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Microsoft Q3 results: Gaming up 5% YoY, XBL users now 63m
- Thread starter Infinity Times Two
- Start date
Isn't that from July 2017? why is it being referenced here in a 2019 report?
Yup. They've been doing really well, all divisions within the company seem to be going strong.
Yes, but read my post again, there's nothing between 2017 and now that would imply a sudden turnaround, if anything it'd be even further removed due to heavy investments in Game Pass, xCloud, new acquisitions, R&D for next gen etc.
so you are certain they aren't profitable? I ask cos MS doesn't release profit results for the other divisions either but we know MS is doing well all round and the results they posted yesterday are very strong.
He did say imply, so yes no one can say for certain. But the logic is easy to follow in addition to the source he provided.
When people say that they are generally referring to the hit they took on the OG XBOX and on RROD with 360. There is no mother fucking way on Earth that Nadella would have not only kept but grew the division and elevated it's leader if it wasn't profitable.
Lol. maybe you should teach me then? You are the one posting a July 2017 article and trying to suggest Xbox isn't profitable in 2019.
Microsoft are a clever company. Even if xbox isn't "profitable" that we have no evidence of truth. There will be massive gains from it. Xbox live is on switch and coming to more games on that platform. Gamepass is building numbers and wouldn't exist if it didn't make profit somewhere.
The analytics that these companies have access too is insane. Ms services are going from strength to strength. They will know if there investment is paying off. They may be getting a little "creative" with funding but we would never know.
The analytics that these companies have access too is insane. Ms services are going from strength to strength. They will know if there investment is paying off. They may be getting a little "creative" with funding but we would never know.
I still hate Microsoft for coming up with the idea of having to pay for a subscription to unlock your console's internet access. When gamers accepted it, it grew into a true cancer of consoles that infected Sony and Nintendo as well.
It's all part of their plan to reach a wider audience and expand their reach into other regions. I hope it pays off big time. Nadella/Phil seem to be steering the ship in the right direction.
That's not true. Netflix, Sony during the PS3 era, will take short term losses and invest if the see area's for growth and long term profit. Also the source provided was from 2017. That would also allude to the gaming division not being profitable.
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We don't know that Microsoft's gaming division is profitable
Thurrot (well known tech and Microsoft insider) seems to imply the complete opposite,
With recent acquisitions and Game Pass etc, I'd imagine that is still the case today, though of course we can't know for sure.
And with respect to why we might be able to assume that Xbox still isn't profitable (beyond the fact that Microsoft still don't release Xbox profit/loss figures in reports), I've already stated why, but again, with the previous clarification that we simply can't know for sure.
Thurrot made that comment in 2017 and no one knows what it is today. You and I have no idea how the Xbox division runs and Thurrot hasn't commented since then, so I wouldn't really agree with anyone trying to imply anything today based on what an insider stated in 2017 and until MS does other wise we only have their financial reports to work with.
Agreed. After looking over every comments and replies on this thread, it seems many are secretly hoping MS's Xbox brand would failed due to their personal vendetta or hatred against it. We as gamers should be happy that MS made a great recovery after the disastrous launch blunder to give us things like Gamepass, PlayAnywhere, BC/Enhanced BC, and the most powerful console ever. The last thing we need is MS pulling out of the gaming sector which will result in lack of innovation and competition to keep gaming healthy.
I, as a gamer with all the current consoles, cannot wait to see what the Xbox brand will take us with their new and expanded studios, xCloud and Anaconda (which many believe will be the most powerful console next gen).
I appreciate the honesty. Question, do you hate Sony for following their lead and also charging for online once they righted the ship after the PS3's rocky start? We need these companies to all stay competitive because any of them would screw us without true competition.
The thing that seems to get lost is that these large international corporations answer to their shareholders, not fans. I don't even understand the idea of being a "fan" of a corporation. That seems so bizarre to me. Maybe because I am an attorney and have worked for a some of them my perspective is different. Everyone needs to understand, they dont care about you. All they want is your money.
Internally, they refer to us as consumers, not fans. Believe me, if any of them think of a new way to get more cash out of you, they will. Sony didn't come out changing for online because they had lost marketshare. Once they started "winning" again they changed that up on a dime and we paid for it.
Yes, I do. I did pay for PS Plus on the PS3 originally because the monthly games were a genuinely great deal. Now that they made it a mandatory subscription it's no longer good value so I'm switching to PC gaming and will not buy a PS5.
I think you're having selective vision when it comes to his posts, or that you're intentionally misrepresenting his argument.
He described exactly why he thinks it's still unprofitable:
"With recent acquisitions and Game Pass etc, I'd imagine that is still the case today"
Selective vision? OK. I thought I was done with that discussion , anyway I think my previous post is quite clear and until we get any info stating otherwise it's all hearsay, rumors and assumptions being made so I will be going with the info presented in MS's quarterly reports for now.
Well yes it is speculation but that's all we got since the info we're talking about isn't being presented in MS' reports lol
Exactly. MS has presented their reports this way for years and the insider report referenced above was made 2 years ago since then Xbox has continued to thrive. No one can infer otherwise.
Good.
Good to know. Great times ahead.
MSFT is a trillion dollar company and the overall Xbox brand is becoming their preeminent consumer facing brand which leverages all the cloud work they are doing otherwise.
Why are we trying to determine if it is profitable? They are investing heavily and show no signs of letting up. They doubled down when they could have folded ship and Spencer has been promoted.
Xbox as a console and brand aren't going anywhere.
Why are we trying to determine if it is profitable? They are investing heavily and show no signs of letting up. They doubled down when they could have folded ship and Spencer has been promoted.
Xbox as a console and brand aren't going anywhere.
Microsofts gaming division is profitable according to Nadella two years ago.
https://mspoweruser.com/microsoft-reports-higher-gaming-revenue-xbox-live-users-last-quarter/
https://mspoweruser.com/microsoft-reports-higher-gaming-revenue-xbox-live-users-last-quarter/
It's not an either/or, Xbox is both a service and a console. Xbox is Microsoft's gaming division.
Xbox has rarely been profitable for MS, and that continues to today.
Does that matter? Not really, no. MS has doubled down on gaming because they believe they have found a path to sustained profitability, and are on the ground floor of a huge expanding market they can take a big chunk out of.
As long as MS continues to see that path forward, individual quarter profitability is a secondary concern.
Does that matter? Not really, no. MS has doubled down on gaming because they believe they have found a path to sustained profitability, and are on the ground floor of a huge expanding market they can take a big chunk out of.
As long as MS continues to see that path forward, individual quarter profitability is a secondary concern.
Growing profitably =/= Profitable
Another way of interpreting "growing profitably" is, "we're taking less losses compared to before"
I wonder how much their investment in Xbox will be going into next gen. it's going to be amazing to watch.
https://www.cnbc.com/2019/04/24/microsoft-q3-2019-earnings.html
MS obviously sees huge value in Xbox and gaming as a whole and will be going all in, that's all that matters and besides the company as a whole is doing extremely well. worth 1TR now. They have to be doing a lot right to keep growing this fast, staying healthy and keeping investors pretty satisfied. The changes they've made over these past months and Phil now a member of the senior leadership team all bodes well for the future of Xbox.
https://www.cnbc.com/2019/04/24/microsoft-q3-2019-earnings.html
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A service that is pretty much nonexistant outside of console gaming.
Not really. Over the course of the Xbox's existence, there have been quarters (and even a few years I think) where the division has turned a profit. As far as I know, it's been a while since one of those quarters.
Today, MS is back to investing pretty heavily in Xbox, and that, combined with aggressive hardware prices and the costs of running programs like Game Pass before they reach a critical mass of users means quarterly profit is not a priority, just like it isn't for most growing tech companies.
This is not a bad thing. It is better for the future of the business to focus on growth rather than profit.
