Quantcast
MICROSOFT results Q4 and Full Year earnings. Huge.

Forums - Microsoft Discussion - MICROSOFT results Q4 and Full Year earnings. Huge.

Jranation said:

 That looks pretty good (we always knew Microsoft as a whole is doing great) 

 

DonFerrari said:

Good numbers but never hw sales or information that sales site can really discuss.

Yeah! Its only Nintendo that always gives numbers. I guess its not a requirement to release those numbers. 

Nope, public traded companies have no need to report their sales or anything similar. They report revenue, profit, earning per share, etc and also doesn't have to do any breakdown per department

Azzanation said:
DonFerrari said:
Good numbers but never hw sales or information that sales site can really discuss.

Profit/Revenue > Sales figures

In a sales sites no it isn't.

And we don't really have a Profit/Revenue of the consoles or MS SW because it at least is contaminated with 3rd party royalties.

Or can you help us determine how much Profit and Revenue X1 brought as a console or SoT, SoD2 and others did?

Bofferbrauer2 said:
Drakrami said:

I dont feel XboxOne is doing too well... how are their numbers up 39%?

What's in the gaming division? Is Skype, windows games and etc... still in this division or..?

Ok I just googled my own question. 

 

Entertainment and Devices Division

Entertainment and Devices Division ("EDD") develops and markets products and services designed to entertain and connect people. The Xbox entertainment platform, including Kinect, is designed to provide a unique variety of entertainment choices through the use of our devices, peripherals, content, and online services. Skype is designed to connect friends, family, clients, and colleagues through a variety of devices. Windows Phone is designed to bring users closer to the people, applications, and content they need, while providing unique capabilities such as Microsoft Office and Xbox LIVE. Through a strategic alliance, Windows Phone and Nokia are jointly creating new mobile products and services and extending established product and services to new markets. EDD revenue also includes revenue from licensing mobile-related patents.

Principal Products and Services:  Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 video games, Xbox 360 accessories; Xbox LIVE; Skype; and Windows Phone.

 

So in view of this, how is the "gaming division" numbers relevant when its mixed with Skype and PC games, and Windows Phone? 

That's totally outdated

https://www.microsoft.com/en-us/Investor/earnings/FY-2018-Q4/metrics

If you hover over the different subdivisions, you'll see what the income is made of. In case of gaming, it says "Revenue dollars from Xbox consoles, Xbox live services, First party games and third party games royalties"

One dark spot to those good overall numbers though: XBL monthly active users dropped from 59M to 57M

The biggest issue is putting the royalties together with all else which make us have no idea of how they really are doing on a console/sw sales discussion forum.

pxrocks said:
This is what happens when you have more online subscription on the platform than actual exclusive games.this actually proves that consumer don't care about exclusives.i hope playstation and Nintendo take note and create more online subscription services rather than investing in expensive exclusive games(which PC gamers don't get to enjoy) .it will be good for them and also for the consumer.

I hope Sony doesn't ever come near it even if it would bring they more money, not the type of product I like.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Around the Network
pxrocks said:
This is what happens when you have more online subscription on the platform than actual exclusive games.this actually proves that consumer don't care about exclusives.i hope playstation and Nintendo take note and create more online subscription services rather than investing in expensive exclusive games(which PC gamers don't get to enjoy) .it will be good for them and also for the consumer.

Nintendo made 9.7b...

The consumer? You mean those who dont care about quality? Sure, but the gamer who appreciates his hobby wont welcome it.



Hunting Season is done...

Microsoft as a company is doing great, but from the report, you can't even tell is the gaming division profitable or still making losses..



Errorist76 said:
Revenue is not earnings. It’s not like they’d get all their gamespass games for free. Plus they’re selling a way more expensive system and giving the older one for peanuts. More smokes and mirrors is what I smell.

Earnings are up.
Profitablitly is up


MPC earnings Q4FY18 $3bn
MPC earnings Q4FY17 $2.2bn  

MPC profit margin Q4FY18 27.86%
MPC profit margin Q4FY17 23.67%

 

MPC earnings FY18 $10.6bn
MPC earnings FY17 $8.8bn

MPC profit maring FY18 25.1%
MPC profit margin FY17 22.4%

 

Panosmies said:
Microsoft as a company is doing great, but from the report, you can't even tell is the gaming division profitable or still making losses..

Xbox didn't make any losses since the release of Xbox 360 Slim and Kinect.

Bing and Surface were the last sub division that went profitable the last few years.
And now they don't have any loss making major division anymore.



under More Personal Computing (Microsoft Windows, Surface, Xbox etc)...

They show they pulled in $42.3 billion in revenue. They said “gaming revenue” was $10.35 billion for the year, which means Windows/Surface/etc accounted for the other $32 billion in revenue.

It also shows they ended up with $10.6 billion in operating income in that “More Personal Computing” division.

So, it’s very possible that they could have spent more on the Xbox brand last year than the $10 billion they pulled in.

Im just saying they don't breakdown profits when they talk about Xbox.



Around the Network
OldGaffer said:
Panosmies said:
Microsoft as a company is doing great, but from the report, you can't even tell is the gaming division profitable or still making losses..

Xbox didn't make any losses since the release of Xbox 360 Slim and Kinect.

And we will never know just how the money flows inside the XBox (ad)venture.

One thing is VERY clear: MS loses a shitton of money on XBox1 hardware. And I don't mean they lose "a little" on every console, it is SHITTONS of money.

Consider the following: The PS4 recently saw a price hike by 10% in Europe. Probably the result of the ram deal that had to be renewed, at worse conditions as we all know ram prices are very high at this time. They upped the price of the base model from 299 to 329. They really do not want to lose money on hardware. Now consider this: there is a plethoria of XBox1 bundles in stores, ranging from $189 to $279 (each including three major games, and some have 3months of Live in addition to the games). There is _no way_ MS can produce those bundles at those prices and be profitable on the harware product, not even even marginally.

Now consider next: How much does XBox1 actually pay (yearly) for using, maintaining and expanding the Azure server farms Live feeds on? Have they ever paid anything or have they been free-riding on Azure services?

Now consider next: What happened to all those millions of (expensive, not cheap) Kinect2 chips and parts that were never put into Kinect2s? How much did that fiasco cost? Kinect2 is not cheap at all to manufacture. It is a brilliant technical gadget that (imo unnecessarily) died in its infancy. How do you value the many VR businesses that MS bought out during development of the XBox1  (which probably could also have been a preemptive strike against competitors)? What are all those VR people doing now which were supposed to do XBox1 VR stuff?

There are a lot of things we do not know and will never know as MS is absolutely silent on the details. There still is no clean "XBox division" for an answer (or a good guess), it has also always been padded with profitable "stuff".



Angelv577 said:
KLAMarine said:
What's GAAP mean?

in case nobody answer to you, it means General Accepted Accounting Principals which are a set of standards and rules that company has to follow for reporting purposes.

Thank you.  i thought people were being sarcastic (I hope) about the answers.  As an accountant, some of the responses were hurting my eyes.



finalrpgfantasy said:
Angelv577 said:

in case nobody answer to you, it means General Accepted Accounting Principals which are a set of standards and rules that company has to follow for reporting purposes.

Thank you.  i thought people were being sarcastic (I hope) about the answers.  As an accountant, some of the responses were hurting my eyes.

What do you make of the numbers?



hunter_alien said:
pxrocks said:
This is what happens when you have more online subscription on the platform than actual exclusive games.this actually proves that consumer don't care about exclusives.i hope playstation and Nintendo take note and create more online subscription services rather than investing in expensive exclusive games(which PC gamers don't get to enjoy) .it will be good for them and also for the consumer.

Yeah, no. Considering that MS is currently dead-last in console sales pretty much every sign points to the fact that this is clearly not the model to follow and that Sony and Nintendo are the ones who actually know what gamers want and not the other way around. I am more than willing to pay extra for quality exclusives, no subscription required (though I personally do pay for PS+).

Remember, MS =/= Xbox brand. 

OT: good results as always, and healthy growth for the gaming sector. Albeit logic would dictate that a growing install-base will consume more software and a 500$ late-gen console upgrade will bump those numbers up.

This is somewhat a narrow view of Microsoft's business plan in regards to expanding its gaming prospects. You see for them it's not just about console sales and wars. For them it's an expansion opportunity for the gaming industry beyond consoles (eventuality) through the use of multi device platforms and a clever subscription based model which both Sony and Nintendo would be wise to follow down track if they are to future proof their gaming business. Microsoft are doing well in this regard by expanding to Windows 10 PC's as well as mobile down the track. If you ask me that's the way.. Xbox subs are on a the rise in a healthy way and 50 something million is nothing to scoff at. I'm sure any business would be happy with growth like that  

Last edited by 3sexty - on 20 July 2018

Xbox 360 and Xbox One

Gamertag:  GamertagOz70

DonFerrari said:
Azzanation said:

Profit/Revenue > Sales figures

In a sales sites no it isn't.

And we don't really have a Profit/Revenue of the consoles or MS SW because it at least is contaminated with 3rd party royalties.

Or can you help us determine how much Profit and Revenue X1 brought as a console or SoT, SoD2 and others did?

This is not just a Sales Site.