Microsoft Expects "Very Strong Demand" After Xbox Series X/S Launch, 40% Hardware Revenue Growth YoY

Microsoft announced its prediction for the October-December quarter which includes the launch of the Xbox Series X/S and the Holiday season.

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darthv7234d ago

Well I can only say that two of those systems sold will be mine. Series X for the game room and Series S for the bedroom. Best of luck to them though.

33d ago
rdgneoz334d ago

"40% growth year-on-year in hardware revenue. This will help driving growth in overall gaming revenue between 26% and 29%."

Remember when they gave actual sales figures? Seemed to stop beginning of this gen...

LucasRuinedChildhood34d ago (Edited 34d ago )

A story was killed on N4G as well that DMC5 Special Edition won't support Ray Tracing on the Series S although it will support 120fps. It's appears to be underpowered. This port is not just the same game at a lower resolution which is what the console is supposed to offer. If compromises like this already have to be made, then the PR for the Series S was probably dishonest.

DJStotty33d ago

40% revenue growth when selling the consoles at a loss.

"That being said, she pretty much implicitly confirmed that the new consoles will be sold at a loss.

“In gaming, we expect revenue growth in the high 20% range. We expect very strong demand following the launch of our next-generation Xbox Series X and S consoles driving supply-constrained hardware revenue growth of approximately 40%.

We also expect a negative gross margin impact from console sales this quarter, as we invest against the growing lifetime value of the platform."

NeoGamer23233d ago

Hardware sales are not a measure of success. If that was true both Microsoft and Sony would be in trouble.

The Wii outsold both X360 and PS3 in that generation yet Wii was not considered the most successful console.

The Switch is obliterating sales paths of PS4 and XBO and is probably on tracking to sell more over the same time period. But, again I don't think everyone feels Nintendo is doing better in the gaming world then Sony.

The really measure of a platform's success is games, accessory, and subscription sales. Get your gamers to keep buying stuff after they have bought your platform and you make a lot more money. If gamers buy your platform and only play a few games your platform isn't making as much.

buffig34d ago

Wow, 40% more than the year when the current console was discontinued and was selling in incredibly low numbers?

derek34d ago

40% of nothing is nothing? Microsoft is so phony with these percentages, give the actual numbers sold so we can get a full picture.

NeoGamer23233d ago

Microsoft is talking to shareholders not gamers. Financial language is a lot different then gamer numbers. This shouldn't even be gaming news. This has nothing to do with gaming.

Do you look at the YoY revenue changes of car vendors? TV vendors? computer vendors? phone vendors? etc... I don't know why anyone cares about this. It says nothing to gamers.

StormRage34d ago

Xbox hitting homeruns.

Gears Tactics
The Medium
Yakuza like a Dragon
Gears 5 - DLC Story Hive Busters
Bright Memory 1.0
Tetris Effect Connected

First few weeks of exclusives plus Halo MCC 120fps, Gears 5 mp 120fps, Ori and Will of Wisp 120fps, Forza Horizon 4 60fps,

add in Watchdogs legion, Assassins Creed Valhalla, Call of Duty, Cyberpunk 2077, Dirt 5, Dragon Quest V Echoes, Destiny 2 Beyond.

2021 going to be lit.

AngelicIceDiamond34d ago (Edited 34d ago )

I wouldn't call it a home run but EA Play joining gamepass on launch is pretty significant. Cross Fire X, Warhammer Dark tide, Psychonauts 2, Gunked, Halo: Infinite, Exo Mecha, Forza, Bright Memory Infinite (timed), Scorn, (rumored) Starfield.

Next year certainly looks better than well the past 4 or 5 years for MS. Especially if Forza, Halo and Starfield end up releasing next year.

PS-Gamer-198634d ago (Edited 34d ago )

Wow, just wow

When your expectations have been lowered so much that even pretty minor things feel like "homeruns"

Rich163134d ago

Brah. The PS5 launch lineup is just as bad as the Xbox Series X launch lineup. And that is coming from a guy who has the PS5 pre ordered.

This is easily the worst lineup PERIOD.

PS-Gamer-198634d ago

While i disagree that ps5 lineup is bad, i think it is just acceptable for a launch lineup. i'm not the one who is calling it a "homerun", especially not because of old games, with absurdly high framerates. So i don't see the point of your comment.

NeoGamer23233d ago

That is a complete joke. There are good games there. But both console launches are a joke compared to previous generations.

StormRage33d ago


It all depends on what you are looking for. Personally, The games that got my attention are Gears Tactics, Falconeer, Enlisted, Yakuza, Gears 5 new DLC Hive Busters and The Medium. You add in Third party games this holiday and it's a solid launch. I absolutely think they hitting homeruns.

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