Microsoft Quarterly Report: Xbox Hardware up 13%, Game Revenue up 4%, Game Pass Grows

yep, potential Game Pass saturation on consoles is also why Xbox has chosen to expand on PC and cloud.. the console market is only so big and the PS4 resulted in gamers being ecosystem locked to PlayStation at a 2:1 ratio.. the only way to gain back ground on consoles is offer easy access to hardware and games; ie. Xbox Series S and Game Pass..

PC gamers tend to prefer Steam.. the only way to get consistent usage for the Microsoft Store on PC is via Game Pass..

Cloud Gaming is in its infancy but Stadia showed that gamers aren't willing to pay full retail price for streaming-only titles.. again, Game Pass gives people a means to stream titles via a subscription as well as have access to native downloads..

the clear common denominator here is Game Pass, yet our resident financial analyst would get rid of the one singular avenue the Xbox brand has for continued growth.. 🙄

I need to update my chart:

What normal people see:

• Record Q1 Xbox revenue
• 159% increase in Game Pass subscriptions for PC
• Xbox hardware increase 13%
• Gaming revenue grew 4%
• Subscription revenue increased
• Xbox Game Cloud users at 20 million (up 10 million in 5 months)
• Xbox Game Pass is profitable and 10-15% of revenue

What cows see:

• 1st/3rd party games are down less than 3%

Don't run so much damage control. You can't stop Game Pass from failing. There's not enough games OR consoles out there to justify it

Glad to see MS still pushing forward with the profitable Game Pass with over 25 million subscriptions. They could have gone the route of Sony and closed down PS Now after it flopped with only 3 million users.

@kvallyx said:

You're trying (and failing). And I'm sure Phil would thank you for your service if he knew you existed 🤣🤣🤣

@BenjaminBanklin said:

@kvallyx said:

You're trying (and failing). And I'm sure Phil would thank you for your service if he knew you existed 🤣🤣🤣

The only thing Jim and Phil thank me for is my hard earned cash for their games and consoles. They are getting it spades!!

🤣🤣🤣

You must be fortunate enough the Jim is PAYING you to cheerlead for his white plastic behemoth! Lucky man you are! You get money, I spend money!

yes, that was an interesting announcement..

Game Pass is profitable and Xbox is generating record revenue..

yet somehow, someway, all this is supposed to be bad news.. 🤷🏽‍♂️

@Zero_epyon said:

Ewe dark theme!

Dark theme for life

Why is their 1st party games still trash all that money MS has and can't make anything fresh.

@SolidGame_basic is that you? 😂

Satya's annual report today, given to inverstors:

The big bets we have made across content, community, and cloud over the past few years continue to pay off. We’ve sold more Xbox Series S and Series X consoles life-to-date than any previous generation of Xbox, and with Xbox Cloud Gaming, we’re bringing games to entirely new endpoints. In the past year, we’ve made many of our most popular titles accessible on phones, tablets, TVs, and low-spec PCs for the first time. Our Xbox Game Pass subscription service now includes access to hundreds of games. And with our planned acquisition of Activision Blizzard, we aim to give players more choice to play great games wherever, whenever, and however they want. Choice is equally important to developers, who we want to support with a diversity of distribution and business models for their games. We believe the acquisition will unlock opportunities for innovation and enable the industry to grow.

yeah, definitely sounds like they are pivoting away from "the Game Pass strategy"..

I sense sarcasm :)

It looks like they are doubling down.

yep, definitely sarcasm lol..

not sure why Game Pass creates so much heartburn for a certain concerned Xbox fan.. oh wait, sorry, we all know why.. it's because it tends to generate positive Xbox news..

the fact that they are also selling more consoles than ever before and breaking their revenue records must really get the salt flowing..

personally, it's just a good service that i'm going to enjoy as long as it's available.. if they eventually decrease the value to the point where i unsubscribe, i'll do exactly that.. if they completely get rid of Game Pass, i'll go back to buying games the old way.. it's not that big of a deal..

what i won't do is sit here and be "concerned" about how this multi-Trillion dollar company is making money instead of simply enjoying their efforts to win over current and new customers..

I have stated numerous times, I am not a fan of subscriptions. If I didn't get the $1 deal for 3 years, I would never have Game Pass. Not because I don't think it's a good value, but because I just like to buy games. Nothing more, nothing less. I am so against subs (for me). I don't do Netflix, etc. Amazon Prime, you name it. I will let my PS+ lapse. As far as Xbox Live Gold, I keep it for games like COD. But even then, I am playing less and less online. I would love to eliminate Xbox Live Gold.

But I am glad that Game Pass is out there for those who will enjoy it and find good value out of it.

yep and, last time i checked, having options is a good thing..

I love options! If only options had feet! (joke)

🤣😂😅😂🤣

i'll suppose i'll admit it's nice to see that a woman has nice feet.. but i think that logic applies to the entire package.. 🤷🏽‍♂️

i won't comment further at the risk of total thread derailment lol

So just so we're clear. Xbox brought in $3.61 Billion in Q2. At the high end of the range defined by Phil, Game Pass makes up 15% of that number. Approx $541.5 Million. A number they didn't share. PlayStation made $4.87 Billion, and $791 Million (approx 16% which they stated in the financials) came from their network and services sector...

@kvallyx You're telling me, that Xbox is being completely transparent, and that Game Pass is PROFITABLE, at $541.5 Million a quarter?!?! When they've spent how much on acquisitions? AND they have to share the revenue with dozens of 3rd parties? With the impact on software sales. And the service, bringing in $541.5 Million a quarter, is going to grow the Xbox brand back into being competitive, when PlayStation is bringing in $791 Million a quarter, with an inferior and less expensive service?!?! Phil goofed and gave up too much info. And with PlayStations transparency, the picture is all but painted at this point.

Make this make sense to me... SW hat off please...

I am not telling you anything. I am just going by what Phil and Jim have shared with us. I don’t read into it like you. If Phil says it’s profitable, it’s profitable. If Phil says they lose $200 per Xbox, they lose $200 per Xbox. If Jim says they sold 25 million, they sold 25 million.

Man, Xbox just keeps kicking A$$ and taking names and that's driving the anti-fans clear outta their minds these dayz.

Good stuff!! :P

someone doesn't seem to understand that they can speculate all they want.. feel free to break out your calculator, decoder ring, tinfoil hat, and have at it.. 👍🏽 but it's all going to be speculation unless you can provide concrete proof to the contrary..

and none of that speculation changes the official statements of these companies..

no one says you have to believe anything anyone else says.. but their public statements are the baseline for objective conversation; not the various speculations of internet nerds..

These cows spend more time spinning and lying than they actually play games. It's better to be a manticore, IMO

It's really easy once you really look into it!

@kathaariancode said:

It's really easy once you really look into it!

Lol

But really, it’s no conspiracy or reach to come to the conclusion that “it’s profitable for us” is a bs statement.

We know how much Xbox made.
We know the percentage of total revenue that Game Pass accounts for (thanks Phil!)

We have a way to directly compare those figures to the competition, who provides these specific figures.

And when PS shows a number almost $250 million higher, while spending FAR less on acquisitions and losing less software revenue through day 1 first party releases, it’s easy to come to the conclusion that the “profitable for us” statement is loaded. Fiction. Fluffed. PR speak. And also not illegal, despite what some will say here. Phil isn’t faking financial documents, he’s trying to sell a product and services. Putting a bow on a turd is part of his job.

@goldenelementxl:

In all seriousness, wouldn't now, while MS is being heavily scrutinized by the regulators worldwide for the Act/Bliz acquisition and trying to get that deal done, be the time to be more critical they are more likely to be understating their profits than overstating them?

Just some food for thought. :P

@SecretPolice: in conspiracy world, anything Phil says that fits their narrative is the truth ("thanks Phil!" 🤡) and anything that doesn't fit their narrative is "PR spin"..

So you're wasting your time.. In their mind, the Head of Xbox is playing System Wars with internet nerds and trying to "polish a turd".. The reality is that division heads of billion and trillion dollar companies are very deliberate in the things they say publicly, especially in representation of their products/services.. Phil didn't have to say anything but instead took the stance that Game Pass is profitable (after already stating that Game Pass is sustainable a year ago)..

That said, Game Pass is both sustainable and profitable according to the head of Xbox.. And with that said, who cares what some Sony fanboys and armchair financial analysts have to say in opposition?.. 🤷🏽‍♂️

/discussion

The sad thing is, they should focus all this time and effort on the real liar. Jim Ryan!

@kvallyx: lmao manticore, right.....

@kvallyx: The cherry picking is at an Olympic level when you hang your hat on Phil saying that the target for Game Pass is 10-15% of total revenue but are willing to die on your sword to dispute him also saying that the 10-15% goal of total revenue is profitable for Game Pass.. 🙄

There is a reason that Golden is leaving the forum at the end of the year. I do love him though <3 Just not his feet 😉

@kvallyx: 🤣😂😅😂😅🤣

Can you please explain to me, as simply as you can, how Xbox can post positive revenue when they spent 8 billion on zenimax acquisition?

Cow are scrambling my friend. They are an all time high of meltdowns. It's fun to watch cows make up some random numbers and blanket statements. Like they know more than the head of the division 😂🤣😂😅😂😅🤣

He can’t.

@randy_lahey: i don't have to.. the current public statement from the Head of Xbox, Phil Spencer, is that Game Pass is profitable..

do you have access to the same financial numbers as Phil Spencer?..

it's also funny how the only people who care about the profitability of Game Pass are cows..

when everyone assumed Microsoft was burning cash to sustain Game Pass, Xbox fans were like "cool, it's a great value".. when Phil Spencer said that the Game Pass model is very, very sustainable as is, Xbox fans were like "cool, it's a great value".. and now that Phil Spencer has said that Game Pass is profitable at their current goals, Xbox fans are still like "cool, it's a great value".. all the while, cows keep moving the goal posts..

in the end, i still don't understand this obsession with how much money a multi-Trillion dollar company is making..

We are getting more information about Xbox financials through the acquisition. Things we would never know otherwise. And saying Game Pass is “profitable for us“ while the service is almost making 50% less than PlayStations offerings is nuts. It doesn’t make sense. Not with the money they‘ve spent on Game Pass.

You probably think OJ was innocent too, huh? “He was found innocent and said it wasn’t him, so…”

I will never understand that. For me, I don't care how much profit or revenue Xbox and PS make. All I care about are great games. They are making great games, and I have money to buy them with. Cows are more focused on concern for corporations instead of actual games. Cows are more focused on lies.

Weird you mention that. I’ll give you two examples where corps posted acquisitions cost as an expense against total revenue: Sony and Suncor.

obviously everyone knows how much zenimax cost but it’s weirdly not reflected on the Xbox balance sheet - I wonder why?

I’ll tell you. Because your homie engages in creative accounting and is a straight up liar. You seem to hang your hat on every word that comes out of his mouth. So what happened with Xbox’s VR platform that the One X had been designed with in mind? What about “exclusives are counter to what gaming is all about”? What about best line up in Xbox history? You forget that Phil is a pathological liar and the fact that he uses words like “profitable to us” leaves the definition of profitable totally ambiguous. I know you know this but choose to be obtuse about it anyway.

@randy_lahey: Bravo!

@kvallyx said:

@Antwan3K said:

@kvallyx said:

@Antwan3K said:

@kvallyx: 🤣😂😅😂😅🤣

Cow are scrambling my friend. They are an all time high of meltdowns. It's fun to watch cows make up some random numbers and blanket statements. Like they know more than the head of the division 😂🤣😂😅😂😅🤣

it's also funny how the only people who care about the profitability of Game Pass are cows..

when everyone assumed Microsoft was burning cash to sustain Game Pass, Xbox fans were like "cool, it's a great value".. when Phil Spencer said that the Game Pass model is very, very sustainable as is, Xbox fans were like "cool, it's a great value".. and now that Phil Spencer has said that Game Pass is profitable at their current goals, Xbox fans are still like "cool, it's a great value".. all the while, cows keep moving the goal posts..

in the end, i still don't understand this obsession with how much money a multi-Trillion dollar company is making..

I will never understand that. For me, I don't care how much profit or revenue Xbox and PS make. All I care about are great games. They are making great games, and I have money to buy them with. Cows are more focused on concern for corporations instead of actual games. Cows are more focused on lies.

Do I need to drop in the STFU gif again kekvally?

@randy_lahey: so no, you don't have access to the same financial numbers as the Head of Xbox.. that said, his public statements on the matter are what everyone goes by except for mad cows.. 🤷🏽‍♂️

feel free to speculate all you want but that's all it's ever going to be until Xbox updates their statement..