Microsoft FY19Q4 financial results

[WhiteWolf]

Forum activity is worst than Xbox one sales in India. So i decided to create this thread .

 

 

MS making money but not on Xbox hardware. 

 

 

Gaming revenue decreased $233 million or 10%. Xbox hardware revenue declined 48%, primarily due to a decrease in volume of consoles sold. Xbox software and services revenue declined 3% against a high prior year comparable from a third-party title, offset in part by subscriptions growth.

 

Xbox hardware getting murdered by playanywhere. No one buying as system has no true exclusives. At this point i don't understand why MS is making Xbox hardware and not just becoming 3rd party publisher.

 

Xbox Live services went up 14%.. 

 

https://www.google.com/amp/s/www.theverge.com/platform/amp/2019/7/18/20699754/microsoft-q4-2019-earnings-cloud-services-surface-gaming

 

 

 

Quote

 

Overall company results are madness:

· Revenue was $33.7 billion and increased 12%

· Operating income was $12.4 billion and increased 20%

· Net income was $13.2 billion GAAP and $10.6 billion non-GAAP, and increased 49% and 21%, respectively

· Diluted earnings per share was $1.71 GAAP and $1.37 non-GAAP, and increased 50% and 21%, respectively

· GAAP results include a $2.6 billion net income tax benefit explained in the Non-GAAP Definition section below

 

 

 

MS making crazy money in other department except Xbox one hardware which is not at all surprising. 

Edited July 19, 2019 by WhiteWolf

[KyoyaHibari]

Invested in MS when it was 90$ now it’s close to 140$.

[WhiteWolf]

17 hours ago, KyoyaHibari said:

Invested in MS when it was 90$ now it’s close to 140$.

Was not expecting this reply 

[WhiteWolf]

4 hours ago, AnK said:

I don’t really think M$ is really out there to capture hardware market share like it did before 

 

look at it this way 

they are selling software & subscription in both PC & console market right now 

 

if they just discontinue Xbox 

they will have to sell on Playstation to maintain this level of revenue (or even go higher)

 

So why not just continue with it & enjoy both worlds

 

if Cloud gaming is successful in near future (like really distant future)

they will definitely pull the plug on Xbox

Now this i was expecting 

[kmkaks]

MS India sucks. Why don’t they give a sh*t about this market? It is a growing market right?

Edited July 20, 2019 by kmkaks

[Aftrunner]

MS is making no money on hardware. Ton on software.

 

MS should stop focusing on software. Focus on Hardware. 

 

^^Lessons from our financial expert Zodka.  

[WhiteWolf]

11 hours ago, Aftrunner said:

MS is making no money on hardware. Ton on software.

 

MS should stop focusing on software. Focus on Hardware. 

 

^^Lessons from our financial expert Zodka.  

I said they should focus on software and become publisher and leave selling console hardware to experts like Sony. 

[WhiteWolf]

15 hours ago, kmkaks said:

MS India sucks. Why don’t they give a sh*t about this market? It is a growing market right?

No one cares about Xbox here.  Why would anyone invest money on Xbox when all games on PC.

[Sach4life]

37 minutes ago, WhiteWolf said:

No one cares about Xbox here.  Why would anyone invest money on Xbox when all games on PC.

 

Because not everyone wants to build a pc and play on it? Not that hard to understand.

[WhiteWolf]

52 minutes ago, Sach4life said:

 

Because not everyone wants to build a pc and play on it? Not that hard to understand.

It creates a perception in mind of people that i can play those games somewhere else if i just wait then buying a console. 

 

If Gears 5 gets really good reviews like 90+. It's really good, will it move system?  No it won't. 

 

If Tlou 2 comes on PC day n date i bet you will see huge slow down on PS4 sale as well 

 

 

And in Asia 60% gaming market is PC and same in EU. U can't expect sell  console in these market without good true exclusives. Most gamers like yourself go with combination of PS4 and PC which gives them access to all games easy.

[WhiteWolf]

PS will not even sell 50m consoles if all exclusives are on PC day and date via PSN store app/client on PC. Exclusives drive sales. No console in history achieved success without having true exclusives. Im just stating a fact. People are free to disagree they want but that's my opinion on it. 

 

I will be shocked Scarlett sells even 10m without any exclusives. 

 

 

Xbox is not competitive anymore in console business and it's clear by what they doing 

Edited July 21, 2019 by WhiteWolf

[playstationdude]

Building a PC is not the end of it. Unless you're putting every state of the art component, once you build a Pc you need to tinker a lot for the optimal settings which is a bit annoying after a  certain point. 

With Xbox I just need to insert the disk and thats it, I'm set. I don't have to worry about finding the sweet spot cause the devs have take  care of it.

Convenience does matter a lot when you have limited time to spare for gaming, which is the case for most working people.

And thats not even factoring in the cost of a console vs PC. And yeah those arguments that a cheap mid range PC will be as good as a console are BS, because performance on such a PC is sh*t which I've had a hands on experience of.

 

[Heaven Angel]

Microsoft is “Well-Positioned” in what is going to be a much larger gaming market according to CEO

 

___

 

49 minutes ago, Playstationdude said:

once you build a Pc you need to tinker a lot for the optimal settings which is a bit annoying after a  certain point. 

 

Not at all actually. Pretty much every game these days automatically set ideal setting based on your configuration when you launch the game first time. You also get an option to change as you like along with multiple default presets from low to ultra. 

 

50 minutes ago, Playstationdude said:

And thats not even factoring in the cost of a console vs PC. And yeah those arguments that a cheap mid range PC will be as good as a console are BS, because performance on such a PC is sh*t which I've had a hands on experience of.

 

PCs are getting cheaper. You can find solid builds that can last for years without forcing you to upgrade. I'm still on 2010 rig and have only upgraded my GPU that too because I got a good deal. For 30fps/60fps medium at 1080p settings, you can pretty much use a decent PC for a decade before thinking of an upgrade. 

 

In a long run, PC ends up pretty cheap and with Microsoft games launching on PC, there is no point in investing in Xbox where you also have to pay for online. 

 

The PC is expensive and needs an upgrade every year perception is totally wrong. Having options to tinker settings to last longer is a luxury and not an annoyance. 

[Heaven Angel]

People will buy Xbox when there is something "worthy" to buy. Entire Xbox One cycle you can't find a single console selling type of a game while PS4 had a bunch of them. 

 

It's the same old Forza/Gears/Halo and it is going nowhere. Does anyone even remember other exclusive that was stellar? 2013-2019 - nothing and this year we get just another Gears game. 

[playstationdude]

14 minutes ago, Joe Cool said:

Microsoft is “Well-Positioned” in what is going to be a much larger gaming market according to CEO

 

___

 

 

Not at all actually. Pretty much every game these days automatically set ideal setting based on your configuration when you launch the game first time. You also get an option to change as you like along with multiple default presets from low to ultra. 

 

 

PCs are getting cheaper. You can find solid builds that can last for years without forcing you to upgrade. I'm still on 2010 rig and have only upgraded my GPU that too because I got a good deal. For 30fps/60fps medium at 1080p settings, you can pretty much use a decent PC for a decade before thinking of an upgrade. 

 

In a long run, PC ends up pretty cheap and with Microsoft games launching on PC, there is no point in investing in Xbox where you also have to pay for online. 

 

The PC is expensive and needs an upgrade every year perception is totally wrong. Having options to tinker settings to last longer is a luxury and not an annoyance. 

I dunno man, I'm using a 1050ti 4gb laptop and in theory  the settings are automatically set but the performance isn't satisfactory. i have to tinker around/lower the settings to get acceptable performance.

 

In theory 1050ti 4gb  laptop should give ne better performance than a ps4 but its a pain in the a*s to select the right option. 

For example, I tried hellblade and no amount of tinkering is giving me a smooth framerate. Gears 4 also fps drops at medium settings( some options are high by default).

Rime played fine but only on medium while the automatic selection was High.

 

As such the only pro of owning a PC seems to be no generational limitations. I can even pickup the 1990s Aladdin game on steam if I wanted to. So that is definitely a plus.

Edited July 21, 2019 by Playstationdude

[WhiteWolf]

3 hours ago, Joe Cool said:

People will buy Xbox when there is something "worthy" to buy. Entire Xbox One cycle you can't find a single console selling type of a game while PS4 had a bunch of them. 

 

It's the same old Forza/Gears/Halo and it is going nowhere. Does anyone even remember other exclusive that was stellar? 2013-2019 - nothing and this year we get just another Gears game. 

These same Gears ,Halo and Forza were moving million of units last gen . You may not like Gears or Halo but these are still highly popular system seller games but with Steam release they not anymore.  Gears 5 promises to have campaign which will be very different from previous Gears. Gears 5 will be in top seller list on Steam when it releases which will prove popularity of the game to u but it will not move boxes 

 

Xbox one sales were really high when Halo 5 released as true exclusive, it sold close to 2m units that month but that won't happen with Infinite even if it's really good with 90+ metacritic score and same goes for Gears 5 as both on Steam. 

 

If next  Fable is Witcher 3 level good, will it make you buy Xbox?  No. Majority of will still prefer playing on PC. There will be few who will get console but not enough to move units in big way.

 

 

Edited July 21, 2019 by WhiteWolf

[playstationdude]

@WhiteWolfYour arguments about xbox being dead next gem are based on the assumptions that either-

1. Xbox ownere already have a decent gaming pc

2. Gamers have no issue switching from consoles to PCs.

 

Convincing people to build a decent PC and switching over from console is easier said than done.

I don't think MS will have any trouble pushing Scarlett.

They definitely wont sell the same numbers as PS5 but thats because of the sheer number of first party games released/IPs owned by Sony and not because of play anywhere.

 

 

Edited July 21, 2019 by Playstationdude

[Sach4life]

6 hours ago, WhiteWolf said:

It creates a perception in mind of people that i can play those games somewhere else if i just wait then buying a console. 

 

If Gears 5 gets really good reviews like 90+. It's really good, will it move system?  No it won't. 

 

If Tlou 2 comes on PC day n date i bet you will see huge slow down on PS4 sale as well 

 

 

And in Asia 60% gaming market is PC and same in EU. U can't expect sell  console in these market without good true exclusives. Most gamers like yourself go with combination of PS4 and PC which gives them access to all games easy.

 

Bullshit. 60% pc gaming market in Asia is a very skewed stst that doesn't much much sense in this conversation. It comprises of people in places India and Korea playing ftp games who can't actually afford consoles. It doesn't comprises of people who play AAA games on pc. So, full priced exclusives coming to pc makes no difference to them.

 

And don't make up stats. Europe IS the biggest consoles market in the world. 

[Sach4life]

4 hours ago, adity said:

Even the best selling ps4 exclusives have an attach rate of ~10%. Now assuming overlap between games, there would be at least 80% people who never played any exclusive ie your fifa, cod crowd. Which means, consoles will always have a big market. Its just a matter of who can attract the audience. 

 

Exactly. People buy consoles to play the likes of Fifa, COD, GTA etc and not God of war or Last of us. Anyway, it is pretty obvious but there is no point wasting any more time on it.

[roun90]

On 7/21/2019 at 1:51 PM, Playstationdude said:

I dunno man, I'm using a 1050ti 4gb laptop and in theory  the settings are automatically set but the performance isn't satisfactory. i have to tinker around/lower the settings to get acceptable performance.

 

In theory 1050ti 4gb  laptop should give ne better performance than a ps4 but its a pain in the a*s to select the right option. 

For example, I tried hellblade and no amount of tinkering is giving me a smooth framerate. Gears 4 also fps drops at medium settings( some options are high by default).

Rime played fine but only on medium while the automatic selection was High.

 

As such the only pro of owning a PC seems to be no generational limitations. I can even pickup the 1990s Aladdin game on steam if I wanted to. So that is definitely a plus.

 

As far as possible, don't use a laptop for gaming. Laptop is generally for travelling/gaming while travelling. You can generally build a desktop that's almost twice as powerful for the price of a laptop, just because corporations overcharge on all parts, in the name of "portability" in laptops. Also your card is pretty decent. But 1050 ti (Or any xx50 card from Nvidia) is a solid mid-range card. So you will have to settle for "Medium" graphics options, especially in games like Hellblade or Gears 4, which will consume a lot of system resources. In Nvidia's case, the main gaming cards (That will allow you to play on high) starts from xx60 (1060, 2060 etc.) and the next gen is equal to the higher end of the previous gen (For ex. a 2060 is equal to a 1070; while your 1050 ti would be slightly more powerful than a 960)