The Xbox division brought in $2.251 billion in revenue last Quarter

Guess it's time to close shop

Microsoft is not leaving billions on the table by getting out of the gaming business. Xbox is doing great!

Here’s a look at the overall financials for Microsoft in third quarter 2018

• Revenue was $26.8 billion and increased 16%
• Operating income was $8.3 billion and increased 23%
• Net income was $7.4 billion and increased 35%
• Diluted earnings per share was $0.95 and increased 36%

Regarding gaming, Microsoft’s report states that “Gaming revenue increased 18% (up 16% in constant currency) driven by Xbox software and services revenue growth of 24% (up 21% in constant currency) mainly from third party title strength.” The Xbox division brought in $2.251 billion in revenue, up 18% year-over-over compared to $1.906 billion in Q3 2017.

Azure cloud is also getting huge!

Just because there are more McDonald's does not make Burger King a failure. And damn Microsoft made more money in 3 months than Sony is worth!

Microsoft’s Xbox Has Never Been Profitable, According To Emerging News...

https://www.cgmagonline.com/2017/08/14/microsofts-xbox-never-profitable-according-report/

All you're showing is revenue... Where's the profit?

Sony profits rise 346% thanks to strong performance from PlayStation gaming unit..

https://www.cnbc.com/2017/10/31/sony-earnings-q2-2017.html

lol TLHBO.

Lems like to spit out PR bullshit like revenue without actually talking about profit. It's the same way MS talks about chickens caught and bullets fired without actually giving us Xbone sales numbers.

@joshrmeyer: My assumption is that some people don't understand financial statements/info related to them. I haven't bothered reading their earnings report, so I am unsure if they bother mentioning profit for their gaming division. To be fair, they haven't done anything crazy to assume that expenses would also be growing at the same rate. With most of the success coming from third party, its a simple matter of more games sold resulting in higher revenues. The only things I can see having a significant impact on expenses would be the costs of getting licenses on the game pass, maintaining servers, and investing in first party games.

Lol... the first hint of any positive Xbox news, and cows are the first in the thread trying to discount it. Such a sad bunch. You give real PS gamers a bad name.

Anyway, Xbox is doing well. Good for the industry.

Definitely nice to see them doing well.

Get rekt lol

How much did McDonalds bring in? Americans are happy being complacent idiots.

Xbox has never been profitable? what the hell would Xbox be spending 2.251 Billion or more on in 3 months!?

Also your link says nothing about Sony's Net income, where as my post did right there. 7.4 Billion Net for Microsoft. They also spent $5 billion last month on investing in IoT's.

Oh the bovine are not going to be happy.

Great time to be alive as a MSoft gamer.

Truth be told I really don't give a crap about these numbers (Does not really effect me as a consumer/gamer) and it's sad that people get way into these sales numbers, and financial statements.

Just knew we would get some good laughs here.

Still reporting Xbox as the "More Personal Computing" category, I see.

The category includes everything relating to Office, Windows 10, Bing, and Surface. Also - IIRC - it includes all of MS' patent royalties. Other than discussing SoT sales and the revenue increase year-over-year, very little hard data is actually offered about Xbox's contribution. (edit below)

To illustrate how MS obfuscates the Xbox division's performance and to better provide a sensible basis to approximate its gaming segment, it's worth taking a look at the following: Xbox Revenue By Segment, 2012 - 2017

EDIT: I see the article asserting it made 2.251 billion, but I'm not seeing the statement in the press release, so I'm assuming the author is attempting an approximation but I'm not sure which numbers he's using (too busy to dig through the financial statement). But it's what, 20-ish% of the 9.9 billion of the category?

@the-a-baum: actually, it should affect you, because the less money they make, the less investment they'll do in that area.

Until Xbox reports profits, this statement means jack shit. See how Sony and Nintendo aren't afraid to report the breakdowns of their platforms and actually states profits in their financials? When MS does that, then we can tell they're not in trouble. They have a higher priced console in the field, revenue will go up by default.

The way sony fans frame it you’d think MS sold 4 Xbox last quarter.

This,
This site is making me hate sony fans more and more.

^ ^ This.

@quadknight https://www.dualshockers.com/microsofts-gaming-business-profitable-growing-profitably-critical-future/

It's profitable with the Xbox Live Gold subscriptions (Paid online + free games every month) alone.

^ ^ This.

I'm not surprised the Xbox is Profitable as it's been said they do have the more expensive consoles. It doesn't matter if revenue goes up by default it is what it is.

Says it's profitable... doesn't show any actual profit in financial reports.

You guys do know there's a link to the full statement

https://www.microsoft.com/en-us/Investor/earnings/FY-2018-Q3/press-release-webcast

I don't see them hiding anything at all.

You see, once upon a time before Microsoft restructured their financials to hide how badly their pet projects like Xbox and Surface were doing, they actually gave more specific information in general. Not just sticking it in super broad categories like "gaming" under "More Personal Computing" with arbitrary percentages applied based off no hard data. Minecraft was purchased for the Xbox division to make Xbox software look stronger than it was. MAUs and engagement replaced unit sales and so on.

Done because a company that makes $22 billion in profit a year and has a 3/4th trillion dollar market cap became afraid to tell investors how their console is actually doing, because it would hurt their feewings if someone started questioning the purpose of Xbox at this stage. That would only get in the way for the quest for another monopoly, and we can't have that, can we?

No mention of profit for Xbox Division.

Unholy cowzerz. suicide watch in progress. :P

Wow, look at the amount of salt in this thread. 2+ billion in revenue is causing folks to lose their minds. All Hope's of MS disappearing has been shattered.

The real question is why do people care so much about these financial reports?

Revenue driven by Fortnight Micro transactions and people renewing Gold to play Fortnight.

What? Are you trying to imply that they made a profit?

Nice to see the business growth, this is a good thing for Xbox

Great for them, now where are the frist party games?

Revenue = Profits now mmmmm interesting...

I want to see the word Profits and xbox in the same sentence not revenues grouped by many of MS other busyness.

@BenjaminBanklin: Pretty much this, until actually numbers are released that are for Xone (and OneX) we can't and won't ever really know because they lump everything together to hide and bury the numbers they don't want us to see.

Imagine that, the fanboys post an article about a journalist saying Xbox has never been profitbale without showing any proof how they came up with that assumption. Funny how any journalist can say anything they want and yall snap it up like the truth. ROFL so sad!

Not saying they are or not, but until I actual see numbers for all of this shit all of the numbers being talked about is hersay. Can't just look at revenue and Microsoft needs to release more info to see exactly where the gaming division stands.

@tormentos: revenue seems to be rather confusing word for many here

@Pedro: I highly doubt it, or minimal at best. Now go play.

It depends on what you are calling profit. For the 10-k quarterly, net income *is* profit. However, this guy is probably factoring the RRoD losses. Which, btw, were write offs; so the accounting is treated differently than straight figures.

Nice try, though.

People who say Microsoft is losing or leaving gaming are just fanboy trolls. Don’t entertain them. They just want a reaction.

With that said. All this success better lead to exclusives for my x1x

That's great!!! Now where are the games?!?

Good to hear that they're doing well, hopefully this news leads on to an exciting E3.

yes SQL Server, Sharepoint, Great Planes, Windows Server, Windows etc...

yeah...they do well

what business mastermind was able to create fanbois out of people and have those fanbois value their loyality completely based on how much money the company makes.

its friggin brilliant social engineering

@StormyJoe: RROD? How is that factored into this? Or are you just referring to profit from last gen? Yeah, write offs are tricky. I know people who had to buy 2-3 Xbox 360s because they were out of warranty. So no write offs there. Curious if Xbox is making a profit this gen yet. I know they don't on hardware(consoles). They should on software but who knows.

This is nothing compared to Xbox fanboys last gen.

Made up sh*t. All you xbox fanboys is good at is making up stuff in order to cover up how rubbish your chosen console is.

yea any actual gaming enthusiast should want both companies to succeed. more games, more competition, the bar keeps getting raised.

Fixed

You do know that revenue is not the same as profit, right?

I don't see any profit numbers.....

@Xabiss said:

@with_teeth26 said:

@hrt_rulz01 said:

Lol... the first hint of any positive Xbox news, and cows are the first in the thread trying to discount it. Such a sad bunch. You give real PS gamers a bad name.

Anyway, Xbox is doing well. Good for the industry.

yea any actual gaming enthusiast should want all three companies to succeed. more games, more competition, the bar keeps getting raised.

Fixed

I endorse this correction

@rafaelmsoares:

While it is obviously not the same it doesn’t mean that just because the figures reported don’t state the profit made does not mean profit wasn’t made. You can say you made 346% profit compared to last year but it all depends what profit you made or lost last year, same for revenue increases. 346% increase on previous £1 is £4.46 or 200% profit on £2 returns £5 (scale up).

All smoke and mirrors by all companies and only relevant to proper investors.