Radical_3d
Member
Where are the people saying in other threads that investors love the route Sony is taking with the PC? This is the end of the line.
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Microsoft’s Q2 FY2025: Gaming Revenue -7%, Hardware -29%, Content and Services +2%
- Thread starter adamsapple
- Start date
LordOcidax
Member
Sega was losing money Xbox NOT… And you are comparing Sega with a division of one of the biggest companies in the world that is still making 6.5 billion dollars in a quarter (I know is not profit)
XXL
Member
Parazels
Member
Wooh! Now I'm calm for Sony's future!
GHG
Gold Member
People still reeling from the most successful Call of Duty launch ever, I see
Unban this filthy animal right now.
I have some questions to ask.
Not just the addition of CoD but a 15-25% price hike over last year too. 2% is abysmal. Who predicts another price hike this year?2% growth with COD on GamePass is just horrific. These numbers are beyond terrible. Xbox is totally done as a console brand. Everyone needs to embrace Microsoft as a third party publisher now as their traditional console hardware days are definitely over.
Hawking Radiation
Member
Setsuna Mudou
Member
Remind me again what was the cost increase for game pass in %?Grower not a shower
Mr Moose
Member
Mibu no ookami
Demoted Member® Pro™
If you aren't getting new users above the churn rate, all you can do is increase the price and/or cut costs...
Topher
Identifies as young
17% increase for Game Pass Ultimate.
bundylove
Member
Ok.
Lets list mine up.
Netflix
Paramount
Disney
Appl tv plus
Starz
Crave which has hbo hbo max and other
Stack tv
AMazon prime
Now
If i just go by disney or apple , or even max , these services are a rip off.
You see, all their shows release like cable. You get one new episode per week. Then once those run out you get jack shit.
So a show of 10 episodes will take 3 months. So you have to either wait or pay 3 months to see the whole thing.
Netflix is starting to do the same. All new shows come in parts. Part one or part 2 or new episodes wednesday or what ever bullshit they come up with.
Then you have shows exiting one service and enter another.
Most netflix content is now korean drama or panjabi shit or all sorts of foreign crap.
I have a hard time finding anything anymore.
And here is the kicker. I can torrent any tv show or movie and i dont have to pay for it.
And i used to do that for years when i didnt care for anything outside netflix. But got lazy and now i just pay. I dont even know how much as i dont care and make lots of money.
So i will dissagree with you on netflix as netflix went so fucking down hill its a joke. Add to it all the woke shit they pushed for years in every show. I swear i had to watch some dude getting hammered from behind at least once in every high profile show.
Then you have all these franchises they created. Love is blind brazil or germany or japan . Same for other reality shows that now have the whole world as a content
I am a netflix member since 2009. And let me tell you. This is not the netflix i got to like.
Fuck me i just turned on my tv and see i also have amc+ and other lol. I dont even know why lol
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digoutyoursoul
Member
It should never of got to this.Ask yourself, with good leadership, would this be the situation? I don’t think so.
Said it years ago, going all in on subscription services was a big risk and something I don’t like.
One of the worst things about it all was seeing fans brush off criticism of mediocre releases simply because it’s in GamePass.
The likes of Avowed and South of Midnight will probably give Spencer’s groupies something to pretend to cheer about.
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Tajaz2426
Psychology PhD from Wikipedia University
Brothers on XBox, they will keep changing the price to help cover every year for this abysmal failure. They already know it will be shuttered at some point. They won’t be even getting 2 percent next quarter without the new release of CoD.
End the relationship and go PC, Nintendo, or Sony. They are just going to milk you till people finally won’t pay the increases.
I’m also not saying no one else is doing this, just giving my opinion.
End the relationship and go PC, Nintendo, or Sony. They are just going to milk you till people finally won’t pay the increases.
I’m also not saying no one else is doing this, just giving my opinion.
Zacfoldor
Member
This is what I've always expected.
Truth is they have spent a lot of money. At this rate, if you count opportunity costs of just leaving that money in the bank, they have a lot of ground to cover. Decades.
If they don't keep COD and the mobile IPs in good shape it could end up being the worst investment in history. It's actually not too late for that to happen.
Get this, their new plan is to overtake steam on PC and sell gamepass that way. I shit you not. That's the rumor. There is no gif yet made that can encompass my laughter at that inept and bumbling plan.
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Parazels
Member
Horrible numbers for a dead hardware can wait and see how sites like WC are gonna spin this numbers.
"The growth continues!"
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adamsapple
Or is it just one of Phil's balls in my throat?
Content and services is not just game pass.
Topher
Identifies as young
"driven by growth in Xbox Game Pass"
bitbydeath
Member
That’s already the trajection, it’s now only a matter of time.
GHG
Gold Member
The issue with them is that they always seem to need to create an adversary to keep them going. This is consistent across their whole history and all of their business lines. It's bizarre.
What ever happened to finding gaps in markets and/or creating products that solve a problem for people, instead of just going out there and attempting to outright replace other companies who are already doing a good job of satisfying people?
They can't compete with Sony so they are now going to attempt to make an enemy out of Valve?
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adamsapple
Or is it just one of Phil's balls in my throat?
Yes, game pass drove the growth for that sector, but game pass is not the only thing in the sector that's what I'm saying.
Topher
Identifies as young
I think everyone understands that, but Microsoft is the one highlighting Game Pass here. The increase in the price of Game Pass is relevant.
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Mr Moose
Member
I think this is from before they made Gold into GP, but it narrows it down a little, I guess:
GP, cloud and ads maybe?
Unless it's everything (that would make sense if this tweet is correct) excluding HW?
The comparison was about both of them becoming a third party publisher.
The stories and situations behind are clearly different.
Microsoft just bet everything on Gamepass thinking that gaming was moving to a subscription based model and they'd become the new Netflix in this new future.
This bet was a complete failure, there's no comeback from having almost no growth after you have spent billions to add games like COD on it. You just have to admit failure and change strategy and they're doing precisely that with their multiplatform pivot.
Their hardware was also killed by themselves due to other strategic mistakes and it all started when they decided to put everything day one on PC.
The revenues you're talking about not only are already declining yoy, but they're not profits (they had operating losses last year) and they come from spending 70 billions to buy the biggest publisher on the market.
Microsoft's future is now tied to be a multiplatform publisher with a considerable amount of their revenues stream coming from full priced PlayStation sales.
All their 2020 dreams sinked harder than the Titanic.
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LectureMaster
Gold Member
Grower not a shower
Setsuna Mudou
Member
what he said
2% increase in revenue with a much higher increase in cost of the premium service (that delivers what game pass always promised to deliver) means the number of subs had to decrease, there's no way around it.
I would venture a guess in saying there was an actual increase on the premium subs, offset by a much larger decrease in lower tier service subs.
Have they even got a better return so far than the risk free 5% they were getting on the 70 billion in cash?
AtomicStarving
Member
Now you know why the baldie loves the PS5
adamsapple
Or is it just one of Phil's balls in my throat?
Moriarty1889
Member
Agreed and where are the actual numbers for Gamepass? They won’t put them out even after they claimed BOPS6 sparked growth. Xbox are like vampires hiding in the dark in secret.
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You have context that tells you the price of Gamepass went up 16%2% could be 50 bucks or 500 million without extra context
GHG
Gold Member
2% could be 50 bucks or 500 million without extra context
Based on what I've read here it's more likely to be "money" routed from their Microsoft rewards programme.
Topher
Identifies as young
what he said
2% increase in revenue with a much higher increase in cost of the premium service (that delivers what game pass always promised to deliver) means the number of subs had to decrease, there's no way around it.
I would venture a guess in saying there was an actual increase on the premium subs, offset by a much larger decrease in lower tier service subs.
I think Game Pass subs may have hit a wall. We are not getting any subscribers numbers at all anymore. The growth reported may be due to increase in revenue after a price hike. Microsoft launches Call of Duty as a first party game for the first time, followed by a well-received Indiana Jones game in the same quarter. Not what I expected to see this quarter. Not even close.
Edit: Game Pass growth in PC contributed per Earnings call
Meanwhile the most eye-opening number is that 64% of consumer spending for MS games was from PlayStation in December.
2% could be 50 bucks or 500 million without extra context
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adamsapple
so what's the new MO now that the momentum angle is exposed? You might as well tell me now because I always get the Intel
James Sawyer Ford
Member
You might as well tell me now because I always get the Intel
New MO is Xbox is a PlayStation
OmegaSupreme
advanced basic bitch
Yikes
Horseganador
Member
What a disaster, Xbox consoles are sinking in sales and after an investment of more than 70,000 million in putting COD on GamePass, it has been of no use.
Luminoth-4545
Member
I had 3.4 million units for last Oct to Dec quarter, a straight 29% drop would mean 2.4 million units but we know that the average price per console was higher than last year (due to the lack of heavy holiday discounts) so i'm estimating 2.2 million units sold for the quarter. Also the Circana unit estimate puts it at 1.14 million for the quarter and the U.S consistently makes up around 52% of XBS sales, so everything points to around 2.2 milion for units shipped.
This means i estimate Xbox Series has now shipped 33.7M units and has now past N64 lifetime shipments (32.93M), next up is SNES (49.1M) which it has no chance of catching.
Shipments (millions of units)
This means i estimate Xbox Series has now shipped 33.7M units and has now past N64 lifetime shipments (32.93M), next up is SNES (49.1M) which it has no chance of catching.
Shipments (millions of units)
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What is this madness?
What a disaster, Xbox consoles are sinking in sales and after an investment of more than 70,000 million in putting COD on GamePass, it has been of no use.
James Sawyer Ford
Member
Yeah that number is insane, you’d think it would be lower with pc + xbox
MS really needs to be on PlayStation day and date, their studios depend on it
The “no red lines” comment is the result
mayham2199
Member
Agreed. It's a way for them to survive but acting like it's guaranteed to save them is crazy. We have plenty of big 3rd party publishers hurting financially right now. No reason MS can't be one of them.