SmokedMeat
Gamer™
Apple doesn’t need to waste their time.
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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
Apple doesn’t need to waste their time.
Nobody is arguing that the numbers are bad. I was just emphasizing that %s lead to wrong first impressions because there is no correlation.
The FY2022 figures were certainly not good, but -13% years over year after all that happened does not have as much visual impact compared to what how you have stated %.
Then, today's data shows a very healthy XBOX division, what it doesn't show is a healthy Xbox Hardware. Xbox hardware for MS is no longer a priority and it seems like they are "happy" with the income generated by their today loyal users (which the data says continue to generate a lot of income in games and suscriptions).
Everything indicates that MS's bet on its next hardware is to offer something that sure will not compete in sales with the next PS console but will seek to once again attract loyal console players (25, 30 or 35 million?) while brings its games to all platforms.
ChorizoPicozo
Member
I don't understand why. Didn't they perform above expectations overall?
It is very shocking until you see the sales figures that are usually given in Q4 each year.
Example: 42% of 1000 is not the same as 42% of 10,000.
As I say, the real extent of the drop in sales will be shown by the figures for Q1 and Q2, which is where the majority of sales are concentrated during the year.
ChorizoPicozo
Member
makes you think...
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jm89
Member
Shipment guesstimates for q4.
Cant imagine much has changed in the recent months. Probably a boost during college football release
XXL
Member
I think it's estimated that they'll sell around 3 million units this year, if I remember correctly. Based on the numbers last quarter.
Mr Moose
Member
Yeah, % can be misleading, but we know they aren't selling too well.
reinking
Gold Member
I watched it (now my youtube feed will be cursed with this
He talks about a universal Xbox dashboard that can be installed on any device that is supported (by windows and xbox kernel) and the two device approach. He brings together a lot of the current leaks/rumors about a handheld and a "console" that will support steam and other PC platforms. It sounds very interesting but also not neccessary if they are going to allow the dashboard to be installed on any other windows PC. It might help them attract console diehards but the price might put it out of reach. For me, price, convenience and wow factor are going to have to be huge for me to go with an Xbox hybrid over a traditional PC. The Wow factor is probably the biggest decider.
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makes you think...
Integration losses will be transient, and will also cover payoffs for departing senior execs and (very likely) and payoffs for the laid off ABK staff.
It’ll be interesting to see the net ABK impact when these costs are done.
"" "happy."
I'm sure you know how to understand the use of quotes
If you see the data, revenues from games, subscriptions, dlcs (not counting ABK) are maintained (+4%) despite the drop in hardware revenues. That is to say, Xbox console users continue to invest the same in games, gamepass subscriptions, dlcs, etc. despite everything and MS seems to have decided has decided to assume the minimum given the situation (or has been itself forced to accept and assume) while it begins to carry more games on all platforms.
Still some variables in play. New hardware (though stupidly overpriced), as well as possibly a COD Bundle for the holidays.
But they really need a price cut to move the consoles.
Astray
Member
Azure is what keeps Microsoft up, if it goes down the stock goes with it.
It's honestly very on-brand for them to go to Colt for help.
Part of me thinks that them constantly talking up a next gen set of systems is part of why the hardware sales are collapsing.
Crossgen is still alive and well for most shooters (which is where Xbox players are likely most represented), so no need to buy a Series consoles, and now the company keeps signaling how eager they are to abandon this gen of hardware.. It's just not a good incentive to get a new Xbox today tbh.
I mean I think they sort of are. I think if Sony was willing to play ball (and lose store revenue) Game Pass would already be on PS5.
ChorizoPicozo
Member
"" "happy."
I'm sure you know how to understand the use of quotes
If you see the data, revenues from games, subscriptions, dlcs (not counting ABK) are maintained (+4%) despite the drop in hardware revenues. That is to say, Xbox console users continue to invest the same in games, gamepass subscriptions, dlcs, etc. despite everything and MS seems to have decided has decided to assume the minimum given the situation (or has been itself forced to accept and assume) while it begins to carry more games on all platforms.
fixed for you.
Nydius
Member
It's pointless to argue with some people. They've had more negative quarters than positive ones since launch, and all time-adjusted sales show that the Series consoles are performing worse than the Xbox One, which was, until now, the worst performing Xbox. The Series S|X consoles are poised to be Microsoft's worst selling consoles since the X360 and that's despite having a cheaper SKU, a well established Game Pass platform, and a company-sponsored installment plan purchase package.
Their hardware is rock bottom and their software is only 'improved' because they added a mega-multiplatform publisher to their roster. I don't know how anyone could spin this to a positive. Hardware growth is unsalvageable, and software growth now depends on Microsoft being able to push constant growth out of ABK, which is unlikely. I really don't see how anyone can spin these numbers as a positive when they critically examine the last 2-3 years of the Xbox brand.
Only way that would happen is if they limit it to MS first party games akin to EA play.
give Phil 2 more years and watch him somehow managing to obliterate ABK as well.
ChorizoPicozo
Member
it matters but it's negligible if you are not actually releasing games
"" are not needed there. The global XBOX division is in good health. Xbox Hardware is something else. In fact, hardware revenue does not even represent 10% of the division's total revenue. Apart from the fact that it is in the software where the benefits are focused.
Unknown Soldier
Member
More to the point, Apple doesn't need to waste the money
Astray
Member
It doesn't, they are releasing games at a far better pacing and communicating more about their roadmaps than their competitors, and it's still not happening.
The average consumer simply stopped caring about Xbox as a brand. That's all there is to it at this point.
The patient is dead and no amount of CPR or ventilators will help the situation.
You were doing fine until you got to this point.
Their software growth depends on ABK, but also their other first party titles. At least I presume they’d be hoping to sell the likes of Indiana Jones and Doom for money.
rm082e
Member
Why would it have? Who watched that show and thought "I haven't bought a Series console yet, but now is the time!"
ChorizoPicozo
Member
I mean a "very healthy" division implies they are actually making money (profits) something that they don't even report. so"" are not needed there. The global XBOX division is in good health. Xbox Hardware is something else. In fact, hardware revenue does not even represent 10% of the division's total revenue. Apart from the fact that it is in the software where the benefits are focused.
.This is so baffling. Why in the WORLD did Microsoft not update the Series X this year more than just removing the disk drive and painting it white? I genuinely wonder if they are SHOCKED that hardware sales have tanked so much in light of their poor decisions? It is almost as if it is being done intentionally to kill hardware sales for some reason, because it doesn't even look like they are trying.
Generic
Member
Sad. The PS6 will be the early PS3 era all over again, but for the whole generation. Nobody will put Sony in check.
Astray
Member
Terminally online people.Why would it have? Who watched that show and thought "I haven't bought a Series console yet, but now is the time!"
ChorizoPicozo
Member
wow. someone is drinking the Kool-Aid.
the communication has been pure damage control and Spin. Their games (FP, SP, TP?) have been irrelevant (not big enough, not good enough, not enough at all). Their roadmap still is too scattered and full of empty promises...maybe next year they will have a decent and consistent one.
Astray
Member
I'm really not. Go through my posts and you will realize that I've been quite critical of their management for years now.
There's a huge difference between heavy criticism and just hating.
reinking
Gold Member
If you come to believe that the XBOX+Bthesda+ABK software in multiple gaming plattaforms and you can adds the different types of subscriptions, merchandising microtransactions, copyrights are not generating profits.....I mean a "very healthy" division implies they are actually making money (profits) something that they don't even report. so
Simply by having ABK generate 1/4 of the income it generated when it was independent, they would already be making profits.
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rm082e
Member
When you say "update the Series X this year", what are you thinking they should/could have done?
Nydius
Member
You think Microsoft is putting Sony “in check” now when Sony is dominating them in every market and Xbox practically doesn’t exist in a lot of Europe, Middle East, Africa, and Asia?
The Xbox hasn’t been a meaningful competitor to PlayStation for at least 8 years. If they were we probably would have seen a PlayStation price drop by now.
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MikeM
Gold Member
I’d argue that MS stopped caring about the Xbox brand. It died with the “play anywhere” mantra.
ChorizoPicozo
Member
And the point is that having a good or great showcase when you are not delivering the games and there is a clusterfuck in your messaging/vision/strategy compounded by the complete free fall of your hardware of course its not going to have a big impact at all. BUT showcases/events (Marketing in general) have a very important and meaningful impact.
LordCBH
Member
They’ll make the braindead decision to make cod release every other year and then wonder “hey why are our numbers so shit?” On off years.
fudgybrownie
Member
Yikes.
ChorizoPicozo
Member
If you come to believe that the XBOX+Bthesda+ABK software in multiple gaming plattaforms and you can adds the different types of subscriptions, merchandising microtransactions, copyrights are not generating profits.....
Simply by having ABK generate 1/4 of the income it generated when it was independent, they would already be making profits.
Alebrije
Member
2025-26 Will be very interesting, Microsoft can keep developing Xboxs and sell them at cost or low proffit as marketing tools fot thier Gamepass platform. Hardware is not the issue now , the interesting Will be how software studios behave. They need a tandem of great titles to support MS-AB-Bethesda "conlave"
FIREKNIGHT2029
Member
Xbox hardware is pretty much dead now. Activision is carrying the entire gaming division at Xbox. Down 42% in hardware when you've been down every quarter for more than a year is just a total disaster.
No wonder they are fully embracing their future as a third party publisher now.
There is no future with Xbox hardware being successful.
No wonder they are fully embracing their future as a third party publisher now.
There is no future with Xbox hardware being successful.
MDSLKTR
Member
You want games to sell 2000 copies?
Generic
Member
Sony added new PS+ tiers as a response to Gamepass.
Thick Thighs Save Lives
NeoGAF's Physical Games Advocate Extraordinaire
Generic
Member
Fallout bros, we won!