Imaginedvl said:
SvennoJ said:
Read the title again:
Who did more damage to Xbox's console business
"and seeing where they are today is definitely a success in my opinion."
The console business is doing worse again, lagging behind the XBox One.
https://www.vgchartz.com/article/464075/xbox-series-xs-vs-xbox-one-sales-comparison-january-2025/
In general XBox gaming division is still successful, but it would be hard not to after buying up tons of studios, $76 Billion for Zenimax and Acti-Blizzard being the two huge ones.
- Prior to its acquisition by Microsoft, Zenimax Media's revenue was estimated to be in the range of $1.3 billion to $2.2 billion for calendar year 2020
- Before Microsoft's acquisition, Activision Blizzard generated an annual revenue of approximately $8.3 billion in 2021.
- In 2020, Microsoft's Xbox gaming revenue reached $12.4 billion. This figure includes both hardware and software sales for the Xbox console series.
Add all those up, 22-23 Billion together, add inflation, 26-27 Billion for this year.
In Microsoft's fiscal year 2024, which spanned from July 2023 to June 2024, gaming revenue reached 15.47 billion U.S. dollars, down from 21.5 billion U.S. dollars in the previous fiscal period.
The sum is smaller than its parts. |
True, did not realize this was about the "console" part only :) (I honestly don't think he was talking about the console aspect only but the OP is)
But then again, Mattrick is still the number one responsible for that (Xbox One debacle is the main reason why Xbox is there today). But revenues does not matter for sure (in the console area) as Microsoft is clearly changing their strategy and focus (or already did).
Also, I'm not sure where those numbers come but 2.2B for an acquisition of 7.5B does not make any sense... If Zenimax would be generating 2.2B, there is no way Microsoft could have bought them for 7.5B :) Math does not work there. |
Revenue doesn't mean profit, Zenimax was hurting. It seems those numbers come from here (Google took them from here)
https://www.morningstar.com/stocks/microsoft-acquires-zenimax-bolsters-gaming-portfolio
For comparison, Epic Games’ June 2020 financing valued it at about $17 billion based on an estimated $5 billion in revenue, which implies a price/sales multiple of 3.4 times for that deal, while publicly traded analogs such as Activision, Electronic Arts, and TakeTwo, among others, trade at a median price/sales of 5.9 times. Using these multiples as guardrails suggests ZeniMax's revenue could be in a range of $1.3 billion-$2.2 billion for calendar 2020.
It seems more like MS overpaid for Acti-Blizzard deal
https://companiesmarketcap.com/usd/activision-blizzard/revenue/#google_vignette
There it says 8.7B for 2023, MS paid 68.7B, 7.9 times the revenue.
A bad deal overall, paying a premium price while not getting the desired boost for gamepass and combined revenues lagging behind.
But true, Mattrick severely kneecapped the XBox One release setting the ball rolling. Spencer tried to spend the XBox division out of its decline, didn't manage a turn around like PS3 vs 360, but can still show absolute growth in revenue thanks to acquisitions.
Now who is worse for the console business, the one setting XBox up for the fall, or the one only slowing down / prolonging the fall unable to actually fix the down turn and basically making the console business irrelevant, going 3rd party mode.
