| 3sexty said: From what I recall the revenue was down (5%) on the back of slighly less consoles sold but offset to an extent due due to an increase in xbox live subscriptions (Xbox Live monthly active users grew 21% to 47 million). Not a terrible result by any standards. Remember, this is not MS' bread and butter and is more than sustained or offset by incredible revenue and profits elsewhere in its business. MS remain committed to gaming as part of its broader strategy hence the attactive deals thay are prepared to offer. Simply they can afford it. Growth appears to be the plan here.. |
Total gaming revenue was down 5%. Software and services revenue was up 6% and hardware revenue was down 26%. The lower console prices and sales were to blame for the revenue being down YOY. The lower sales surprised me because Microsoft likely had the entire fiscal quarter to ship XB1Ses (remember, MS gets revenue from shipments, not retail sales). And while the MAU is up 20.5% YOY, it decreased from 49 million MAU the quarter before even though Microsoft had 2 full months of the XB1S in the market and way more notable games (e.g. Forza Horizon 3, Madden, FIFA, etc.). The YOY percent increases between the MAU and software/services revenue aren't one-to-one, implying that the proportion of money spent per user decreased. Overall, I don't see much growth, but rather stagnation.
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