Not surprising with ♏ coming.
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Microsoft FY2017 Q3 Earnings - Xbox Live MAU 52m (up 13%) Gaming revenue $1.928bn
- Thread starter hanspampel
- Start date
Not surprising with ♏ coming.
ethomaz
Banned
"Xbox hardware revenue decreased 20%, mainly due to lower prices of consoles sold and a decline in volume of consoles sold"
https://apps.shareholder.com/sec/viewerContent.aspx?companyid=MSFT&docid=12019369
hanspampel
Banned
i would not count that out thanks to digital grow and the absurd high margin thanks to that
but we will never know, as they don't disclose the OI for sub segments in the different divisions
Gaming OI is higher than Surface and Bing
But how much every segment is contributing exactly is impossible to know unless you're an accountant or controller at Microsoft
Yep. Figured that. Not surprising.
I think your underestimating how well the digital side and services are doing. Subscriptions, DLCc, loot boxes etc. they are getting pieces of all that on the digital side
Don't forget Surface hasn't had a refresh in over a year. That will shoot back up.
Having a higher return per unit sales doesn't change the fact that making video games and consoles comes with high fixed costs. Also bear in mind that around half of Gaming Revenue will be from hardware, and hardware sells at a minimal profit.
xabbott
Member
How is that not far off? That's like saying Microsoft's 3.5 billion is not far off from Sony's 5.3. No one would accept that.
Djungelfrukt
Member
i mean, sure, not sharing console sales probably indicates that there's really nothing to show, but MAU is not a bad indicator of how healthy the business is. active users is, in the end, where they bring in the honey. that they bundle PC/Xbox/Phone in one package on the other hand seems a bit misleading.
Chobel
Member
That's for the previous 9 months though. The Q3 report doesn't mention "decline in volume of consoles sold"
Umm yeah that's a big difference in revenue lol
RowdyReverb
Member
It looks like there's a bit of a spike every Q4 though. YOY is more informative because a drop off in Q4 to Q1 is expected
LukasTaves
Member
There's no way a platform that makes 2 billion dollars in just a quarter is healthy in the US only.
bitbydeath
Member
Microsft needs to regain at lot of influence to make that call.
Djungelfrukt
Member
it's 1.5x, and i think that's their point.
LordOcidax
Member
I think that number include everything related to games for Microsoft not only the Xbox One.
DriftingSpirit
Member
Well, when I saw "nowhere close" I definitely thought the gap would have been much smaller than that.
hanspampel
Banned
fist of all MS gaming revenue was 3.6bn not 3.5bn
Sony is 47% more
That is far off from 100% more (not even half of double the revenue, yet)
at least to my definition
and it's also not the best to compare just one quarter
keep in mind, that Sony released both the Ps4 Pro and Ps VR at $399 that quarter.
it would also be misleading, if we use only the XBox Scorpio launch quarter, when Microsoft will see a huge bump im Gaming revenue
ArkhamFantasy
Member
So for instance, a game sold on the windows store would count here?
Of course. It's part of Xbox. Why wouldn't it?
Sorry man I can guarantee very little of the console buying market have a clue what ♏ is lol. Unless you're joking which I hope you are.
LordOcidax
Member
Yes, Minecraft on PC, Mobiles, etc etc
LukasTaves
Member
Which is basically Xbox and win10 gaming which is their unified platform.
The only non unified platform game they released recently was Halo Wars definitive edition on steam, but that would be off the count anyway.
Edit: I just remembered of Minecraft,that could drive big numbers on other platforms.
We'll see come this fall...
Yeah, I always forget about Minecraft in the gaming equation.
Welfare
Member
Yes, just like I have to pay EA Access to even TOUCH my EA games. Oh if only these companies allowed me to buy their games separately AND had an option to buy a subscription to access their entire catalog of games.
ethomaz
Banned
Let's compare this quarter in few hours. Sony will probably be over $3bn.
Kazuma Kiryu
Member
Not a fair comparison, Sony launched a lot more stuff!
Captain Tuttle
Member
Just wishful thinking
It'll be shocked if isn't 4B. Minimum.
bitbydeath
Member
Sony is just 1.7B away from being double that of MS, considering Sonys total is 5.3B, 1.7 is not a large difference by any stretch.
Exactly. I wonder why ppl think the Scorpio and Pro are supposed to be sales leaders. It's the lower priced version that is.
Any sales from the higher specced systems are going to be low vs the lower ones.
And what does phone-zero mean? Time for them to get out the phone making business?
lol.
Unknown?
Member
In Q4? I'm guessing you mean software? Even though Sony released VR/Pro in Q3 I can guarantee that it wasn't significant revenue. VR hasn't passed 1M and Pro is an enthusiast console, not mass market.
wapplew
Member
Anything under 5B is a disaster.
I predict!!!! ♏ will be the sales leader for Xbox this holiday.
Edit:. Unless supplies strip demand.
He was joking about the post above.
Alright gamz, stop this nonsense right now. Putting unrealistic expectations on PlayStation and when it doesn't achieve those insanely lofty goals you will post how disappointed you are. Stop this right now.
Unknown?
Member
Lol! Hard to tell in threads like these.
ethomaz
Banned
Like every quarter except CY Q3... that is the only way to compare quarters.
Edit - Ohhhhh it is a joke... sorry.
How is that lofty? It's a worldwide brand and a sales leader. I see no reason it can't do double the Xbox this Q. Right?
hanspampel
Banned
sure
1.7 billion is no large difference - lol
especially if you have to deal with hardware, that is getting cheaper over time
especially if you talk about a huge holiday quarter with new products launch
so Sony needs to increase their revenue by just 32%, while Microsoft can't increase their revenue at all. Otherwise you need again more than just that tiny 1.7bn
honest question, do you know what you're talking about?
i can tell you now, that Microsofts gaming revenue in the holiday quarter 2017 could be easily around $4.5bn (Scorpio launch and Minecraft F2P edition in China taking off)
so Sony needs to make 9bn to double that.
and 9bn would be a 70% increase over the 5.3bn holiday quarter 2016
that won't happen
They must plan on discontinuing the versions they have now today and calling Scorpio next gen.
I don't think XBO games even look or run that bad for the Scorpio to be their sales leader.
Unless it's priced lower than most of us think it's gonna be.
WhiteRabbitEXE
Member
I mean, people were insisting MS is quitting the same week they announced TWO new Xboxes (S and Scorpio).
ethomaz
Banned
Neither Phil expect that... he expect S to drive most of the sales.
IncognitoPanda
Member
What is this "m"? I have seen it come up several places, but have no idea what it is. Please help me.
bryanee
Member
Scorpio.