Xbox Hardware Sales Rise By 166%

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Gym_Lion

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#1 Gym_Lion
Member since 2020 • 2242 Posts

'Microsoft has released its latest earnings report, and among the takeaways are some new numbers and data points regarding the Xbox brand. In total, gaming revenue for Microsoft grew by 16%. Hardware sales saw the biggest surge, growing by 166% thanks to "continued demand" for the Xbox Series X and S consoles.

CFO Amy Hood said on an earnings call that Microsoft shipped more Xbox Series X|S consoles than expected during the period, despite the ongoing chip shortage and other supply issues.

Additionally, Xbox content and services revenue rose by 2%. Microsoft saw growth in Xbox Game Pass subscriptions during the period, though the company did not announce a new figure. The last time Microsoft announced a subscriber number was in January 2021 (18 million). More recently, Microsoft announced that Xbox Game Pass subscriber numbers did not grow by as much as it expected.

The growth in Xbox content and services revenue was also positively affected by first-party games, but was offset by "declines from third-party titles," Microsoft said, though it did not name any titles outright.'

Great to see MS is turning it around this gen after last gens mediocre efforts.

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xantufrog

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#2 xantufrog  Moderator
Member since 2013 • 17063 Posts

MS played their hands right and it's reaping some benefits. Sony really has some pressure now to step up to another level on their services if they want to maintain dominance

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SecretPolice

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#3 SecretPolice
Member since 2007 • 39481 Posts

Cows amcry. lol :P

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Archangel3371

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#4 Archangel3371
Member since 2004 • 36421 Posts

Very good. 👍

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Pedro

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#5 Pedro
Member since 2002 • 55336 Posts

Good for MS I guess. 🤷🏽‍♂️

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Ghost_of_Phobos

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#6 Ghost_of_Phobos
Member since 2020 • 2968 Posts

Billions and billions

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GirlUSoCrazy

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#7  Edited By GirlUSoCrazy
Member since 2015 • 16025 Posts

Hardware Sales != Xbox Hardware Sales. We can see by the 166% growth in hardware sales but another data point is:

"Xbox content and services revenue increased 2% (relatively unchanged in constant currency)"

It seems odd for the "relatively unchanged" content and services increase if a more significant portion of the hardware sales were Xbox devices.

Maybe they're selling more Surface devices, or on the business side their mixed reality push for engineers, did they break this down anywhere?

Does TC have any info to how they came up with the topic "Xbox Hardware Sales Rise by 166%" when the reports only show that "Hardware Sales" rose by that number?

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Nonstop-Madness

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#8 Nonstop-Madness
Member since 2008 • 10972 Posts

It's a shame we haven't gotten any new Xbox Series and, GamePass subscriber numbers.

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Pedro

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#9 Pedro
Member since 2002 • 55336 Posts

@girlusocrazy said:

Hardware Sales != Xbox Hardware Sales. We can see by the 166% growth in hardware sales but another data point is:

"Xbox content and services revenue increased 2% (relatively unchanged in constant currency)"

It seems odd for the "relatively unchanged" content and services increase if a more significant portion of the hardware sales were Xbox devices.

Maybe they're selling more Surface devices, or on the business side their mixed reality push for engineers, did they break this down anywhere?

Does TC have any info to how they came up with the topic "Xbox Hardware Sales Rise by 166%" when the reports only show that "Hardware Sales" rose by that number?

Surface hardware is NOT Xbox Hardware. What kind of weird damage control logic are you trying to pull here?

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GirlUSoCrazy

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#10 GirlUSoCrazy
Member since 2015 • 16025 Posts

@Pedro said:

Surface hardware is NOT Xbox Hardware. What kind of weird damage control logic are you trying to pull here?

Exactly what I'd like to know. Headline says "Xbox Hardware Sales Rise By 166%", body says only "Hardware sales saw the biggest surge, growing by 166%", earnings report doesn't mention any 166% number.

So is it spin or is it legit?

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simple-facts

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#11  Edited By simple-facts
Member since 2021 • 682 Posts

Leave the sales threads to cows eh people,Xbox has the best console,the best studios,the best games line up and some of the biggest franchises in gaming gamepass and xcloud to brag about.

Sony have sales and zoomed in YouTube video images.

Oh and no games

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GoldenElementXL

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#12 GoldenElementXL
Member since 2016 • 6509 Posts

@xantufrog said:

MS played their hands right and it's reaping some benefits. Sony really has some pressure now to step up to another level on their services if they want to maintain dominance

Until next week when we see the PS and Nintendo numbers. They’ll both best Xbox in hardware, software and services revenue. This happens every time Xbox releases their quarterly results. It’s, “wow those Xbox numbers look good!” A week later, “Oh wow, these are record breaking numbers from PlayStation and Nintendo.”

Then look at the 3rd party software numbers. Xbox is REALLY struggling there. Makes you wonder if Game Pass is messing with some 3rd party sales numbers. 3rd parties are the only ones reporting software sales numbers, and they’re down.

And are we gonna go a full calendar year without a Game Pass sub update? I see there’s a new promo with AMD hardware and Game Pass. Unfortunately, Xbox can’t really use these types of promos to prop up the sub count since the GPU market is so screwy still.

In the end, mostly growth for Xbox is a huge positive. They’re moving in the right direction

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GirlUSoCrazy

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#13  Edited By GirlUSoCrazy
Member since 2015 • 16025 Posts

Ah ok "Xbox hardware revenue growth of 166% and 162% in constant currency" according to the transcript. So that's weird that their services only increased 2%. Maybe people just want it for physical games? Maybe the Fridge counts as Xbox Hardware 😂

Anyway congrats MS, good job!

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Pedro

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#15 Pedro
Member since 2002 • 55336 Posts

@girlusocrazy: So, you didn't read it and then came up with nonsensical conspiracy theory about it being Surface hardware and a spin.😎

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xantufrog

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#16 xantufrog  Moderator
Member since 2013 • 17063 Posts

@goldenelementxl: I would argue the relative growth and earnings are key - Sony could still have a great report but be losing market dominance and under pressure

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GirlUSoCrazy

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#17  Edited By GirlUSoCrazy
Member since 2015 • 16025 Posts

@Pedro: ...except for the part where I did read it 🤭

Unfortunate that even with a 166% increase they can't get ahead of the competition. At least they're making gains though.

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Pedro

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#18 Pedro
Member since 2002 • 55336 Posts

@girlusocrazy said:

@Pedro: ...except for the part where I did read it 🤭

After the fact of making your silly statements.😎

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GirlUSoCrazy

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#19 GirlUSoCrazy
Member since 2015 • 16025 Posts

@Pedro: Silly that the headline and body didn't line up, and the report they linked to didn't contain the info, I agree.

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VFighter

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#20 VFighter
Member since 2016 • 10112 Posts

@Pedro: It wouldn't be the first time MS has "bundled" other devices and electronics in to make their numbers look better. Not saying that's the case here, just that it could have happened.

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Pedro

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#21 Pedro
Member since 2002 • 55336 Posts

@girlusocrazy said:

@Pedro: Silly that the headline and body didn't line up, and the report they linked to didn't contain the info, I agree.

It is silly that you made up a conspiracy theory that the number included surface hardware without educating yourself first, all because you wanted to damage control.😂 Don't worry, you will have something to brag about when the competitors release their report instead creating conspiracy theories.😎

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GirlUSoCrazy

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#22 GirlUSoCrazy
Member since 2015 • 16025 Posts

@Pedro: 🤔 Seems like I was asking for answers and wondering what the discrepancies could have meant and how to correlate it with the data they did link to, but ok, you go on that conspiracy tip. It seems like a really big deal to you, have fun chasing fantasies!

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tormentos

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#23 tormentos
Member since 2003 • 33742 Posts

@gym_lion:

Without and actual number to see how big the jump was is useless.

Is like the wii U 700% sales jump.🤷‍♂️

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Pedro

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#24 Pedro
Member since 2002 • 55336 Posts

@girlusocrazy said:

@Pedro: 🤔 Seems like I was asking for answers and wondering what the discrepancies could have meant and how to correlate it with the data they did link to, but ok, you go on that conspiracy tip. It seems like a really big deal to you, have fun chasing fantasies!

I am not the one that believed Xbox hardware included surface hardware despite no relation.😯

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davillain-

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#25 davillain-  Moderator
Member since 2014 • 48984 Posts
@Pedro said:

@girlusocrazy: So, you didn't read it and then came up with nonsensical conspiracy theory about it being Surface hardware and a spin.😎

This got me laughing so hard, I should be ashamed of myself🤣

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daredevils2k

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#26  Edited By daredevils2k
Member since 2015 • 3515 Posts

Wow we are suppose to giveMS a cookie for having rose from years of poor sales of their consoles?

I gotta love the lems for always trying ways to make coming in 3rd place a good thing

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Ghost_of_Phobos

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#27  Edited By Ghost_of_Phobos
Member since 2020 • 2968 Posts

Obviously Fridge sales propelling Xbox numbers to stratospheric levels.

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GirlUSoCrazy

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#28 GirlUSoCrazy
Member since 2015 • 16025 Posts

@Pedro said:

I am not the one that believed Xbox hardware included surface hardware despite no relation.😯

Neither did I! Does that make us twinsies?

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Fedor

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#29  Edited By Fedor
Member since 2015 • 9352 Posts

That is a lot of Surface sales.

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clone01

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#30 clone01
Member since 2003 • 29405 Posts

@daredevils2k said:

Wow we are suppose to giveMS a cookie for having rose from years of poor sales of their consoles?

I gotta love the lems for always trying ways to make coming in 3rd place a good thing

You try too hard.

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SecretPolice

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#31 SecretPolice
Member since 2007 • 39481 Posts

Unholy cowzerzzz.., I wish I had some breaks to donate. lolol :P

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Antwan3K

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#32 Antwan3K
Member since 2005 • 5578 Posts

@goldenelementxl said:

In the end, mostly growth for Xbox is a huge positive. They’re moving in the right direction

basically all that needs to be said.. 🤷‍♂️

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lhughey

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#33 lhughey
Member since 2006 • 4763 Posts

This good for the industry and it seems like each console manufacturer alternates moment from gen to gen.

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GoldenElementXL

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#34 GoldenElementXL
Member since 2016 • 6509 Posts

@xantufrog said:

@goldenelementxl: I would argue the relative growth and earnings are key - Sony could still have a great report but be losing market dominance and under pressure

I would agree, except the market has been growing year after year, and the growth of 2 of the big 3 are keeping pace with that growth, while the 3rd isn’t. Xbox shows these single digit bumps in software revenue, while single titles from Nintendo are outselling the entire Xbox library… Sure, Game Pass and the services focus messes with that metric, but Nintendo services and subscription revenue is still better. And their services are garbage in comparison. It just shows you where the consumers are choosing to spend their money… Sony should be losing market share. They’ve been lazy this gen for the most part. But the consumers seem to not care. The PS5 is behind in power, yet 3rd party titles sell far better there. Better than the install base gap should allow. What we’re starting to see is Xbox consumers spending less money. Which is the exact opposite of what Xbox and fanboys here expected.

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GoldenElementXL

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#35 GoldenElementXL
Member since 2016 • 6509 Posts

@Antwan3K said:
@goldenelementxl said:

In the end, mostly growth for Xbox is a huge positive. They’re moving in the right direction

basically all that needs to be said.. 🤷‍♂️

On the Xbox board maybe. This is System Wars. Xbox may be moving in a positive direction financially. But the other two are moving further and faster.

And I thought Game Pass was gonna increase 3rd party software sales… What’s with the decline???

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Zero_epyon

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#36 Zero_epyon
Member since 2004 • 17027 Posts

@SecretPolice said:

Unholy cowzerzzz.., I wish I had some breaks to donate. lolol :P

This gif never gets old.

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GirlUSoCrazy

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#37  Edited By GirlUSoCrazy
Member since 2015 • 16025 Posts

@goldenelementxl: Yeah, when the hardware rises 166% but the content and services only rise 2%, that's a low attach rate. They are definitely spending less money on content and services per hardware unit sold, and the part that they're losing money on (the hardware) is what's rising.

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SecretPolice

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#38 SecretPolice
Member since 2007 • 39481 Posts

Good stuff. lol :P

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GoldenElementXL

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#39  Edited By GoldenElementXL
Member since 2016 • 6509 Posts

@girlusocrazy said:

@goldenelementxl: Yeah, when the hardware rises 166% but the content and services only rise 2%, that's a low attach rate. They are definitely spending less money on content and services per hardware unit sold, and the part that they're losing money on (the hardware) is what's rising.

Nobody wants to talk about this. There are way more boxes out there now. And we know that boxes are still the biggest factor with Game Pass subs. But we have slowed growth with Game Pass, lower revenue growth, and worse 3rd party software sales. Consumers are obviously buying a box, using Game Pass promos and spending little to no money on software. This is like a worst case scenario for this kind of hardware growth.

We are seeing the exact opposite effect on consumer spending than what we were told would happen with Game Pass. Lems will avoid this news like the plague. Better yet, they will avoid this like a $60 game…

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Pedro

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#40 Pedro
Member since 2002 • 55336 Posts

@girlusocrazy said:

Neither did I! Does that make us twinsies?

I am one of a kind. So, no twinsies. Sorry. 😥

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Chutebox

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#41 Chutebox  Online
Member since 2007 • 48175 Posts

@Zero_epyon said:
@SecretPolice said:

Unholy cowzerzzz.., I wish I had some breaks to donate. lolol :P

This gif never gets old.

You guys are mean. I always feel bad for those cows. The sheep gif he uses? That one is hilarious.

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xhawk27

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#42 xhawk27
Member since 2010 • 11724 Posts

Sony and Nintendo have great services? 😆

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Antwan3K

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#43  Edited By Antwan3K
Member since 2005 • 5578 Posts
@goldenelementxl said:
@Antwan3K said:
@goldenelementxl said:

In the end, mostly growth for Xbox is a huge positive. They’re moving in the right direction

basically all that needs to be said.. 🤷‍♂️

On the Xbox board maybe. This is System Wars. Xbox may be moving in a positive direction financially. But the other two are moving further and faster.

And I thought Game Pass was gonna increase 3rd party software sales… What’s with the decline???

System Wars =/= Financial Wars..

Xbox is providing an absolutely great (and arguably unrivaled) end-user service and have two major 1st party releases coming this holiday season while PlayStation doesn't have anything comparable at this juncture (Nintendo isn't even directly competing anymore so i don't know why you keep bringing them into the conversation).. That's what should be the most important factors to actual gamers, System Wars or not..

On-topic, no one expects Xbox to overtake PlayStation overnight.. not anyone who's displaying any level of intellectual honesty anyway.. Right now Xbox is making bold moves (Game Pass, PC support, cloud expansion, Studio acquisitions, etc) and they're still experiencing growth across the board in hardware, software, and services.. 🤷‍♂️ As you said, "They're moving in the right direction".. and again, that's "basically all that needs to be said" and honestly all anyone can logically ask for..

i mean, what more should they be doing??.. please elaborate.. we'll wait..

And who said Game Pass was going to increase 3rd party sales?.. At the end of the day, Game Pass boosts the exposure of titles in the program, those titles (for the most part) are still charting in sales, and both the developers/publishers and Microsoft all seem to be very happy with the results.. yet again, that's "basically all that needs to be said" and is all anyone can logically ask for..

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SecretPolice

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#44 SecretPolice
Member since 2007 • 39481 Posts

@Chutebox said:
@Zero_epyon said:
@SecretPolice said:

Unholy cowzerzzz.., I wish I had some breaks to donate. lolol :P

This gif never gets old.

You guys are mean. I always feel bad for those cows. The sheep gif he uses? That one is hilarious.

Good stuff guys. ;)

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Zero_epyon

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#45 Zero_epyon
Member since 2004 • 17027 Posts

@Chutebox said:
@Zero_epyon said:
@SecretPolice said:

Unholy cowzerzzz.., I wish I had some breaks to donate. lolol :P

This gif never gets old.

You guys are mean. I always feel bad for those cows. The sheep gif he uses? That one is hilarious.

It's the absurdity of that many cows in the truck in the first place that gets me. They all get up and look fine.

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GirlUSoCrazy

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#46 GirlUSoCrazy
Member since 2015 • 16025 Posts

@Antwan3K said:

i mean, what more should they be doing?.. please elaborate.. we'll wait..

It would have been nice to have new software ready for the hardware launch

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Antwan3K

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#47 Antwan3K
Member since 2005 • 5578 Posts

@girlusocrazy said:
@Antwan3K said:

i mean, what more should they be doing?.. please elaborate.. we'll wait..

It would have been nice to have new software ready for the hardware launch

definitely would have.. do you have a spare time machine?..

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Nonstop-Madness

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#48 Nonstop-Madness
Member since 2008 • 10972 Posts

@girlusocrazy said:

@goldenelementxl: Yeah, when the hardware rises 166% but the content and services only rise 2%, that's a low attach rate. They are definitely spending less money on content and services per hardware unit sold, and the part that they're losing money on (the hardware) is what's rising.

People who bought new hardware could very well be existing customers which means their spend on content isn't necessarily more. That being said, you literally can buy three years of XBL Gold and convert it to three years of GamePass Ultimate for $1. That's a ton of services revenue that's lost in the hope of ramping up subscriber growth (which is still very limited to Xbox consoles at the end of the day).

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GirlUSoCrazy

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#49  Edited By GirlUSoCrazy
Member since 2015 • 16025 Posts

@Nonstop-Madness: Can you currently do this today? What is the method? Is this possible worldwide?

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Sagemode87

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#50 Sagemode87
Member since 2013 • 2533 Posts

@simple-facts: what's with Lems and delusional attitude. None of their games released but were supposed to just write off the fact that Sony has a better track record. Hard to take you guys seriously.