• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Microsoft, Activision Deny Report Regarding Financial Performance

Soooo... they just choose not to have it?

s reactions jim GIF
It needs investments, marketing etc.

Is it worth the cost?

Sure, if the system gets successful. But it can also backfire.

They are going for install base that is already there and buys systems without any push via marketing, exclusives etc.

Looks like a sound strategy to me.
 

phil_t98

#SonyToo
I think it's telling that Microsoft never announced/leaked the Gamepass impact of COD. I think as a company, they outrageously overestimated how many gamers are interested in a subscription service

Don't get me wrong, Gamepass has incredible value, but there are not enough hardcore gamers playing 10 plus games a year to sustain Gamepass growth that Microsoft is seeking


at least 34 million as of feb 24 would say a lot are interested

 

BlackTron

Member
at least 34 million as of feb 24 would say a lot are interested


You are correct. A lot of people are interested because 34 million is a 'lot".

I think it's telling that Microsoft never announced/leaked the Gamepass impact of COD. I think as a company, they outrageously overestimated how many gamers are interested in a subscription service

Don't get me wrong, Gamepass has incredible value, but there are not enough hardcore gamers playing 10 plus games a year to sustain Gamepass growth that Microsoft is seeking

He is also correct. MS has had trouble expanding GP much beyond this ceiling, but that's not sufficient to support their plans. They underestimated and are on the backfoot.
 

Thief1987

Member
at least 34 million as of feb 24 would say a lot are interested

It includes converted from Live Gold who are there just because MP is paywalled. So, much less than 34 million are really interested.
 
Last edited:

BlackTron

Member
I don't know why we should trust MS at this point. Its the same company that congratulates a studio but then few days later shuts them down.

Long sense no reason to trust them. But now it's just like the stop he's already dead meme being blasted in my face so fast I have a flash induced seizure.
 

Heisenberg007

Gold Journalism
Haha surprised MS responded to this at all. Looks like they didn't like that report. Well be interesting to see what they say during their next quarterly report.
Of course they wouldn't like it. It's the kind of report that shareholders and investors take immediate notice of - that a $75 billion asset isn't performing well.

Microsoft will, as usual, bullshit their way through it, instead of sharing actual profitability data. I hope investors ask the real questions.
 

adamsapple

Or is it just one of Phil's balls in my throat?
at least 34 million as of feb 24 would say a lot are interested


And:

Regarding Xbox Game Pass, Nadella said that the service set a record for the number of new Game Pass subscriptions on Call of Duty: Black Ops 6’s launch day. He added that the service “set a new Q1 record for total revenue and average revenue per subscriber.”

🙏
 

mdkirby

Gold Member
I'm very interested in the impact releasing CoD on Game Pass has had. Was there an increase in subs and how did it effect individual sales (compared to prior releases)? I don't know if we'll get that data or if we'll just have to wait and see how the IP is handled in future releases.
They’ll likely have to give games pass numbers to investors at some point…can prob infer from that at least somewhat.

Steam at least, it spiked well with the new release but crashed hard and fast, so it seems to be experiencing some retention issues, and possibly franchise fatigue.
 

tTHANOSs

Member
at least 34 million as of feb 24 would say a lot are interested

Doesn't that 34 million number include 9 million xbox live gold members converted to game pass core members....
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
The information is a really well-respected outlet amongst high-powered execs, and they are known for high-quality journalism.

For example, they broke the FTX scandal that led to Sam Bankman-Fried's incarceration.

Wow! So now it makes sense why MS wanted to deny the report.
 
at least 34 million as of feb 24 would say a lot are interested


It's only 34m? That's not good at all. It was growing so fast a few years ago but now it's slowed to a crawl! That's with Bethesda games on the service and new call of duty game on launch! Terrible. What a shame because it really is a awesome subscription service.
 
Last edited:

Humdinger

Gold Member
And how much has it actually boosted gamespass? They need year on year 40% growth? Did it do that year 1? How’s its current trend?

All they said is CoD "set a record for new subs." That's not really meaningful, because of course subs would rise with CoD, but the question is do those subs stay for the long-term, or are they just going to bail after a month or two? GP has the highest churn rate in the entertainment industry. What matters is the sustained subs, not a temporary bump.

We also don't know how significant the "record setting" was. It could've just been a small increase. A 2% increase over the previous level is "record-setting."

GAF is now a place where any rumour or opinion piece going negative on MS/Xbox is taken as gospel and a multi page thread. How wonderful.

CEO literally states record GP subs/revenue due to COD BLOPS but hey keep having at it GAF.

Honestly as an Xbox fan I find myself wanting to come to GAF gaming side less and less these days. Good show gaming fans. Good show.

I hear you. It must be tough to be an Xbox fan on GAF. Don't think it's limited to Xbox though. Go check out the flogging Sony is getting here:


GAF is a place with a lot of highly critical people who will ruthlessly pick apart things they don't like. It's not limited to treatment of Xbox. There are downsides to that (negativity, cynicism, hostility, alienation of people who just want to relax and enjoy themselves, etc.). But there are upsides too, the main one being that corporate bullshit gets called out pretty quickly.
 

mdkirby

Gold Member
All they said is CoD "set a record for new subs." That's not really meaningful, because of course subs would rise with CoD, but the question is do those subs stay for the long-term, or are they just going to bail after a month or two? GP has the highest churn rate in the entertainment industry. What matters is the sustained subs, not a temporary bump.

We also don't know how significant the "record setting" was. It could've just been a small increase. A 2% increase over the previous level is "record-setting."



I hear you. It must be tough to be an Xbox fan on GAF. Don't think it's limited to Xbox though. Go check out the flogging Sony is getting here:


GAF is a place with a lot of highly critical people who will ruthlessly pick apart things they don't like. It's not limited to treatment of Xbox. There are downsides to that (negativity, cynicism, hostility, alienation of people who just want to relax and enjoy themselves, etc.). But there are upsides too, the main one being that corporate bullshit gets called out pretty quickly.
Exactly it’s very easy to play with stats to paint any narrative you want. It allows them to make good sounding claims that could actually be shit🤣
 

Humdinger

Gold Member
Exactly it’s very easy to play with stats to paint any narrative you want. It allows them to make good sounding claims that could actually be shit🤣

Yeah, they are good at that. Talk about "engagement" and MAUs. Even revenue is mostly meaningless, because it doesn't take into account expenses.

I dunno, man. There are a lot of people on here who are pretty eager to suck corporate cock.

Some, yeah, but I think they are badly outnumbered by the ones who are skeptical and critical.
 

laynelane

Member
They’ll likely have to give games pass numbers to investors at some point…can prob infer from that at least somewhat.

Steam at least, it spiked well with the new release but crashed hard and fast, so it seems to be experiencing some retention issues, and possibly franchise fatigue.

It sounds like it's possible many people bought the sub for a month or two, played the game, and then didn't renew their sub. Not the outcome MS was looking for, but maybe there was more success on the console side.
 

Gojiira

Member
at least 34 million as of feb 24 would say a lot are interested

And at least half of that are just the former Xbox Live Gold accounts that Xbox ‘merged’ into Gamepass to boost the Gamepass numbers…
Legit dont understand why Xbots are in such denial over Gamepass, look up the FTC case, Xbox THEMSELVES showed it wasnt growing, wasnt making money..
 

SkylineRKR

Member
There are a lot of things to dissect here.

Those 500m players are likely 100's of millions of players having Candy Crush on their phone and have no affiliation with MS whatsoever. They also never mention hardware anymore because it doesn't fit their narrative. Before all this, they would boast the SX was the most powerful console on the planet and it was repeatedly shown. Since it doesn't sell, they turned to subs. And regarding subs, Gold was migrated to GP and Gold was the bare minimum required for online play, this says nothing about actual GP growth; people actively signing up for GP.

In short they hide more and more, which says it all. This ABK purchase is a massive fail. They won't ever recuperate this 80 billion. In the end they don't have that many assets, CC and CoD are their biggest fish. Blizzard releases something every 5 or so years, and is failing a lot recently.

And if you are this gamer only playing CoD, or Diablo or something. Why would you sign up to GP instead of just buying the game. Ofcourse this revenue goes to MS too, but all in all, 80b is a fuck ton. Its 10 times more than Zenimax which to me have a wider array of valuable IP (and some monster sellers like TES as well).
 

Jaybe

Member
. In the end they don't have that many assets, CC and CoD are their biggest fish. Blizzard releases something every 5 or so years, and is failing a lot recently.

COD and Overwatch seem to be being eaten by Marvel Rivals
Diablo 4 is being surpassed by Path of Exile 2
Even Candy Crush looks to be down 40% vs prior year as a newer Match 3 game has beaten it.
 
Top Bottom