Xbox missed annual revenue forecasts by $780 million

[John Elden Ring]

New internal documents from Microsoft's business leadership shows that Xbox has missed revenue forecasts by over $700 million.

The case file exhibit list includes one very illuminating 80-page internal Microsoft document that outlined where Xbox currently is and where it can grow. The slide deck, which was issued during Microsoft's Q3 FY22 (January - March 2023), has assigned an estimated revenue target of $17 billion for the Xbox games division. Actual results were quite different--Xbox made $16.22 billion in FY22, missing the internal target by some $780 million.

This number is still quite impressive. Microsoft's performance throughout both calendar year 2021 and 2022 was enough to beat Nintendo's revenues for the last two years in a row, despite Nintendo having the best-selling console on the market today.

 

[Johnic]

And yet they're willing to pump money into a loss leading strategy, just to push their anti competitive bs in the industry.

 

[Gods&Monsters]

Revenue they made from catalog games already on Playstation and Nintendo (Bethesda, Minecraft)

 

[Loy310]

Looks like they still did alright in terms of actual revenue, but who ever is doing their budgets need to readjust their expectations for the division, off by 1/4 of a billion is ridiculous.

 

[Playstation Sucka]

And yet they're willing to pump money into a loss leading strategy, just to push their anti competitive bs in the industry.

Mobile games are just the best way to expand less work and shit ton of money unfortunately Activision, Tencent and Netease own most of the popular game titles on mobile

 

[Nhomnhom]

Looks like they still did alright in terms of actual revenue, but who ever is doing their budgets need to readjust their expectations for the division, off by 1/4 of a billion is ridiculous.

Did alright? The growth in FY21 and FY2022 is easily explained by the them absorbing Bethesda.How could it not have grown?

Not to mention that their entire operation involves subsidizing both hardware and software right now, while also making huge unprecedented investment to attempt to get out of this situation and somehow they still had a decrease in revenue.

 

[Zzero]

This number is still quite impressive. Microsoft's performance throughout both calendar year 2021 and 2022 was enough to beat Nintendo's revenues for the last two years in a row, despite Nintendo having the best-selling console on the market today.

Hmm, yes, and now do profit...

 

[Nhomnhom]

Hmm, yes, and now do profit...

They are not going to focus on the profit.

Because there ain't any.

 

[Helios]

Microsofts backing will let them weather any storm, they can just loose and loose and still not go away. Xbox already talking about the future of gaming in 10years in the court documents but they can't even make game worth getting their console for. As they take away more games away from ps players their revenue will keep on tanking.

 

[VillaiN]

Dont see problem. Its red pit for last 2 decades and they cover loses every year.

It seems only wasly to grow s to absorb big pubs

 

[Nhomnhom]

Dont see problem. Its red pit for last 2 decades and they cover loses every year.

It seems only wasly to grow s to absorb big pubs

How do you know what the Xbox division losses are? Please share with us that information. The recent info we got was Matt Booty suggesting that bleeding multiple billions every year to get a cloud gaming monopoly going would be worth it.

 

[anonpuffs]

Did alright? The growth in FY21 and FY2022 is easily explained by the them absorbing Bethesda.How could it not have grown?

Not to mention that their entire operation involves subsidizing both hardware and software right now, while also making huge unprecedented investment to attempt to get out of this situation and somehow they still had a decrease in revenue.

Zenimax revenue was only like $500m/yr

 

[Nhomnhom]

Zenimax revenue was only like $500m/yr

Not my problem, they added Zenimax revenue to their own and added 2000+ employees to their gaming division, also released 2 new consoles in that period and benefited from a global pandemic driving growth in services and supply issues for the PS5.

They have terrible momentum for year 3 of a new generation and stopped sharing numbers of subscribers (their previous ever changing metric of success).

edit: I can't find a source of those Zenimax revenue claims, wasn't it a private company before?