MICROSOFT FY15 Q2: Analyst estimates beaten again. Revenue $26.5bn, Op income $7.8bn. Xbox 6.6m shipped.

Forums - Microsoft Discussion - MICROSOFT FY15 Q2: Analyst estimates beaten again. Revenue $26.5bn, Op income $7.8bn. Xbox 6.6m shipped.

Quarterly combined Xbox shipments?

2.5m to 3.0m 58 22.92%
3.1m to 3.5m 12 4.74%
3.6m to 4.0m 13 5.14%
4.1m to 4.5m 9 3.56%
4.6m to 5.0m 17 6.72%
5.1m to 5.5m 14 5.53%
5.6m to 6.0m 17 6.72%
6.1m to 6.5m 16 6.32%
6.6m to 7.0m 58 22.92%
7.1m to 7.5m 37 14.62%

Revenue and margins down for Xbox. Expected of course because of the US price cut. Is there any information to suggest whether the margin is in the red or black for Xbox in general? I assume there is no information at all relating to Xb one margins.

I don't think a YoY revenue decrease of 20% can be written off as generation transition so easily. It is at least in part a reflection of market share transfer to PS4.

Can't complain about the over all company performance $7.8Bn operating income must put a smile on shareholders' faces. I didn't realise D&C is worth nearly half of MS's revenue. Is this typical through the year or is this because the holiday period is when D&C makes a large chunk of its annual revenue (e.g. Xbox sells possibly 50% of it's annual amount in the Dec Q)?

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thx1139 said:
Insidb said:
thx1139 said:
Insidb said:
It looks like they emphasized the increased market share of the X1 to assuage investors, so they can expect a return on the back end (XBL, DLC, etc.). While the revenue falloff is significant, it is definitely tolerable for a company as successful as MS. There is a lot of rhetoric about investor tolerance for the X1 division losses, but I'd imagine that MS is a Delaware C corp., where investors effectively have no rights (This is how big business is always done.). The only tolerance that matters is that of executives and whether or not they want to ride the storm out. Since they can, it is a choice. Sony had a similar predicament with their mobile devices segment, but they had to cut the division to prevent the damage it was doing to the overall bottom line. From a financial perspective, the X1 may be a loser, but the brand is too valuable to offhandedly discontinue. If anything, this press release shows they are committed to defending and extending its lifecycle. If I put that much money into development, I'd sure as hell be doing the same.

What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

I'm just going off their press release; that's all:

"XBox platform revenue DECREASED 20%."

"XBox platform gross margin DECLINE driven by transition to to new generation of consoles."

Revenue DECLINE and gross margin DECLINE doesnt mean that the business was not profitable nor does it mean it isnt healthy.  X360 sales dropped considerably YOY as people transition to new generation of consoles.  

If the Computing and Gaming Hardware segment includes the XBox platform and it brought in more revenue from the previous quarter, and the XBox platform's revenue declined by 20%, the increase is being driven by another component. Of course, I agree with you that it doesn not denote a loss of profit, just quarterly decrease in revenue. It would be peculiar if an investor or executive wasn't displeased by a platform's revenue decreasing during the holiday sales period. 

thx1139 said:
DerNebel said:

Not by MS at least, which majorly annoys me about their financial reports, on the corporate level their gross margin was $8.5 billion higher than their operating income, I'm way more interested in the operating income of the divisions than a rather misleading number like gross margin.

Well how do you want them to break it out then? Do you want corporate level expenses to be prorated out to the divisions?

Yes, if Sony can do it then MS certainly can as well.

Seece said:
Zekkyou said:

That's my assumption too... Likewise, as celador said, i expect Sony do it to hide the Vita's poor numbers.

The whole thing strikes me as rather silly though.

Indeed. MS are gonna have to update eventually and they're always gonna be behind, just a matter of fact. Though knowing MS, I can see them only talking about US figures and never mentioning WW sales (in any capacity) ever again lol.


I suppose on the bright side both Sony and MS will be forced to present clear numbers once the PS3, 360 and Vita are inevitably discontinued. Hopefully, anyway :p Maybe we'll start getting X1 + Surface or PS4 + TV figures instead lol... (though i don't think either will actually do that).

Great numbers... on the X1 side let's see how the momentum will carry on to 2015.

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Seems like Xbone shipments is below 11 milion like AMD released days before.

Now we need PS4 shipments to proper estimate Xbone.

ethomaz said:
Seems like Xbone shipments is below 11 milion like AMD released days before.

Now we need PS4 shipments to proper estimate Xbone.

No, that qould require higher than logical 360 shipments. It's already been clarified that AMD were talking sold to consumers.


ethomaz said:
Seems like Xbone shipments is below 11 milion like AMD released days before.

Now we need PS4 shipments to proper estimate Xbone.

What? No, no. AMD was referring to sold through numbers, so that kind of blows your theory out the window. What this shipment report shows is that X1 has had an amazing quarter and that 360 still stands as the second place console in generation 7.

Lol seems I missed the big thread. People have the numbers right in their faces and still won't believe it. It only makes sense for 360 to be down in its 9th year with barely ANY promotions. So why can't Xbox One be around 12m shipped?

DanRybacki said:
Take that, Xbox doom-mongers.

Lol Why? 

So xbox sales down 800k from previous years quarter. Wonder will it decline again in the quarter A year from now..