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.

[darthv72]

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.

[solideagle]

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

[Sonic1881]

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

[dveio]

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:

[Lightning77]

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

[Cacabunga]

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.

[darthv72]

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.

[neutralgamer1992]

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

[shinoff2183]

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.

[Cacabunga]

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

[itsmebryan]

@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

[S2Killinit]

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.

[MetroidFREAK21]

K great. Enjoy. No one asked

[TheEroica]

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.

[Chevalier]

@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/...

[itsmebryan]

@chevalier

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

[purple101]

Xbox hardware revenue tanks to lowest point of Xbox Series generation

[Profchaos]

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

[DOMination-]

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.

[XBManiac]

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

[SimpleDad]

"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.

[purple101]

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

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

[Profchaos]

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

[Kornholic]

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

[MrDead]

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.

[proudly_X]

This stuff has taught be a lot about life...

That you have money, doesn't mean you can succeed in all things. It's unbelievable how Stadia failed woefully even with Google's huge financial chest.

Microsoft has been holding off, with senseless mega acquisitions with the hopes of assumptive results which will likely fall like a pack of cards when the chips are down.

Somebody type money under this comment :D

[PassNextquestion]

So it seems Activision Blizzard was a good purchase as its the only thing keeping Microsoft gaming revenue in the black

[anast]

The series S was a short term gain for a long term loss.

[purple101]

That’s a good way to put it actually

[Magatsuhi]

This is why Sony should not bother porting over HD2 to Xbox. Why would you release to a dying console while simultaneously insulting your fan base in doing so? MS is a cancer and they need to kill off their Xbox brand and stay away from any influential positions in the future. They got no money from me in my windows installation and I'm also thinking of switching to Linux. F MS!

[purple101]

I gone to Mac
The audio options and drivers on windows pissed me off to much when using music software, constant updates and crashing and restarting. Kinda spoils the magic of ‘getting in the flow’ when trying to record etc

[CantThinkOfAUsername]

Ironically, Helldivers 2 is the type of game to make Xbox fans spend money on the platform.

[PassNextquestion]

Agreed. That's the sort of game Xbox players actually play. There are probably plenty of xbox owners playing this game either on their Playstation console or on their PC. In my case, Xbox owner, my brother and I are interested and will probably buy it on steam.

[itsmebryan]

@mag

Because Sony needs the money. Their operating income is down 26% and it show PS5 game and console sales aren't enough.

Do you think Sony is doing well financially? Didn't there stock lose $10 billion in value recently?

[Magatsuhi]

And releasing on a dying console solves that issue how? Definitely not by selling to 30 extra players.

[JL2930]

What a special little fangirl you are, Sony putting their games on other platforms insults you? Pathetic.

They need someone to buy them because there's not enough people like you.

https://www.cnbc.com/2024/0...

[dveio]

So, gaming revenue is only up because of AB.

Hardware revenue has tanked being 31% down year-on-year.

Xbox services and content would only be up 1% without AB.

All in all summing up at a loss of 350 million USD.

[PhillyDonJawn]

22 billion net in 1 quarter. That's insane

[gold_drake]

damn 31% down? thats a massive drop.

[purple101]

They are not even gonna sell 5 million this year
By their own projections. It’s over

[PassNextquestion]

They have already sold about 27 million consoles. If they sell another 5 million that brings them up to 32 million. Even if that's all they sell for the rest of the generation they have out sold or equal to the following consoles -

. Nintendo Wii U
. Nintendo Gamecube
. Nintendo 64
. Dreamcast
. Sega Saturn
. Xbox

And all the above consoles were great with fantastic games

[purple101]

@pass. Those were all considered failures

Except the n64 which was great although it didn’t sell as much as the SNES before it (which sold 49 million)

It was selling very well and was better than ps1 in many ways. But yeh n64 hard a hard time because ps1 came along and decimated it, with 100 million. The cds were cheaper to produce than cartridges. Also the problem of game soundtracks which were easy to put on cd but took up costly storage on a cartridge. Ps2 included a dvd player, ps3 a Blu-ray player, ps4 they made the controller bigger so more comfortable for western hands, the rest they say is history

[-Foxtrot]

"Microsoft is "committed to meeting players where they are." Microsoft will do this by "bringing great games to more people on more devices," the executive said"

Says it all really

By the end of next year we will have games like Starfield on the PS

[PRIMORDUS]

"Microsoft has a market cap or net worth of $2.97 trillion" Awww, so sorry you lost a bit of money, let's hope you won't go chapter 11 🤣 Fucking greedy shit bags.