Microsoft gaming revenue for Q4 2021

[The Mad Titan]

They have never given profit numbers

 

[MeachTheMonster]

Sorry, I was referring to the fiscal quarter not year.

For the fiscal quarter (Jan-Mar 2021) Playstation made 6.24 Billion in Revenue (up 52% from the same time the previous year) and 0.312 Billion in profit (down 28% from the same time the previous year) . More money came in (hardware sales) but they were less profitable from lower software sales (and probably very little margin if any on the hardware sales)

For the fiscal year of Apr 2020 - March 2021, Playstation made 25 Billion Revenue(up 34% from the previous fiscal year) and 3.23 Billion in profit (up 44% from the previous fiscal year)



If Xbox was profitable, they would've said it. Standard PR stuff. They wouldn't give a number, since it would be lower than both Sony and Nintendo, but they would say something like X% higher than last year or whatever. This past quarter, I highly doubt Xbox was profitable especially when comparing it with Sony's numbers. Microsoft would incur similar costs to Sony for launching new consoles but Sony sells more software and microtransactions than MS to turn profits.

Your math was off and it’s all made up in your head anyway.

 

[winb83]

After seeing Sony’s numbers today its clear to me that Xbox is losing money (or at least lost money this past quarter).

Sony made 6.2 billion in revenue compared to 3.5 billion. Sony ‘only’ made ~300 million profit. This is despite the fact that they combined a healthy PS4 userbase to PS5 numbers in regards to game sales and DLC add ons.

MS is the type to throw rocks and hide their hands. By that I mean, they have great PR and steal headlines but when its time to disclose numbers they hide things like well you know…operating profit which is the true barometer for how they are growing.

operating profit isn't the true barometer of growth. Revenue growth is. Most growth businesses are trying to grow revenue and get to probability afterward. Xbox as the service it's transitioning to is in growth mode right now.

 

[winb83]

If Xbox was profitable, they would've said it. Standard PR stuff. They wouldn't give a number, since it would be lower than both Sony and Nintendo, but they would say something like X% higher than last year or whatever. This past quarter, I highly doubt Xbox was profitable especially when comparing it with Sony's numbers. Microsoft would incur similar costs to Sony for launching new consoles but Sony sells more software and microtransactions than MS to turn profits.

The part of the division that Xbox is a part of is profitable in terms of operating income. It generated $4.5 billion in operating income. Now that division includes Bing and search, Windows, Surface, and Xbox. There isn't a breakdown of what in that division generated what of the operating income. This is from looking at Microsoft's 10-Q.

The level of detail you're asking for isn't something they're going to give. It's like asking how much of Microsoft's profit did LinkedIn generate? The only real way we'd get those answers is if Xbox was pulled out of More Personal Computing and set as it's own segment of the company.

I mean there's 3 general segments and they make sense when you look at them. I'm not an investor in Sony so I don't really know how they segment their company but I'd imagine PlayStation is it's own segment over there because gaming is far more important to Sony than Microsoft.

 

[Tim Lord]

operating profit isn't the true barometer of growth. Revenue growth is. Most growth businesses are trying to grow revenue and get to probability afterward. Xbox as the service it's transitioning to is in growth mode right now.

My bad, in my haste I put 'growth' which is incorrect. I should have put 'health'/'sustainability'. That said, 20 years later and Xbox is still trying to find its place in gaming. This is because every console generation, they are re-positioning their purpose.

Original Xbox = PC gaming in a console, just get their foot in the door and a box under the TV
Xbox 360 (their best one) = games were the focus
Xbox 'One' = All-in-One entertainment box
Xbox Series = Games as a service/Game Pass/Subscriptions

I think this is actually part of a larger conversation as to why big tech companies keep entering the core gaming market and failing. They think they can set the trend, throw money at the situation and then profit. This is not the case. Gamers just want games...quality games. Nintendo is out here still charging full price for games that launched with Switch, Sony is out here increasing the price of first party games. Big tech never focuses on building studios and releasing quality content at any sort of cadence.

Edit: I do appreciate MS being in the race as it keeps Sony honest.

The part of the division that Xbox is a part of is profitable in terms of operating income. It generated $4.5 billion in operating income. Now that division includes Bing and search, Windows, Surface, and Xbox. There isn't a breakdown of what in that division generated what of the operating income. This is from looking at Microsoft's 10-Q.

The level of detail you're asking for isn't something they're going to give. It's like asking how much of Microsoft's profit did LinkedIn generate? The only real way we'd get those answers is if Xbox was pulled out of More Personal Computing and set as it's own segment of the company.

I mean there's 3 general segments and they make sense when you look at them. I'm not an investor in Sony so I don't really know how they segment their company but I'd imagine PlayStation is it's own segment over there because gaming is far more important to Sony than Microsoft.

Absolutely. I was aware of the market segments for MS. I did a real bad troll job there when I was asking for real numbers but my point was valid. MS doesn't release them anymore and I knew that. The most we get is this (from the most recent 10-Q):

• (Gross margin) increased ($892 million) or {14%}, driven by growth in Windows, Gaming, and Search advertising. {Gross margin percentage decreased}, driven by sales mix shift to Gaming. [read: dollars increased, profit decreased]

Only place I disagree with you is that it 'makes sense' to split the divisions this way. It is done by the corporation purely for optics. This way they can hide growing [read: spending more than earning] sectors under a much more profitable umbrella of products. As an investor, it doesn't give any granularity on how what business is worth pursuing or which is worth axing. The fight for users attention, which gaming is apart of, is more competitive than ever. It will be interesting to see how it all plays out over the next few years.

 

[winb83]

My bad, in my haste I put 'growth' which is incorrect. I should have put 'health'/'sustainability'. That said, 20 years later and Xbox is still trying to find its place in gaming. This is because every console generation, they are re-positioning their purpose.

Original Xbox = PC gaming in a console, just get their foot in the door and a box under the TV
Xbox 360 (their best one) = games were the focus
Xbox 'One' = All-in-One entertainment box
Xbox Series = Games as a service/Game Pass/Subscriptions

I think this is actually part of a larger conversation as to why big tech companies keep entering the core gaming market and failing. They think they can set the trend, throw money at the situation and then profit. This is not the case. Gamers just want games...quality games. Nintendo is out here still charging full price for games that launched with Switch, Sony is out here increasing the price of first party games. Big tech never focuses on building studios and releasing quality content at any sort of cadence.

Edit: I do appreciate MS being in the race as it keeps Sony honest.



Absolutely. I was aware of the market segments for MS. I did a real bad troll job there when I was asking for real numbers but my point was valid. MS doesn't release them anymore and I knew that. The most we get is this (from the most recent 10-Q):

• (Gross margin) increased ($892 million) or {14%}, driven by growth in Windows, Gaming, and Search advertising. {Gross margin percentage decreased}, driven by sales mix shift to Gaming. [read: dollars increased, profit decreased]

Only place I disagree with you is that it 'makes sense' to split the divisions this way. It is done by the corporation purely for optics. This way they can hide growing [read: spending more than earning] sectors under a much more profitable umbrella of products. As an investor, it doesn't give any granularity on how what business is worth pursuing or which is worth axing. The fight for users attention, which gaming is apart of, is more competitive than ever. It will be interesting to see how it all plays out over the next few years.

Microsoft has one of the best CEOs out there. I’d blindly trust his judgment on the gaming sector if he wants to incubate it behind closed doors. The turnaround job he did at that company is amazing. It’s one of my best preforming blue chip stocks.

 

[PS5 Pro]

Microsoft has one of the best CEOs out there. I’d blindly trust his judgment on the gaming sector if he wants to incubate it behind closed doors. The turnaround job he did at that company is amazing. It’s one of my best preforming blue chip stocks.

Game.... set.... you can't match

 

[Greenhornet]

insecure sony fans arguing about money they dont have once again

 

[iceberg_is_on_fire]

Microsoft has one of the best CEOs out there. I’d blindly trust his judgment on the gaming sector if he wants to incubate it behind closed doors. The turnaround job he did at that company is amazing. It’s one of my best preforming blue chip stocks.

I never cared for Ballmer, he was too conservative. Obvious things like releasing office apps on iPad and Android or Nokia phones having android or buying minecraft the first time around. I just looked, Word, Excel, PowerPoint and OneDrive are all over 1 billion downloads on Android alone. Sure, the surface started under Ballmer but azure got accelerated under Nadella. Everything is so forward thinking. Yeah, Phil Spencer is the face of Xbox and trust in him is as high as its ever been in Microsoft but it's all at the top brehs. Nadella is the wunderkind here. It's why I've always maintained that when the world's best software company ever began to give a shyt about the numbers gaming produced, they will play the long game and figure out and push it farther than everyone else because they have the ability to push it farther given the money and technological knowledge. It requires me to suspend belief to believe otherwise. Satya is seemingly convinced the future of Microsoft runs parallel with Xbox. Hell or high water, I believe that they will get home on that ideal, money be damned.