Xbox FY 2023 Q2: Gaming revenue declined 13%

Looks like the estimates were on target. Sad but true. Lowest since FY 2020 Q2. Wow. What say you fellow SW fans? Is this a bad sign for Xbox?

Gaming and tech getting hit across the board.

Not just MS.

COVID surge is done.

Inflation on basic goods are rising.

Recession

Less money and time being spent on gaming by the general public.

Consumers don't spend money on your platform if you don't release enough content they want to play.

I have no idea how the numbers compare with competitors. I guess it isn't great but the market as a whole is adjusting to both the post pandemic world and Putin's retarded war.

TLHBO

Not even XSS + Game Pass combo couldn't save Xbox revenue?

Zero games in a whole year. Who does that? Not companies that want to be profitable. Xbox brand is all about burning dolla dolla billz on their gamepass service.

Well if you think about the XSS, they had to discount it so even if they sold more, they're selling them for less. If anything it might have softened the blow. Gamepass revenue dropping also makes sense since they didn't have many compelling reasons for people to keep their subs.

Well, the executives had Sting play a concert for them right before they layed off 10K people so I don't think they're too worried about it.

https://www.thegamer.com/microsoft-hosted-private-sting-concert-before-layoffs/

Yikes.

I think Xbox Software sales are hurting them

@kvallyx: who's side are you on my friend??

@sargentd: yes, this sums it up.

It's panic time. 🙃

This is definitely having the biggest impact... on top of Xbox's poor 2022 in terms of big releases.

Not surprising. The pandemic boom is over and we’re in the midst of a recession.

Who

Gives

A

Shit

@kvallyx: too early to tell, honestly. MS had a bad year with new game content- I wouldn't have even seen a reason to buy an XSX in 2022 if I hadnt had one.

I think if they don't turn things around this year with all the new games, then they should worry.

The 39% drop in PC revenue was far more alarming to me.

Every side!

With their largest acquisition ever closing this year for Xbox, I think they plan to chug away.

@Zero_epyon:

MS oversaturated the market with XSS, dropped the price for it too 249$ officially or 200$ (with 50$ gift card) and STILL readily available and very easy to find. And what happened? Just 700k in US in November. :/

I’m sensing some concern. 🤔

It was an exceptionally lackluster year for gaming from a third party content standpoint. Pokemon and, Raganrok did quite a bit of heavy lifting during the holidays but, obviously not for Xbox.

Fwiw, the hardware revenue decline was very likely caused by selling the Series S for a discounted rate during holidays. We'll have to wait and see if it pays off because they absolutely need more consoles in people's hands for Series S/X only games this year.

I’m glad consumers are finally waking up. Xbox has no games and is not worth buying.

Activate the concernometer.😂

Did the earnings report give Gamepass subscriber numbers?

@randy_lahey: Yeah, yeah, yeah, fanboy.

Again... let's talk about 2023.

@dabear: sure let’s. It’s 2023 right now, and what games do you have to play?

Well, we saw a spike due to COVID and isolating, I'm wondering if this is the post-COVID decline (not that COVID will ever be over lol).

Curious about the trends other companies are seeing in this regard that were either in the video game industry or other sectors that would profit from people staying at home more.

Xbox is doomed..

If you saw the Xbox numbers for this year, sales fell off a cliff in the later half. Too much dependence on Series S, plus no AAA content on top of people being Game Pass remoras on stacked subs are killing them

No wonder, they were always in 3rd place last year, haha.

However, I don't think this situation justifies their massive layoffs at all. It is obvious that what they really should have done is to improve/replace their "incompetent" management, or something like cutting the salaries of the board members in half like Iwata once did when Nintendo was in financial trouble. I think MS's massive layoffs will make their situation even worse in the long run, as their workforce/creativity will continue to shrink.

Not worried about it. MS had slow year release wise but the next one is set to be a lot more ambitious with its content be it first party releases and/or Game Pass release schedule. I'd worry later if that still doesn't make a difference to YoY quarterly growth.

I think Microsoft will be fine.

When you realize that they released more people than games. :/

In line with predictions, if you weren't already in the xbox eco-system what happened last year to encourage you to get in? nothing, the result is the above.

A point of genuine concern would be this puts more pressure on things like Starfield to get out into the wild, which could mean we get it long before it's ready, that will not be a good thing.

No. Just that they continue to rise.

Yeah not surprising. The COVID surge is over, it is the lowest since FY 2020 Q2. In other words, things are returning to normal.

Send your heartfelt donations to:

MS Corp. Trillion Dollar Lane., Moneybags, CA. 90220. lol :P

Nature is restoring

?

Side?? reporting news (regardless of who it is about) should not be about "sides" when it comes to pieces of plastic. Personally the "my plastic is better than your plastic" trope is juvenile.

I game predominantly on the Xbox and the main reasons are 1. I have money in the ecosystem since the OG Xbox 2. My friends and I play together online and cross-play is not always available in games.

Now as for the report, I think we are going to see a lot of tech companies coming out with lowered earnings partially due to inflation and partially due to people being worried about a recession and cutting back on non essential spending.

I think folks are severely underestimating how bad 2022 was from a AAA standpoint.

Both Nintendo and, Sony had AAA games last year but, otherwise, it was pretty bad. Ex. If you remove the exclusives and, yearly releases, the top 20 games (NPD) end up being just Elden Ring, Lego Star Wars, Sonic and, Gotham Knights. In comparison, this year will feature Hogwarts Legacy, Dead Space, Star Wars Jedi Survivor, and RE4 within the first three months. lol

@kvallyx: They used to report them and now they aren't. That's never a good sign.

Well, they said it increased, so that is a bonus. Could have gone down. Looks like MAU is rising nicely.

@kvallyx said:

@Zero_epyon said:

@kvallyx: They used to report them and now they aren't. That's never a good sign.

Well, they said it increased, so that is a bonus. Could have gone down. Looks like MAU is rising nicely.

What does MAU mean though? Is it people who booted up a game? Logged in? Paid for a service? Not asking you specifically, just that I don't think MS has defined that yet.

@Zero_epyon said:

@kvallyx said:

@Zero_epyon said:

@kvallyx: They used to report them and now they aren't. That's never a good sign.

Well, they said it increased, so that is a bonus. Could have gone down. Looks like MAU is rising nicely.

What does MAU mean though? Is it people who booted up a game? Logged in? Paid for a service? Not asking you specifically, just that I don't think MS has defined that yet.

It means that MS needs a fluff number to make their earnings appear less shit