Xbox FY24 Q3: Total Gaming Revenue (+51%), Content and Services Revenue (+62%) Hardware Revenue (-31%) / Xbox Gaming made $5.451B in revenue

bes.gen · Apr 26, 2024

when you realize its a huge decline from already abysmal numbers, it gets even darker.

Suntzupp said:
If the rumors of next Xbox giving up traditional subsidizing is true can you really say they are continuing hardware business? If lowest entry cost to next gen Series S isn't selling for them how does a really expensive one more so than their competitors will do it? I don't think even the current Xbox series users will get the next gen console.

yeah not seeing it either.
if their nextbox will be a non subsidized thousand dollars pc hybrid, like some predict, good luck even reaching steamdeck numbers.
i guess it can excite gaming forum crowd but it'll probably end up being their worst selling console ever. possibly cementing the total exit from hw after that.

Kolbe1894 · Apr 26, 2024

I really doubt PS5 Pro will hurt do any impact to Xbox sales
But then it doesn't need to be, Xbox hardware sales since 2023 already really bad lol

happy2501 · Apr 26, 2024

I'm cool about Satya talking about brining more games to more places etc etc. But man for once talk about the actual Xbox…

NinjaScooter · Apr 26, 2024

I don't really get comparisons to Sega/Dreamcast, I imagine there will certainly still be hardware releasing post-series X/S with the Xbox name on it its just going to manifest itself in some way we would not have expected 5 years ago. But I do think the days of them launching a $399/499 box around the same time the next Playstation goes out are probably dead.

Dust · Apr 26, 2024

Hmm...I think the trajectory is clear for MS at this point. They will transition to a software behemoth they always wanted to be, at the "cost" of low established diehard console userbase and going away with exclusives. It just doesn't make sense anymore with these HW numbers and how gargantuan they are on the software side.

Gavalanche · Apr 26, 2024

Kolbe1894 said:
I really doubt PS5 Pro will hurt do any impact to Xbox sales
But then it doesn't need to be, Xbox hardware sales since 2023 already really bad lol

If GTA 6 comes out and ps5 pro is the only console at 60, it totally will. Of course those are a lot of ifs, but there are millions of people who aren't going to bother about jumping into a new generation until gta 6 releases.

tmac456 · Apr 26, 2024

Next gen is going to be fascinating between Xbox strategy and Playstation fixing/improving their profit margins.

I really do wonder at what point MS rips the bandaid off and goes full blown multiplatform

Kolbe1894 · Apr 26, 2024

NinjaScooter said:
I don't really get comparisons to Sega/Dreamcast

I feel if Sega was like MS(overall earning money just hardware sold badly), they are going to continue as 1st party, but we all know they were losing money all round
So agree the comparisons doesn't make sense

mentok15 · Apr 26, 2024

Gavalanche said:
If GTA 6 comes out and ps5 pro is the only console at 60, it totally will. Of course those are a lot of ifs, but there are millions of people who aren't going to bother about jumping into a new generation until gta 6 releases.

I don't think it will because I just don't see there being many people who would have got a Series X but aren't because of the Pro. Xbox hardware sales are dropping and it's nothing to do with how powerful the hardware is.

meenseen84 · Apr 26, 2024

Suntzupp said:
If the rumors of next Xbox giving up traditional subsidizing is true can you really say they are continuing hardware business? If lowest entry cost to next gen Series S isn't selling for them how does a really expensive one more so than their competitors will do it? I don't think even the current Xbox series users will get the next gen console.

So, the cheapest route would probably be a super cheap cloud box. GeForce Now has shown it can feel almost as smooth as native, maybe they can too. Plus, with the merging of PC, there's no real concept of generations anymore. Look at the most popular games—they're all playable across generations. An open box setup sounds appealing, I think adding an extra 100-200$ to the cost is well worth to some.

Izanagi89 · Apr 26, 2024

I just really don't see the point of Xbox making exclusives anymore.

Stef · Apr 26, 2024

DC5remy said:
With that kind of revenue they could keep making consoles and losing money on them, no?

Mmmmmmh... are they currently losing money on consoles?

Stef · Apr 26, 2024

Izanagi89 said:
I just really don't see the point of Xbox making exclusives anymore.

I guess neither Microsoft does. :)

reksveks · Apr 26, 2024

Stef said:
Mmmmmmh... are they currently losing money on consoles?

As a line in on itself, probably.

When you account for the ms/xbox store, I doubt it.

It ultimately is all about accounting practices.

turkoman_ · Apr 26, 2024

Oh, impressive hardware numbers. Let's port more games to competing hardware and see what happens next quarter.

entrydenied · Apr 26, 2024

shadowman16 said:
Im also curious what black magic Xbox is going to use to get games ready for launch considering how long they take to make these days... I just dont see them having this super strong launch line up for a brand new console ready so soon.

Plus as you say just launching new hardware is going to really make all that difference to people who already dont care. Those uber faithful fans will buy it sure, but the rest? Probably just buying a PS5. Or Switch 2. Or PC...

Yeah. If they want an early launch for 2026, the games would have started development in 2020. I'm fact I wonder how Sony is going to aim for a 2028 next gen console as well, given many of their studios have yet to release a PS5 game.

Suntzupp said:
If the rumors of next Xbox giving up traditional subsidizing is true can you really say they are continuing hardware business? If lowest entry cost to next gen Series S isn't selling for them how does a really expensive one more so than their competitors will do it? I don't think even the current Xbox series users will get the next gen console.

They'll have to aim reasonable for Steamdeck numbers, and aim for Vita numbers for lifetime sales.

Gavalanche said:
If GTA 6 comes out and ps5 pro is the only console at 60, it totally will. Of course those are a lot of ifs, but there are millions of people who aren't going to bother about jumping into a new generation until gta 6 releases.

I still think the average consume has no idea what's 60 fps and what's 30 fps and Sony will sell more GTA6 because they have stronger branding, with stores pushing customers to get a PS5 or Pro because Sony still sells physical games.

Fortinbras · Apr 26, 2024

Clippy said:
The publisher that is Microsoft is doing great, but those HW numbers are forever creeping towards disaster.

Indeed. The development is not surprising and gamers being everywhere but Xbox is mostly the fault of Xbox management. No one is going to change my opinion on that.

LiftGammaGain · Apr 26, 2024

Hardware numbers not looking good. Too bad, love my Series X, love it more than Microsoft itself. Curious about their next move regarding hardware.

Izanagi89 · Apr 26, 2024

Stef said:
I guess neither Microsoft does. :)

That's true lol They're already a behemoth of a publisher. Releasing games everywhere just makes so much more sense.

Stef · Apr 26, 2024

Izanagi89 said:
That's true lol They're already a behemoth of a publisher. Releasing games everywhere just makes so much more sense.

Hey, mr. "lol". Then try to read the thread because you are agreeing.

Dust · Apr 26, 2024

Exiting console space by MS is nonsense even if shit collapses to 15-20m LTD diehard sales. There will be always Xbox "something" system but it will be just Game Pass gateway and a way for people to stay in the ecosystem.

I am more curious how 3rd parties are seeing this development.

Chippewa Barr · Apr 26, 2024

DontHateTheBacon said:
Why would you?

Because it would be financially viable.

They won't stop hardware until they are losing money as a whole. People buying Xbox games for an Xbox, and even more so digitally, gain them a ton of money.

Until the formula of CONSOLE + SOFTWARE results in a negative number, they will keep making them.

M.Bluth · Apr 26, 2024

Unlike Sega, Microsoft has enough money and can still make it work somehow for a few more years, but I would seriously consider the wisdom of sticking with the Xbox ecosystem as your main long-term.

Claiming there's a coming next-gen box that provides the largest leap is vague enough to be anything when you think about it. Could be a genuinely well-engineered console with great specs for the time like current-gen consoles. Could be fudging things a bit with "well, with ML-upscaling and new RT hardware, even though it's not much better than a PS5 Pro, we're gonna call the end result as being a huge leap". Or it could be a $1500+ Xbox branded PC.

Renna Hazel said:
I guess we'll see what happens but does anyone really expect PS5 pro to really impact Xbox sales? I don't see that being a major factor, especially if it ends up being really expensive.

Doubtless, a not insignificant number of PS5 Pro purchasers would be Xbox users looking for an off-ramp.

unknown_nut · Apr 26, 2024

Largest leap means nothing when PS5 will still be the baseline. Games take nearly 5 years to make now. If the rumors are true (2026 next gen xbox), it would be a waste because games won't fully take advantage of it due to long dev time and dev cost. We are reaching the point where even next gen will have a long crossgen period.

CarpetSalesman · Apr 26, 2024

I'm not saying that the decline isn't bad but I see people comparing the Xbox install base of 27m+ to the Playstation 5 install base of something like 50m+.
Given that Xbox doesn't sell in Japan, doesn't sell in mainland Europe, is this so terrible?

I also see people saying that software support could disappear, which developer is happy to develop for Playstation at 50m potential customers but for another 27m isn't prepared to do a port?

I will say that given that these figures will be generated before Xbox started porting games over to Playstation that I don't see why there'd be good news in the next batch of figures. I cannot for the life of me fathom why Xbox has more developers than any other publisher, but has failed to release anything that's really moved the needle in years (I like their output, but that's not the point).

CarpetSalesman · Apr 26, 2024

unknown_nut said:
Largest leap means nothing when PS5 will still be the baseline. Games take nearly 5 years to make now. If the rumors are true (2026 next gen xbox), it would be a waste because games won't fully take advantage of it due to long dev time and dev cost. We are reaching the point where even next gen will have a long crossgen period.

Eh, I reject this tbh. If there was any real improvement between PS4/Xbox One Gen then it'd be worth thinking about, but I expect that next gen's games will be this gen but shinier. Just like this time around. If they do get a new powerful system out being able to brute force the best version of every multiplatform game will be a good selling point, as well as if they actually get games being released from their own studios, which can then make some more meaningful improvements and show the system off.

But ultimately, I don't think that power limitations has been a big restriction on how games play for a while. How they look? Sure. But in terms of what you'll be doing in a game? Not so much.

shadowman16 · Apr 26, 2024

CarpetSalesman said:
I'm not saying that the decline isn't bad but I see people comparing the Xbox install base of 27m+ to the Playstation 5 install base of something like 50m+.
Given that Xbox doesn't sell in Japan, doesn't sell in mainland Europe, is this so terrible?

I also see people saying that software support could disappear, which developer is happy to develop for Playstation at 50m potential customers but for another 27m isn't prepared to do a port?

First part - sales are dropping in places which would historically buy Xbox. And that's few places. They also did a super price rise in Brazil which is basically a huge middle finger to one of their bigger markets. They've put no effort to turn things around or even acknowledge other places like Europe, and they've seemingly put no effort in courting emerging markets either. Basically, at this rate with their sales decaying, any future hardware launch is only gonna get smaller. Which obviously is bad.

Second point. All 27mil aint buying that game. Its going to be a fraction of that. For some games - its still worth it, it'll sell (games/genres which historically have player bases on Xbox). But for stuff that doesnt? For maybe more niche releases? Its gonna get to a point where they'll maybe look at their sales of previous releases and think... "well this is pointless" especially again if next gen contracts again for the console. Its going to get to a point where resources outstrip return.

bitcloudrzr · Apr 26, 2024

Fortinbras said:
Indeed. The development is not surprising and gamers being everywhere but Xbox is mostly the fault of Xbox management. No one is going to change my opinion on that.

No one should challenge you on that lol.

CarpetSalesman said:
Eh, I reject this tbh. If there was any real improvement between PS4/Xbox One Gen then it'd be worth thinking about, but I expect that next gen's games will be this gen but shinier. Just like this time around. If they do get a new powerful system out being able to brute force the best version of every multiplatform game will be a good selling point, as well as if they actually get games being released from their own studios, which can then make some more meaningful improvements and show the system off.

But ultimately, I don't think that power limitations has been a big restriction on how games play for a while. How they look? Sure. But in terms of what you'll be doing in a game? Not so much.

We would also be two gens in on digital ecosystems, people are only going to get more entrenched.

Red Kong XIX · Apr 26, 2024

CarpetSalesman said:
I'm not saying that the decline isn't bad but I see people comparing the Xbox install base of 27m+ to the Playstation 5 install base of something like 50m+.
Given that Xbox doesn't sell in Japan, doesn't sell in mainland Europe, is this so terrible?

I also see people saying that software support could disappear, which developer is happy to develop for Playstation at 50m potential customers but for another 27m isn't prepared to do a port?

I will say that given that these figures will be generated before Xbox started porting games over to Playstation that I don't see why there'd be good news in the next batch of figures. I cannot for the life of me fathom why Xbox has more developers than any other publisher, but has failed to release anything that's really moved the needle in years (I like their output, but that's not the point).

Last official PS5 sales number was 54.8m

Dr. Mario · Apr 26, 2024

Izanagi89 said:
I just really don't see the point of Xbox making exclusives anymore.

It's a simple catch 22. The point is that the other consoles don't want to host gamepass, and if Microsoft releases everything multiplatform, nobody buys an Xbox console so nobody gets on gamepass. Microsoft constructed a death trap for gamepass.

AmFreak · Apr 26, 2024

CarpetSalesman said:
I also see people saying that software support could disappear, which developer is happy to develop for Playstation at 50m potential customers but for another 27m isn't prepared to do a port?

Ms has made it worse for them in that regard with GP, because of this 27m XBox owners won't be the same as 27m PS owners.
At the same time i don't see ports stopping, because they only cost such a small fraction compared to making the game.

onesvenus · Apr 26, 2024

To all the people who talk about not understanding why Microsoft should keep doing exclusives with those hardware sales: Which released exclusive did you expect to move consoles? Halo Infinite(86 in OpenCritic)? Redfall (57 in OpenCritic)? Starfield(85)?

Consoles are moved with a constant slate of A-grade exclusives, something Microsoft hasn't had in the whole generation. Unfortunately for them, now that those are seemingly starting to release, sales are completely abismal and I'm not sure they will recover. Obviously announcing your games are going to other platforms doesn't help.
It's a self fulfilling profecy

Dinjoralo · Apr 26, 2024

I don't get the throughline that having an Xbox branded PC, or an Xbox that is a PC somehow, will somehow cause hardware to shoot up.

Maple said:
It's had a substantial impact on sales and perception of the Xbox hardware platform in general. The people playing on PC via Steam get to play the Xbox games, but don't become invested in the Xbox ecosystem.

That's the purpose of the Xbox hardware - it's not so much about the cut Microsoft gets from sales of the consoles (which apparently is not much), but rather the long-term effect of a consumer having an Xbox in their home: the box functions as a portal to Game Pass, the Xbox store, accessory purchases, etc.

All of that is completely lost when PC players can just hang out on Steam knowing that they'll get all Xbox games day one. I'm guilty of that as well. I can absolutely say the reason I don't own an Xbox is because I can just played all the games day and date release on my PC via Steam.

They put games on PC because they were already failing. They put games on Steam because their attempt to have their cake and eat it too with their own store failed even harder. An Xbox that didn't start putting games on PC is an Xbox that's not publishing nearly as many games, since the games would have much slimmer chances of turning a profit.

Wereroku · Apr 26, 2024

Stef said:
Mmmmmmh... are they currently losing money on consoles?

According to Phil yes. However that was a bit ago so it might have changed but the last update we had they were still selling at a loss.

TitanicFall · Apr 26, 2024

Dinjoralo said:
I don't get the throughline that having an Xbox branded PC, or an Xbox that is a PC somehow, will somehow cause hardware to shoot up.

Seems like people are grasping at straws. At best, the people who've stuck with Xbox would get access to PC games. It's not likely that PC gamers would buy it because they've been longing for the Xbox interface. Some will point to Steam Deck as something to mimic but I don't think it's done even Vita numbers in terms of sales.

Linus815 · Apr 26, 2024

Dinjoralo said:
I don't get the throughline that having an Xbox branded PC, or an Xbox that is a PC somehow, will somehow cause hardware to shoot up.

yeah, idk why people think this would help.. pc gamers sure as fuck not gonna touch that and the xbox brand will just become even more obscure in places that already cares very little about xbox.

Monodrone · Apr 26, 2024

Since the hardware market isnt growing that much (apparently) Xbox should just keep on releasing games on the other platforms. If they build strong communities within those games, then they will be able to change strategy and release the sequels exclusively on a future Xbox Hardware which Will drive the hardware sales up. This might be the only way for them to get a bigger piece of the pie.

Level 7 Boss · Apr 26, 2024

Windrunner said:
Spencer wanted everything to be exclusive, even COD (after a few years), Overwatch 2 and Diablo IV. He got overruled and is no longer calling the shots.

Anything to back this up?

King_Moc · Apr 26, 2024

So down 5% if not for the activision purchase then

Copilot · Apr 26, 2024

King_Moc said:
So down 5% if not for the activision purchase then

Down 4%. Isn't too bad if Playstation and Nintendo are also down. Let's wait and see.

Wing84 · Apr 26, 2024

Copilot said:
Down 4%. Isn't too bad if Playstation and Nintendo are also down. Let's wait and see.

Current day Nintendo numbers and/or PlayStation's numbers being down isn't equivalent to current Xbox's numbers when down. Context is important. Being down 5% from 300k isn't the same as being down from a significantly lower number.

I'm very curious to hear the CFO give an update on things regarding to first party software and hardware. Will it be similar to the last time or more straightforward.

BobLoblaw · Apr 26, 2024

Level 7 Boss said:
Anything to back this up?

No.

Hanzo · Apr 26, 2024

Expected after buying Activision.
How about profit?

Tobor · Apr 26, 2024

happy2501 said:
I'm cool about Satya talking about brining more games to more places etc etc. But man for once talk about the actual Xbox…

What else would he say? CEO's aren't going to spend a lot of time in investor calls talking about the negative parts of the business, except to talk about how they're fixing it. Which is what he did. They're fixing it by expanding to other platforms.

HitcherFL · Apr 26, 2024

Monodrone said:
Since the hardware market isnt growing that much (apparently) Xbox should just keep on releasing games on the other platforms. If they build strong communities within those games, then they will be able to change strategy and release the sequels exclusively on a future Xbox Hardware which Will drive the hardware sales up. This might be the only way for them to get a bigger piece of the pie.

The risk of this is why wouldn't people expect those sequels to their preferred platform? Even if they explicitly communicate a further strategy change and say games will be exclusive, will enough people believe it? Once you open the multiplatform door I don't think you can close it.

Super · Apr 26, 2024

Copilot said:
Down 4%. Isn't too bad if Playstation and Nintendo are also down. Let's wait and see.

PlayStation hardware should be down from 6.3m consoles shipped January-March 2023 yeah. That's isn't achievable ever again. Nintendo are in the 7th year of the Switch so it's not like for like.

Ambient · Apr 26, 2024

HitcherFL said:
The risk of this is why wouldn't people expect those sequels to their preferred platform? Even if they explicitly communicate a further strategy change and say games will be exclusive, will enough people believe it? Once you open the multiplatform door I don't think you can close it.

I wouldn't call that a risk. People playing Microsoft games and subbing to Microsoft services is the goal. That's the message coming from the top down. Every screen is an Xbox.

GulfCoastZilla · Apr 26, 2024

bes.gen said:
when you realize its a huge decline from already abysmal numbers, it gets even darker.

yeah not seeing it either.
if their nextbox will be a non subsidized thousand dollars pc hybrid, like some predict, good luck even reaching steamdeck numbers.
i guess it can excite gaming forum crowd but it'll probably end up being their worst selling console ever. possibly cementing the total exit from hw after that.

If it runs steam I would buy it. More so because I really don't know computers at all outside of alt cntrl delete and googling solutions.

If I had to buy a new graphics card that cost as much or more than a PS6, that's never going to fly in my house. Neither is a new CPU / GPU whatever else has to be done

P.J. · Apr 26, 2024

TheDarkKnight said:
If only revenue is posted w/o the amount of profit then it isn't enough information to really evaluate the actual performance of the division

(Jan – Mar) Operating Income Forecast (before Helldivers II launch)

G&NS ¥86 bn

Nintendo ¥46 bn

Schmitz · Apr 26, 2024

Copilot said:
Down 4%. Isn't too bad if Playstation and Nintendo are also down. Let's wait and see.

PS had a record quarter last year after sorting supply issues. They will have a big drop but surely you understand those are completely different and incomparable situations.

Xbox FY24 Q3: Total Gaming Revenue (+51%), Content and Services Revenue (+62%) Hardware Revenue (-31%) / Xbox Gaming made $5.451B in revenue

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