Microsoft Q3/FY24 Report Highlights

quest4441

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Xbox's hardware decline is not due to some multilayered market forces changing, its the simple fact that Phil Dumbass Spencer did not take the L for the PS4 generation and get down to business and get his studios to make great games. The dude let Crackdown 3 release, its like the kid who did the bare minimum on an assignment and expects an A for it. Same goes for sea of thieves, halo etc etc.

Nearly no major xbox game has released that did have big asterisk attached with some or the other features missing or straight up being dogshit. But then again the dude is busy playing vampire survivors.
 
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Evilms

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21 Jun 2022
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-4% without ABK and maybe more without Bethesda



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enpleinjour

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24 Mar 2023
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2 things.
1 Xbox division is collapsing in revenue due to Gamepass stagnating and hardware/software tanking. Even worse since PS is growing.

Screenshot 2024-04-26 at 10.45.06.png
surface-revenue-2014-24.jpg


2 ABK profits are hugely down

2021 ABK had OI of $3.26B = 37% margin
2022 ABK had an OI of $1.67B = 22% margin

FY24 Q3
ABK Rev = $1.97B
ABK dev cost + COGS ~ $1.65B
Income = $0.32B , <15% margin
 

Gediminas

Boy...
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21 Jun 2022
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2 things.
1 Xbox division is collapsing in revenue due to Gamepass stagnating and hardware/software tanking. Even worse since PS is growing.

View attachment 4836
surface-revenue-2014-24.jpg


2 ABK profits are hugely down

2021 ABK had OI of $3.26B = 37% margin
2022 ABK had an OI of $1.67B = 22% margin

FY24 Q3
ABK Rev = $1.97B
ABK dev cost + COGS ~ $1.65B
Income = $0.32B , <15% margin
Plotting The Simpsons GIF
 
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Hezekiah

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800K global for 3 whole months. 😬🤣

They will genuinely struggle to hit even 4 million for the entire calendar year at this rate, let alone 5 million. Could be worst launch-aligned for a YoY drop than OG Xbox's 3rd CY > 4th CY (~ 35%).

BTW OG Xbox sold 4.1 million in its 4th CY (2005), but at least the 360 launch partly explained that (plus MS intentionally reducing production of OG Xbox to prioritize 360). Xbox Series, tracking at this pace, would barely hit 3.2 million for the entire year.

I'd wager it does between 3.6 million - 3.8 million for the entire year, but that's still a pathetic number and still below OG Xbox when launch-aligned, let alone XBO, let alone 360.

Absolutely awful! It doesnt matter though because there is an army of people waiting to sub to GamePass to play on their phones 😄
 

Neversummer

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the new CEO is a money man, he doesn't care about the legacy of the brand, i think it'll only get worse, just look at this, PS games are playable on a variety of hardware devices today, this is just wrong on so many levels... it'll kill playstation hardware
This PC push will kill any chances of PS ever competing w Nintendo or Steam or hell pushing 150+ million console like Nintendo once PS goes fully hybrid handheld as gaming goes more mobile
 

TigerFang

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7 Mar 2024
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Activision Impact numbers;

Gaming revenue: +51% (+55% impact from Activision acquisition)

Meaning gaming revenue would be down without ABK.

Xbox content and services revenue: +62% (+61% impact from Activision acquisition)

Xbox hardware revenue: -31%

Gamepass doesn't seem to be growing much.

There's positive reception for WoW these days, ABK is doing really good financially it seems. I don't think they will out of nowhere make future ABK games Exclusive.
 

Johnic

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That increase is compared to their pre-Activision acquisition. Don't expect the same number next quarter, when it'll be compared to this one.
 
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Gediminas

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That increase is compared to their pre-Activision acquisition. Don;t expect the same number next quarter, when it'll be compared to this one.
next Q will be still compared to the old one. so few more Qs before we gonna see decline in that too. beyond ones without comparisons with and without ABK
 
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xollowsob

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Again and again revenue is touted as the number to focus on. The only number that matters is profit. I'm guessing with how bad the revenue numbers are, that the profit must be zero.
 

Neversummer

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NateDrake, the insider that got all the Xbox ports right, agrees that PC Day 1 killed the consoles sales. He said that today in the Era thread.

When are @Yurinka @mibu no ookami and other PC supporters going to see the light? They would rather use mental gymnastics to explain the drop in hardware when the obvious is right in front of you.

View attachment 4833

View attachment 4832
As I said Sony releasing there singleplayer games onto PC is helping PC & Steam continue building there platform & storefront to become a super defacto platform, a platform that can’t be ignored & almost allow me publishers to skip other platforms like Xbox for instance that are small or doesn’t have exclusive if PS Conroe this path & start selling less expect more 3rd party to skip PS & solely focus on PC & Nintendo of your a 3rd party why focus on making a PS version when there console sales like Xbox is showing a decline & PS themselves aren’t making there platform defacto & instead putting games on PC I know Square Enix is thinking why tf are we takin g exclusivity from PS when PS games aren’t even exclusive to there platform & Sony isn’t making the platform & storefront defacto.

PS6 will be the most to be effect rn as a PS fan I’m looking at how Sony will be able to sell me on the next platform. Power? Go to PC. Exclusive? PS doesn’t have exclusive. First party output? PS first party output is 1-2 major game per year if your luck in years like 2023 you can get 1 major game or in 2024 get 0 major game from first party.

I think the funnies part about reading some comments is people thinking PS won’t or isn’t heading there when the CEO & CFO has said they wana further expand & push PC more aggressive, it’s right in your face. People say PS won’t go day n date yet PS even putting any games outside some selective live service outs PS in harm there’s a reason Nintendo is suing emulators on pc, mobile anything that modify or rips there ip because if I could play Nintendo games anywhere else people would especially on platforms that can play them better or don’t force you to pay $300/$400 for a console. The fact Sony let a bloodborne demake be publish on PC is embarrassing.

People who think PS going day n date wouldn’t effect is on some serious cope especially after watching Xbox self destruct live. Xbox the past year has been drinking acid & people said if you kept heading this direction you will die & look at Xbox there dead bet MS didn’t expect a major effect on console w day n date on PC which is alarming PC is a better platform to play Xbox games no online fee, better performance, bigger library & now has PS games with the full trophies ecosystem oh & soon psvr2 aswell PS wall garden the last 5 years has done a complete 180 bringing them nearly all the way down w 0 benefits to PS, PS players or Sony long term
 
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Neversummer

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I'll agree with you when PS5 metrics tell me you're right. As of now they tell that isn't the case, most ifof them are at the biggest number ever, gaming history records in a growth pattern and with different projects in the works to make them grow even more. Or super close to be the highest number ever launch aligned.

There has not been hardware drop, both the most recent quarter and all the 3 quarters of FY23 together have a growth in hardware vs last year. They had great sales, but not as big as they expected. They didn't have bad sales, their forecast was too optimistic instead. Hardaware sales is one of these only handhulf cases areas where they're almost, almost launch aligned all time record but not the case. All the rest had record number this or many of the recent quarters or FYs.

Regarding hardware sales, the yearly hardware sales of all consoles make a curve: they keep selling more every year until they peak, traditionally around the 3rd-5th (it depends on the console, not always the same) fiscal year. And starting from that the yearly hardware sales of that console keep decreasing. It isn't menthal gymnastics, it's how the console market always worked and the related factual market data can doble checker. Totoki said that this recent FY23 apparently was going to be the peak year of the PS5 hardware sales (the yearly peak of software sales or company revenue or profits come later in the generation). They are facts, or "mental gymnastics" for gaming flatearthers who don't accept reality when doesn't match their tastes.
The most alarming part is after 2-3 years of covid & short stocks once fully out & able to produce Sony expect year over year downward trajectory with 2023 being the peak, 2023 being the peak w only 1 major first party game? That’s alarming
 

Puff

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Keep in mind PC ports were pushed by Shawn and Jim Ryan.

Jim Ryan was against PC ports. Kenichiro Yoshida & Hiroki Totoki are responsible for ALL of this
u2joKyS.png

 

Alabtrosmyster

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It makes somewhat sense.

Microsoft will create a line of gaming PCs that OEMS can add their own flare to. Just a larger scale Alienware. Companies can make their own versions and bundle their own software
Yes, but they would need an actually successful xbox lineup to entice OEMs into this limited version of windows.

On their side to invest in this they would need to make these machines locked to the windows store games and a few apps for it to be owrthwhile.

Every time MS has tried something like that it has backfired because people expect a level of flexibility from Windows that they don't from a console.
 

ethomaz

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I agree that Microsoft has made more mistakes in the first three years of the Xbox Series consoles than they did Xbox One but none of them were or are bigger than Microsoft revealing Xbox One in 2013. I know most will probably disagree but if you watch the 2013/2014/2015 E3 Xbox Showcases, games wise, they were better than Sony's but it didn't matter because they completely fucked up their entire brand by going with TV TV TV as the focus followed by Kinect which had it's little run during the Xbox 360 generation but should have ended with that generation, a $500 price tag and weaker hardware despite costing $100 more. In my opinion, they still haven't recovered and quite honestly, they never will console wise. Will Microsoft make a shit ton of money? Absolutely but that's nothing new. But will their consoles ever succeed and thrive? My guess is no.

With that all said, game wise and im sure majority will disagree with me here as well but Xbox Series has given me the following -

1. Starfield - 9.5/10 (my current game of the generation, I know most will laugh but I loved this game because it's the type of sci-fi open world RPG I have wanted for a long time, especially the ship combat and unlike many others, this was my first true Bethesda Game Studios game so nothing for me to compare it to)

2. Halo Infinite - 9.5/10 (my 2021 game of the year, campaign only, like with Starfield, Infinite won me over in regards to being a fan of the studio. I don't care about their past or the online multi-player stuff. 2021 was also a weak year in my opinion so it was an easy decision for me)

3. Hi Fi Rush - 8.5/10 (loved the game for the most)

4. Gears Tactics - 8.0/10 (great strategy turn based RPG with several issues. enjoyed it for the most part but the mandatory side missions was fucking horrible)

5. Redfall - 6.0/10 (literally, my lowest ranked game of the generation. tied with Saints Row (2022) rating wise but it's a spot higher than Redfall because the variety in the main story missions were pretty good and the standout)

Xbox One in the same 3 year period -

1. Gears of War 4 - 8.5/10
2. Quantum Break - 8.0/10
3. Ryse: Son of Rome - 7.0/10
4. Dead Rising 3 - 7.0/10

Game wise for me, it's not even close. This is why I don't care what they do. Consoles can live forever or die tomorrow. Can't do anything about any of it so fuck it. All I care about is if the games im interested in are great for me personally. Excluding Redfall, no complaints. Game wise, better than Xbox One for me and Xbox 360. So in this aspect, I honestly can't complain. Everything else that they're doing in regards to their consoles and brand is just a fucking horrible joke that I wish was a nightmare but it's reality so at this point, I play their games via Game Pass and call it a generation.
Why are you not counting Halo 5, Titanfall, Killer Instinct, Dead Rising 3 and 4, Sunset Overdrive, Forzas Motorsport 5 and 6, Forza Horizon 2 and 3, Rise of Tomb Raider etc for Xbox One?

That only counting 2013 to 2016.
 
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Yurinka

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The most alarming part is after 2-3 years of covid & short stocks once fully out & able to produce Sony expect year over year downward trajectory with 2023 being the peak, 2023 being the peak w only 1 major first party game? That’s alarming
We still don't know if last fiscal year really was the peak year, we'll have to see the next one. It was just an assumption from Totoki becase this is the most typical year, so makes sense to think it was.

It isn't alarming at all, its hardware sales are almost almost at PS4 launch when launch aligned (meaning, PS5 is very close to become again their fastest selling console ever). They had the covid but later made the comeback. Regarding major 1st party games, most of the top selling titles are multiplatform and people doesn't buy a console just becase one game.

It is also possible that they slowed down shipments during Q3 because due to increase in manufacturing costs didn't want to sell a lot to don't affect the profitability of the quarter too much and maybe thought it was better to split them with Q4 because they were going to have many big games there, plus maybe during that period they could do something to address profitability (like to fire almost a thousand people, shut down a studio and some games).

Jim Ryan was against PC ports. Kenichiro Yoshida & Hiroki Totoki are responsible for ALL of this
u2joKyS.png

To say he considers PC a competitor doesn't mean he's against the PC ports. If he was against them he'd have stopped them. But obviously he wasn't against growing their userbase, revenue and profit by growing to new markets. Only a stupid CEO would.

The ones who started the GaaS + PC ports strategy were Shawn Layden, Shuhei Yoshida (the ones in charge of PS Studios before Hermen Hulst) and Andrew House or John Kodera (the ones in charge of SIE before Jim Ryan).
 
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