290°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

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theverge.com
darthv7221d ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle20d ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

Sonic188120d ago

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

dveio20d ago

MS: "Xbox services and content without AB up 1%, with AB up 62%. Hardware down 31%. In total a loss of 350 mill."

darthv72: "Seems about right."

MS: "Excuse m ..."

darthv72: "I don't hardly play on my consoles directly."

MS:

Lightning7720d ago

What he said was facts. How he plays games is no concern of you. Don't get too mad about it.

Cacabunga20d ago

I can tell people like you are an absolute minority..

If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.

darthv7220d ago

to you it may seem like the minority... but your bubble is shrinking because more and more are following suit. convenience is a hell of a drug and its also why physical sales only amount to 30% of overall game sales. times are changing, you either get with them or you get left behind.

neutralgamer199220d ago

Darth

30% physical sales: yet Phil and xbox division are in a rush go give up on that 30%. they don't have any right to give up any piece of the pie since the control such a little of the pie to begin with

also, the market is clearly speaking that the model Xbox is pushing isn't working right now the keyword being right now. you are right about freedom to play anywhere so i hope they put their games on steam

shinoff218320d ago

But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.

Cacabunga20d ago

Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.

If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.

Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you

itsmebryan20d ago

@shin
Well keep it simple Sony 's operating income is down 26% and Microsoft's is up 32%. No MS spin there, just facts. 😉
Cheers

S2Killinit20d ago

MS is after diminishing consoles as a medium. They want to destroy this market because they couldnt win. MS’s vision is to dissolve console gaming.

romulus2320d ago

Odd that a company that touts you dont need the hardware to play is already touting another console in the works.

darthv7220d ago

They are not reliant on the HW but still want to maintain a presence (no matter how small) is a good thing. It shows commitment to the craft. It reminds me of SNK and how they made games for their own hardware (Neo Geo) while also making them for others because they knew there was a market to do so. They knew they would sell more to others but also sell to their own niche fan base.

TheEroica20d ago (Edited 20d ago )

Perfectly reasonable post down voted by insecure corporation friendly folk.... But not gamers. Real gamer want accessibility and ease of acquisition for all.... Company shills are the only ones still telling us that hardware locking people from games is good for us.

Chevalier20d ago

@Darth

You should stop parroting metrics like an idiot without context.

"Xbox content and services revenue grew 62% in Q3 from a year earlier, “driven by 61 points of net impact” from the purchase of the third-party video game giant, Microsoft said."

61 of the 62% was from their merger so net increase is ONLY 1%

https://www.mesaonline.org/...

itsmebryan19d ago

@chevalier

It looks like made a great purchase. Much better then Sony buying Bungie. 😉
Cheers

+ Show (4) more repliesLast reply 19d ago
purple10121d ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos21d ago

I'm not surprised surface is struggling they aren't relevant anymore

DOMination-20d ago

In the last two years they've started exiting the consumer market altogether. All of the newest Surface products are business models only. They can't seem to work out what they want to do with it.

XBManiac21d ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad21d ago (Edited 21d ago )

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple10120d ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos20d ago (Edited 20d ago )

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Kornholic20d ago

So basically PS and PC gamers' money is keeping Xbox on life support.

MrDead20d ago

The only growth MS will get out of the console industry is if it supports it's rivals platforms. Xbox is a pointless machine now. I can see them on a big push for live next, and they won't give up on trying to buy Steam.

+ Show (1) more replyLast reply 20d ago
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70°

The Epic Games Store has a GOTY Edition Freebie Waiting for You

The Epic Games Store has a GOTY Edition, AAA title they want you to add to your library.

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terminalgamer.com
60°

Summer Game Fest Reveals First Wave Of Partners

This is a great looking list.
Summer Game Fest is happy to reveal the first 55 partners set to participate in SGF activities this June.

120°

Square Enix Is Going Multiplatform; The Layoffs & Its Past Don't Inspire Confidence

After its latest games didn't meet sales targets, Square Enix is going multiplatform but the company's track record isn't convincing.

Scissorman7h ago

Square Enix been multiplatform for decades, a few exclusively-deals doesn't make them any less multiplatform.

fr0sty7h ago

Nor is selling their games on a console with only 25 million install base going to bring their sales to where they hope they will be... Unless they somehow manage to dumb down FF7 trilogy to work on switch, they aren't going to have much luck. They already released it on PC, after all.

SegaSaturn6697h ago

It kind of does, giving preference to a certain platform by timed exclusivity. Console ports generally feel superior. Legend of mana PC port extremely broken

neutralgamer19926h ago

Sega

It doesn’t when square themselves didn’t want to fund the development of remake. It’s only after the success of the 1st they realized their mistake but now contract is signed. If it wasn’t for Sony there would be no FF7 remakes. Same goes for silent hill 2 with Konami. They don’t want to fund AAA budget. Companies like PlayStation and Nintendo get blamed when in reality they are saving some of these franchises

Remember sega didn’t want to fund bayonetta and epic games didn’t want to fund another gears of war. It’s easy to blame console makers but they are the ones taking the risk and paying huge upfront costs without seeing the final product. FF7 remake trilogy won’t be coming to Xbox now or in the future. PlayStation and PC is what square signed up for. Sony paid them more than they would make from Xbox sales.

ravens526h ago

I just wonder when everyone is going to demand that the Square Enix exclusives with Nintendo come to PS and Xbox. Or it's just the PS exclusives that matter lol

phoenixwing6h ago(Edited 6h ago)

I'd love for the nintendo exclusives to come to pc or ps5. They'd actually be playable then.

neutralgamer19926h ago

Raven

Exactly and that’s where square enix does more exclusive than any other platform. Gaming is square has always been very unrealistic with their sales expectations. Remember when tomb raider reboot sold 7.5 million and square said it wasn’t enough. They need to spend less on development and have more realistic expectations from sales.

And those thinking games being not on Xbox makes a difference don’t understand we have a decade plus of data showing square enix games having less than 20% of their multiplatform sales on Xbox (final fantasy series) and Nintendo consoles aren’t strong enough to run any current games. Nintendo switch should be as strong as Xbox one x atleast but we all know that’s most likely won’t happen

RoadRacer5h ago

@raven

thing is, as neutral said in their comm, the switch isn't strong enough to run flagship SE games
i think what SE does is, it makes unique games for switch only so that it has something for that console too. Thats where all the "underlined sans" rpgs go to mostly

maybe things will change when Swtich 2 drops cuz that's gonna be as strong as ps4 afaik from the rumors flying around

TheGamingHounds6h ago

@Scissorman

Your point is valid enough but when the icon of this company is limited to one console in timed-exclusivity, it means the company has crossed the line. By some degree at least

All things aside, Square itself stated "aggressive multiplatform strategies" so we all know what it's talking about

Scissorman4h ago(Edited 4h ago)

Then the headline should read "Square To Drop Exclusively Deals in Pursuit of A Sweeping Multiplatform Strategy". I don't recall this argument when Square Enix released Bravely Default, Octopath Traveler, and Triangle Strategy on one platform. And even if FF is the icon, not all of its titles have gone to one platform. We're talking about three games, one of which is already on PC. Did Square suddenly go 'multiplatform' after it released subsequent Tomb Raider sequels on more than just the Xbox? It's just a silly way of putting it.

+ Show (1) more replyLast reply 4h ago
TheGamingHounds6h ago(Edited 6h ago)

SE needs to go all in optimization. Broken PC ports won't help its case, especially with big releases like mainline Final Fantasy

Asterphoenix6h ago

It's actually simple. What doesn't inspire confidence is Square allocating their budgets on the wrong projects such as Forspoken, Avengers, Babylons Fall and Foamstars.

Square has always been multiplatform since PS3/360 days which 80 % of their games are. People kick up a fuss over PS exclusivity but not Nintendo which has more exclusive projects console exclusive from Square.

FF16 has done ok but not enough to fix the blunders that the past mistakes Square has made with some of their projects. FF7 Rebirth is unclear we'll see a PC release for sure so it's hard to say so far not as good as they would of liked.

Then again unrealistic expectations. If it weren't for Sony these games would at least had another 2 years development time. So some people need to be realistic in that regard.

Scissorman3h ago(Edited 3h ago)

It's the blunders that set those expectations so high. If you remove those from the equation, I bet the sales numbers would be more than stellar. Square believes it's okay to release a pile of risky, middling, garbage because the big boys will ultimately subsidize the cost. Don't worry if Forspoken sells poorly, FF16 will surely sell 10 million copies to balance that right out. Oh wait, it only sold like 4 million. Well that's a disaster. Meanwhile games that sell 2 million units with comparable budgets are deemed successful.

RoadRacer5h ago

Square Enix just really need to revise its expectations. Maybe consider a change in strategy on dev end as well. Multiplat will help for sure but only good games that are marketed well will sell