Well, we know Game Pass currently isn't helping Xbox either. For such a killer app of a service it's not enticing many new people to buy into the platform.
-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
Microsoft FY19Q4 financial results: Gaming Revenue $2.05bn (down 10%YoY) | Xbox Live MAU 65M (up 14%YoY)
- Thread starter Deleted member 49804
- Start date
Well, we know Game Pass currently isn't helping Xbox either. For such a killer app of a service it's not enticing many new people to buy into the platform.
"partially offset by subscription growth"
Gamepass is starting to eat into their game sales. The higher their subscription gets, the worse their game sales becomes. Only time will tell if subs will compensate for the lost sales.
Gamepass is starting to eat into their game sales. The higher their subscription gets, the worse their game sales becomes. Only time will tell if subs will compensate for the lost sales.
That hardware decline is massive. I wonder what sort of decline the PS4 and Switch will see this quarter vs last year's (if the Switch even sees any). I'm also surprised gaming revenue decreased, and software and services revenue declined too what with the huge push Game Pass has been getting. It makes you wonder if Game Pass can actually help turn things around for Xbox next gen, because it doesn't appear to be turning things around for them this gen.
I love what Xbox is right now but there's literally no point in buying an Xbox right now when next gen and all of the new games will be coming starting next year.
There's basically nothing worth buying a console over coming before next gen starts and everyone that wanted an Xbox probably already had one. PS4 still has a lot of good games coming out before PS5. Xbox is all in on next gen and it's smart because focusing on the Xbox one would be a waste of time.
There's basically nothing worth buying a console over coming before next gen starts and everyone that wanted an Xbox probably already had one. PS4 still has a lot of good games coming out before PS5. Xbox is all in on next gen and it's smart because focusing on the Xbox one would be a waste of time.
Sony is gonna suffer as well albeit on a smaller scale. It's just expected at the end of the gen for hardware to plummet. What matters is that Xbox as a division is much better prepared for next gen that they were for this one.
In hardware sales, sure, it maybe isn't helping, although we know that MAU has gone up. One thing doesn't really correlate with the other, though.
Yeah i imagined that it was only speculation, won't really waste my time arguing with this, although it's good to remember that there hasn't been a single big release from a third party day one on Game Pass and according to Matt from NPD, Game Pass isn't eating into any sales at all (exclusives or otherwise)
OP
OP
Of course. Microsoft beat estimates by a lot. Like they always do.
No. That phrase means the revenue decline of the ONE third party title (primarily) responsible for the overall 3% Games & Service decline was offset by subscription revenue growth.
So without the subscription revenue growth, the overall decline would've been bigger than 3%
Game Pass is a sweet deal, but it's too good of a deal in my opinion. All of these games popping up day one can't help individual game sales. I refuse to believe it.
A few of the games I'm getting my fill of on Game Pass are titles I'll no longer buy, because I've no need to.
A few of the games I'm getting my fill of on Game Pass are titles I'll no longer buy, because I've no need to.
I'd imagine a large number were pc users. With their titles on PC and gamepass as well. What's more their gamepass deals this quarter were a great deal so I imagine a lot of people subscribed to it.
Yeah, I got three years of Game Pass thanks to that Ultimate deal. It's going to cut my AAA and Indie console purchases by a LOT. Only games I plan on buying are some Sony and Nintendo exclusives. The rest will be 'wait for GP.'
I can't imagine I'm the only one and I do think over time people will be trained to not buy games for $60 and just wait for it on a sub. It's going to make a big impact.
Impressive results, they already beat the Q2 (holiday!) MAU numbers!
Game Pass will become more and more important.
Game Pass will become more and more important.
That hardware decline seems pretty huge.
Xbox already has Game Pass and also the most powerful console available currently. Do we really think a new console launch will turn everything around? Serious question. I know certain fans here are very eager for the new Scarlet box but is it enough for the masses overall?
Edit: I know I'll get slammed by a few posters here and I'm expecting that. My post is in no way an 'MS is doomed' post, I'm just trying to look at the bigger picture as to where or how they're headed.
Xbox already has Game Pass and also the most powerful console available currently. Do we really think a new console launch will turn everything around? Serious question. I know certain fans here are very eager for the new Scarlet box but is it enough for the masses overall?
Edit: I know I'll get slammed by a few posters here and I'm expecting that. My post is in no way an 'MS is doomed' post, I'm just trying to look at the bigger picture as to where or how they're headed.
As long as Game Pass subscriptions are growing, I don't see a problem.
Yeah, I do.
That first November Microsoft will sell every Gen 9 Xbox they make. There's no reason to think otherwise.
I'm kind of of the thought that MAU numbers going up don't mean as much if revenue is going down.
didn't expect decreases in services revenue but I guess that's due to the heavy investment they have to be making in the expansion of gamepass.
At this rate they could soon catch up to Amazon in terms of cloud coverage.
Every metric in the OP shows a decline but MAUs. That's not impressive.
MS overall is massively impressive. These Xbox results? No.
They have a long term plan, but I think it satisfied a short term goal too.
MAU means nothing if you can't turn it into revenue at the end of the day.
I completely agree with that. Xbox has their fans and they're eager for a new generation. It's what happens in the 12+ months after that which I find more interesting.
Microsoft is incredibly diversified and can hand a few down quarters while they get the next gen going. No worries here, the ship, the hype, and the ecosystem is all heading in the right direction.
They are buying their way to a subscription userbase. Soon those deals will stop and they'll introduce new revenue streams like 'xcloud' sub and whatnot.
Those 1 buck deals wont last. When next gen is here, gamepass is bigger, the studios they bought are putting stuff out, combines with more third party stuff. You come at a point its a no brainer to be subbed.
Then those deals are not coming that frequently and you pay 10 bucks a month.
It's almost as if the last 4 years has been part of the same console gen where they lost the sales battle.
That's impressive, considering they started way later than Amazon. Meanwhile Google is a distant third. Microsoft's expertise in dealing with enterprise customers really helped them.
That's like saying nobody is buying PS4 games since it'll eventually show up on PS Now or PS+.
Gamepass is for PC too though. Which is why sub growth is mentioned and mau is up. If they didn't have gamepass the numbers would be worse.
OP
OP
FY2020 will be the real test with huge Xbox hardware revenue decline.
But they have bigger games this FY and also the Elite V2 controller (that thing costs the same as a discounted Xbox One S) to offset console.
FY2021 is the next Xbox and will be up anyway
Still not yet enough to cover the software down, since it's 3% down only i guess it's getting close.
Yup. I can't take advantage of any of the nice Audible deals, for example. New customers only.
Same reason why I have a full price Kindle Unlimited subscription running. They got me with a free 3 months promo.
Same reason why Apple Music has caught up to Spotify in the US. After the introductory offer of 3 free months on signup, it's trapped folks into a recurring $10 subscription.
These deals won't last forever.
Personally having Game Pass has changed my buying habits on my Xbox. I find I buy next to nothing on there now as I have like 30+ Game Pass games installed and more games being added monthly. I just can't justify buying other games when there is a chance some of them will end up on GP anyway.
I mean this has happened in every other industry where subscriptions have taken hold but apparently Gamepass increased game sales. So I would figure an uptick in Gamepass subs would cause an equal uptick in software sales.
Why would software sales be up when said software is available in a subscription service?
But it is happening.
Not to mention around 6 games added per month compared to XBLG/PS+ 1-3 games for older titles. Besides it's not people waiting for a game to be released in the subscription but people seeing the titles they want to buy are already in the subscription so they forgo buying them and instead op in to the much cheaper gamepass subscription instead.
It is not. their focus is not more on hardware anymore. Even if they don't sell well on hardware market next gen they will do really strong on software and service segments.