Xbox Q4 2023 (fiscal) earnings: Gaming rev. up 1%, Xbox content + services rev. up 5%, Xbox hardware rev. down 13%

[Remember_Spinal]

Microsoft also makes Xbox devices, which are separated from its other hardware. Xbox hardware revenue has dropped 13 percent in Q4, so it's likely that Microsoft continues to suffer with hardware supplies and softer demand for its Xbox Series S / X consoles.

Xbox content and services revenue, which includes Xbox Game Pass, is up five percent, though. Overall gaming revenue is also up just one percent. This suggests that Xbox Game Pass has grown year over year, despite Microsoft still not providing updated subscriber numbers.

Windows and devices take a hit in Microsoft’s Q4 earnings, but Xbox is mostly up

The PC market is still down and impacting Windows and devices revenues.

www.theverge.com

Pretty brutal hardware numbers especially since it has been on the decline quarter after quarter for the past few quarters:

The devices revenue doesn't cover Microsoft's Xbox efforts, though. That's separated out into Xbox hardware revenue, which has dropped by 30 percent this [Q3] quarter...

Microsoft Q3 2023: Windows, devices, and Xbox down again

Microsoft’s strength in cloud continues, though.

www.theverge.com

 

[anonpuffs]

Content and services only up 5% despite an absolutely shitty q3 and diablo 4 coming out? Oof x100

 

[Bryank75]

I was told Xbox Series X was sold out on Amazon...

But they are actually.... Down, down, down down, down! (even have a song about it, enjoy!)

 

[Gods&Monsters]

Please tell me you're not Sullivan from Era

13% drop after fixing the "shortages" and being down all year is awful. I don't believe that 5% increase for services (game pass), they could easily just count something like Minecraft, Surface or whatever. It's never clear.

 

[Johnic]

I don't believe that 5% increase for services (game pass), they could easily just count something like Minecraft, Surface or whatever. It's never clear.

That's exactly what they're doing.

 

[Jivesh1995]

We knew Game Pass was slowing down, especially on console, if they somehow manage to negotiate something with Steam to get it there then it will explode. Kinda feels like its hit the ceiling tbh.

Also, 13% drop in hardware after months of declines and claiming hardware shortages is concerning

 

[Bryank75]

We knew Game Pass was slowing down, especially on console, if they somehow manage to negotiate something with Steam to get it there then it will explode. Kinda feels like its hit the ceiling tbh.

Also, 13% drop in hardware after months of declines and claiming hardware shortages is concerning

That's the thing, I feel Microsoft needed Steam much more than ABK.... they needed access to a platform where people would subscribe on mass and I don't think it will ever be possible for them to do that now.

 

[Jivesh1995]

That's the thing, I feel Microsoft needed Steam much more than ABK.... they needed access to a platform where people would subscribe on mass and I don't think it will ever be possible for them to do that now.

I think ABK will help in that regard but it's not gonna pull players into their ecosystem unless they make COD exclusive, which they won't, at least not for 10 years. Mobile gaming will lead to a new launcher war of sorts, especially on Android and ABK have a huge advantage there.

 

[Dabaus]

Third party when?

 

[Remember_Spinal]

Please tell me you're not Sullivan from Era

13% drop after fixing the "shortages" and being down all year is awful. I don't believe that 5% increase for services (game pass), they could easily just count something like Minecraft, Surface or whatever. It's never clear.

Lmao no i just copy and pasted from era

 

[Thief1987]

Please tell me you're not Sullivan from Era

13% drop after fixing the "shortages" and being down all year is awful. I don't believe that 5% increase for services (game pass), they could easily just count something like Minecraft, Surface or whatever. It's never clear.

Tom warring still use this excuse though

Microsoft also makes Xbox devices, which are separated from its other hardware. Xbox hardware revenue has dropped 13 percent in Q4, so it’s likely that Microsoft continues to suffer with hardware supplies and softer demand for its Xbox Series S / X consoles.

 

[Nhomnhom]

The pre Starfield hype is off the charts.

 

[AshHunter216]

Tom warring still use this excuse though

You'd think MS would have long solved the supply issue by now given the significantly greater amount of resources at their disposal as their supporters will eagerly tell you.

 

[Remember_Spinal]

I never really believed that the series x was that supply constraint, not enough to cause such severe drops in hardware revenue. I def think its a lack of demand.

Xbox hasn’t had a must play game since 2021 and who knows what before that. Maybe they’ll turn it around with ABK/Starfield

 

[Gods&Monsters]

Content and services only up 5% despite an absolutely shitty q3 and diablo 4 coming out? Oof x100

This reminds me the Diablo bundle was everywhere for months and they're still down lmao without it they'd be down 25%.

 

[Remember_Spinal]

This reminds me the Diablo bundle was everywhere for months and they're still down lmao without it they'd be down 25%.

Diablo was always more of a PC title, it still ended up selling more on the more popular console.

Thats why starfield isn’t releasing on playstation, they know they could have all the marketing in the world, gamepass, etc. but its a game that would continue to sell PS5’s if it were multiplatform

 

[Cool hand luke]

Fuck Microsoft. The only way revenues are up is if people on other platforms are spending on games released by previously multiplatform pubs. Expect the same to happen if they secure ABK.

 

[anonpuffs]

I never really believed that the series x was that supply constraint, not enough to cause such severe drops in hardware revenue. I def think its a lack of demand.

Xbox hasn’t had a must play game since 2021 and who knows what before that. Maybe they’ll turn it around with ABK/Starfield

The supply constraint isn't because of high demand, the supply constraint is because microsoft knows how little demand there is for xbox and is only producing a few of them.

 

[thicc_girls_are_teh_best]

That's the thing, I feel Microsoft needed Steam much more than ABK.... they needed access to a platform where people would subscribe on mass and I don't think it will ever be possible for them to do that now.

If it means them not buying Valve? GOOD!

They would not be allowed to acquire Steam because that would be a blatant example of a monopolistic purchase. Valve has like 90% of the PC storefront market share, but they worked for that. They earned it and games customers made that happen with their wallets. An earned "monopoly", as it were, in the field of fair competition.

Microsoft would never be able to just outright buy that, especially considering the presence they already have on PC with Windows and DirectX. Way too much vertical integration of a supposedly open-standard platform. These regulators are garbage but even they can understand the inherent problems in MS buying up Valve & Steam.

Ironically, Sony are in a much better position to do that since they have an extremely small footprint in the PC space these days (no PC OS, for starters). But they are probably not interested and, well, I don't think Valve are interested in selling to anyone, either.

 

[Gods&Monsters]

Fuck Microsoft. The only way revenues are up is if people on other platforms are spending on games released by previously multiplatform pubs. Expect the same to happen if they secure ABK.

Phil can't wait for it to go through so he can add all ABK revenue under "Xbox" and make it explode. The investors are so dumb to let him off the hook.

It's a scam.

@Welfare so it's below Xbox one and X360