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Xbox + Microsoft FY24 Q3 Results: Total Gaming +51%, Content and Services +62% Hardware -31%

The Series X is “dead at the door” because of the Series S. Microsoft marketed it to the masses as “the same but cheaper” so people bought it rather than the X. Only enthusiasts or people who wanted access to physical media paid attention to the deeper differences.

And then they told devs that they HAD to ensure feature parity so Microsoft could make good on those marketing claims to the masses (which inevitably blew up in their faces with BG3, handing a win to Sony in the process).

We will never know what the Series X might have sold if they had taken the PS5 path (both using the same hardware, one omitting the optical drive). The only thing we can say for certain, thanks to the now redacted FTC leaks, is that the Series S cannibalized sales of the Series X to a significant degree.
I believe it lowered the sentiment of Xbox as a whole and diminished its value in many ways.
 

THE DUCK

voted poster of the decade by bots
Trust me, as a person who loved my bright yellow Nokia Lumia 1020 (unbelievable camera on that thing), Microsoft can drop a product/brand/whole segment instantly without notice.

I think this explains the whole Nokia situation nicely. There were in trouble even without MS. But ultimately, they could walk away as the investment was much, much smaller than what they have put into console gaming. (100 Billion+ vs 6?)

Every large company will have some aquisitions and or areas that are folded, at least they aren't like Alphabet (aka Google)......
 

LordCBH

Member
TGFesfu.jpeg



Our old pal colt is triggered today.
 

midnightAI

Banned
I think this explains the whole Nokia situation nicely. There were in trouble even without MS. But ultimately, they could walk away as the investment was much, much smaller than what they have put into console gaming. (100 Billion+ vs 6?)

Every large company will have some aquisitions and or areas that are folded, at least they aren't like Alphabet (aka Google)......
True, but MS is a business at the end of the day, if they can't see a part of that business making money and don't see a way it can make money then the obvious thing to do is cease that part of the business. I've said it previously, I think XBox hardware has one last chance to work then I see MS shutting that part down if it doesn't.
 

THE DUCK

voted poster of the decade by bots
True, but MS is a business at the end of the day, if they can't see a part of that business making money and don't see a way it can make money then the obvious thing to do is cease that part of the business. I've said it previously, I think XBox hardware has one last chance to work then I see MS shutting that part down if it doesn't.

I think it's probably true, if this last round of hardware doesn't change things, that's probably it. All the more reason to get it right. I personally think a hybrid handheld st a switch like price would appeal to a wider audience than a new more powerfull console. But they could do both.
 

midnightAI

Banned
I think it's probably true, if this last round of hardware doesn't change things, that's probably it. All the more reason to get it right. I personally think a hybrid handheld st a switch like price would appeal to a wider audience than a new more powerfull console. But they could do both.
Agreed, hybrid is probably (maybe) the way to go and if it can double as a pc for the living room at an affordable price I could see it being a hit (dock being additional cost, with full Windows, extra ram, upgradable (standard) SSD storage etc.)
 
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Ms has been publishing games on ps5 for years (minecraft ring a bell?). They decided to port some older less popular games to ps5.

What exactly makes you think they have given up on hardware? The announcements that they are working on hardware? The unwavering support of hardware of the parent company over the past 20 years? Or perhaps it's the 70 billion they just spend on another company that makes games?

I will give you that conventional logic might lead you to the abandonment of hardware, bit every single thing ms has done in the past really points to changing strategy on hardware vs abandoning it. So maybe it will be a portable, or some sort of Uber xbox, but it's not likely over.

There is even a scenario where ms releases new hardware and also releases games on all platforms.
You do know Minecraft is only on playstation because the contract microsoft signed when they bought it states that it has to remain on playstation right?
And that phil spencer assembled a team and tasked them with finding a way around the "minecraft must remain on playstation" clause right?
Microsoft would and will pull it off playstation the first instant they could without breaking the contract they purchased it under.
 

TBiddy

Member
But the very people who complain about being too “invested” are themselves just as invested. They wouldn’t get involved if they weren’t.

Besides, there are plenty of “multiplatform gamers” here that simply don’t like Xbox. This high ground nonsense is as laughable as it is revealing.

Oh, I'm sure there are 'multiplatform gamers' that don't like Xbox. If I were invested in the console wars, I probably should've kept my Xbox and stop playing Helldivers.

This isn't "high ground nonsense", as you so... eloquently.... put it. It's just facts. People get way to carried away when it comes to defending their favorite plastic box. It's the same we see with other sports teams, so it's nothing new. But it's annoying for those of us that just enjoys the sport.
 

TBiddy

Member
I feel like you won't have to wait long, if speculation is right ps5 pro will be announced soon, hopefully it's nice to look at? Kinda hoping it's a bit less round, maybe like this?
2lW2cCi.jpeg

I assume the PS5 Pro will be priced ridiculously high. I had high hopes for the PS5, but apparantly they've kept the same lead designer who designed the abomination that is the PS5 for some reason.
 

HeWhoWalks

Gold Member
Oh, I'm sure there are 'multiplatform gamers' that don't like Xbox. If I were invested in the console wars, I probably should've kept my Xbox and stop playing Helldivers.

This isn't "high ground nonsense", as you so... eloquently.... put it. It's just facts. People get way to carried away when it comes to defending their favorite plastic box. It's the same we see with other sports teams, so it's nothing new. But it's annoying for those of us that just enjoys the sport.
It is exactly as I stated. Acting superior while displaying the same behavior you're complaining about is bogus.

You can enjoy a company/sports team and ignore the detractors. If you engage, it's because you want to.
 
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onQ123

Member
The Series X is “dead at the door” because of the Series S. Microsoft marketed it to the masses as “the same but cheaper” so people bought it rather than the X. Only enthusiasts or people who wanted access to physical media paid attention to the deeper differences.

And then they told devs that they HAD to ensure feature parity so Microsoft could make good on those marketing claims to the masses (which inevitably blew up in their faces with BG3, handing a win to Sony in the process).

We will never know what the Series X might have sold if they had taken the PS5 path (both using the same hardware, one omitting the optical drive). The only thing we can say for certain, thanks to the now redacted FTC leaks, is that the Series S cannibalized sales of the Series X to a significant degree.
This is a lie just like the people who blamed Kinect , Xbox console brand was dying when a year after Xbox One but fanboys were running so rampant at the time that they couldn't see it.


Series S was needed because Series X was never going to compete with PS5 head to head so they needed something at a lower price.
 
What did you think happened when SEGA died?
You are giving Xbox too much credit. Sony is not invincible, Xbox simply sucked. You are assuming no one else could have a shot because you want to believe Xbox was the best we could get.

There are better companies, better CEOs, better corporations, who can run game ecosystems. PlayStation didn't get to where they are without effort.

Yes, Microsoft spent a lot of money. But perhaps you might have realize that money isn't everything? Get away from the warchest thinking. The idea here is that money is important, but money can't buy success. The Xbox replacement can easily do better than Xbox while spending LESS.

Apparently, you don't understand barriers of entry or low profit margins.

Just getting retailers to carry a new console at this point is borderline impossible and getting popular enough with only direct to consumer sales is also borderline impossible.

Apple, Tencent, Amazon, Google, Nvidia, and Meta are probably the only companies who could feasibly do it and it really isn't worth doing. Amazon and Google have already failed without even going down the hardware avenue.

So no, it's not something that can be done easily. Microsoft would have failed already had it not been for Halo. Sega was one of the biggest pioneers in the business and they failed.

Neither EA or T2 could do it. Valve couldn't do it either. Nor could Epic. Valve tried and failed too.

The tens of millions of units you need to sell just to be able to get some semblance of 3rd party software support would be absolutely lost on almost any manufacturer and none of these big players without significant M&A would be able to make their own system selling games.
 
Apparently, you don't understand barriers of entry or low profit margins.

Just getting retailers to carry a new console at this point is borderline impossible and getting popular enough with only direct to consumer sales is also borderline impossible.

Apple, Tencent, Amazon, Google, Nvidia, and Meta are probably the only companies who could feasibly do it and it really isn't worth doing. Amazon and Google have already failed without even going down the hardware avenue.

So no, it's not something that can be done easily. Microsoft would have failed already had it not been for Halo. Sega was one of the biggest pioneers in the business and they failed.

Neither EA or T2 could do it. Valve couldn't do it either. Nor could Epic. Valve tried and failed too.

The tens of millions of units you need to sell just to be able to get some semblance of 3rd party software support would be absolutely lost on almost any manufacturer and none of these big players without significant M&A would be able to make their own system selling games.
It can't CURRENTLY be done, because Xbox is hogging the floor. You speak of the current situation where a newcomer had to physically knock Xbox out first before they can even come 3rd in gaming. All that you talk about would be more reasonable once Xbox officially exits, leaving space for a competitor to enter more freely.

That is why i keep saying Xbox needs to go already. Not because I hate them or anything but it is damn time to give someone else a shot. SEGA had the courtesy to give way for Xbox, it is time for Xbox to leave too.
 
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THE DUCK

voted poster of the decade by bots
You do know Minecraft is only on playstation because the contract microsoft signed when they bought it states that it has to remain on playstation right?
And that phil spencer assembled a team and tasked them with finding a way around the "minecraft must remain on playstation" clause right?
Microsoft would and will pull it off playstation the first instant they could without breaking the contract they purchased it under.

I agree in general ms was buying franchises to keep them exclusive, but I'm not sure ms was eager to pull minecraft off other platforms. It made them a lot of money.......
It felt like they saw it as more of a platform itself that would continue on in perpituity than just another game.....and that's kind of held true.
 

Topher

Identifies as young
I assume the PS5 Pro will be priced ridiculously high. I had high hopes for the PS5, but apparantly they've kept the same lead designer who designed the abomination that is the PS5 for some reason.

How do you know they kept the same designer?
 

Nydius

Gold Member
Sony having low profits: Is ok, is all part of the plan... Nintendo having good profits: Who cares? Forever doomed... Microsoft having massive profits: Is because activision, GP sucks, RIP XBOX, imminent bankrupt.


MtZ9N.gif

Are you daft, ignorant, or a console warrior?

The numbers are public information. Activision IS the only reason they have positive revenue (NOT “massive profits”), this is not up for dispute. Take Activision out of the equation and their software revenue would be down YoY.

They have had double digit hardware revenue declines for 4 of the last 7 quarters. A 76% decline in hardware revenue, combined, since Q1 2023.

You live in DelusionLand if you think those numbers are anything resembling “healthy” for the brand.
 

Nydius

Gold Member
This is a lie just like the people who blamed Kinect , Xbox console brand was dying when a year after Xbox One but fanboys were running so rampant at the time that they couldn't see it.


Series S was needed because Series X was never going to compete with PS5 head to head so they needed something at a lower price.

The documentation was available when the FTC leaks happened. The Series S has outsold the Series X by a factor of 3 to 1 due to availability, price, and marketing. You can continue to argue to the contrary all you want, the fact is the Series S is the reason why the Series X isn't performing better and we will never know how Xbox would have fared if they had only released a Series X to compete with the PS5.

If they "needed" the Series S to compete, what does it say that they still can't compete despite having a console half the price of the PS5?

Alas, I'm done arguing with you.
It is pointless arguing with someone who is so certain in their ignorance.
 

DForce

NaughtyDog Defense Force
Sony having low profits: Is ok, is all part of the plan... Nintendo having good profits: Who cares? Forever doomed... Microsoft having massive profits: Is because activision, GP sucks, RIP XBOX, imminent bankrupt.

MtZ9N.gif

Microsoft reported revenue, not profits.

When people say, "RIP Xbox" they're specifically talking about the Hardware. Do you think Xbox hardware is doing fine when it's selling worse than the Xbox One? Xbox One console was a failure due to hardware sales.

People called Game Pass the Netflix for gaming and predicted it would take over, but it's barely hanging on with no signs of any major growth.

Microsoft is planning to release more games on PlayStation and Nintendo Switch. This should be a clear sign that Xbox is not doing fine. This is a move you make when your hardware and subscription service is underperforming.
 

Klayzer

Member
Microsoft reported revenue, not profits.

When people say, "RIP Xbox" they're specifically talking about the Hardware. Do you think Xbox hardware is doing fine when it's selling worse than the Xbox One? Xbox One console was a failure due to hardware sales.

People called Game Pass the Netflix for gaming and predicted it would take over, but it's barely hanging on with no signs of any major growth.

Microsoft is planning to release more games on PlayStation and Nintendo Switch. This should be a clear sign that Xbox is not doing fine. This is a move you make when your hardware and subscription service is underperforming.
I just don't get it. The platform they love/defend so much is circling the drain, but they want everyone to believe Microsoft is playing master chess.
 

Woopah

Member
Wait!

So you're taking the estimated 27 million from February & ignoring that it's estimated to have sold around 800k in the last quarter & coming up with around 30 million? Where did the other 2 million come from?
They are saying 27 million is close to 30 million, not that the sales are 30 million.
I still don't get it - where did it go wrong and why? We didn't have this conversation at the start of this gen, hell - even in 2022. Then it looks like all got demolished Q3-Q4 2022, and in Q1 2023 we started getting info about Xbox hardware sales not growing despite end of shortages.
In the first two years Xbox benefitted from the lack of PS5 supply. Plus people were mot judging hardware sales too harshly given that Xbox Series was also supply constrained.
That is like taking out a 100,000$ loan and saying you are now rich. Do you know how long Microsoft predicts to actually payoff the 70billion$ acquisition of ABK? 35 years
It's not quite that simple.

I'm open to being corrected by someone with more financial knowledge, but I believe the acquisition is CapEx, not OpEx. MS gets additional assets on their books, so it's not like taking out a loan or money disappearing from a bank account.
3 million is what we're looking at. 3.5 million max.
If they did 800k or 900k in Q1, they should do at least 4 million in the entire year.
By the way......what happened to Circana/NPD numbers for March? @Synastry was asking me and I realized I had not seen anything posted.
Due out on Tuesday. This month is taking a long time for some reason.
 
The Series X is “dead at the door” because of the Series S. Microsoft marketed it to the masses as “the same but cheaper” so people bought it rather than the X. Only enthusiasts or people who wanted access to physical media paid attention to the deeper differences.

And then they told devs that they HAD to ensure feature parity so Microsoft could make good on those marketing claims to the masses (which inevitably blew up in their faces with BG3, handing a win to Sony in the process).

We will never know what the Series X might have sold if they had taken the PS5 path (both using the same hardware, one omitting the optical drive). The only thing we can say for certain, thanks to the now redacted FTC leaks, is that the Series S cannibalized sales of the Series X to a significant degree.

Didn't the Series X outsell the S by a good margin over the holidays? I do think they should have tried to ensure that at least 50 or 60% of the units sold were X units in the early days of the gen, but maybe that just wasn't a possibility for them. The only people that ever complain about the S are the people not using it anyway, its a solid little gaming machine that gives you access to all the latest titles for a low price. PS as a brand is a juggernaut, you can't forget that when comparing how the systems compare directly. And with Xbox games heading over to PS that position is only enhanced 10 fold.

Regardless of the numbers, XSX is a phenomenal machine. Quick resume is such a game changer and it's the quietest console I've ever owned.

A 51% increase is nothing to sneeze at. Obviously, MS got a free year here and then they will start being judged on how well things are going post merger when the YoYs start to overlap.
 

onQ123

Member
The documentation was available when the FTC leaks happened. The Series S has outsold the Series X by a factor of 3 to 1 due to availability, price, and marketing. You can continue to argue to the contrary all you want, the fact is the Series S is the reason why the Series X isn't performing better and we will never know how Xbox would have fared if they had only released a Series X to compete with the PS5.

If they "needed" the Series S to compete, what does it say that they still can't compete despite having a console half the price of the PS5?

Alas, I'm done arguing with you.
It is pointless arguing with someone who is so certain in their ignorance.
If Series S is out selling Series X by 3 to 1 that should tell you that Series S is keeping Xbox afloat.

That puts Series X below 10 million & Xbox 3rd party support would be dead if the user base was 10 million vs 55 million for PS5.
 
If Series S is out selling Series X by 3 to 1 that should tell you that Series S is keeping Xbox afloat.

That puts Series X below 10 million & Xbox 3rd party support would be dead if the user base was 10 million vs 55 million for PS5.
I believe its well known that S outsells X but you can’t say for sure what it would have been if there was no S. I think more S units out there is what lowered the perception of Xbox since the less powerful unit was the box that most people have. Xbox had more issues than that though, games are the real problem but I think perception of the brand was lowered due to the lower common denominator, being the S. I think PlayStation nailed the 2 option skus perfectly. Xbox having two completely separate skus was dumb as hell.
 

Jigsaah

Member
So at what point is ABK considered synonymous with Xbox?

The money is still going in Microsoft's pocket is it not?

It kinda like how people say they are gonna buy a PC because they don't want to own an Xbox. But...Microsoft also owns Windows....soooo...you're still paying them.

Same with Xbox games on PS5...people laugh about this happening, but Playstation owners are sucking these games up...at full price or close to full price no less while Xbox owners with Gamepass are paying much less,,,,and for all those games amongst others. Still paying Xbox.

When software is the major revenue driver for all gaming companies, including Sony, you start to see the slow creep...this trojan horse that Microsoft is delivering to every screen as they've portended to do.

The hardware sales are worrying because even with ABK it didn't push console sales on the one hand, but everything is multiplat anyways so that's pretty much what Microsoft said during the ABK hearings would happen.

The question is, can Xbox survive without the hardware sales? I think it depends on how quickly and effectively they transition to this "xbox on every screen" mantra. Also, there's still next gen and the rumor that an Xbox handheld is in the works.

Could they prove to be as successful as a Steam Deck? Given that they want Steam and Epic on their device? With a console that now has access to a good majority of PC exclusive games...pretty much instantly on release?

I dunno honestly. The only thing I'm sure of is this game is far from over.
 

LordOcidax

Member
Are you daft, ignorant, or a console warrior?

The numbers are public information. Activision IS the only reason they have positive revenue (NOT “massive profits”), this is not up for dispute. Take Activision out of the equation and their software revenue would be down YoY.

They have had double digit hardware revenue declines for 4 of the last 7 quarters. A 76% decline in hardware revenue, combined, since Q1 2023.

You live in DelusionLand if you think those numbers are anything resembling “healthy” for the brand.
Ok, I am going to take out Activision of the equation to fit the doom narrative… I get it.
 

LordOcidax

Member
So at what point is ABK considered synonymous with Xbox?

The money is still going in Microsoft's pocket is it not?

It kinda like how people say they are gonna buy a PC because they don't want to own an Xbox. But...Microsoft also owns Windows....soooo...you're still paying them.

Same with Xbox games on PS5...people laugh about this happening, but Playstation owners are sucking these games up...at full price or close to full price no less while Xbox owners with Gamepass are paying much less,,,,and for all those games amongst others. Still paying Xbox.

When software is the major revenue driver for all gaming companies, including Sony, you start to see the slow creep...this trojan horse that Microsoft is delivering to every screen as they've portended to do.

The hardware sales are worrying because even with ABK it didn't push console sales on the one hand, but everything is multiplat anyways so that's pretty much what Microsoft said during the ABK hearings would happen.

The question is, can Xbox survive without the hardware sales? I think it depends on how quickly and effectively they transition to this "xbox on every screen" mantra. Also, there's still next gen and the rumor that an Xbox handheld is in the works.

Could they prove to be as successful as a Steam Deck? Given that they want Steam and Epic on their device? With a console that now has access to a good majority of PC exclusive games...pretty much instantly on release?

I dunno honestly. The only thing I'm sure of is this game is far from over.
Shhh… Yo can’t throw facts here like that… You’re going to gain the Xbox fanboy badge.
 

onQ123

Member
I believe its well known that S outsells X but you can’t say for sure what it would have been if there was no S. I think more S units out there is what lowered the perception of Xbox since the less powerful unit was the box that most people have. Xbox had more issues than that though, games are the real problem but I think perception of the brand was lowered due to the lower common denominator, being the S. I think PlayStation nailed the 2 option skus perfectly. Xbox having two completely separate skus was dumb as hell.
It would be worse. If they are choosing Series S over Series X it's because of price so most of them people most likely would have gotten a Switch or PS5 Digital .

There is no situation where removing Series S would somehow make Xbox Series sell better lol.

Things would be worse
 

Jigsaah

Member
Shhh… Yo can’t throw facts here like that… You’re going to gain the Xbox fanboy badge.
HA...call me what you want...but I have a 4090...and I play 100% of my games on PC. I'm just seeing the writings on the wall...and I believe the console makers have as well, hence all the Sony exclusives I play on PC currently.

People should just be happy they get to play more games. The only folks this bothers are the ones who can't stand to see other gamers enjoying what they have enjoyed. When Xbox said their games are going to Playstation...I was like "Good, hopefully Sony wises up". When Sony brought their games to PC and Totoki doubled down on his commitment to bringing games to other platforms I said the same thing.

I don't understand how this is a bad thing. Everybody eats. Sony makes more money, Xbox makes more money. More of us get access to more games. Where's the downside?
 
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It would be worse. If they are choosing Series S over Series X it's because of price so most of them people most likely would have gotten a Switch or PS5 Digital .

There is no situation where removing Series S would somehow make Xbox Series sell better lol.

Things would be worse

Again, you can't say that for sure. I think the X would be at least a few million higher if there was no S, but we'll never know for sure. Xbox had many issues, the one main sku model would not have been enough to turn it around.

Do you think they would have done better with no Series X at all? That makes no sense saying it out loud but it's kind of what the Series S did to the brand, in my opinion.
 
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Jigsaah

Member
I thought your posts were laughable, therefore I laughed.
I see...not one coherent thought to bring to the conversation then.

Do I even dare ask what makes this funny to you? Or is that going to be too much pressure?

Edit: Can only use emojis and gifs to communicate, duly noted.

My apologies, if I woulda known you were a clown before I would have never tried to include you in the conversation. That's my fault.
 
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