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Xbox missed annual revenue forecasts by $780 million
TheThreadsThatBindUs
Member
I thought MS was crying to the FTC about being poor and sick and hungry, and about how big bully Sony keeps charging them 30% for their shipped games on the PS platform.
If $16b of annual revenue makes Xbox a poor man. I wanna be a poor man.
If $16b of annual revenue makes Xbox a poor man. I wanna be a poor man.
Bonfires Down
Member
Xbox third party wen?
AmuroChan
Member
Should be mainly from the 30% cut they take from every third party game sold on XBox, plus all the DLCs and MTX as well.
diffusionx
Gold Member
Yea that's accounted for in the plan. The $17 billion plan includes whatever sort of revenue they think they are going to get from whatever games they are planning to make. Starfield is priced into the next plan going forward, and presumably be higher because of that.
It's not just some random number they throw at the wall. That is why missing it by almost 5% is quite significant.
Riky
$MSFT
Depends when the plan was made, if the figure was 17 billion before the delay Starfield got and they only missed it by a small margin then they have probably exceeded expectations by quite a margin.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
This is also why when a big AAA game comes out on the Switch it does CRAZY numbers. Nintendo games don't have to compete with the world's 3rd party games like MS and Sony have to.
LiquidMetal14
hide your water-based mammals
Running like a well oiled macheese
Tsaki
Member
Nintendo is in such a great place. They rake in high profits through their 1st party software but they also have much lower dev costs. If only they could get some actually good hardware with the Switch2 in order to get all the 3rd party games day 1, then their revenue would skyrocket as well.
twilo99
Member
They are definitely spending more than they are making and I bet MS will have to close the whole thing down within .. maybe a year
twilo99
Member
From a market share standpoint, they are certainly poor and hungry...
cinnamonandgravy
Member
not sure why anyone wants gold in the first place.Lol so super fanboys like riky get gold now ?
Where is my Sony revenue thread. I am all out of gold too!
isnt is it just donating money to neogaf? (nothing too wrong with that, bills gotta get paid)
diffusionx
Gold Member
A major change like the delay of a major revenue generating game would have to lead them to change the plan to account for it. The plan exists to set a line for how the business as it is operating should be performing. That is why not hitting the target actually is a big deal. It's all priced in. Setting these plans is really important for a company and a lot of work goes into it. They want to set proper and reasonable expectations for how a unit should be performing.
The truth is, without some big external thing like, I don't know, a worldwide pandemic, a company overperforming or underperforming a plan by 20% or whatever you all think is big is actually more of a sign of a bad plan than anything else. Not hitting the target by 5% tells me the plan was reasonable and they underperformed it, flat out.
bender
What time is it?
I'd say pretty well, because they're about to put Sony out of business.
Gussied up your post a little.
StealthGoblin
Banned
Think about how much they fucked up from the 360.
They had the best versions of multiplat games
An exclusive deal with the best 3rd person shooter of the gen
Exclusive content for GTA
Marketing rights for that gen’s main Final Fantasy games
Exclusive Tales game
Halo 3, OST and Reach
The best online network
Mass effect was exclusive
BioShock ended up a timed exclusive
XBLA was doing great
Etc
They fumbled hard and if they had actually invested in their studios then like Sony did, and put out a competent successor hardware wise then the landscape might look hugely different.
This is everything and only revenue so hardware revenue would be a big part of that. I'm more interested in knowing how they missed their gamepass forcast by 40% yet only missed their revenue forcast by 5%.
Hudo
Gold Member
Well if I have learned anything the last couple of days is that this board has for some reason a huge fucking boner for Sony. So this info will be discarded.
twilo99
Member
Sure, but all of that doesn't change that they are CURRENTLY poor and hungry for marketshare
Chukhopops
Member
I don’t know who’s joking and who’s serious anymore at this point.
nowhat
Member
With all the emails that have been released recently, I find it very hard to take anything that "Phil said" at face value.
StealthGoblin
Banned
They’ve only themselves to blame.
Because he made a factual statement?
Software (incl royalties) is a significant part of that too.
ChorizoPicozo
Member
twilo99
Member
Of course, but instead of admitting defeat and staying irrelevant or going out of business, they are trying to do something about it? You might not agree with their approach, but if they don't do that and are out of the game in 10 years someone like you might yet again say that they only have themselves to blame for not trying
Mr.Phoenix
Member
A couple of things.
Revenue-wise, yes,Xbox is second to Playstation and Nintendo is coming in third.
But what this article doesn't say, is how much of that revenue is actually profits. I am sure we will find that that is where Nintendo shines. Nintendo is not making as much in terms of revenue as sony and, mostly because they do not have the third-party support those two have, but ninetndoisnt sending anywhere near as much as them either.
Without that crucial profit number, data like this is pointless. MS can make $16B in revenue, and still come out saying they are profitable... but we won't ever know if those profits only amount to like 5% of that revenue.
To me, the main takeaway from all this is that if their numbers are actually good, then they wouldn't be hiding it.
Revenue-wise, yes,Xbox is second to Playstation and Nintendo is coming in third.
But what this article doesn't say, is how much of that revenue is actually profits. I am sure we will find that that is where Nintendo shines. Nintendo is not making as much in terms of revenue as sony and, mostly because they do not have the third-party support those two have, but ninetndoisnt sending anywhere near as much as them either.
Without that crucial profit number, data like this is pointless. MS can make $16B in revenue, and still come out saying they are profitable... but we won't ever know if those profits only amount to like 5% of that revenue.
To me, the main takeaway from all this is that if their numbers are actually good, then they wouldn't be hiding it.
ChorizoPicozo
Member
twilo99
Member
Of course, without knowing that the revenue number doesn't mean much
But it was delayed and they did fail. You can't just rewrite history or elect to ignore the failures to make out that you did indeed succeed.
'Hitler was a not a bad man if you ignore the bad things he did'.
This is essentially what you're trying to argue. And it is dumb logic. The point is they did fail, and Hitler was a monster.
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Riky
$MSFT
That's a pretty ridiculous comparison.
Xbox set target of 17 billion, for 2022 presumably before 2022 starts. They expect Starfield to release in 2022.
Starfield gets delayed in 2022 to 2023.
Xbox miss target by 780 million, do you think Starfield will generate 780 million?
In the business world thats not devastating but that *is* a bad thing.
Also I'm a little annoyed at how many people are using this as an indicator of anything when this is just revenue. It doesn't matter if this revenue is 4.5% off because it could very well be that MS either has higher expenses this year which translates to worse profit margins or that they expensed less and has higher margins. Profit matters much more than revenue.
TheThreadsThatBindUs
Member
The only ones who are poor and hungry are hardcore Xbox fans. What's worse is that they pretend they are not.
Poor bastards.
StealthGoblin
Banned
They’ve got more studios than Sony already. They’ve got a pipeline for GamePass. They’ve got the stronger console - they’ve got the cheaper console.
They don’t need to hugely distort and consolidate the industry to compete.
I have no idea what Starfield will generate, and it doesn't matter what I think. I could think it would be $1 or $1 trillion. You obviously think it would make up the shortfall. But it doesn't change the point made.
You are making a stupidly dumb case that if we ignore the failings, then they would have met the target. But the point is they DID fail.
If you're taking an exam and take too long to answer the questions such that you don't answer enough to pass - you fail. There's no 'oh but if I wasn't delayed in answering the questions I missed I would have passed, so give me an A'. It doesn't work like that.
Otherwise if you want to use 'what ifs' then you can just say well what if the pandemic never happened and there was no boost in video game market. They've had been even further short of the target. What if they never got the acquisitions over the line? Again, even more off target.
What happened, happened. And what happened is they failed.
Mr.Phoenix
Member
This does put certain things into perspective though.
MS spending more acquisitions in one year than Nintendo has made in total revenue in 4.5 years... and than Playstation has made in 3 years.
Source?
Bonfires Down
Member
rofif
Can’t Git Gud
Clout
rofif
Can’t Git Gud
For some reason? I wonder why…
Hudo
Gold Member
It's a multi-billion dollar company that shits on the consumer like every other company. But I am also not in the age bracket anymore (fuck, man....) where I do brand tribalism. A blessing and a curse. Beating people in Quake 3 for shitting on 3dfx was fun.
Good Guy Phil mentioned that gamepass comprises about 15% of revenue:
"“Game Pass as an overall part of our content and services revenue is probably 15 percent,” he told The Journal’s Sarah Needleman. “I don’t think it gets bigger than that. I think the overall revenue grows so 15 percent of a bigger number, but we don’t have this future where I think 50 to 70 percent of our revenue comes from subscriptions.”
RAIDEN1
Member
Yeah but then Nintendo consoles have done fine without the heavy hitters on other consoles, ie The Gamecube, Wii, et all never got a Grand Theft Auto game...even though everyone else did....and the one and only time a Metal Gear game came to a Nintendo home console was Metal Gear Twin snakes, but it missed out on all the others...
StreetsofBeige
Gold Member
Missed by about 5%.
Sounds like my company. Internal targets are sky high, but communication to wall street is something much lower. In fact, there are different levels of targets pending what rung of ladder you are. The sales team gets one target (sky high), the finance team has another target (realistic), and if you are high enough you get the lowest communicated target --> what wall street is told.
Our company has missed initial targets too. But thats what they are targets. They get revised many times during the year (up or down). Just to prove targets can mean nothing, there have been times we "missed the target" but still got great bonuses.
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