Xbox is the only weak point for Microsoft's strong quarter

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Neat

Avenger
Oct 25, 2017
923
New York City
The company's cloud business typically grows steadily (it's up 27 percent this quarter), and for the past few years it's driven continual revenue growth. According to the company's latest earnings report, it's been a particularly great few months for the company, with continued revenue growth for Office (up 19 percent for consumers, 16 percent for businesses), LinkedIn (up 24 percent) and Windows (up 18 percent).
Overall, the company reported revenue growth of 14 percent for the second quarter, reaching $36.9 billion. Net income, meanwhile, jumped 38 percent ($11.6 billion).
The only blip in an otherwise positive quarter? Xbox, which saw an 11 percent revenue drop from last year. The company's overall gaming revenue fell by $905 million or 21 percent from a year ago.
That's not too surprising, considering that many gamers are eagerly awaiting the next-generation Xbox Series X. Still, it's not a great sign for the company to see such a significant sales drop during the holiday quarter. And it didn't help that there weren't many must-have exclusives for the Xbox over that period, either. Microsoft might be more focused on building up an impressive lineup of titles for its next system, which at this point includes Senua's Saga: Hellblade 2 and the long-awaited Halo Infinity.
https://finance.yahoo.com/news/2020-01-29-microsoft-q2-earnings-xbox.html
 
May 25, 2018
9,181
There's a thread on their earnings. I don't think anyone is surprised that Xbox still has a ways to go. Microsoft was considering getting out of gaming for a reason. This coming generation is when they will prove that it's right for them to be invested in gaming.
 
Oct 27, 2017
3,093
I feel like they've nearly moved on from the current hardware. It feels like it's full steam ahead with services and the focus is going to be on the new console.
 

Phil me in

Banned
Nov 22, 2018
1,105
Next gen or not they’ve switched to the game pass model. Maybe it’s losing them money currently with the huge discounts constantly it’s on.
 

YaBish

Member
Oct 27, 2017
2,702
I know it’s probably not much compared to a general next gen transition, but I sometimes forget the scale of money these corporations operate on.

And it’s kinda depressing.
 

Sanka

Member
Feb 17, 2019
1,604
If series x is a failure microsoft will drop out of the console market forever.
 

Simply Sami

Banned
Oct 27, 2017
1,338
Not surprising all the studios they bought need to be delivering exclusives in the next few years. Obviously new hardware.

Gamepass should be better.
 

Kolx

Member
Oct 25, 2017
4,626
If series x is a failure microsoft will drop out of the console market forever.
They already view consoles as just another entry into their ecosystem. If streaming becomes as viable as it's for tv shows and movies, MS would drop their consoles in a heartbeat.
 

Sanka

Member
Feb 17, 2019
1,604
Microsofts strategy does not rely on console sales. It’s how many gamepass subs they can get and that includes PC.
I know that's why I said console market not gaming altogether. Gamepass is their bread and butter now and if consoles don't siginificantly increase the amount of subscriptions they get, I wouldn't be suprised if they just dropped out.
 

roly82

Member
Apr 2, 2019
321
I don't know who wins there, but Cuphead on Switch is a hit, and Ori a success too. Probably the best news of Xbox this year, and the return of Minecraft to the top.
 
Oct 25, 2017
3,400
They already view consoles as just another entry into their ecosystem. If streaming becomes as viable as it's for tv shows and movies, MS would drop their consoles in a heartbeat.
I keep seeing posts like this, and have to question: what does this even mean? Ecosystem?

If there was no console, "Xbox" would be just another PC game launcher. I already have 10 of those damn things installed on my PC. Xbox is the worst one of them because it's the only one that locks game folders away from me, preventing all forms of modding. I am not tied to any "ecosystems" here, I just launch whatever I need to play the game I want to play. I'll start Origin for Apex Legends and Uplay for Watch Dogs Legion when that game is out (thanks to 1 month of Uplay+).

If there's an "ecosystem" that I would actually be tied to, that would be Steam. I have spent so much money on so many games for Steam that I can never delete it. But the Xbox app? Just cancel subscription and delete, nothing is lost. That's exactly what I will do in May 2022 when my Gold-converted GP ends because I hate the Xbox app (Microsoft Store) so much.
 

Lupercal

Member
Jan 9, 2018
941
I keep seeing posts like this, and have to question: what does this even mean? Ecosystem?

If there was no console, "Xbox" would be just another PC game launcher. I already have 10 of those damn things installed on my PC. Xbox is the worst one of them because it's the only one that locks game folders away from me, preventing all forms of modding. I am not tied to any "ecosystems" here, I just launch whatever I need to play the game I want to play. I'll start Origin for Apex Legends and Uplay for Watch Dogs Legion when that game is out (thanks to 1 month of Uplay+).

If there's an "ecosystem" that I would actually be tied to, that would be Steam. I have spent so much money on so many games for Steam that I can never delete it. But the Xbox app? Just cancel subscription and delete, nothing is lost. That's exactly what I will do in May 2022 when my Gold-converted GP ends because I hate the Xbox app (Microsoft Store) so much.
Well yeah, Origin is EA's ecosystem (or was because they are also getting back into Steam) they just want to hook you into their platform or launcher and start buying stuff from them.

If you play Apex and after a while see a deal on a game you might like on Origin then they have you in their ecosystem.
 

Shairi

Member
Aug 27, 2018
957
The Xbox Division has always been the black sheep in Microsoft's portfolio for most investors.

The ROI isn't comparable with Office/365 and Azure, but the bigger problem is that hardware heavy markets like the console market always binds a lot of capital.

That's not a big deal for hardware companys, but Microsoft is a software company and therefore investors want to see that money spend somewhere else with higher ROIs.

Anyway, Microsoft is all in on Gamepass for their Xbox Division.
And at that point it doesn't even matter if it is a success or a failure, because in both cases they will put less and less emphasis on classic console buisness.
 
Oct 27, 2017
4,376
Are people here just trolling? Do people think MS was the only gaming console company that went down last quarter vs the previous fiscal year?
 

Kolx

Member
Oct 25, 2017
4,626
I keep seeing posts like this, and have to question: what does this even mean? Ecosystem?

If there was no console, "Xbox" would be just another PC game launcher. I already have 10 of those damn things installed on my PC. Xbox is the worst one of them because it's the only one that locks game folders away from me, preventing all forms of modding. I am not tied to any "ecosystems" here, I just launch whatever I need to play the game I want to play. I'll start Origin for Apex Legends and Uplay for Watch Dogs Legion when that game is out (thanks to 1 month of Uplay+).

If there's an "ecosystem" that I would actually be tied to, that would be Steam. I have spent so much money on so many games for Steam that I can never delete it. But the Xbox app? Just cancel subscription and delete, nothing is lost. That's exactly what I will do in May 2022 when my Gold-converted GP ends because I hate the Xbox app (Microsoft Store) so much.
Gamepass. Think of it like how Netflix is right now. You can stream any game you want not just as an app on pc, but on everything from phones to tablets to smart tv. Basically you will be able to play your games on whatever device you have instead of being tied to a console or PC. If MS can reach that point with quality good enough for people, they will have a wide reach much bigger than the current console userbase.
 

Cactuar

Member
Nov 30, 2018
3,558
Lol. We are essentially commenting on Yahoo's sensationalist title. That is what this thread is about.
Is stating facts called sensationalism now? I highly doubt this Yahoo financial article has any 'sensational' agenda, they are reporting on Microsoft's finances. The article points out all the talking points that are being mentioned in this thread, "it's a transitional year," etc., so I fail to see the problem.
 

HBK

Member
Oct 30, 2017
3,337
Meh. I can see where the "MS will quit" discussions are coming from, but it always seems highly speculative to me.

It sometimes read like "Apple will stop doing Macs because they don’t sell as much as PCs".

I mean it’s not physically impossible, but it does seem unlikely.

It’s good to keep in mind it’s only in our little console war space that "Xbox is doomed". For most people it’s just another console.

Whatev.
 

UraMallas

Member
Nov 1, 2017
3,415
Iowa
Is stating facts called sensationalism now? I highly doubt this Yahoo financial article has any 'sensational' agenda, they are reporting on Microsoft's finances. The article points out all the talking points that are being mentioned in this thread, "it's a transitional year," etc., so I fail to see the problem.
The information reported therein has an entire thread on the front page of this forum. The only new info is the article title. Which will definitely get some clicks into this thread and some concerned replies from people with certain types of avatars or a specific preferred console lean. Please continue to discuss the numbers in the original thread or this duplicate thread with the concerned article title. It is your world.
 

FairyEmpire

Member
Oct 25, 2017
18,883
If series x is a failure microsoft will drop out of the console market forever.
Can't wish this one into existence, sorry pal. Xbox One underdelivered but it's probably gonna be above 60m in the end. That's far from a failure. Series X should do Wii U numbers for Microsoft to consider quitting, and that's clearly not happening.
 

Phil

Banned
Oct 25, 2017
221
Idk my GameStop insider last week said in Brooklyn NY NO OnE is buying a Xbox one NO OnE ATM like nada
Xbox one is like not one in 6 months off shelves
 

Yuntu

Member
Nov 7, 2019
1,356
Germany
How can you be so sure when the xbox one was such a failure and gamepass and xcloud don't improve the case for getting one. I wouldn't put it past microsoft to just say fuck it. Console sales alone aren't that important anymore.
It's obvious why the X1 failed and they aren't doing the same mistakes with their new console so far.

I think the logic behind his thinking makes sense. Sometimes people act like the X1 did like WiiU numbers.
 

leng jai

Member
Nov 2, 2017
11,315
Gamepass. Think of it like how Netflix is right now. You can stream any game you want not just as an app on pc, but on everything from phones to tablets to smart tv. Basically you will be able to play your games on whatever device you have instead of being tied to a console or PC. If MS can reach that point with quality good enough for people, they will have a wide reach much bigger than the current console userbase.
Without the actual console the ecosystem is signicantly weaker because they lose all money they used to get for third party games sold. No one on PC is buying third party games on the Microsoft store. No more Xbox Live money either.
 

Kyry

Member
Oct 27, 2017
547
How can you be so sure when the xbox one was such a failure and gamepass and xcloud don't improve the case for getting one. I wouldn't put it past microsoft to just say fuck it. Console sales alone aren't that important anymore.
I don't think Xbox1 is That big a failure. If Series X does about as well as Xbox1 I think they will be okay.

The only major concern is if Series X can do as well as Xbox1. since Xbox1 had early exclusives that Series X looks like it wont.
 

retrosega

Member
Jun 14, 2019
309
I hope the XSX is a success, as Sony needs the competition to keep delivering for gamers.
I still miss Sega in the hardware market. We need more players imo, not less.
 

Cactuar

Member
Nov 30, 2018
3,558
The information reported therein has an entire thread on the front page of this forum. The only new info is the article title. Which will definitely get some clicks into this thread and some concerned replies from people with certain types of avatars or a specific preferred console lean. Please continue to discuss the numbers in the original thread or this duplicate thread with the concerned article title. It is your world.
Uhh, no. One article is solely about Microsoft's gaming revenue. This article is about how that gaming revenue reflects on Microsoft revenue as a whole. So right away in your "nothing to see here" rant you expose yourself for not actually reading anything beyond the so-called "click bait" title, which by the way comes from Yahoo finance, who you accuse of "sensationalism," even though the final line of the article is "We've said it before: at this point Microsoft's business seems unstoppable." Which I suppose is sensationalism as well, is it not?
 

LukasHeinzel

Member
Oct 27, 2017
582
How can you be so sure when the xbox one was such a failure and gamepass and xcloud don't improve the case for getting one. I wouldn't put it past microsoft to just say fuck it. Console sales alone aren't that important anymore.
Console Sales aren't important anymore, the revenue will come from software sales and streaming. Also the Xbox One wasnt a failure.
 
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