MS Q2 2024 Fiscal: Xbox content up 61%, Game Revenue up 49%, Xbox Hardware up 3%

I'll just leave this right here.

Poor cows, getting owned left and right nowadays.

@dabear: yeah, Phil and Co. took Xbox from nearly being shut down to being bigger for Microsoft than Windows..

At some point, both cows and "concerned Xbox fans" need to just admit to basic reality and give credit where it's due..

But alas, this is System Wars so they'll keep moo'ing about console sales like it's still 2013..

Y'all will take some of the most obscure bullet points and just run with them...

Provide a posts then. 2nd party is made up term

Yep. I want to see you and all Xbox peeps from here to bet and disappear

@loudheadphones: Let's do it.

If Xbox doesn't exit the console market by 2026, you have to delete your account. If they do, I will.

Till end of 2026. Fine by me.

Gaming becoming the 3rd largest business at Microsoft is an "obscure bullet point"?..

His narrative has been shattered again. That is twice for the new year.🙃

Yes.

“Windows OEM revenue has suffered throughout Microsoft’s entire 2023 fiscal year. Hood is expecting Windows OEM revenue to be “relatively flat” next quarter.”

ABK during a holiday quarter bumped relatively flat Xbox number above their struggling Windows business. Gaming was right behind Windows last year. ($40 million behind) Office and Cloud revenue is still faaaaaaar ahead.

For some damn reason, Xbox peeps, don't want to realize that.

ABK is part of Xbox and that reality is really triggering folks. Revenue wars are dead.😂 What is going to be the new deflection?🤔

then i guess you don't know the definition of "obscure"..

ABK is a part of Xbox.. trying to separate out numbers "without ABK" is meaningless.. as it stands, Xbox content/services are up 61%, Xbox gaming revenue is up 49% percent, and Gaming has surpassed Windows as the 3rd largest business at Microsoft (the multi-Trillion dollar company) known for 'Windows"..

this is just good news across the board.. and there's nothing wrong with simply acknowledging good Xbox news.. you should give that a try for a change..

@Antwan3K: lmao 🤣 at the concerned fans. Golden is a real 🤡

It’s obscure because of how meaningless it is as a performance metric. Xbox with ABK isn’t going to beat PlayStation so we have to deflect to “it’s beating Windows1!” Xbox was only a small number behind Windows anyway. If hardware or software sales saw the projected sales bumps over the holidays, Xbox would have beat Windows without ABK. But hardware and software were flat. (Like they’ve been for a while now)

Hey Cows! PlayStation out earned Windows and has for years! You all should throw a party 🎉 🎊 🎈

re-read what you wrote.. do you see how much of a fanboy you sound like?..

good news for Xbox does not have to be bad news for PlayStation..

a 61% increase in content/services and 49% increase in revenue isn't "obscure".. the Xbox brand going from almost being sold-off to being larger than Windows isn't "obsure"..

again, it's okay to simply acknowledge good news.. and this financial report is nothing but good news for Xbox.. the point is that you and other cows can't simply admit that without making a bunch of excuses..

@Antwan3K: The “beating Windows” is the obscure part I referred to. You are the one that brought up those other numbers. I just brought to light how close Xbox was to pulling off that obscure milestone even without ABK.

🎉🎊🎈

@ghostofgolden: those numbers were in the OP and that certainly didn't stop your usual "doom and gloom" spin cycle.. And Xbox beating Windows isn't "obscure".. It's a huge milestone..

I mean, has Xbox ever beaten Windows before?.. If not, this is indeed a massive 1st for the Xbox gaming division..

It's okay to simply admit that without all the excuses and downplaying 🎉

Off the fricking charts I tellz ya...

Good stuff!! :P

Microsoft is reporting Activision Blizzard revenue as part of its gaming unit. As per the statements, the net impact from the Activision Blizzard acquisition is over $2 billion in revenue due to which the revenue portion is shown as up 61 percent.

However, the cost of integration, transaction costs, and other costs of revenue all total $930 million. With other operating expenses ($1.59 billion) it works out to an operating loss of $440 million.

Revenues may be up but the division is still operating at a loss as the operating expenses of Activision should also be taken into account that many of you ignored.

That's why I believe everyone of you need to take Finance as your majors.

When it comes to reading financial results the devil is in the details. Revenues don't amount to much, - it's the bottomline or profitability that counts. And reports show the gaming division is still operating at a loss.

Source: https://www.theverge.com/2024/1/30/24055445/microsoft-q2-2024-earnings-revenue-profits-windows-xbox-gaming-surface

TLDR of the Verge article: Xbox content and services revenue, which includes Xbox Game Pass, is up by a massive 61 percent. That’s largely because of the Activision Blizzard revenues. It’s difficult to understand immediately how Xbox did without this giant addition. The operating expenses should not be ignored. The gaming division is still operating at a loss.

We're 118 posts into this thread and not one person has mentioned the fact that PlayStation is still $5-6B larger than Xbox + Bethesda + ABK. Also, PlayStation's growth rate is larger when you normalize Xbox and ABKs revenue going forward.

@Nonstop-Madness said:

@Pedro said:

[...]

Revenue wars are dead.😂

[...]

We're 118 posts into this thread and not one person has mentioned the fact that PlayStation is still $5-6B larger than Xbox + Bethesda + ABK.

[...]

i think you just proved the point that "revenue wars" isn't a thing.. literally no one is trying to have that type of conversation until you brought it up..

it's been dead ever since Xbox comfortably surpassed Nintendo.. once that happened, "revenue" seemed to lose all it's importance as a key metric to a certain few (well, a certain one) because that means Nintendo is now "3rd place", "doomed", and has a "losing strategy" according to what was being said about Xbox when they were 3rd..

according to "revenue wars", consumers are voting with their wallets and they simply aren't choosing Nintendo.. that's how fundamentally flawed that logic is..

ultimately, no one cares which Billion and Trillion dollar company is making the most money.. what should be important is which company is investing more into 1st party.. and right now, that's arguably Microsoft/Xbox..

@Nonstop-Madness said:

We're 118 posts into this thread and not one person has mentioned the fact that PlayStation is still $5-6B larger than Xbox + Bethesda + ABK. Also, PlayStation's growth rate is larger when you normalize Xbox and ABKs revenue going forward.

Revenue and size are the same thing?😂

Use GamePass on whatever platform you want, MS dont care if you use Xbox or PC.

This needs to stop. It’s been brought to your attention many times now that Xbox has been ahead of Nintendo MANY times since the OG Xbox days. 3rd party software sales being the reason. Switch doesn’t get Madden, COD, Diablo, Star Wars etc. They make all their money on hardware and first party games. Which allows for the best margins. That’s Nintendo‘s strategy. Efficient and controlled.

well, maybe YOU shouldn't have created the narrative that Xbox is "3rd place" because "revenue is the most important factor" and Xbox was last in that metric.. 🤷‍♂️

you weren't saying Xbox is "back and forth" with Nintendo.. your argument was that PlayStation and Nintendo have the "winning" strategies and that's "evidenced in where consumers are spending their money"; ie "revenue", the one metric that's "truly objective".. and the 360 wasn't the subject of debate, it was the Xbox One..

if you made a disingenuous argument, that's on you.. i simply allowed you to make that bed.. now you can lay in it..

this is all well-documented so don't bother trying to backpedal now.. i know you think everyone on this forum has the memory of a goldfish but that's simply not the case..

bottomline, according to your logic, Nintendo is "last place" and has a "losing strategy".. #NintendoisDoomed #RevenueWars

@Antwan3K said:

@Nonstop-Madness said:

@Pedro said:

[...]

Revenue wars are dead.😂

[...]

We're 118 posts into this thread and not one person has mentioned the fact that PlayStation is still $5-6B larger than Xbox + Bethesda + ABK.

[...]

i think you just proved the point that "revenue wars" isn't a thing.. literally no one is trying to have that type of conversation until you brought it up..

it's been dead ever since Xbox comfortably surpassed Nintendo.. once that happened, "revenue" seemed to lose all it's importance as a key metric to a certain few (well, a certain one) because that means Nintendo is now "3rd place", "doomed", and has a "losing strategy" according to what was being said about Xbox when they were 3rd..

according to "revenue wars", consumers are voting with their wallets and they simply aren't choosing Nintendo.. that's how fundamentally flawed that logic is..

ultimately, no one cares which Billion and Trillion dollar company is making the most money.. what should be important is which company is investing more into 1st party.. and right now, that's arguably Microsoft/Xbox..

We're on System Wars; OP is by default opening up a conversation that leads to "revenue wars" by talking about revenue. OP can take this to the Xbox forum if that's all that wants to be discussed.

Re: your comments - revenue (growth, profit etc.) hasn't lost all its importance when it's a reflection of the performance of each respective company's strategy. The strategy *needs* to work and the things that prove that to the shareholders and leadership are the economics. The results and the actions that are necessary to improve those results will affect gamers.

Glad to see MSoft continues to grow gaming.

Can't wait for more amazing games in 2024.

Maybe this is why MS is trying to integrate AI offerings into Windows. The next version of Windows will have higher end requirements for AI enabled features, such as 16GB RAM minimum and reportedly a requirement of 40 TOPS (trillion ops/sec). People will need to upgrade their machines, meaning OEMs selling more laptops and more pre-built machines, and more Windows licenses for new machines.

Apparently it's possible to transfer your Windows license, but I don't know if it's common to buy machines with no operating system and then transfer the license. I'm also not sure how significant the number of people trying to upgrade their machines vs getting a new one is.

This could mean MS will push AI features as the selling point of future PCs.

yes, we are in Sytems Wars; not "Revenue Wars"..

there are indeed topics that include discussions of revenue and financials.. it's just not a primary concern for most people on this forum..