Microsoft FY 2023 Q3 (-30% down hardware, -4% down gaming revenue)

[the-pi-guy]

Microsoft FY 2023 Q3:

Using the reported decline of 4%, quarterly gaming revenue was ~ $3.59B.

Annual Xbox sales are just above $15.4B right now.

Xbox Content & Services is upwards of $12B, or 78% of the total based on my math.

Here's annualized Xbox business sales over time. pic.twitter.com/Dnmeo8COVS

— Dom (@DomsPlaying) April 25, 2023

[kitler53]

not sure about gaming specifically but MS stock is surging so it must be good news overall.

[Legend]

30% drop in hardware is big.

I wish we knew how that broke down between s and x.

[kitler53]

30% drop in hardware is big.

I wish we knew how that broke down between s and x.

but that's measured by revenue.  

i think that with the several stock shortages in series X means that customers have been buying the 40% cheaper series S which means unit sales are actually up ~10%!!!

[the-pi-guy]

- few first party games (none last year)
- limited interest in the Series S
- Series X is still having shortages


More surprised that gaming revenue didn't drop much, with how huge the hardware drop seems to be.

[the-pi-guy]

Xbox hardware revenue for last quarter was the lowest since the July to September 2020 quarter.

Microsoft has to fix this. Content and Services are doing great. Only a slight decline quarter to quarter.

— John Welfare (@Welfare_JBP) April 25, 2023

That's insane.

[Legend]

Xbox hardware revenue for last quarter was the lowest since the July to September 2020 quarter.

Microsoft has to fix this. Content and Services are doing great. Only a slight decline quarter to quarter.

— John Welfare (@Welfare_JBP) April 25, 2023

That's insane.

PC growth could explain a small amount of that drop, but it's still a pretty bad sign.

but that's measured by revenue.  

i think that with the several stock shortages in series X means that customers have been buying the 40% cheaper series S which means unit sales are actually up ~10%!!!

Guess they need to raise the series s price.

[the-pi-guy]

Microsoft CEO Satya Nadella on Xbox in Q3, 2023 fiscal. "We set third quarter records for monthly active users and devices." Nearly $1 billion in revenue from subscriptions this quarter, too https://t.co/B3F63fH6bG pic.twitter.com/xVqrYwNGIh

— Tom Warren (@tomwarren) April 25, 2023

PC growth could explain a small amount of that drop, but it's still a pretty bad sign.

I mean I don't think that Series X's have been very available. Not like PS5 has been these past few months.  

I wonder if the Series S was a bad bet.  

Subscriptions seem to be holding up Xbox a bit, through their poor first party line up.

[kitler53]

series S is the proof that MS cloud gaming initiative is doomed to fail.  

the cost of hardware is not a significant deterrent to gaming.  hell the cost of software is not a significant deterrent to gaming.  

what drives or limits sales is the availability of high quality games.