Microsoft Gaming Revenue Grows 1% Year-on-Year: Content & Services Are Up 5%, Xbox Hardware Down 13%

Microsoft announced its financial results for the fourth quarter of the fiscal year 2023, including details about the performance of its Xbox business.

[crazyCoconuts]

Apparently missed their stated targets. They expected services to grow in the "low to mid teens" instead of 5%

[StarkR3ality]

What can you expect when you release 0 first party games that are at least 80+. Hopefully that'll change because Sony need the competition. I'm extremely excited for some of the games that are coming to Xbox though.

Sony I'm more disappointed in though tbh, for PS5 to have one 1st party exclusive this year is just so unlike them especially when we're in year 3. I expect a lack of games from Xbox, not playstation.

[derek]

@Stark, why are you making Microsoft continued lackluster performance in gaming about Sony? Lol. Sony doesn't need Microsoft for anything, xbox could go away right now and it wouldn't have any effect on the other 2 platform holders competitiveness.

[StarkR3ality]

@derek

Will it would but okay.

[PunksOnN4G]

bro what are u talking about all xbxo had was redfal land hifi before that it was Halo infinite before that u were on a 3 year run of no 1st party titles on xbox one when that was around soo its ok man just say ur upset

[StarkR3ality]

Why would I be upset? I have literally said nothing to defend Xbox? I have both platforms, but if you guys don't think Xbox doing shit doesn't effect Sony you're being silly.

Xbox have been shite, but Sony are clearly showing a drop off too, it happens when people get comfortable, not even talking about game consoles it's human nature.

[TheEnigma313]

Sony doesn't need competition. They flourish despite what MS does

[Doomeduk]

@stark doing the old switcheroo yeah Xbox something something ...but playstation!
Playstation has Nintendo for company in the ,80+ league
Yes starfield but it's still lipstick on a pig

[FinalFantasyFanatic]

I'm not exactly happy with Playstation, but Xbox hasn't been major competition for them in many years (since sometime in the Xone generation), and I don't see Xbox making a return to form like in the 360 days.

I feel like Sony's problem is more Jim Ryan and the new direction they've headed in the last few years plus.

[Z501]

"What about Sony"

smh

[crazyCoconuts]

PS released GOW Rag late last year (masterpiece), a new VR headset this year with a new Horizon game, an expansion for Horizon FW, and a Spiderman on it's way, which based on prior experience will probably be awesome. I mean, seems like Sony is keeping it's momentum as far as I can tell

[MIDGETonSTILTS17]

I guess Redfail wasn’t the content-bandaid they hoped for, and Starfield can’t release fast enough…

Next gen, try making a game or two for the first half of the console’s lifecycle…. That shouldn’t be a big ask.

[Lightning77]

Mid Fall did nothing for them, it was a failure. At the the time it was only 2 years since MS bought those studios remember the CGI they showed in 2020? They finally have a 2024 line up though. Games take 4 to 6+ years to make. Makes sense why it's taken them this long to release something.

[MIDGETonSTILTS17]

If Sony and Nintendo can launch the PS5 and Switch with games, then so can Xbox with the sX.

How do you think this works, devs don’t get the console until the consumers? Haa! It’s called devkits YEARS in advance, and nobody produced anything with the devkits for the sX and sS, but they did for Sony and Nintendo.

That isn’t an accident, Xbox simply failed where their competitors succeeded.

Xbox’s entire 2024 lineup, aside from Senua 2, are games that were bought with Zenimax. They are for the most part NOT games that they’ve been polishing for the last 4-6 years.

We are yet to play anything designed from the ground up for the sX, even though Nintendo and Sony have managed this under the same circumstances.

I loved the Xbox over the ps2, but Xbox is yet to end their decade+ drought.

I know games take 4-6 years to make. This isn’t different for Xbox, or it’s competition.

Xbox has zero excuse for their limited output since the latter half of the 360 era.

[crazyCoconuts]

Outside looking in, I think a big factor is what happens to these studios once they come under the MS wing. Forza managed to get lapped by GT7 based on release date. We know what happened to their premier IP Halo. Things have a habit of going to shite under MS, and some of these new IPs they've acquired and are acquiring aren't in fantastic shape going in. Feels like we're giving an under performing manager a huge team, which seems counterintuitive.

[MrBaskerville]

So in 6 years they'll have around 36 games. That'll be some year!

With that said, I think we'll see more games from 2024 and onward. Seems like they afe finally kicking into gear, through Bethesda they've had a lot this year.

[andy85]

If games take 4 to 6 years...it's not like the Xbox brand is new. They've had 20 years to get a stream of games flowing.

[Zhipp]

@MIDGET
Avowed and Flight Simulator 2024 are not Bethesda games. In fact, Zenimax has no officially announced games for 2024. Most of the titles at the Xbox showcase were either 2nd party deals or exactly what you're saying -- games M$ studios have been polishing for 4-6 years.

M$ output for the Series S/X has been poor, yes, but it's still important to keep your facts straight.

[Zhipp]

@CrazyCoconut
Turn 10 was founded by M$, so I don't think any current problems may be facing have to do with them coming "under the MS wing".

Even Bungie was owned by Microsoft the entire time they were making Halo. Gears would be a better example of that, depending on who you ask. I think both those series suffer from fatigue, though. M$ likely should have let them die when their respective studios wanted to move on. Then they could have potentially attempted a reboot down the line with truly fresh ideas.

[4Sh0w]

Did anybody notice:
"As usual, we should clarify that the data is related to the quarter between April 1, 2022, and June 30, 2022."
https://techraptor.net/gami...

Redfall? Huh? You guys making claims when you don'teven understandwhat you read...This is last year, as in a qtr from over 1 year ago data? lol, thats pretty old which doesn't seem very useful for current analysis.

[Lightning77]

Why are they posting last year's data? That's very weird.

[Abriael]

Nah. That's my mistake. I just wrote 2022 instead of 2023. Oops. 😱

[Lightning77]

As expected there allot wrong in your post.

"If Sony and Nintendo can launch the PS5 and Switch with games, then so can Xbox with the sX."

I guess you missed the part where I said games take 4 to 6+ years to make? Sony and Nintendo had studios to release games way, way before MS did. That's pretty obvious. 2018 vs what 1999 2000?

"How do you think this works, devs don’t get the console until the consumers? Haa! It’s called devkits YEARS in advance, and nobody produced anything with the devkits for the sX and sS, but they did for Sony and Nintendo."

Yeah and years in advance those studios were just Starting all there projects. 2018 to 2020 is only 2 years, no time at all vs 4 or 5 years for Sony, simple math. Especially if we're talking about making games from scratch. Then ppl complain they don't make games because they're "taking too long" they only buy games. The ever changing narrative.

"Xbox’s entire 2024 lineup, aside from Senua 2, are games that were bought with Zenimax. They are for the most part NOT games that they’ve been polishing for the last 4-6 years"

Hellblade 2, Towerborne, Flight Simulator 2024 and Avowed. None are by Bethesda so what are you talking about? Guess what next year would be 6 years since those acquisitions now they're we're seeing the fruits.

"We are yet to play anything designed from the ground up for the sX, even though Nintendo and Sony have managed this under the same circumstances."

There's only a handful of games designed for PS5 more than Xbox but nothing to write home about.

[ApocalypseShadow]

He didn't miss that part. He just knows what you're saying is bullshit.

They have way more money. They could have built up to two to three teams per developer like Sony. They have had plenty of time. But it's the same Halo, Forza formula. Minus Gears because they ran that into the ground. Halo is on life support and missing features from previous games. And Forza is just more Forza.

Almost everything that has released or coming soon was publisher purchases. Nintendo doesn't have Microsoft money. But can bang out a multi million selling hit game almost every time. Microsoft just doesn't want to. That's just the reality. They don't care. They never cared. They only care about services and profits while doing little work. You can't be that big, have that much money, but do less than Nintendo. We won't even go there with Sony. Microsoft's output doesn't even come close to Sony.

And, they don't care about hardware. As they are grooming its base to care about digital services and subscriptions. Using other company's games. Low effort for maximum profit. Sony puts maximum effort to achieve maximum profit. And it's worked every time. How Microsoft hasn't learned that is anyone's guess other than they don't care to learn.

[Lightning77]

@Shadow as you usual you added absolutely nothing, nothing at all.

"He didn't miss that part. He just knows what you're saying is bullshit."

Yet doesn't tell me how I'm wrong. You just wasted your own time.

[AndrewM]

Just re read his and your arguments, you should notice where you got everything wrong.

[Lightning77]

Ok lets see.

"They have way more money. They could have built up to two to three teams per developer like Sony. They have had plenty of time. "

2018 to 2020 is not enough time to release AAA games... Facts Even after Sony skipped last year's showcase and showed up this year and their major first party still wasn't there. So wheres all this illogical outcry towards Sony? Oh is it because their games will take time to make? Wow who would of thought right?! Such a revelation all of sudden!

"Nintendo doesn't have Microsoft money. But can bang out a multi million selling hit game almost every time. Microsoft just doesn't want to."

Nintendo has had studios since its inception. 30 years vs 5 years. Simple math kiddos why even argue that super simple logic.

As for the rest of your statement. It's all just drivel and pure nonsense considering they have games releasing next year and in 2025. This the only site where I see ppl constantly argue against facts it's quite fascinating to see. Like wow really now?

@Andew wrong about what?

MS bought studios in 2018 it takes 4 to 6 years to make games... facts. They revealed their 2024 line up and even teased 2025 (South Of Midnight, Clock Work) Facts....

But please show me where I'm wrong go ahead kiddo.

Too bad your way of thinking doesn't change facts. You all have a losing argument (like y'all always do) don't even waste your time.

[Kyizen]

Starfall isn't the game MS is looking for. Hardware seller for sure but gamepass subscription will live off on going live service games, not single player rpgs.

[sparky77]

Considering they haven't done any marketing what's so ever it shocking they see any growth.

They really need to do a Kinect budget Game Pass marketing campaign if they want to increase numbers. I see Playstation ads constantly the last time I saw an Xbox ad was for Cyberpunk.

[MIDGETonSTILTS17]

The VGAs were one giant Game Pass ad for Xbox…

[sparky77]

The people watching the VGAs already know about Game Pass they need to do a mainstream ad campaign.

[MIDGETonSTILTS17]

They need games, this isn’t new.

Pitch new ideas all you want, consoles need games, and the Xbox consoles have lacked AAA exclusives since the latter half of the 360 era.

I was promised for a decade+ that “the games ARE coming”, and it turns out I was lied to. They had nothing good in the pipeline all this time…

People don’t forget.

[Eonjay]

Kinect? I think they are waiting for their ABK deal to close then you should expect a revamped GP campaign.

[MrBaskerville]

Everybody talks about Gamepass non stop, including MS at all their events.

What they really need is more consoles in peoples houses. They might be reaching a limit for what they can achieve from the pc base. Starfield will also give them a boost, I know I'll subscribe for month when forza releases and then spend a month playing both as much as possible.

[MIDGETonSTILTS17]

No shit their Game Pas sub numbers are limited by the size of their console base…

It’s like nobody wants to spend $500 on a console to play a sub service that only gives access to games available everywhere else…

It’s simple: make games for your console, and then sell consoles to people that want to play those games.

Any attempt to over complicate this ^^ truth of the market is an attempt to obscure Xbox’s objective failing: AAA output.

[ChasterMies]

Windows OS is an Xbox ad. This site is one big Xbox ad most of the time. There are Xbox ads everywhere.

[Rimeskeem]

You really do live under a rock if you think they haven't been marketing gamepass.

[FinalFantasyFanatic]

Actually, I don't see many Playstation ads these days either, but almost everyone I know who wants wants a gaming system at least has a Playstation or a Switch.

I think the issue is that Xbox doesn't have any content or system sellers to attract people away from the other two, if you offered any one of the consoles between the three, it'd be a tossup between the Playstation and the Switch because of the games.

I don't think anyone cares about Kinect either, it's been a while since there was any compelling software for Kinect if I understand your comment correctly.

[shadowT]

Xbox Hardware Down 13% - and they will raise Xbox Series X prices?

[Eonjay]

I think it's all connected. So their ultimate goal is to get more subs. Right now their hardware is down and it's their greatest source of new subs probably. At the same time we are seeing Series X shortages and price increases.

I think they are gonna make a play to bring GP to other devices besides TV.

Specifically I mean other consoles. That's right you heard it hear first! GP is coming to Switch 2 and PlayStation!

Either that of find a way to move hardware.

[crazyCoconuts]

They'd have to bend Sony and Nintendo over something mighty big to accept GamePass on their platforms. It would certainly be an existential threat

[fr0sty]

Even more evidence that they are eventually going to exit hardware entirely and rely on putting gamepass on as many systems as they possibly can. I've been calling this since the Xbox One launched. They've never made a profit on their hardware, they are publicly saying they are in last place and no amount of good games is going to change that (which is why they are in last place)... Before long Nadella is going to pull the plug on the hardware division.

[andy85]

Would it be a threat though? I don't think for a second it will happen but how many PS guys would get GP if it you could get i.t on PS. If I didn't have my sub already I would. It'd bring even more Xbox players over to PS as well.

[crazyCoconuts]

@andy, yeah their business IS the platform and requires that PS is the only viable market place on it, so that they can sell you third party games and take a cut. XBGP on PS/Nintendo would threaten the entire business model, and they would most likely go the way of Sega. The WHOLE point of exclusives is to draw customers into their ecosystem so that you buy non-exclusives via their maketplace

[AmUnRa]

When you think that Sony allows GamePass on Playstation and in doing so hurting theyr own service, you are delusional.....

[FinalFantasyFanatic]

I can see them pushing Game Pass to android TV and Nividia Shield, but there's no way Sony or Nintendo will accept Game Pass on their systems without a fight. I'm really not surprised if Xbox exits the console hardware space sometime in the future, they're all in on Game Pass anyway, and I think anyone who wants it on PC/Xbox already has it.

[tay8701]

Why on earth would Sony allow gamepass on ps5? Not going to happen. They aren't going to let MS to try and Trojan horse. Lol

[Destiny1080]

Hardware Sales Down 13%

they've sold 2 million for the first half of the year, there currently on track to sell 4 million by the end of the year

[badz149]

Only 4mil? Kinda patheticly low don't you think?

[Zhipp]

That's awefully low, but also not how sales work. The last half of the year is usually much faster than the first half due to the massive sales boost in November/December.

[EasilyTheBest]

Overall Microsoft is now worth $2.6 trillion, and its worth has increased $800 billion just this year.
That is totally insane.

[ChasterMies]

Microsoft makes an insane amount of money from Windows, Office, and Azure that lets it buy any publisher it wants. Xbox doesn’t have to be successful.

[Aloymetal]

With that amount of money and 20 yrs in the gaming market, they should be pumping out AAA games non stop but nope.

[Ninver]

Just shows how incompetent they truly are. Imagine if Sony or Nintendo had that kind of budget at their disposal? Good God!

[Reaper22_]

Xbox seems to be doing well this year. With Starfield coming and the Activision deal closing things are looking good for the rest of the year.

[TheColbertinator]

With Call of Duty and Game Pass, Microsoft can begin market supremacy for good this time.

[jznrpg]

1% too much.

If you aren’t interested in gamepass what is there? That’s all they advertise.
Gamepass is their focus but people that don’t want it skip Xbox.

[gold_drake]

bad numbers for sure.
hardware sales down 13%. damn.

if they'd focus more on their games instead of buying up stuff, it wouldnt look that bad.

its really surprising that Phil still has a job after those reports

[Reaper22_]

Those aren't bad numbers...lol Console sales are good but more money comes from the software and services side.

Then you say they should focus more on games. What do you think the Activision purchase is about? They are going to make billions on that alone. Owning Activision is gonna give them a bigger cut of the profits.

[Aloymetal]

Always bringing up how much money MS makes while ignoring how pathetic and anemic their games output are. You keep counting MS's money and how far behind they are in market share while we keep counting how many goty contenders we have.

[dumahim]

Yes it is.

"This is below the expectations spelled at the previous financial conference call, which mentioned overall revenue growth for gaming to be in the mid-to-high single digits and Xbox content and services to grow in the low to mid-teens... "

Looks like their stock price is going to take a decent hit with these results.

[Hofstaderman]

Wait till 2024 for games but consoles released in 2020?

[Lightning77]

Yeah it's called game development.

[Hofstaderman]

Lightning each console is released with games already developed for it. It’s called a launch lineup. Typically yes there is a year or so dry spell before the second wave of games hit systems after the console launch but cmon man four years without anything substantial? Please man.

[Aloymetal]

Nah, it's called ''bad development strategy'' every one in the gaming industry have released a bunch of current gen games except MS of course. I guess they need another 20 yrs in the gaming industry...

[FinalFantasyFanatic]

How does that explain Playstation and Nintendo though? Why do they have so many games and Microsoft doesn't? The PS5/Series X released at roughly the same time so they should roughly be even game-wise... Should be.

[Lightning77]

Too much illogical crying going on here. Tell me is 2018 to 2020 enough time to release games yes or no?

Again PS and Nintendo has a bad studios for over 20 years now. MS only 5 years. Only been releasing the same boring Halo, gears, Forza. Allot of their first party is being made from from the ground up and they teased a few of those. It's all common freakin sense. You all need to keep up or get with it. It's simple math and logic a toddler can understand it.

[Cockney]

You keep bringing up the 2018 thing, they've been in consoles for decades, what on earth were they doing up until 2018?

[Tedakin]

It's going to be interesting what the MS's gaming numbers look like next year when COD and all the King games, etc, are factored in.

[derek]

Yet they will continue to buy large chunks of the industry in hopes of forcing consumers into join their ecosystem. It's well past the time for Microsoft to stop pretending they care at all about gaming.

[Reaper22_]

If they don't care they're doing some strange things buying up publishers. Microsoft is thinking ahead and that's a smart thing to do. If sony could do the same they would. As a matter of fact they are doing the same but in baby steps because they aren't and will never be as cash rich as Microsoft. I'm glad Microsoft is doing what they're doing. We need variety in the gaming industry. Besides, who wants 3 console makes that are doing the exact same thing?

[Aloymetal]

''Microsoft is thinking ahead and that's a smart thing to do.''
Yeah after 20+yrs in the industry they now realized that...
''If sony could do the same they would. As a matter of fact they are doing the same but in baby steps because they aren't and will never be as cash rich as Microsoft.''
Sony doesn't need to because with pennies in the bank still kicking MS's behind. Your defense for MS is only highlighting their pathetic behavior.
''We need variety in the gaming industry.''
Like what? Halos Gears and Forzas every gen? Sony has a bunch of new IP's variety is more than fine on the blue side.

[FinalFantasyFanatic]

Xbox has never been the king of content/variety, it's the same 3 or 4 franchises every few years or every console generation.

[derek]

Microsoft has a history of abandoning ventures as soon as they don't go the way they expect them to.

[Doomeduk]

After 20 years in the game with IPs like crimson skys and jade empire plus many others that the fans are screaming for sequels it should have been laid out on a plate for MS to get their teeth into but no they release mediocre crap like redfall and crackdown.no flagship titles getting the love ,if playstation released uncharted or ratchet and clank in redfall or halo's state Sony would be ripped apart but in MS case it's excuses which I'd expect from MS but for gamers to defend their shoddy work is borderline crazy

[FinalFantasyFanatic]

They have so many IPs they could revive it's not funny, what about all those Rare titles that they've done nothing with for 20 years? So many IPs and it's depressing that they're all dead and buried, I expect alot of Activision/Blizzard's IPs to go the same way if they get acquired.

[Kyizen]

Hardware down 13%. I'm still predicting MS is going to try to be the Netflix of gaming. With studio acquisitions and cloud gaming they can make an Xbox dongle or app for smart tvs and have a huge catalog of games for a subscription.

[DefenderOfDoom2]

I really just want Microsoft to develop some really awesome 1st party games .

[Dandizzle]

who cares about how much money MS made?