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[Nydius]

X Box isn’t going anywhere

They're going somewhere alright. To Third Party Land.
Right after they change their entire gaming division name to Activision-Blizzard because that's, quite literally, the only thing keeping them afloat.

Hilarious you think there's going to be a next Xbox when their current one has seen a 30% drop and a 40% drop in the SAME fiscal year. Xbox hardware is dead and buried. Better come to terms with that now and save some grief later.

 

[ChorizoPicozo]

Smart of them to acquire Activision then, right?

Once ABK establishes a new baseline, MS is going to have the impossible task of growing that shit.

How are they going to grow something like COD, which has reached market saturation already?

they are screwed big time.

 

[nani17]

I'm going to be honest I'm not surprised I've said it for a long time on this forum. They want to become the Netflix of gaming that's all they care about that's why they're buying up everyone they want you to turn on your smart TV or any device just like recently with the fire stick and just connect to the Xbox app and play, pay them a subscription fee that's all they care about.

 

[ChorizoPicozo]

it could. Sony lets other third party subscriptions on their platform.

nope.

 

[ShaiKhulud1989]

Once ABK establishes a new baseline, MS is going to have the impossible task of growing that shit.

How are they going to grow something like COD, which has reached market saturation already?

they are screwed big time.

Don't forget that costs of running Xbox division ballooned along with this merger, so good luck with staying in the green too.

 

[IDKFA]

I think that's it for the traditional Xbox console.

I know Microsoft have said they have a powerhouse console in the works, but I can't see it being released.

They'll probably just take a gamble on a handheld, but no more home consoles.

 

[HeisenbergFX4]

%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.


Price cut means they sell more units but stay at the same or less revenue.

While its a big number didn't we just hear a couple of months ago PS hardware was down like 30%?

The rush isn't there anymore

Maybe I am thinking something else about that 30% number

Regardless imagine at Castle Green they see these numbers and think "Oh lets release the same consoles but lets make them white, that will fix sales"

 

[Mr Moose]

Xbox consoles are dead, the third party future is clear.

 

[Daniel_Mallorca1985]

Microsoft's stock market drop:

 

[rodrigolfp]

Apple wake up! There is a place for another contender!!!

Please god, no. 2 are more than enough.

 

[jm89]

it could. Sony lets other third party subscriptions on their platform.

It would have to be massively neutered, like no day one releases.

Sony do allow ea play, but there isn't any day one games so it doesn't eat into sales alot.

The other thing is MS will still be seen as a competitor, sony would be giving a competitor a massive growth potential that could end up biting Sony in the ass.

 

[ChorizoPicozo]

Don't forget that costs of running Xbox division ballooned along with this merger, so good luck with staying in the green too.

that too.

the culture clash, power struggles between Xbox´s and ABK´s executives. Senior devs leaving their studios, a completely contradictory PHIL-osophy between Game Pass and selling games.... etcetera.....

that company is a fucking mess.

 

[dragonyeuw]

Explain to me like I'm 5 why they're releasing more expensive hardware later in the year.

 

[Astray]

While its a big number didn't we just hear a couple of months ago PS hardware was down like 30%?

The rush isn't there anymore

Maybe I am thinking something else about that 30% number

Regardless imagine at Castle Green they see these numbers and think "Oh lets release the same consoles but lets make them white, that will fix sales"

This is a %42 drop that's being compared against a prior %40 drop same quarter last year.

Sony's drops are being compared against a record year of sales.

And I fully agree about the new Xbox console variants, those won't move the needle especially against a PS5 pro.

 

[ShaiKhulud1989]

Explain to me like I'm 5 why they're releasing more expensive hardware later in the year.

Corporate inertia is hell of a thing.
(guess this is 'my' thread now huh)

 

[Draugoth]

Microsoft is leaving the console market within the next 5 years, Valve will replace them with Steam Deck and Steam Console. Mark my words

 

[Fafalada]

Apple wake up! There is a place for another contender!!! M4 Apple TV 1-2tb buy on one platform get on iOS / osx / iPad versions free!

2999.99

Fixed that for you.

 

[Jaybe]

With ABK included and hardware falling off a cliff, hardware is probably less than 10% of MS Gaming’s revenue now. Someone usually posts a split on Twitter, so I’ll post if I see it.

 

[HeisenbergFX4]

This is a %42 drop that's being compared against a prior %40 drop same quarter last year.

Sony's drops are being compared against a record year of sales.

MS knew these numbers were going to be bad its why people have been talking more about the next xbox, which its always whats next for them

I wont watch him but have been told Mr Green himself Colt Eastwood is pretty spot on with his latest video on what the next Xbox likely looks like

 

[Bernoulli]

 

[Mownoc]

While its a big number didn't we just hear a couple of months ago PS hardware was down like 30%?

The rush isn't there anymore

There's a huge difference. PlayStation's Jan-March 2023, which is the quarter with the big yoy drop, was one of the best for any console in that equivalent quarter ever and as far as I'm aware 2023 as a whole was the 2nd best year for any playstation console ever too.

Meanwhile 2023 for Xbox Series was a poor year and declining 42% from that is a train wreck.

 

[Nydius]

For reference, I pulled up all of Microsoft's public financial reports so people could have accurate debating points.

Xbox hardware declines per quarter in FY24:
Q1: -7%
Q2: -9%
Q3: -31%
Q4: -42%

 

[GHG]

Explain to me like I'm 5 why they're releasing more expensive hardware later in the year.

To rinse the fuck out of what remains of their fanbase on console with more lies and fake dreams.

At least that way they can keep them locked in to higher priced subscriptions vs what they would pay on PC, all of which also involve them having to pay for the privilege of playing games online.

As long as ~10 million people purchase whatever they come up with and they can dangle some sort of carrot in front of their faces for another 4-5 years to keep them locked in then they will be laughing.

 

[Skifi28]

Apple

299.99

 

[Humdinger]

Revenue is up, but I have to assume with those huge acquisitions, operating expenses are up considerably, too.

 

[Darsxx82]

For reference, I pulled up all of Microsoft's public financial reports so people could have accurate debating points.

Xbox hardware declines per quarter in FY24:
Q1: -7%
Q2: -9%
Q3: -31%
Q4: -42%

And the diference FY2023 vs FY2024 is "only" a 13% drop.

The figures are relative as you see them. Sales in each quarter are not correlative.

 

[Mr Moose]

And the diference FY2023 vs FY2024 is "only" a 13% drop.

The figures are relative as you see them. Sales in each quarter are not correlative.

Weren't they down last year?
Edit: Is that where you're getting the 13% from?

This offset a decline in Xbox hardware revenue, which was down 13%.

It's down 42% from that.

 

[ChuckeRearmed]

Microsoft's stock market drop:

Well Azure missed like 1% so...

 

[Nydius]

And the diference FY2023 vs FY2024 is "only" a 13% drop.

The figures are relative as you see them. Sales in each quarter are not correlative.

Okay, I know the part in bold, but what is your point? Xbox's hardware in 2023 was abysmal and declined over 2022. 2022 declined over 2021. And now 2024 has significantly declined over 2023. That's not a picture of a healthy division. We're not talking about Microsoft selling record numbers of consoles and then it was all downhill from there. Recent time-adjusted sales figures show the Series S and X have been selling worse than the Xbox One since launch.

 

[MikeM]

After hours for MSFT stock is not hot right now. No one liking the miss on Azure it seems.

 

[Jaybe]

Revenue is up, but I have to assume with those huge acquisitions, operating expenses are up considerably, too.

If ABK’s prior year was added in, total MS Gaming + ABK would be down 12%

 

[ShaiKhulud1989]

(Nice to see that Makeine is already memeing hard. Title of the season so far.)

 

[Humdinger]

If ABK’s prior year was added in, total MS Gaming + ABK would be down 12%

Gotcha. I was just responding to the figures in the OP.

I was trying to make the point that we since we don't know about operating expenses, we don't know about profit, just revenue. Granted, this is always the case but sometimes bears repeating, especially when operating expenses are likely much higher than they were before.

 

[DForce]

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

Phil Spencer's PR has trained you well.

 

[Viruz]

This is beautiful

 

[Darsxx82]

Weren't they down last year?

I am referring to the relativity of the figures. If you look at the global drop year-on-year, it certainly isn't nearly as shocking vs how he shows it. since the sales figures in the different periods are not correlative. Among other things because the periods of greatest sales are concentrated in other Q's.
The extent of the decline will be better appreciated in the figures for the next Q1 and Q2.

 

[gokurho]

Microsoft's stock market drop:

Xbox does not affect MS stock price in any way, you know

 

[Elios83]

Xbox hardware is dead.
The rest is basically inflated by the Activision revenues boost, this will be over in a few months as well.

 

[Kamina]

I don't care what they do as long as they buy more nvidia ai chips and the stock raises again .

Yeah it plummeted quite a bit

 

[XXL]

 

[Kamina]

Xbox hardware is dead.

Not yet but almost. Sad considering it is a nice piece of hardware.
I’d love if they opened it up for Windows.

 

[HeisenbergFX4]

I’d love if they opened it up for Windows.

 

[Mr Moose]

I am referring to the relativity of the figures. If you look at the global drop year-on-year, it certainly isn't nearly as shocking vs how he shows it. since the sales figures in the different periods are not correlative. Among other things because the periods of greatest sales are concentrated in other Q's.
The extent of the decline will be better appreciated in the figures for the next Q1 and Q2.

Last year
Q1 +13%
Q2 -13%
Q3 -30%
Q4 -13%

Q4 (this year) is -42% from -13% same period last year. That's pretty shocking.

 

[Kamina]

 

[Three]

Just 3% but it's still growth.

One thing to keep in mind is that there was a price increase near the end of June 2023. So that growth includes a price hike to contents and services that wasn't there this quarter last year too.

 

[ChorizoPicozo]

(Nice to see that Makeine is already memeing hard. Title of the season so far.)

where is this from and should I see it?

 

[ShaiKhulud1989]

where is this from and should I see it?

It’s from Too Many Loosing Heroines. It’s a brilliant comedy with fantastic animation quality.

 

[Hrk69]

Please god, no. 2 are more than enough.

Said nobody

 

[James Sawyer Ford]

 

[Mr Moose]

where is this from and should I see it?

Too Many Losing Heroines Wiki

makeine.fandom.com