Hardware is probably the biggest "red flag," though personally I'm not concerned. Expected with the lack of Series X availability and price point of Series S.
— Dom (@DomsPlaying) January 24, 2023
Even when it's growing, HW hasn't been more than 23% of annual Xbox revenue since FY2019 Q1. Content is the driver.
Yeah, it's all in line with expectations, they had an awful 2022 for major 1st party content so it's no surprise content is down, 2023 looks way better for their 1st party output and a very strong year for Game Pass so they should be up a lot, they desperately need to fix the Series X supply issues though, I'll have to see this years hardware results before being concerned.
Plus it's Halo Infinite & Forza Horizon 5 and riding off the end of Covid boost vs Pentiment (Lol), tougher economic conditions and a crashing tech industry, I'm not really surprised at all that hardware is down. Having said that, they need to start releasing big games (luckily 2023 looks to be the start, they need something for Holiday if not Starfield though) and they need to start focusing less on Series S and more on Series X now.
Microsoft share price up 4% in after hours trading following the earnings report. $MSFT
— Jez (@JezCorden) January 24, 2023
- Operating income down 8%. 📉
- Cloud is up 18%. 📈
- Windows OEM down 39% (omg). 📉
- Xbox down 12% (prev. year had Halo, Forza, Age of Empires). 📉
- Bing up 10%. 📈
- LinkedIn up 10%. 📈 pic.twitter.com/fvi6IRyF0p
All investors care about is how well Azure is doing, Lol.
Last edited by Ryuu96 - on 24 January 2023
