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Microsoft Earnings Q4 2022
- Thread starter St. Elmo's Fire
- Start date
- News
I question how much Game Pass grew, considering they declined to attach a number to it in the earnings.
And yeah, as with all things investment-related, there are positives and negatives to consider. You can make your own conclusions. Personally, I think the results were disappointing given the investment Microsoft has sunk into the Xbox division, the intense promotion of Game Pass, and the fact that they recently fired off some of their biggest software guns. But that's just me.
What big software guns did MS fire off in fiscal Q4?
I'd say the last big gun MS fired off was Halo Infinite in Q2, and that occurred during Xbox's biggest quarter ever. That was followed up by Q3, their biggest non-holiday quarter ever. Despite the relatively slow Q4, a general lack of first party software releases and supply constraints, Xbox has just capped their biggest fiscal year everā¦
There's no way any investor following Xbox is looking at the big picture and seeing a division that will struggle with growth going forward.
You're talking nonsense.
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Not including Switch - Xbox Series X|S is the market leader 3 quarters in a row in NA, this is significant. Will be interesting to see if they will manage to keep the momentum going.
Also, the Xbox Series X|S still leads all Xbox consoles as the fastest selling Xbox yet.
Also, the Xbox Series X|S still leads all Xbox consoles as the fastest selling Xbox yet.
If you think they've recently fired off some of their biggest software guns, you're in for a real surprise in 2023 and beyond.
You seem to deliberately avoiding the fact that nothing notable was released to spur growth and yet they still had a strong quarter, the investment they sunk is showing some resiliency to factors they cannot control. Your completely off with your conclusion.
I've been saying this for years but investors don't give a shit about Xbox, at least not yet.
Futures are up right now over closing, we'll see what tomorrow brings
Halo Infinite and Forza Horizon 5 were clearly quite big, and AOE4 seems to have an active community (although a slow roadmap), but that doesn't offset the decline of things like Fortnite (which is still huge), empty year in the third party AAA space and more for their content/services, especially with an empty 2022 in big first party releases.
Microsoft only announces Game Pass numbers when they reach a major milestone. Back in January they hit 25 million and announced that figure and once they hit 30 million they'll likely announce it then.
The rest of your post is largely nonsense Microsoft's large scale investments haven't even been felt yet at this stage.
LMAO.
There's no way this is not bait.
THERE'S NO --- OH MY GOD.
User Warned: Platform Warring
Nothing in Q4, but Halo Infinite and Forza Horizon 5 in Q2, both of which are live service games (the biggest source of income in the industry now) and should have continued to contribute strongly just 3 to 6 months later.
And any investor who doesn't think the division will struggle with growth going forward would literally have to ignore what Microsoft itself said. Amy Hood said the Gaming division would have another year-on-year decline in the next quarter.
Anywho, I am now keeping my promise and leaving this thread, as, just as I predicted, it's just Xbox fans screaming "LOL LOL XBOX IS BETTER THAN EVER" while I quote actual facts from the earnings report.
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Pretty much everyone in the gaming space is suffering year on year declines. That's what happens when a temporary boom due to covid wears off. Its not an exclusive thing only Microsoft is feeling. Go check out some NPD reports and look at the YoY declines in spending every month
Wrong.
Amy Hood said Xbox will decline next quarter thanks to Content & Services, partially offset by growth from Game Pass and consoles.
It's going to struggle next quarter due to the fluctuations of the COVID shortage and lack of any real first party games coming out. Starting in 2023 Xbox is expected to have numerous AAA first party games on GamePass. Hopefully consoles begin to become more easily accessible at that point as well.
Forseeing decline next quarter isn't the same as struggling to grow long term. They don't foresee growth this quarter because 1st and 3rd content will be light (as it usually is q1), hardware will still be constrained - all partially offset by continued growth in GP
Individual first party games don't drive the division's revenues growth. It's 3rd party royalties, services and subscriptions.
I'm not the one ignoring what was said. No one is saying This quarter is better than ever. We're saying one quarter of stunted growth in a typically slow quarter, during a market that is down overall, isnt cause for alarm. If you're leaving the thread, it's because no one buys your bad faith analysis.
Long-term there's Gamepass continuing to land on more devices, Bethesda and Activision acquisitions bearing fruit, and there's alleviation of hardware constraints.
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Totally anecdotal but I don't know many folks that just pay for Gold anymore. If they're buying Xbox Live, they're all bundling with Game Pass.
Umm...ok. Were your comments positive last year about Xbox when they announced the highest ever or do you just keep repeating companies want more growth every year so it's never really a good result?
Not that i really expect Activision to be added in the next quarter, but the projection of a decline next quarter was without Activision numbers to adjust for. So if somehow they get folded in in September then who knows what the results end up being in total š®āšØ
If you follow NPD it's expected. Xbox has sold more units than PS5 every month starting November 2021 except January and June 2022.
Yeah I remember some months but 9 months is bit unexpected I guess
Surface is growing, it's nowhere near Windows Phone. Surface devices are great, btw.
I assume the XBox has now overtaken the PS5 in NA?
Impressed that Surface is doing so well... I have been using Surfaces since the beginning, but I always assumed it is a brand for "professionals" in the IT world.
Not yet (if ever who knows what'll happen) as launch was much more supply constrained for Xbox Series than PS5.
PS5 could at least get the same amounts of units prepared as PS4 but XBS had less than XB1 available thanks to a delayed production and wafer shortages.
Xbox hasn't been beating them by that much, being that playstation has been 1 for console revenue quite often, and early on the Ps5 was killing it as xbox had massive supply issues. So chances are it hasn't caught up yet. I imagine Microsoft PR would say if they had, "we are now the overall market leader in NA for next gen consoles" or words to that affect.
Unrelated to the thread (not that there's much to add, really), but you may be surprised to find out that even though Powerwash is doing insane numbers, As Dusk Falls is actually beating it in the most played charts on Xbox in most regions of the world lol (last week at least - and that was only a partial one for ADF too). We'll see what it looks like next week, though haha.
See, am i too stupid to understand Mat here?
View: https://twitter.com/MatPiscatella/status/1547927740325605378?s=20&t=FTJlGXT4pnfm5fO1FI3Z4g
Here i'm reading that PS5 has been basically 1# based on revenue. While Satya claim Xbox has basically been 1#. Are they basing it on different things? Is Satya basing it on raw numbers ( Consoles sold )?
PS5 is number 1 in revenue. That's why Mat specifies PS5 leads in dollar sales even though Switch is 1 in units.
Satya is comparing unit sales and excluding Switch by only comparing "next generation" or "new generation".
Exactly. Growth would've been better obviously, but ultimately covid influenced the gaming industry and nowadays people are back at school, university and so forth. Which means less time for gaming and thus less revenue.
PS5 #1 in revenue
XBX|S #1 in unit sales
(among nex-gen consoles)
Satya is talking about units.
It seems like a dip caused by a lack of quality exclusive content in the last few months. I'm certain things will get better next year when Bethesda and co start firing up and the Activision acquisition go through, but there is no denying this holiday period is a huge weak spot for MS.
They've struggled a bit, I think, so it's positive to see Surface's gained ground again. We own two Surface laptops in my household (model 1 and 3), strictly for private use, and I really dig them. They're a bit expensive for what you're getting tech wise, but the design, the screen, the alcantara, and the touchpad are all great. But yeah, not seeing many of my friends having one.
It's an interesting situation where basically everyone can proclaim "victory". MS can say they are market leader in NA based on next gen unit ssales, Sony can say they are market leader based on Revenue and Nintendo can say they are market leaders based on Unit sales. Great times ahead imo.
There is context, which surely investors will understand. The pandemic resulted in these companies performing better than they normally would. Now most countries are back to a normal daily life, which means less time for gaming and more activities outside.
You're ignoring the pandemic or underestimate the effect it has on gaming. Gaming was more or less the only hobby that wasn't restricted in any way by governments. Meanwhile going to a pool, bowling, playing tennis or what have you was either impossible or in the later stages restricted. You had to get vaccinated and sometimes get a appointment (for the lack of a better word) and had to respect important rules like walking only on certain markers in a pool area outside of the pool. That can decrease the enjoyment of a hobby for some and obviously some didn't go to such activities, because they were afraid of catching covid. All of that resulting in many people simply staying at home and stick to or join gaming.
So, no gaming revenue shouldn't be necessarily up, since everyone is free to go about their hobby without restrictions nowadays. Which means money will be spend on fitness studios, bowling, going to a pool or amusment park and many more activities.
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The growth in Gamepass will also be really boosted in the last quarter by the recent launch of PC Gamepass in Indonesia, Malaysia, Philippines, Thailand, and Vietnam.
Indonesia in particular is a very large and growing gaming market. Penetrating there will do wonders for the continued growth of teh service.
Indonesia in particular is a very large and growing gaming market. Penetrating there will do wonders for the continued growth of teh service.
TBH, if the number of Game Pass subscribers had already peaked and started going down, that would be a huge failure in my book. They are still being quite aggressive in their efforts to reach new Game Pass users AFAIK, and there is a lot of room for growth. And as you said, it comes across as a cost effective way of getting new games. I think the question is not "is it growing?" but rather "is it growing fast enough to satisfy shareholders?"
This metric does not tell much as even if Series S sold 1.5 more than PS5 it will still have less revenue (and that's without bundles).
I think the difference is smaller (I presume for now the estimation is 16m vs 22m for PS5), but I guess Xbox is at 18 at least.
Gamepass, like any subscription service, will rise and fall with their offerings. The numbers went up and there's only been steady 3rd party games on the service. I think because it's got something for everyone in there. Now imagine when their studios start releasing the games people want to see. As for shareholders, I doubt any shareholder is saying, "Man, I wish gamepass was getting more subscribers faster." More likely they're saying, "What's the stock price." The majority of corporate shareholders aren't out to make a quick buck. They play the long game.
I would argue that the majority of shareholders doesn''t even care. Currently Xbox is at 8% of their whole revenue. They only care about Azure, Azure...When Xbox reaches a bigger chunk of their revenue, they will be more interested. It is literally less than 10%, basically nothing.
Not including Sony and Nintendo, MS has been the market leader since day 1.
Game Pass subscribers growing isn't surprising with the Series S push. This will only increase further when it is rolled out to more TVs either via a puck or on the TV itself and people can just use any controllers they have.