Microsoft gaming division made 11.5 billion in 2018

Well there goes people saying MS will leave the console market soon.

Everything gaming related for MS seems to have gone up:

-Xbox Live now has 64 million monthly active users across Xbox, Windows 10 and Smartphones.

-Quarterly gaming revenue for the quarter ending Dec 31st 2018 was up 8% YoY to $4.23 billion.

-Yearly revenue in 2018 was 11.5 billion dollars,up 23% YoY.

Source: investors call and Daniel Ahmad

INCOMING!

Well there goes people saying MS will leave the console market soon.

How much of this revenue is related to consoles though?

wtf how is it making so much money? THE SNES sold more than the xbox one has. This is outrageous

Revenue is not profit.

Well, all of it is related to their gaming division.

Since they only started supporting PC for real quite recently, I'd say most of it.

Good question. I'm guessing DLC, microtransactions and subscriptions?

yeah those fortnite micro transactions and stuff idiots are buying those clothes like crazy on there

Wow that is a massive number. Wonder where did most of it comes from cause I just can't see what does microsoft Gaming Division do that is making revenue comparable to Sony and Tencent in 2018.

Well they still make games, just not a lot.

But really great games like Forza Horizon 4.

I'm sure their game pass and Xbox Live subscriptions are massively succesful as well.

And sure they don't sell that many Xboxes, but still plenty.

The graph scaling on that third chart is ridiculous lmao but yes, Microsoft has done very well this past year.

-------

PlayStation did about $13.4B in revenue the first three quarters of the year.

For reference, PlayStation made about $6.5B in their Q3 2017 (last physical quarter of the year).

No L for MS then good to hear something positive.

@R4gn4r0k: Revenue? What about profit. And can you break it up between the console and PC since you are making this about the console.

Always good to see them do well. I want them to stay in the console space and continue making games for a very long time.

Good news for Xbox & PC gamers, bad news for Xbox haters, and this is all before the new studios start pumping out their games and Gamepass gets even more attractive down the line.

Thats the weird thing. If we talk gamepass, we already got reports that PSNow is owning 50% of that market and if its games, spidey alone does better than all xbox one exclusive this year. I mean its not I am disbelieving but not even Nintendo is capable to do this number currently. It may be due to Azure or else that is lumped together with the game division, but anyhow I am glad there is competition.

hah yea it starts at 8 million, didn't notice that. very sneaky

If there's one thing MS is good at its twisting numbers, congrats on that bs I guess.

Gamepass has been huge for them I expect there to be a gamepass gold package deal at some point.

MS was never going to leave the console market soon, not sure who seriously thought that would happen. They're too big for one bad console to do that. It's good they brought in that much revenue, hopefully there was sizeable profit too.

MS needs to leave gaming!!!!!!

JAPANIMEEEEEEEEE GOOOOOOOOOOOOOO!!!!!

@ProtossRushX: "yeah those fortnite micro transactions and stuff idiots are buying those clothes like crazy on there"

Heard it here first folks .. ms owns Fortnite.

MS is sure putting Windows 10 to good use.

MS will never win a generation as their presence in Japan and the Asian market is non existent. They would have to dominate every other region to win. The profits are what keeps them going as I hugely doubt anyone at the company truely believes in a gen win.

I believe Game Passhas a lot to do with it.

GP is friggin great.

Oh Jesus, did America have a war on vocabulary? Revenue is not making money.

This is because XB1X has better gfx/fps than PS4thplace

I mean, the users score is kind of bullshit - how many of those people on Xbox PC and Mobile are different individuals? Especially the mobile count must be close to 100% redundant with people on the other two.

That being said, very clear growth here, and it's good to see they are healthy overall

Yikes! Sony fanboys will not like this!!!

@R4gn4r0k:

https://www.resetera.com/threads/microsoft-fy19-q2-gaming-rev-up-8-yoy-xbox-live-mau-at-64m.96677/

This is Q report, not annual report. Since you copied Zhuge, maybe you should copy this one and correct the thread headline.

Gaming-

Gaming revenue increased 8% (up 9% in constant currency).

Total gaming revenue was $4.23 billion, up 8% YoY.

Xbox software and services revenue was up 31% YoY, driven primarily by third party title strength.

Xbox hardware revenue was down 19% YoY due to a tough comp vs Xbox One X launch last year

Xbox Live Monthly Active users are up 8% YoY to 64 million. (Includes Gold and Silver members across Xbox, Windows 10 and Smartphones).

No they will insist you tell them how much was net profit while never asking Sony to do the same or ask if how much money is going to prop up other parts of Sony's failing businesses.

They will scream 3 X more sales but don't even have double profits to show it. And i bet someone will say Surface or other product is included in those numbers.

Skewing numbers to mislead shareholders is Illegal . Don't know how else to say this. MS has no reason to do this, and is now the top richest corp in the USA, if not the world. they are not that stupid especially just for Xbox.

End of the day folks. MS is not leaving gaming and is in fact more than doubling down. And Going all in.

And In case you haven't heard Apple is coming.

@dagubot: Why? Anyone who knows better knows that revenue isn't all Xbox. Plus, Xbox hardware revenue is down 19%. If Xbox revenue were taken out of "Gaming", it would be a lesser result.

You were saying?

Super ultra effing hilarious you would dare mention Apple, today, of ALL days...

So now we're talking about profits? Love how the goalposts always move for MS fans.

@Shewgenja said:

@the-a-baum said:

@dagubot said:

Yikes! Sony fanboys will not like this!!!

No they will insist you tell them how much was net profit while never asking Sony to do the same or ask if how much money is going to prop up other parts of Sony's failing businesses.

They will scream 3 X more sales but don't even have double profits to show it. And i bet someone will say Surface or other product is included in those numbers.

Skewing numbers to mislead shareholders is Illegal . Don't know how else to say this. MS has no reason to do this, and is now the top richest corp in the USA, if not the world. they are not that stupid especially just for Xbox.

End of the day folks. MS is not leaving gaming and is in fact more than doubling down. And Going all in.

And In case you haven't heard Apple is coming.

You were saying?

Super ultra effing hilarious you would dare mention Apple, today, of ALL days...

I am glad you brought that up.

It just cements the fact that Old Console war battles will not mean anything going forward.

I have been meaning to bring it up myself. I know it's crazy especially with Apple of all corps.

@the-a-baum: would you say... It's the future?

@Shewgenja: it is looking that way.

Kind of weird we should feel so entitled that we must know all the in and outs of these corporations.

Us as gamers can obviously still argue. But looks like it really is finally just going back to games. And even then with all the other devices, who knows? Everything is changing and hopefully it does not effect us console gamers. But it's obvious the old benchmarks of winning will no longer be the same. ie hardware sales

Will be nice when we all come together, as all gamers, say who gives a flying F and just have fun.

Don't get me wrong I will still want to argue about games with you. lol

Yep... all 3 console manufacturers are healthy and profitable. Great for the industry.

Every big Corp is watching what Xbox is doing with gamepass. They are all going to want in. Google Amazon, Apple, Sony even Nintendo.

I agree this can be a slippery slope, and i just want us console guys and gals to be left the same as it is.

LOL at desperate lemmings bragging about “revenue”, while never mentioning “profit”.

There is a huge difference. When you lems grow up into adults, I suggest taking a business course in college so you can learn the difference between “revenue” and “profit”.

Who confused revenue with profit?

An honest mistake I'm sure. (no that was not meant to be sarcastic)

When you don't have a narrative just start creating false narratives. That is what fanboys do best.

And here is your dumb ass of the day award! called this on line #31

We don't know profit exactly for gaming. We do know that profit for the division as a whole for the quarter was approx. $3 Billion. We also know that gaming revenue was about 1/3 of total revenue for the division. We also know that total revenue growth for the division for the quarter on a yr/yr basis was approx. 7% and that was largely attributed to Xbox software and services. We also know that Xbox hardware revenue for the quarter dropped 19% yr/yr which was attributed to a decline relative to the introduction of the Xbox X at full price last year.

Since we don't know the relative profit margins of the different products in the division the best thing we can do is estimate that it is probably a bit over $1 Billion for the quarter as that is 1/3 of the total and despite hardware drops the software and services side led to a net 7% growth for the division as a whole.

Also, I think the vast majority of people understand the difference between revenue and profit. Most posters simply relied on the original quoted article, whereas I went to the actual earnings statement slides on the investor relations site which had a bit more detail.

Where was it stated in your quote that the revenue = profits?

Where in this thread was it stated that MS' gaming division was profitable? They only release revenue information. Yet the quote is talking about profits, of which we have no info on. So clearly profit was confused with revenue. I mean it sounded like an honest mistake, but it did happen. No big deal.

@the-a-baum: You're one delusional troll that's for sure.

@the-a-baum: I’m confused, Sony already has a bigger slice of the pie? Why would they “want in on MS’s slice?”

Regardless of whether or not Gamepass is better than PSNow, it’s definitely smaller right now.

Microsoft has had a gaming division since the 80’s. I’m not sure how people think that the Xbox division was their intro to gaming.

What did you think the ‘soft’ in their name is derived from?