By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Aura7541 on 26 October 2016
Edit Thread
3sexty said:
Aura7541 said:

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.

not insofar that growth may be evident in the latest report, however the attrcactive deals and sales would indicate that growth is the underlying strategy or aim and that indicates to me a commttment to growing or at least sustaining the gaming segment. 

I guess you're trying to say that Microsoft is trying to make up for the revenue lost from offering attractive deals by taking advantage of the increase in software and service revenue from the increase of users. I completely agree with this. However, MS has already been using this strategy for a while and it hasn't paid off as of late. Gaming revenue was down 9% YOY for FY2016 Q4 and down 5% YOY for FY2017 Q1. Perhaps the company will have better luck for FY2017 Q2, but Microsoft has come out and said that while they expect better performances in the US and UK, they also expect lower revenue. Perhaps they're lowballing, but it's hard to be optimistic considering the last two quarters.