consumer devices push continues to dip. Surface revenue has now declined for seven consecutive quarters in a row.
Windows and Surface revenue
Windows OEM revenue, the price that manufacturers pay to license Windows for laptops and PCs, is up four percent year over year. Gartner said earlier this month that PC shipments had grown for three consecutive quarters, and that’s reflected in Microsoft’s Windows OEM growing in the same three quarters.
Microsoft also launched its new Copilot Plus PCs toward the end of fiscal Q4, with a variety of Qualcomm-powered devices available from June 18th onwards. Two new Surface devices, the Surface Laptop 7th Edition and Surface Pro 11th Edition, also launched in June. The full impact of sales on devices revenue won’t be felt until next quarter, though.
That means Surface revenue, or what Microsoft now calls devices revenue, has declined again this quarter by 11 percent. The last time Microsoft’s Surface revenue was up was in Q1 FY23, the quarter ended September 30th, 2022.
Microsoft switched up its hardware portfolio amid layoffs in early 2023, and the Surface Pro 10 and Surface Laptop 6 for businesses don’t seem to have had a big impact on revenues. All eyes are on next quarter to see if the new Surface Laptop and Surface Pro launches have helped devices revenue recover at all.
Xbox and gaming
Xbox content and services revenue, which includes Xbox Game Pass, is up by 61 percent this quarter. Activision Blizzard revenues have once again contributed to the majority of revenue here, with 58 points of net impact. Without Activision Blizzard revenues, Xbox content and services revenue will still have been up three percent year over year.
Microsoft revealed in February that Xbox Game Pass has now grown to 34 million subscribers, including the Xbox Game Pass Core (previously Xbox Live Gold) members. Microsoft is planning to launch a new Xbox Game Pass Standard plan soon, which is designed to replace the Xbox Game Pass for Console offering for new subscribers.
Microsoft just launched last year’s Call of Duty: Modern Warfare III on Xbox Game Pass, and it’s also planning to make Call of Duty: Black Ops 6, the next installment in Activision’s popular franchise, available on Xbox Game Pass later this year.
Microsoft’s price hikes for Xbox Game Pass Ultimate and PC Game Pass don’t come into effect until September, with Game Pass Ultimate increasing to $19.99 a month — a $3 increase over the current $16.99 a month pricing. PC Game Pass is also moving up to $11.99 a month in September.
While there’s a lot of anticipation for new games on Xbox Game Pass, console sales are still struggling. Xbox hardware revenue is down a massive 42 percent this quarter. Microsoft is planning to launch a discless Xbox Series X console in white later this year, alongside a new Galaxy Black special edition Xbox Series X.
Despite the poor Xbox hardware revenue, gaming revenue at Microsoft is up 44 percent overall, helped again by the additional Activision Blizzard revenue. In fact, that revenue added 48 points, so overall gaming revenue at Microsoft would have been down four percent if the company hadn’t acquired Activision Blizzard.
Microsoft’s cloud revenues rule again in Q4, as Surface continues to dip
Office and cloud are strong for Microsoft’s revenues.
www.theverge.com
Unknown Soldier
Member
Activision Blizzard carrying the whole division at this point
I wonder when they'll axe the whole rest of the division except Activision Blizzard
I wonder when they'll axe the whole rest of the division except Activision Blizzard
ShaiKhulud1989
Gold Member
I fail to add anything salty or ironic. The maths just sepaks for itself. Xbox outside of Activision is shrinking rapidly and hardware is basically a deadweight at this point.
Have a price increase and a total gutting of Game Pass instead
Topher
Identifies as young
Ah....he beat me by a minute. Will request it to be closed
ShaiKhulud1989
Gold Member
Jaybe
Member
Looking at MS Gaming and ABK combined, revenue DROPPED 12%!
MS Gaming Q4 2024 is $5.03 Billion (3.491B x1.44)
As separate companies, MS Gaming and ABK when summed together made $5.7 Billion in the April 2023 to June 2023 period. ABK’s $2.2 Billion was driven off of Diablo 4. MS Gaming was $3.491 Billion ordering to
Welfare
‘s calculations on IB.
MS Gaming Q4 2024 is $5.03 Billion (3.491B x1.44)
As separate companies, MS Gaming and ABK when summed together made $5.7 Billion in the April 2023 to June 2023 period. ABK’s $2.2 Billion was driven off of Diablo 4. MS Gaming was $3.491 Billion ordering to
Welfare
‘s calculations on IB.
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Mr Moose
Member
Or a merge because I am too lazy to copy and paste my comment in the other one.
I just copy pasted the article and headline, wtf are you talking about
BennyBlanco
aka IMurRIVAL69
Will be interesting to see where they go from here. All that revenue increase is probably due to Activision. I suspect they will just bow out of traditional hardware and try to push their terrible PC store/ cloud gamepass. No way Sony lets gamepass on their next console when they have their own bad sub service to push.
.
Mr Moose
Member
There's 3.
Microsoft’s had a great Q4 2024 but Xbox Hardware is in Free Fall (-42%)
Microsoft just posted the fourth and final quarter of its 2024 fiscal financial results. The software maker made $64.7 billion in revenue and a net income of $22 billion during Q4. Revenue is up 15 percent, and net income has increased by 10 percent. Xbox content and services revenue, which...
Business - Sales-Age - Xbox hardware revenue down 42%, content and services up by 61% last quarter
Microsoft just posted the fourth and final quarter of its 2024 fiscal financial results. The software maker made $64.7 billion in revenue and a net income of $22 billion during Q4. Revenue is up 15 percent, and net income has increased by 10 percent. Xbox content and services revenue, which...
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M1chl
Currently Gif and Meme Champion
Wasn't directed at you, I see more people jumped on this topic. I am referring to that "freefall"
ShaiKhulud1989
Gold Member
Oh I saw it now.There's 3.
Microsoft’s had a great Q4 2024 but Xbox Hardware is in Free Fall (-42%)
Microsoft just posted the fourth and final quarter of its 2024 fiscal financial results. The software maker made $64.7 billion in revenue and a net income of $22 billion during Q4. Revenue is up 15 percent, and net income has increased by 10 percent. Xbox content and services revenue, which...www.neogaf.com
Business - Sales-Age - Xbox hardware revenue down 42%, content and services up by 61% last quarter
Microsoft just posted the fourth and final quarter of its 2024 fiscal financial results. The software maker made $64.7 billion in revenue and a net income of $22 billion during Q4. Revenue is up 15 percent, and net income has increased by 10 percent. Xbox content and services revenue, which...
Yeah fair lol
Astray
Member
%42 decline in hardware is fucking insane and is likely ringing alarm bells at MS HQ.
No wonder everything is getting cut to the bone now.
No wonder everything is getting cut to the bone now.
Price cut means they sell more units but stay at the same or less revenue.
They’ve been playing it so long they’ve forgotten the rules
adamsapple
Or is it just one of Phil's balls in my throat?
Nydius
Gold Member
This is the second straight quarter where Microsoft would have been in negative numbers if they hadn't acquired ABK. Face reality Xbox fans, it's no longer "MIcrosoft Gaming". It's Activision-Blizzard-King with some Microsoft and Bethesda games. ABK likely would have pulled this level of revenue regardless meaning Microsoft itself deadweight, especially their hardware division.
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ChuckeRearmed
Member
The biggest revelation here is the fact that -42% in hardware amounted only to -4% in overall losses. Incredible.
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ChorizoPicozo
Member
Whose thread is the ONE?
ShaiKhulud1989
Gold Member
Well, chronologically speaking this is the first one. But I'll let the moderation team roll the d20.
Dacvak
No one shall be brought before our LORD David Bowie without the true and secret knowledge of the Photoshop. For in that time, so shall He appear.
Eh, how bout this one.
analog_future
Resident Crybaby
Xbox software and services are up 61% while hardware is down 42%.
If that doesn’t tell you that Microsoft’s plan is to diversify/make available their software and subscription libraries across every possible platform, then I have a bridge to sell you.
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FoxMcChief
Gold Member
I’m cool with MS exiting the hardware game and offering game pass on PC, PlayStation and Nintendo platforms.
Mownoc
Member
Good job cutting it just before it says the majority of this is due to Activision being included this year and not the previous year!
You actually made it look like gamepass was exploding! And not just... You know... CoD, WoW, Overwatch etc etc.
The revenue of Xbox content and services outside of Activision, the bit relevant for gamepass revenue, is up 3%.
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REDRZA MWS
Member
One of you still get it. Xbox is a platform now, consoles and PC. They have the largest install base by default. They’ve said over and over and over again there will be a next gen Xbox, all their games on PC, they are even adding streaming shit like fire stick.
MS doesn’t care to put sell Sony or Nintendo in game consoles, they are expanding and making more money than ever.
X Box isn’t going anywhere
MS doesn’t care to put sell Sony or Nintendo in game consoles, they are expanding and making more money than ever.
X Box isn’t going anywhere
ShaiKhulud1989
Gold Member
No updates on GP numbers too.
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Dacvak
No one shall be brought before our LORD David Bowie without the true and secret knowledge of the Photoshop. For in that time, so shall He appear.
We’ll see if their handheld moves the needle at all. From what I’ve heard, it’s at least very comfortable.
I do hope Game Pass succeeds, but not so much that it changes the industry and everyone shifts entirely to subscription models, like what happened with streaming services.
I’d be perfectly fine paying for Game Pass indefinitely as long as the software keeps coming. I’ll keep buying games on Sony and Nintendo platforms, and I’ll “lease” them on Xbox. Doesn’t sound too bad.
I do hope Game Pass succeeds, but not so much that it changes the industry and everyone shifts entirely to subscription models, like what happened with streaming services.
I’d be perfectly fine paying for Game Pass indefinitely as long as the software keeps coming. I’ll keep buying games on Sony and Nintendo platforms, and I’ll “lease” them on Xbox. Doesn’t sound too bad.
FoxMcChief
Gold Member
Smart of them to acquire Activision then, right?
ChorizoPicozo
Member
no gonna happen.
Daniel_Mallorca1985
Member
FoxMcChief
Gold Member
it could. Sony lets other third party subscriptions on their platform.
ShadyAcshuns
Member
With how little they care about supporting Xbox hardware, I'm surprised they're still manufacturing consoles.
adamsapple
Or is it just one of Phil's balls in my throat?
Yep, it's a great addition to their first party revenue stream.
Oppoi
Member
Well at least that's all organic growth. /s