Microsoft Earnings Call - FY23Q3 | 4% decline for MS Gaming, Xbox HW down 30%

[Nhomnhom]

I was not expecting people to try to spin this, there is always a new low.

These are awful number, unbelievably bad, a console having a massive drop in sales in it's third year while the competition has an explosion in sales.

They went all in and spent billions and billions and a growth of 3% in content and services is something positive? Apparently there isn't a low that Xbox could hit where these fanatic would admit what is happening.

The whole thing about there being a shortage of Xbox is so absurd, I walk into a store and I see a PS5 for sale and no Xbox, but I also see a bunch of PS5 games and no Xbox games, should I conclude there is a problem with the supply of Xbox games too?

Microsoft crowing about big MAU by using players from more popular consoles is both hilariously pathetic and a new low for those scumbags.

If you want a laugh, head to Gaf and point out that the $1 billion Sub services made was revenue, not profit. It is like kicking a hornets nest and a great laugh watching the arguments.

That is less than 25m people paying 15$ a month or less than 30m people if we say the average is like 12$. That's close to 500 since they announce 25m.

These same idiots thought that Gamepass was at 30m 1 and a half years ago when the Take Two CEO made a comment about it, so they just adjust their metric of success to exactly the number Xbox is able to achieve. At this rate (without slowing down) it would take more than 10 years for Gamepass to simply get to the number PS+ is already at.

 

[FIREK2029]

I'm arguing with a dude on the GAF thread trying to spin these shitty numbers into looking good.

He's telling me how Xbox may be down but investors are looking only at the Activision/Blizzard deal and that's the only thing that matters. You can't make this shit up

 

[anonpuffs]

I was not expecting people to try to spin this, there is always a new low.

These are awful number, unbelievably bad, a console having a massive drop in sales in it's third year while the competition has an explosion in sales.

They went all in and spent billions and billions and a growth of 3% in content and services is something positive? Apparently there isn't a low that Xbox could hit where these fanatic would admit what is happening.

The whole thing about there being a shortage of Xbox is so absurd, I walk into a store and I see a PS5 for sale and no Xbox, but I also see a bunch of PS5 games and no Xbox games, should I conclude there is a problem with the supply of Xbox games too?


That is less than 25m people paying 15$ a month or less than 30m people if we say the average is like 12$. That's close to 500 since they announce 25m.

These same idiots thought that Gamepass was at 30m 1 and a half years ago when the Take Two CEO made a comment about it, so they just adjust their metric of success to exactly the number Xbox is able to achieve. At this rate (without slowing down) it would take more than 10 years for Gamepass to simply get to the number PS+ is already at.

Right? It's the height of delusion to think that Microsoft went out and spent >$75 billion in acquisitions in the gaming sector, only to handwave away a 30% drop in hardware sales as "supply constraints"

L
O
L

 

[ghostz]

I was not expecting people to try to spin this, there is always a new low.

These are awful number, unbelievably bad, a console having a massive drop in sales in it's third year while the competition has an explosion in sales.

They went all in and spent billions and billions and a growth of 3% in content and services is something positive? Apparently there isn't a low that Xbox could hit where these fanatic would admit what is happening.

The whole thing about there being a shortage of Xbox is so absurd, I walk into a store and I see a PS5 for sale and no Xbox, but I also see a bunch of PS5 games and no Xbox games, should I conclude there is a problem with the supply of Xbox games too?


That is less than 25m people paying 15$ a month or less than 30m people if we say the average is like 12$. That's close to 500 since they announce 25m.

These same idiots thought that Gamepass was at 30m 1 and a half years ago when the Take Two CEO made a comment about it, so they just adjust their metric of success to exactly the number Xbox is able to achieve. At this rate (without slowing down) it would take more than 10 years for Gamepass to simply get to the number PS+ is already at.

Game Pass leads PlayStation Plus significantly,"Sony says. "Microsoft already has a substantial lead in multi-game subscription services. Game Pass has 29 million subscribers to Xbox Game Pass Console and Xbox Game Pass Ultimate, and is expected to grow substantially in the future. The multi-game subscription tiers of PlayStation Plus considerably lag with fewer than [redacted] the number of subscribers."

This from Sony

 

[FIREK2029]

Game Pass leads PlayStation Plus significantly,"Sony says. "Microsoft already has a substantial lead in multi-game subscription services. Game Pass has 29 million subscribers to Xbox Game Pass Console and Xbox Game Pass Ultimate, and is expected to grow substantially in the future. The multi-game subscription tiers of PlayStation Plus considerably lag with fewer than [redacted] the number of subscribers."

This from Sony

Sony doesn't have Microsoft's official GP numbers, those are an estimate.

Xbox is 30% down my guy.

Quoting Sony's guesstimate numbers from legal documents some months ago isn't going to change the fact that the new official numbers from MS are terrible.

Gaming is down 4% and hardware is down 30% in their third year. This is horrible and it's sad we still have people like you in here trying to spin this.

Pass the blunt!

 

[AshHunter216]

How much you wanna bet the same people defending MS numbers are going to do their best to downplay Sony's upcoming numbers?

 

[Nhomnhom]

Who remembers when a console had this massive drop in sales in year three just to comeback stronger and dominate in the following years? Nobody does.

What makes it even worse is that they are following one unbelievably bad gen with one that's even worse while at the same time spending an unholy amount of money to achieve that. This is an unprecedented level of failure in the gaming space.

 

[FIREK2029]

How much you wanna bet the same people defending MS numbers are going to do their best to downplay Sony's upcoming numbers?

Like clockwork. They'll be out in full force whenever Sony's numbers come out to tell us how unimpressive they are after damage controlling this shit show.

 

[Gods&Monsters]

Microsoft crowing about big MAU by using players from more popular consoles is both hilariously pathetic and a new low for those scumbags.

If you want a laugh, head to Gaf and point out that the $1 billion Sub services made was revenue, not profit. It is like kicking a hornets nest and a great laugh watching the arguments.

And what are the sub services anyway? Game Pass + Gold + ESO Online + Fallout 76 or is it GP only? We can never tell.

What is frustrating is that they keep comparing these numbers to PS+ ONLY or total revenue on PS ONLY vs Xbox on EVERYTHING (including PS).

Starfield isn't out, did you think that Hi-Fi Rush alone was going to turn the tide? Why would you post that when you know that Bethesda's two biggest studios (BSW and id) haven't put their titles out. Oh shit, Firesprite hasn't done anything for Sony yet, guess the purchase was a flop.

Keep in mind they are also adding the revenue Sony paid to Bethesda for all their games on PS+. Ghostwire, Doom, Fallout. It adds up to their Xbox revenue.

 

[Nhomnhom]

And what are the sub services anyway? Game Pass + Gold + ESO Online + Fallout 76 or is it GP only? We can never tell.

What is frustrating is that they keep comparing these numbers to PS+ ONLY or total revenue on PS ONLY vs Xbox on EVERYTHING (including PS).

Imagine if Sony had spent 7B buying a publisher and was bragging about breaking some arbitrary records while the most positive number was a 3% growth in content and services.

 

[Eternal_Wings]

This ignorant fools don’t know what’s the difference between profit and revenue. They think this is all profit hilarious!
They think they’re no operating costs, paying salary for staff, licensing fees etc.
I never have encountered such deluded folks like this Xbox cultists.

 

[ghostz]

Sony doesn't have Microsoft's official GP numbers, those are an estimate.

Xbox is 30% down my guy.

Quoting Sony's guesstimate numbers from legal documents some months ago isn't going to change the fact that the new official numbers from MS are terrible.

Gaming is down 4% and hardware is down 30% in their third year. This is horrible and it's sad we still have people like you in here trying to spin this.

Pass the blunt!

I’m responding to this claim, my guy.

“At this rate (without slowing down) it would take more than 10 years for Gamepass to simply get to the number PS+ is already at.”

 

[John Elden Ring]

Tweets:








Gaming Summary:

- Gaming Revenue decline 4% (down 1% CC)
- Xbox content and services up 3% (up 5% CC) due to growth in GP
- Xbox HW down 30% (down 28% CC)

MS Summary:

Business Highlights

Revenue in Productivity and Business Processes was $17.5 billion and increased 11% (up 15% in constant currency), with the following business highlights:

· Office Commercial products and cloud services revenue increased 13% (up 17% in constant currency) driven by Office 365 Commercial revenue growth of 14% (up 18% in constant currency)
· Office Consumer products and cloud services revenue increased 1% (up 4% in constant currency) and Microsoft 365 Consumer subscribers grew to 65.4 million
· LinkedIn revenue increased 8% (up 10% in constant currency)
· Dynamics products and cloud services revenue increased 17% (up 21% in constant currency) driven by Dynamics 365 revenue growth of 25% (up 29% in constant currency)

Revenue in Intelligent Cloud was $22.1 billion and increased 16% (up 19% in constant currency), with the following business highlights:
· Server products and cloud services revenue increased 17% (up 21% in constant currency) driven by Azure and other cloud services revenue growth of 27% (up 31% in constant currency)

Revenue in More Personal Computing was $13.3 billion and decreased 9% (down 7% in constant currency), with the following business highlights:

· Windows OEM revenue decreased 28%
· Devices revenue decreased 30% (down 26% in constant currency)
· Windows Commercial products and cloud services revenue increased 14% (up 18% in constant currency)
· Xbox content and services revenue increased 3% (up 5% in constant currency)
· Search and news advertising revenue excluding traffic acquisition costs increased 10% (up 13% in constant currency)

Microsoft returned $9.7 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2023.

Presentation Slides:

- Azure OpenAI being using adept and inflection (???)
- 2000 openai service costumers, up 10x
- Unilever went all in on Azure
- OpenAI using CosmoDB for Chatgpt.
- 76% of the fortune500 using github
- bunch of people using Github CoPilot
- Powerplatform usage up 50%
- Cloud for sustainability used by BBC.
- Teams up to 300m MAU, 60% of customers buy Teams room or one of the other additional software like premium or hardware.
- Record monthly windows devices
- 930m LinkedIn users, 100m in India
- Bing up to 100m monthly usage (??)
- Bing grew share in the US and Edge grew for the 8th in
- Q3 record in terms of gaming MAU
- Revenue from subs grew to 1bn
- 500m players across first party titles

 

[Killer_Sakoman]

I could always get a PS5 with a bundle.

If PS5 doesn't have stock issues then Xbox too. They both reserved SOC from 2019.

 

[Nhomnhom]

The excuse now is that the Forza bundles sucks so much that it shouldn't count as the Series being in stock. Who comes up with these dumb excuses?

 

[anonpuffs]

The excuse now is that the Forza bundles sucks so much that it shouldn't count as the Series being in stock. Who comes up with these dumb excuses?

if only they could put a good game that people want in a bundle, who knew that the games put out by the 2021 metacritic publisher of the year wouldn't be able to sell at all?

 

[Killer_Sakoman]

Starfield isn't out, did you think that Hi-Fi Rush alone was going to turn the tide? Why would you post that when you know that Bethesda's two biggest studios (BSW and id) haven't put their titles out. Oh shit, Firesprite hasn't done anything for Sony yet, guess the purchase was a flop.


That all said though, numbers suck. They're going to need to prove Gamepass a success or the whole division is lost.

Firesprite already released Horizon VR game

 

[FIREK2029]

The excuse now is that the Forza bundles sucks so much that it shouldn't count as the Series being in stock. Who comes up with these dumb excuses?

I’m convinced they all hang out in Xbox discords and come up with these weird damage control talking points. It’s hilarious.

 

[ghostz]

I’m convinced they all hang out in Xbox discords and come up with these weird damage control talking points. It’s hilarious.

The game costs $0. It’s on Gamepass. This is like Sony charging an extra $60 and saying they’ll throw in another HDMI cord.

 

[anonpuffs]

The game costs $0. It’s on Gamepass. This is like Sony charging an extra $60 and saying they’ll throw in another HDMI cord.

In case you missed it, Sony did raise the price of PS5 in multiple regions by $50+, and went on to break records.