MS Quarter results: xbox hardware revenue down 33%

[Legend]

Yippee!

[darkknightkryta]

I expect a quarter of 20 billion dollars.

[ethomaz]

Well they stopped to give numbers so nobody cares anymore.

[Mmm_fish_tacos]

The profits will be huge! Best profits ever the best.

[Legend]

Well they stopped to give numbers so nobody cares anymore.

We'll potentially get statements about XBOX games being on PC, right?

[ethomaz]

We'll potentially get statements about XBOX games being on PC, right?

And billion hours played on Xbox Ecosystem

[Xevross]

Get hyped for nothing!

[ethomaz]

Gaming...

• Xbox Live monthly active users grew 33% year-over-year to 49 million.
• Gaming revenue decreased $152 million or 9%, primarily due to lower Xbox hardware revenue.
• Xbox hardware revenue decreased 33%.

Non-gaming...

• Azure revenue grew 102% (up 108% in constant currency) with Azure compute usage more than doubling year-over-year
• Windows OEM non-Pro revenue grew 27% (up 27% in constant currency), outpacing the consumer PC market, and Windows OEM Pro revenue grew 2% (up 2% in constant currency)
• Server products and cloud services revenue increased 5% (up 8% in constant currency) driven by double-digit annuity revenue growth
• Phone revenue declined 71% (down 70% in constant currency)

Etho's summary....

• Everything else UP
• Xbox DOWN

[Legend]

Interesting!

Lower volume of systems sold, or less profit per system?

[ethomaz]

Interesting!

Lower volume of systems sold, or less profit per system?

whynotboth

BTW GAF is saying last quarter Live MAU was 46 million... 3 million increased this quarter.

From GAF.

FY16 Q1
https://www.microsoft.com/en-us/Inve...elease-webcast
39 million

FY16 Q2
https://www.microsoft.com/en-us/Inve...elease-webcast
48 million

FY16 Q3
https://www.microsoft.com/en-us/Inve...elease-webcast
46 million

FY16 Q4
https://www.microsoft.com/en-us/Inve...elease-webcast
49 million

[DerNebel]

Interesting!

Lower volume of systems sold, or less profit per system?

Revenue not profit. So the question would be how much cheaper an Xbox One was on average in FY16 vs. FY15, usually I would say the console being on average 33% or more cheaper in 2016 is ridiculous, but we are talking about the X1 here so who knows, these things drop in prize all the time.

[ethomaz]

Revenue not profit. So the question would be how much cheaper an Xbox One was on average in FY16 vs. FY15, usually I would say the console being on average 33% or more cheaper in 2016 is ridiculous, but we are talking about the X1 here so who knows, these things drop in prize all the time.

It is both... full quote.

"Gaming revenue decreased $152 million or 9%, primarily due to lower Xbox hardware revenue, offset in part by higher revenue from Xbox Live. Xbox hardware revenue decreased 33%, mainly due to a decline in consoles sold and lower prices of consoles sold. Xbox Live revenue increased 4%, driven by higher volume of transactions and revenue per transaction."

[ethomaz]

Across all of its businesses, Microsoft was down 4 percent year-over-year, and it points to Xbox One as one of the reasons for that decline.

Microsoft's Xbox and gaming sales decline 9% on eve of Xbox One S release | GamesBeat | Games | by Jeff Grubb

[Dr. Pezus]

Microsoft's Xbox and gaming sales decline 9% on eve of Xbox One S release | GamesBeat | Games | by Jeff Grubb

I don't think Xbox can account for such a big drop overall...

[darkknightkryta]

What's their profit margins though? I mean how much of a loss are Xboxes sold for?