Microsoft ‘clear winner’ in video game space this Black Friday with X Box Series X most in-demand hardware. Prepare for mental gymnastics 😂

[Gamernyc78]

https://www.proactiveinvestors.co.uk/companies/news/1034374/microsoft-clear-winner-in-video-game-space-this-black-friday-with-x-box-series-x-most-in-demand-hardware-1034374.html

Black Friday 2023 in the video game space differed from previous years as there was ample inventory of high-end consoles from Microsoft Corporation (NASDAQ:MSFT) and Sony Group Corp (NYSE:SONY), according to analysts at Wedbush.

They also pointed to greater variety, with more bundle options for the current generation of consoles than they have seen since before the 2020 refresh, and an underwhelming software slate that lacked a clear leader.

The analysts wrote in a note to clients that the X Box Series X most in-demand piece of hardware over Black Friday, which they attributed to $50 in savings at a sale price of $499.99 and $120 in savings when including Diablo IV.

“Microsoft was the clear winner on a combination of availability, discounting and Diablo IV,” they wrote.

“Nintendo appeared to have a quieter Black Friday than we had expected, despite branching out beyond its customary Mario Kart 8 Deluxe Bundle, which could conceivably compel the company to revisit hardware pricing at some point,” they wrote.

The analysts added that it was a relatively quiet year on the software front, with most of the attention on hardware availability and deals.

 

[Gods&Monsters]

Doesn't match the data that we have but whatever. It's Patcher, of course he will shill for Microsoft. They are always the winner in his world

 

[Gamernyc78]

Doesn't match the data that we have but whatever. It's Patcher, of course he will shill for Microsoft. They are always the winner in his world

Thts the point they purposely obfuscate. Reading the article is like reading nothing with no concrete data. It's just vague bs. More schill tactics. It reminds me of one time Microsoft saying thy won black Friday but it was data from like one hour set at 1:00 a.m. In the morning lol turns out Sony destroyed them tht BF.

 

[JAHGamer]

All the xbox fanboys sharing this BS and then when NPD drops, they go back to "sales don't matter"

 

[Box]

Doesn't match the data that we have but whatever. It's Patcher, of course he will shill for Microsoft. They are always the winner in his world

Patcher deserves to be publicly executed (in minecraft)

 

[Sircaw]

I wonder what losses they are swallowing on those consoles.

If I recall the wafer(silicon) i think it was called is much larger than the one in the PS5 so in essence, they were already selling it at a loss compared to the ps5, 12 vs 10, and then to go and discount it another 100 bucks, they must be taking a gigantic hit on the Xbox x.

I am not very technical but i hope some understands what i am saying lol

I miss my good friend GeordieTemp, fs where are you.

 

[anonpuffs]

I wonder what losses they are swallowing on those consoles.

If I recall the wafer(silicon) i think it was called is much larger than the one in the PS5 so in essence, they were already selling it at a loss compared to the ps5, 12 vs 10, and then to go and discount it another 100 bucks, they must be taking a gigantic hit on the Xbox x.

I am not very technical but i hope some understands what i am saying lol

I miss my good friend GeordieTemp, fs where are you.

I did the math a while ago and the difference in die costs to manufacture were only around $20-30 per die. If we account for 40% margins for AMD that becomes maybe $30-50. Not nothing, but nowhere near $100. If the disc ps5 is making a slight profit at $500 then I expect the series x to be losing a substantial amount of money at that price, $350 is probably losing them over $200 per unit

 

[Gediminas]

I did the math a while ago and the difference in die costs to manufacture were only around $20-30 per die. If we account for 40% margins for AMD that becomes maybe $30-50. Not nothing, but nowhere near $100. If the disc ps5 is making a slight profit at $500 then I expect the series x to be losing a substantial amount of money at that price, $350 is probably losing them over $200 per unit

They already were loosing 200$ on SX and 100$ on SS.
Imagine making discounts, especially SX to 350$.

 

[Yurinka]

"according to analysts at Wedbush"

 

[anonpuffs]

They already were loosing 200$ on SX and 100$ on SS.
Imagine making discounts, especially SX to 350$.

I don't know about that. Phil could have been playing clever with his wording in a ploy for sympathy considering at that point they had already been running massive discounts on the S (remember the verizon deal). It's so hard to deal with MS considering they love to play deceptively with the numbers for xbox.

 

[FatKaz]

I don't know about that. Phil could have been playing clever with his wording in a ploy for sympathy considering at that point they had already been running massive discounts on the S (remember the verizon deal). It's so hard to deal with MS considering they love to play deceptively with the numbers for xbox.

The charlatan could be throwing in gamepass in the equation to get that loss number up to get some sympathy.

"X many series console customers get gamespass, which provides x much value, so we are subsidising each console purchase"

 

[Jivesh1995]

Funny how we get these kinds of posts about how Microsoft is the "clear winner" but whenever the hardware charts are out their sales are always down

 

[On Demand]

“Most in demand”
“Availability”
“Discounted bundles”

Ok but did it sell more? Article says nothing about that.

Too much spin for Xbox from media.

Oh and I bet green rats believe hardware sales matter again.

 

[arvfab]

Pachter for once might be right.... Imagine how much space those unsold consoles on the shelves and in the warehouses are occupying.

 

[Entropi]

Too bad MS and its goblin army don’t care about sales. It’s all about content and who knows what.

 

[ethomaz]

I did the math a while ago and the difference in die costs to manufacture were only around $20-30 per die. If we account for 40% margins for AMD that becomes maybe $30-50. Not nothing, but nowhere near $100. If the disc ps5 is making a slight profit at $500 then I expect the series x to be losing a substantial amount of money at that price, $350 is probably losing them over $200 per unit

I can be wrong but…

The difference should be bigger because PS5 moved to 6mm since late 2022 while Series is still 7nm.

The difference is transistors per size between 7nm and 6nm is basically none (I believe it is around 10%) but the big sell point of 6nm over 7nm is the 50% increase in efficiency… 6nm allow you to get 50% good chips (that can be used on consoles without defects) than 7nm.

So just that makes the number of chips usable (no defect) per wafer way better… so decreasing the cost per chip… remember you pay per wafer and not per chip… you calculate the cost of chip doing the price of wafer divided by how many good (no defect) chips it gives you.

The rumors are that the new Xbox “refresh” will use 6nm.

PS5 7nm APU: ~300mm2
PS5 6nm APU: ~260mm2
Series X 7nm APU: ~360mm2

Combined with the better efficiency of 6nm over 7nm you can understand why MS struggles to make profit on console.

 

[ethomaz]

OT.

The clear winner in BF is just a lie.
Even with the deals the demand of Series X fall a lot this year.

Maybe (yeap maybe) it did better than the anemic last year numbers (it sold like 700k in November) but that is all.

 

[Gediminas]

I don't know about that. Phil could have been playing clever with his wording in a ploy for sympathy considering at that point they had already been running massive discounts on the S (remember the verizon deal). It's so hard to deal with MS considering they love to play deceptively with the numbers for xbox.

What don't you know?

 

[FatKaz]

Number of deals and bundles is the new xbox success metric

 

[anonpuffs]

I can be wrong but…

The difference should be bigger because PS5 moved to 6mm since late 2022 while Series is still 7nm.

The difference is transistors per size between 7nm and 6nm is basically none (I believe it is around 10%) but the big sell point of 6nm over 7nm is the 50% increase in efficiency… 6nm allow you to get 50% good chips (that can be used on consoles without defects) than 7nm.

So just that makes the number of chips usable (no defect) per wafer way better… so decreasing the cost per chip… remember you pay per wafer and not per chip… you calculate the cost of chip doing the price of wafer divided by how many good (no defect) chips it gives you.

The rumors are that the new Xbox “refresh” will use 6nm.

PS5 7nm APU: ~300mm2
PS5 6nm APU: ~260mm2
Series X 7nm APU: ~360mm2

Combined with the better efficiency of 6nm over 7nm you can understand why MS struggles to make profit on console.

yes but, even with those numbers, with the publicly available guesstimate of $10,000/wafer ~360mm^2 dies yield 120ish dies on a 300mm wafer, whereas 260mm^2 yield 190ish when accounting for defects. The difference is ps5 chip costs ~$55 and xbox chip costs ~$80