Microsoft Q3/FY24 Report Highlights
- Thread starter Eternal_Wings
- Start date
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.
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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2 things.
1 Xbox division is collapsing in revenue due to Gamepass stagnating and hardware/software tanking. Even worse since PS is growing.
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
1 Xbox division is collapsing in revenue due to Gamepass stagnating and hardware/software tanking. Even worse since PS is growing.
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
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
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
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
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
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.
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.
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
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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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
Jim Ryan was against PC ports. Kenichiro Yoshida & Hiroki Totoki are responsible for ALL of this
Jim Ryan confirms that PC is a direct competitor to Playstation in FTC documents.
If he knows this then why does he continue to port the Playstation exclusive library to a competitor platform? I'm sure his defenders will come in this thread saying how PC ports are still excellent because "reasons".
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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.
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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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).
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.Jim Ryan was against PC ports. Kenichiro Yoshida & Hiroki Totoki are responsible for ALL of this
Jim Ryan confirms that PC is a direct competitor to Playstation in FTC documents.
If he knows this then why does he continue to port the Playstation exclusive library to a competitor platform? I'm sure his defenders will come in this thread saying how PC ports are still excellent because "reasons".
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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-4% without ABK and maybe more without Bethesda
These numbers are not right I guess… without AB is closer to -10% in revenue than -4%.
Content and Service alone is down -4% without AB.