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Microsoft Q3 results: Gaming up 5% YoY, XBL users now 63m

jorgejjvr

jorgejjvr

Banned
Oct 31, 2017
8,423
staying afloat with services alone, looking forward to the hardware making a dent again with next gen

but regardless, revenue is revenue, and they are no longer just the box in your living room company anymore
 
SilverX

SilverX

Member
Jan 21, 2018
12,978
Hardware revenue falling is expected, the Xbox One X was selling well in the months where it was fresh, but they have had to take some steep cuts to keep the hardware selling as it has lost interest sooner than expected. But the software and services seeing a bump is good to see.

All in all, MS spends a lot of money to continue pushing the Xbox brand so Im glad to see the revenue up even 5%
 

Deleted member 49804

User requested account closure
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Nov 21, 2018
1,868
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bcatwilly

bcatwilly

Member
Oct 27, 2017
2,483
As an Xbox primary platform guy the exciting thing for me is that they have grown at a time when they are arguably at their "floor" compared to what they appear to be setting up for next gen on the gaming side.
 
DixieDean82

DixieDean82

Banned
Oct 27, 2017
11,837
I have to give credit to the Xbox team. The hardware sales have been falling off a cliff in the last couple of years, and they still manage to put up good numbers.

They are finding ways to squeeze money out of their audience.
 
ianpm31

ianpm31

Member
Oct 27, 2017
6,529
DixieDean82 said:
Yes, I think so.

The Xbox brand is really in the gutter in a lot of countries. It's a hole that I can't see them getting out of next gen.
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They have the strongest console with the X and the cheapest price point and still doesn't matter. The Xbox brand has issues especially ww. With that being said they are certainly making money.
 
Pryme

Pryme

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Aug 23, 2018
8,164
Apathy

Apathy

Member
Oct 25, 2017
11,992
OG_Thrills said:
33% Fall in XBOX consoles being sold is a problem, right?
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Not necessarily. There was an uptick in one x selling to those who wanted it but that was going to end eventually. Even the mid gen refreshes weren't going to stop the decline of the systems overall. It's still been 5 years of these things.
 
SilverX

SilverX

Member
Jan 21, 2018
12,978
OG_Thrills said:
33% Fall in XBOX consoles being sold is a problem, right?
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We are one year after the Xbox One X launch boost so decline was expected.

I do believe the Xbox One X declined faster than expected (Year of soft advertising followed by a near new console caliber launch campaign, there were some big expectations from it), but Xbox has been performing better than I expected so far this year. So its a probably just disappointing but not all that bad since they still saw a revenue increase (but then again, says nothing of profit).
 
jelly

jelly

Banned
Oct 26, 2017
33,841
Probably hard to convince new owners to jump in at this point but maybe in fall sales when they sell the most there will be a last hurrah or two with Gears 5 and the back catalogue at a cheap price.
 
SilverX

SilverX

Member
Jan 21, 2018
12,978
Pryme said:
That's clearly written as 33% fall in hardware revenue. NOT consoles sold.

They've cut prices for the One S and the One X in recent months, so this isn't a surprise.
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But it specifically mentioned volume of Xbox consoles sold. So selling less consoles is part of the problem, along with the price cuts I sure.
 
Pryme

Pryme

Member
Aug 23, 2018
8,164
SilverX said:
But it specifically mentioned volume of Xbox hardware sold. So selling less consoles is part of the problem, along with the price cuts I sure.
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Yes. That's not the same as a 33% fall in the number of consoles sold.

It's a combination of lower hardware sales and lower prices.
 
OG_Thrills

OG_Thrills

Banned
Oct 27, 2017
4,655
KennyX said:
Xbox Hardware (including accessories) revenue. Not Xbox consoles. That is only the primary driver of the 33% decline.
Also no. No problem for Microsoft.
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"Offset in part by a decline in XBOX hardware of 33% Primarily due to a decrease in volume of consoles sold."

Since they specifically mentioned XBOX consoles and not peripherals, I referenced consoles.
 
GamingCJ

GamingCJ

Member
Apr 14, 2019
1,907
It's a shame MS only states revenue, but not profit. They seem to invest a lot of money in Software, Gamepass and discounting Hardware, while Sony focuses on profit. Would like to see how these strategies pay out.
 
12Danny123

12Danny123

Member
Jan 31, 2018
1,722
DixieDean82 said:
Yes, I think so.

The Xbox brand is really in the gutter in a lot of countries. It's a hole that I can't see them getting out of next gen.
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Agreed, Consoles user base will likely slowly grow overall (Especially with FC and BC with all current and future Xbox consoles) but I think XCloud is where new growth is going to be coming from.
 
SilverX

SilverX

Member
Jan 21, 2018
12,978
Pryme said:
Yes. That's not the same as a 33% fall in the number of consoles sold.

It's a combination of lower hardware sales and lower prices.
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Right, but the way it is written in the disclosure seems like the lower hardware is the bigger deal. I had not read that when I posted about the price cuts they were doing for the X with it's relatively brief time on the market. Apparently, that 33% comes primarily from less console sales.

Again, this is expected since we are one year later from the time when hardware revenue was being boosted by the X. It may be a bigger drop than expected but it seems they are making out just fine thanks to software and services.
 
EvilBoris

EvilBoris

Prophet of Truth - HDTVtest
Verified
Oct 29, 2017
16,677
Gnorman said:
Isn't a growth of only 4 million live users across all devices really low?
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It's monthly active users, so engaged users, rather than registered accounts.

As with the other companies, we don't know exactly what defines an active user, but given it is an internal measure of performance, there will be some kind of revenue attached to it.

So 4million new "customers" they didn't have a year ago is pretty good I would say.
 
Hamster Plugin

Hamster Plugin

Member
Oct 25, 2017
4,840
LudwigVonMises said:
63 Million Live users mean 63 Million paid subscriptions?
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No. You don't need Gold to play Xbox Live games online on PC and those count as active users. It also seems like every user that has used anything that connects to the Xbox Live servers counts as an active user, such as a Minecraft player playing the cross-play version that requires a Microsoft account to log in.
 
SilverX

SilverX

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Jan 21, 2018
12,978
GamingCJ said:
It's a shame MS only states revenue, but not profit. They seem to invest a lot of money in Software, Gamepass and discounting Hardware, while Sony focuses on profit. Would like to see how these strategies pay out.
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MS spends WAY more than Sony and sacrifices profit to try and be as competitive towards them as they can. I'm sure if they could focus on profit like Sony does than they would, but the difference in brand power between PlayStation and Xbox has changed dramatically this gen.

But I think even Sony knows they have had it too easy this gen and they are going to have to make some expensive moves next gen against MS, and they definitely have the money to do it with how profitable the gaming division is for them.
 
Lorul2

Lorul2

Member
Jan 4, 2018
768
But Xbox has NO GAMES.... Sorry I couldn't help myself, besides no one said it yet. ;)
 

Deleted member 50658

Banned
Dec 8, 2018
1,911
Not ideal to both be cutting the price of the consoles but also the main reason of hardware revenue decline is "Primarily due to a decrease in volume of consoles sold".

Sure we are nearing the end of the generation but they released the X not long ago so I thought it and the aggressive pricing of the s might keep the numbers up this year.

Well services to the rescue.
 
12Danny123

12Danny123

Member
Jan 31, 2018
1,722
SilverX said:
MS spends WAY more than Sony and sacrifices profit to try and be as competitive towards them as they can. I'm sure if they could focus on profit like Sony does than they would, but the difference in brand power between PlayStation and Xbox has changed dramatically this gen.

But I think even Sony knows they have had it too easy this gen and they are going to have to make some expensive moves next gen against MS, and they definitely have the money to do it with how profitable the gaming division is for them.
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Agreed, Sony will be fine next gen, however, it depends on how expensive Microsoft is willing to go, we know that Microsoft did at a time seriously considered to buy EA, that shows how much Microsoft is serious about the future of gaming. Whether Sony wants to catch up and constantly buy companies like Take Two is a different question.
 
Expy

Expy

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Oct 26, 2017
9,860
Lorul2 said:
But Xbox has NO GAMES.... Sorry I couldn't help myself, besides no one said it yet. ;)
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The games don't have to be played on Xbox. They just need to produce revenue for the company. Like Minecraft Switch and Cuphead which both have Xbox Live integration as far as I know.
 
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