
Microsoft revealed its earnings results for FY23 Q3 last night, and following the publication of the report, Microsoft CEO Satya Nadella appeared on a conference call to discuss those results - including how they relate to Xbox.
As part of his comments, Nadella revealed that the company "set third quarter records for monthly active users and monthly active devices", and the revenue from gaming subscriptions reached nearly $1billion during the quarter.
Here's a bit of what he had to say:
"We are rapidly executing on our ambition to be the first choice for people to play great games whenever, however, and wherever they want."
"We set third quarter records for monthly active users and monthly active devices. Across our content & services business, we are delivering on our commitment to offer gamers more ways to experience the games they love.
Our revenue from subscriptions reached nearly $1 billion this quarter. This quarter, we also brought PC Game Pass to 40 new countries, nearly doubling the number of markets we’re available."
Nadella then went on to talk about first-party titles, stating that "great content" remains a critical factor behind Xbox's growth, and even mentioning that he's "never been more excited" about Xbox's pipeline of games:
"Great content remains the flywheel behind our growth. We have now surpassed 500 million lifetime unique users across our first party titles.
And I’ve never been more excited about our pipeline of games, including the fourth quarter launches of Minecraft Legends and Redfall."
That last bit is quite a bold statement considering Nadella has worked at Microsoft since 1992 and has been CEO of the company since 2014 — he's been around the business throughout the entirety of Xbox's existence!
It's all sounding very positive from Nadella, then, although there was one downside to the earnings results, which was the 30% decline in hardware sales compared to the previous year. You can read about that elsewhere on Pure Xbox:
Are you as excited as the Microsoft boss for Xbox's upcoming first-party titles? Tell us down below.
Comments 32
@Sebatrox This was being talked about a few months ago, I'm not sure why it's suddenly gaining traction again.
@Sebatrox I'd already given up on it to be honest, liked FF15 but this insistence on making games like others ("FF but now with God of War combat!") had dulled my enthusiasm plus the strong likelihood Sony will soon acquire them.
No great loss though, Deus Ex is closer to my heart and it's now away from the mismanaged monstrosity that is Square Enix...
@Kaloudz Yep think this year and the next few are make-or-break.
With all the investment Xbox hopefully gets its act together and delivers a consistent tempo of games plus GP additions - allowing it to at least gain market share, probably the best we can hope for the generation after the fiasco with Donny M.
Hopefully they'll push Play Anywhere too and encourage more PC-and-Xbox releases so it significantly increases the number of games coming to Xbox and create an even bigger ecosystem too
Bethesda and Obsidian will produce more Xbox Series defining games than Activision-Blizzard ever will.
@Kaloudz It's exactly what we talked about here. Nothing new - still referencing the same document from October 2022.
https://www.purexbox.com/news/2022/12/microsoft-causes-confusion-with-statement-about-sony-excluding-games-from-xbox
I mean he's hardly going to say anything else is he? But I agree that 2023 feels like it needs to hit big. Both Starfield and the not-E3 to propel Xbox forward, as they are currently losing ground.
@Kaloudz the thing is deals like this are quite common, just usually on smaller games. Don't you think it's strange that plenty of games release Day 1 on Game Pass but don't come to PlayStation for 3-12 months? It works both ways. I agree that Sony picks larger games and usually ties them up for longer, but I don't think we can finger point at one and call it scummy without calling the same on Xbox's side. Reality is they are ALL at it.
@CaptainCluck the purchase of Activision Blizzard is more about making Xbox more self sufficient.
@Sebatrox You know what most of those Senators and congress have in common? Ties to Microsoft. Whether though the state of Washington, where Microsoft main office is in Redmond, or campaign donations from them.
That isn't to say Sony doesn't have some question to answer, but currently the named people asking the questions are hardly impartial.
@Sebatrox not interested in that crap anymore square is lost cost now
@Sebatrox I assume a lot of people missed it the first time around as well. There's a lot of confusing messaging around this.
@themightyant Games coming to PlayStation three months later is very different to games being "timed exclusive" but in reality being paid to stay completely off Xbox.
Final Fantasy is the prime example - no FF7 Remake despite the timed exclusivity long having ended, and no 14 and likely no 16.
If it was a publishing / development deal and they said "permanent console exclusive" that'd be one thing, but the shady deals Sony pulls where Xbox owners can never know where they stand is just terrible practice
@themightyant In all honesty no US politicians are likely impartial and nor should they be - MS is a US company and should have its government support in the same way Japan clearly gives its companies support for example by making them difficult to take over.
I live in the UK and it'd actually be refreshing to have a government do that - ours instead is happy for all UK companies to be bought out and eventually outsourced, or crushed by outsider companies with unfair advantages
ABK deal Blocked by the CMA due to Cloud Concerns. Seems like it's all over
@Sakai @FraserG Yep wtf
https://www.gov.uk/government/news/microsoft-activision-deal-prevented-to-protect-innovation-and-choice-in-cloud-gaming
Losing the Activision deal is big - Microsoft will now either have to decide if Game Pass / consoles / cloud have a long term future or not.
If they do, then expect MS to buy loads of smaller publishers and developers that escape regulatory oversight, and likely to get super aggressive with Sony - regulators have now said blocking platforms etc isn't their concern so MS now could actually pay to keep a future CoD off PlayStation for example in revenge.
If they don't, then the monopolistic Sony has won, gaming will become an expensive elitist hobby with a terrible consumer experience and we'll all be poorer for it...
**** the CMA
EDIT: Schrier reports MS have already said they'll appeal
@ShadowofTwilight30 It's ok, with Activision gone (if appeal fails) and MS CEO seemingly behind Xbox with $70bn to burn, maybe Tango will takeover Square instead or Sony will live to regret such deals as Xbox starts to sign them with everyone.
Activision I doubt are going to be particularly friendly with Sony either given they just cost Bobby his payday...
@Kaloudz Oh yeah the PushSquare trolls will hit us hard here today!
And yes they're going to appeal but no idea if that can be expedited or whether it'll make the deal go past the current expiry date...
Either way more sodding months of this stuff, would rather it was over one way or the other - and if the other I want to see angry MS using that fund to aggressively compete using deals, takeovers of stuff too small to trigger regulators and buying many more marketing and Game Pass deals
Kaloudz wrote:
How do you feel about other games that are loved across the board like Doom, Elder Scrolls etc. that likely will now be locked to exclusivity in future?
My point isn't to flame Xbox only to demonstrate that it is happening in different ways on different platforms. Either way it's ultimately gamers that lose.
@Kaloudz Yeah I think Tango could be a backdoor to Japanese takeovers if MS decide to do many smaller acquisitions instead.
I'm worried today primarily because of what the MS response will be.
Either it's dragged out for ages while Xbox stays meek or goes through everywhere eventually with lots of concessions that hamper Xbox while Sony goes mad with acquisitions and exclusivity / blocking deals.
But if say the EU blocks it or the USA does, or the CMA appeal is eventually lost, I really want to know the Xbox backup plan - do they have one, and is it as aggressive as it'll need to be?
@Kaloudz I meant Tango Gameworks are a Japanese subsidiary so could be used in takeovers to avoid the block on foreign takeovers.
And yep fully agree
@CaptainCluck Bethesda and Obsidian will produce more Xbox Series defining games than Activision-Blizzard ever will.
While i 100% agree, the issue is not having COD on GP and being able to market that will hurt the plans of growth for the service going forward. Blizzard games being pushed to GP, all of that really hurts the service from a more casual player standpoint, MS does well enough with hardcore fans but they lack that causal player base that Sony has locked up. The ABK deal would have helped some in that regard.
@themightyant hypothetical v reality. But I personally find ALL exclusivity is great and adds value to my gaming platforms. The fact is I’m required to buy more than one platform to enjoy all the games I want (this has been the case since home consoles began)…so anything that’s dedicated to that hardware is more than likely going to take full advantage of that hardware. Offering me better quality games and placing more value on my hardware purchase - this is not me losing.
I also feel that when MS is paying for the costs of producing a game from start to finish, it being exclusive for their customers is less of a violation than if they only paid a portion of the costs and locked it behind exclusivity. And this includes known franchises.
Hopefully the next doom will indeed be Xbox exclusive and will see clear benefits from not having to stretch the team to work on the PlayStation version too. Or it could release unfinished like Redfall.
It’s just a shame we no longer get 3rd party licenced games made by completely different studios on each platform… I’d love to see an Xbox version of spiderman pitted against a PlayStation one.
Maybe that’s what gaming should do going forward…go back to the 80/90s and share licences for games. Let’s get different versions of final fantasy, doom, fallout etc on different consoles. That could be fun. Everybody gets the named games but they’re all developed as exclusives…getting those advantages
@Kaloudz you do realise companies like Square have to accept Sonys offer? It’s not just Sony telling them. SE obviously see it as a good business decision.
Again you blame Sony, but Microsoft has fenced in all the Bethesda stuff, and wanted all the ABK stuff too. They are exactly the same. But people are too blinkered in console wars to even get this.
For the love of god, games are MEDIA and products (productions), not content! Digital or otherwise!
Bleachedsmiles wrote:
That's an interesting perspective. But I can understand that. Frankly XBO had so few exclusives It was one of a few consoles, along with Wii U, I ALMOST feel wasn't worth the cost of the box. (Ori 1&2, Forza Horizon and a couple of others saved it). To be clear if you ONLY had a XBO, it was a good enough console, 75+% of the same games came out as on PS4 so it was a decent library. But if you had both there was little to recommend as it played 90+% of games worse than PS4 and had so few top tier exclusives, especially not many I liked.
But we are the minority. Most gamers don't have access to all the consoles, nor should they have to, consoles are expensive and it's FAR too big a barrier to entry for most who aren't enthusiasts like us. So I think it's better for the games industry to be more inclusive not exclusive.
Hence I don't like this mass consolidation that is happening. And this ABK deal is only going to make even more of it, if it goes through.
I agree it's LESS of a violation if MS is paying all costs, but it's still a violation (using your terminology). And at what point does X lesser violations equal a larger one. Because that is what is happening with Starfield, Redfall etc. and will with Doom, Elder Scrolls etc. All games that would have been on other platforms before MS pulled out their giant check book. It's the same end result, less games for most gamers. Not good.
Your idea about everyone making their own version of the game, while fun as a concept, is just not realistic in reality. Cost of making games is too big now and we would end up with games that were much smaller in scope and budget.
Let the monkey see the nuts then….
I can’t wait for Forza the game I’ve most been excited about since the last Forza.
But other than that it’s been mucho hype and not much delivery really for my personal tastes. But gaming in general isn’t performing like it used to for me.
Indiana Jones can’t come quick enough….
The the nun to Indy….
@Kaloudz in fact it shows just how clued up they are. While the world was going on about CoD, the CMA was doing what it was supposed to do and look beyond that. Had the CMA passed it you would be here complimenting them.
Not having ABK won’t make me play my Xbox less, I’m really hoping it actually kicks them up the a$$ and they start producing some good genre defining games.
Honestly the failure (assuming it does fail) could be a blessing for Xbox, it could help them focus on what they have and get them sorted right.
@Kaloudz yes and how often do the CMA overturn? Exactly. I’d expect the EU to block the deal also. They take on big tech more than the EU. Big tech got away with mergers for too long, now the regulators are catching up, so it won’t just be Microsoft.
@FraserG It was? I entirely missed it... as far as I know such deals are illegal in the US, at least they should be since Nintendo got smacked down over it in the 90s.
At least from what I read, this seems to say they are entirely blocking Square from making any kind of deal with Microsoft, and likely the few games we have received were in-the-queue before whatever this deal is got signed.
Edit: I think the issue is wording. This gives me the impression the claim is now that Square Enix simply cant work with Microsoft anymore, while the coverage back then sounded more like typical exclusivity deals.
I love the Xbox, but where are the BIG exclusives, running at the promised specs? In order to catch up to Sony, MSFT needs to deliver the exclusives, beyond Forza. Until then, this is just what you’d expect him to say. I hope he’s right and 2023 picks up.
Anyone else worried MORE now that the head honcho has been compelled to reassure us the house is not on fire? 🔥🔥🔥
Microsoft should buy the developers behind the Stalker series. Might help them complete the game more better.
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