People aren't sheep buying things because of the the price without enticing software.
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Microsoft FY 2023 Q2: Gaming revenue -13%, Xbox content & services -12%, Xbox hardware -13%
- Thread starter St. Elmo's Fire
- Start date
- Sales
Hardware sales, GP Growth and first party output are all lackluster. Any normal CEO is gonna start questioning things at some point.
This is usually the period where system hit their peak.
They are already very limited on what kind of numbers the share when it comes to Gaming and Xbox, so the couple ones they share should at least be somewhat presentable.
They were part way through projects, and several of those were already in agreement to be developed for Playstation.
They've released games, just not xbox exclusives and so not system sellers.
The idea that they're going to be unhappy with xbox because of the lack of games makes it seem like you think the Microsoft executives have no idea what's going on. I would be incredibly surprised if they weren't made aware of how long this will take to bear fruit when the acquisitions were made.
Sure but overall operating income was down 8%. I figured it would be flat at best with a number like that.
Clearly the value proposition of the cheapest way to get into next-gen with the S is not helping them whatsoever. Couple that with the fact that their GP projections are also not being hit means they need their first party output to start churning and ASAP.
The lack of content hurt both GP subs and hardware sales last year. That and no major third party marketing deals either. Nor even much marketing at all compared to the competition. Not even at the TGAs. Very strange.
Obviously they realise content is a weakness which is why they have, and continue to (by virtue of AB acquisition) invest so much in this area. Just a shame it's taking so long to come to fruition, but rather that than they rush stuff out the door half-finished like the old days.
Obviously they realise content is a weakness which is why they have, and continue to (by virtue of AB acquisition) invest so much in this area. Just a shame it's taking so long to come to fruition, but rather that than they rush stuff out the door half-finished like the old days.
I knew Xbox was going to have some teething problems, especially when the Xbox Series S was cheaper to buy than the (now seven years old) Switch for a long period of time before, during and after the Christmas season.
It has been available to buy for $229/€229/£199 — sometimes with a game or an additional controller — and it still cannot sell more than the Switch or the much more expensive and difficult to find (at the time) PlayStation 5.
I know software was lacking somewhat last year, but seeing a decline this early on in the generation isn't healthy, given that this is the period when consoles should be (or are) hitting their peak.
It has been available to buy for $229/€229/£199 — sometimes with a game or an additional controller — and it still cannot sell more than the Switch or the much more expensive and difficult to find (at the time) PlayStation 5.
I know software was lacking somewhat last year, but seeing a decline this early on in the generation isn't healthy, given that this is the period when consoles should be (or are) hitting their peak.
In this economy tho? Sony is having similar issues. From earlier last year:
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Sony warns of weaker PlayStation business as game sales wobble
The latest sign of a gaming industry slowdown.
www.theverge.com
Yea but that's income. Revenue grew, which is what the market cares about. The market doesn't care about how much money someone is doing. They care about how much money they could be potentially doing.
I'm sure the projections showed a bit more than this.
"Degrowth"? That's a new eufemism to me 😂
You think companies don't project when revenue would show degrowth over same period last year?
Is this what's behind the Hardware Revenue drop?
People buying the S over the X?
If people read the actual press release, it says that hardware degrowth is driven combination of by lower selling price (Series S at 50$ discount) and lower volume.
Agree with those about hardware...I literally can find Series S in stores right now, Series X and PS5 are still harder to find in comparison.
Surely having any console from your platform easier to find should have helped? Damn... Hell, I saw 2 PS4's along with a handful of Switch and Series S consoles.
Ahh, -13% is not units? Oh well, I'll leave the experts to try to decipher that then.
Surely having any console from your platform easier to find should have helped? Damn... Hell, I saw 2 PS4's along with a handful of Switch and Series S consoles.
Ahh, -13% is not units? Oh well, I'll leave the experts to try to decipher that then.
I guess Game Pass growth really did stall on console like they said back in October… less hardware sales means less people buying Game Pass (on console).
They still have PC helping it grow, but isn't a great look for their console business this early in the gen.
They still have PC helping it grow, but isn't a great look for their console business this early in the gen.
Not great, but I feel like it's hard to parse out the exact hardware unit declines from this number, because of the holiday sales of series s and the proportions of series s consoles sold vs series x and how that compares to last year. For an extreme example you could sell 100 series x last quarter (0 series s) and then sell 150 series s (0 series x) this quarter and your revenue would decline like 10%. Wonder if they will add more info during the conference
No, I think "degrowth" is not a term used in this context.
Without context and Microsoft not disclosing details for Xbox, a lot of takes are probably premature or completely off, lol.
$20 billion operating profit, sheesh.
$20 billion operating profit, sheesh.
They literally had no exclusive software to sell the console on to consumers, while Nintendo and PlayStation had really compelling exclusives during the whole of last year.
The lack of exclusive software is really hurting them bad.
It would have helped, imagine what it would have been like if the series S had supply issues as well 😬
CoD, Madden, FIFA, NBA2K, and even Elden Ring on a $299 next gen system + Game Pass library. Not having exclusives doesnt mean the system should start declining, this isnt Nintendo where first party carries the hardware entirely
I guess so, I just figured GamePass would have made up for that due to it's very low bar for entry.
Call of Duty? Fortnite? Rocket League? Madden? FIFA? GTA? Roblox? Minecraft? You know, the games people actually play in mass numbers, instead of a one and done single player game.
Degrowth is used to describe financials all the time. At least where I am from.
I mean, you're comparing a quarter with new Halo and new Forza Hotizon to a quarter with…nothing. And a rougher economic state.
Sales down, you say?
I think it's not too tough to see lower numbers without it being OMG Doomed FiRe Everyone. If they launch Forza and Starfield and Redfall and Minecraft and whatever else and they see no movement, then you can worry.
This just seems…logical?
Sales down, you say?
I think it's not too tough to see lower numbers without it being OMG Doomed FiRe Everyone. If they launch Forza and Starfield and Redfall and Minecraft and whatever else and they see no movement, then you can worry.
This just seems…logical?
OP
OP
Nintendo (February 7) and Sony (February 2) are going to reveal their numbers next month.
Might see Series S going for $200 or lower next Holiday again. Had fun with mine over the holiday break.
Quick fyi: Degrowth is a technical term (originally french) in ecological economics / climate sciences for the reduction in material throughput production/consumption as part of climate mitigation and adaptation. I don't think it applies here; it's about moving away from GDP per capita as a wellbeing measure, etc.
You would think so but I think the people who are to be enticed by GP have already been penetrated. Now they have to get more people who are literally not interested in the service to get them into it by showing games that are exclusively on Xbox and GP.
Ooofff that's bad. This year should be better with a much stronger software line-up. If it isn't? Well that's going to be a real problem.
All available on previous gen systems, and as far as i'm aware to get the real major next gen improvements on these titles you'd have to opt for the Series X.
It's just not a compelling enough reason to buy into Series S with what's on offer for most people yet.
The XSS is a lot less desirable than they banked on.
Systems were on shelves and they had agressive sales. Not being to increase hardware numbers is a bad luck so early in the generation.
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I bought a Series S a year ago on the promise of a steady flow of 1st party games on game pass. I haven't renewed my Gpass since after fake E3 when they kicked everything into this year, at the earliest.
I'm hopeful the end of this year is gonna be amazing for the service and the company, but it's been a long painful wait for them to get their ducks in a row.
I'm hopeful the end of this year is gonna be amazing for the service and the company, but it's been a long painful wait for them to get their ducks in a row.
It's used in India to describe financials/economic performance.
This is incredibly sad.
The Series X is amazing, I love the damn thing, but yes... They're 1st party lineup has been somewhat lacking (aside from Forza 5 and Flight Sim).
Halo's failings can't have been helpful though...
They need to bring out the heavy hitters! A current-gen Gears will surely help!
The Series X is amazing, I love the damn thing, but yes... They're 1st party lineup has been somewhat lacking (aside from Forza 5 and Flight Sim).
Halo's failings can't have been helpful though...
They need to bring out the heavy hitters! A current-gen Gears will surely help!
Point well taken.
GP has taken the hardware as far as it can go at this point, they need the games from their acquisitions to be released to drive more buy-in from their non GP consumers.
All those are available on xbox one x and bar for game pass are on PlayStation.
They need exclusives.
It is absolutely insane the impact that the launch of One/rise of PS4 had on Xbox. They never recovered.