Xbox's Console User Count At Record High, Says Microsoft Gaming CEO

They are (or will be soon) first in gaming revenue and have the most successful premium subscription, so they're doing great in spite of the... rumours. The Xbox hardware is just another way to sell software and subscriptions along PC and they're not afraid of releasing more console models as they proved today in spite of more rumours. Game Pass is also profitable, they said that they earn about $6b via subscriptions and spend $1b on third-party Game Pass deals yearly. Every single negative rumour about Xbox was malicious and wrong, because releasing some games on other platforms was not a rumour nor negative, but something that they stated they'd be doing on a case-by-case basis since the acquisition of Zenimax.

I guess that means One plus Series users combined?

That’s fine and all, but just gotta hope the majority of those remaining One users switch to Series when they do eventually upgrade rather than to the competition. Xbox needs a healthy user base to remain viable to 3rd parties.

That is good to hear, especially with all the doom and gloom and “the end of Xbox is near” comments I’ve heard all over gaming “leak” forums, not to mention all those negative rumors that spread like wildfires on the internet.

@Banjo- Except Sony still had more revenue at their Q4 fiscal even with ABK it was still less than Sony's $30 billion also Xbox didn't make any money at all, without ABK they were actually in the red.

8:26 of the IGN interview

Phil: you are going to see more of our games on other platforms and we just see that as a benefit to the franchises we're building.

I guess it's just a matter of time until more ports are announced.

@MrMagic

Except Sony still had more revenue at their Q4 fiscal even with ABK it was still less than Sony

That Sony-Xbox comparison you are doing and the acquisition you mentioned was completed in October 2023. We'll need to wait until this year is over to compare Sony and Xbox like you are doing. It would be really surprising if Sony stays ahead of Xbox after this year in gaming revenue as you say, especially with no new AAA games until March 2025 at the earliest.

also Xbox didn't make any money at all, without ABK they were actually in the red.

Deducting $69b on ABK.

"FY23 was Xbox 2nd best fiscal ever.”

Source: VGC

@Banjo- Nope, not because of the $69b they just didn't turn a profit without ABK and what I said still stands.

If you add ABK's and Xbox total fiscal revenue for 2023 together it was still less than Sony's.

@MrMagic No. You said that "Xbox were in the red (2023)", so why did Xbox say that 2023 was their second best fiscal year ever? It's Sony (the whole company) that has a massive debt and the debt gets bigger every year, including 2023. If you are talking red numbers, look at this.

Sony long term debt for the quarter ending December 31, 2023 was $12.512B, a 16.37% increase year-over-year.

Source: Macrotends.

@Banjo- Yep I remember reading they were in the red for one of the quarters, actually I think it may have been with integration costs of ABK or something I can also remember Xbox revenue being down 4% without ABK and console sales being down 30% and like I said before if you add ABK and Xbox full fiscal year revenue together then it was still less than Sony's.

Yep Sony has some long term debt lol. Big deal, that's actually pretty normal and maybe you haven't been paying attention but this Gen is already Sony's most profitable generation ever.

I'm off to bed now anyway but I'll source that for you tomorrow.

@MrMagic

actually I think it may have been with integration costs of ABK or something

That's exactly what I said. Xbox "in the red" if you deduct the integration costs of ABK, then you said no and now you say yes. Last year was Xbox's second best year ever, even if it was down 4% FY23 Q3 (not even the whole year but a single Q). You say that Sony's immense debt that is growing every year is no big deal? Fine. Anyway, I think it's better to stop discussing this, all the points have been clarified already. Good night/day.

That should put some of the doom and gloom "reports" to bed. People will still cling to the console sales though as its all they know.

I see some Playstation fanboys have reappeared after the showcase and have been giving @Banjo- a hard time over here. I tip my hat to you for keeping your replies so civil. On the topic: I play my games on my ROG Ally these days (docked and on the go) and Game Pass works like a dream, both native and cloud (I find myself using the cloud more and more). I can see why Phil and Xbox are not making it a point to sell more consoles. I predict one more console generation before it’s mostly cloud gaming. I for one don’t mind.

@MrMagic if I bought a PS5 I would be far more concerned about the lack of actual AAA PS5 developed current gen games, it's amazing just how few there are especially new IPs.
What's even more amazing is how the Sony fanboys don't mention it but were so vocal about it when Xbox used to be in that position. On that note I can safely say "PS5 has no Games".

@gollumb82 Thank you, I appreciate it.

@MrMagic Does it really matter if MS do release 'more' games on Playstation? BO6 was always expected on Playstation, Minecraft games are also Multi-platform and Doom is a Multi-platform IP - in fact Doom (the OG) has probably been played on more platforms than any other IP.

From a Gamer perspective, ALL Xbox games are on Game Pass but Game Pass isn't on Playstation. Despite owning a PS5, I'm not going to play Doom or BO6 on PS5 when I can play on Xbox/PC/Cloud devices anywhere for 'Free'. If MS chose to release MSFS 24, BO6,, Avowed, Indiana Jones etc on PS5 this year, I'd still play on Xbox as its by far the best 'value' way to play Xbox games.

If you'd rather play on Playstation - MS still wins as they get the Money from Sony's Gamers contributing to their Growth which in turn benefits Xbox and Xbox Gamers.

@MrMagic

Sony revenue and profit in 2024 from gaming:

Full-year (12 months ended March 31, 2024)

Net sales: ¥11.3 trillion ($72.2 billion, up 12% year-on-year)
Operating income: ¥1.04 trillion ($6.6 billion, up 5%)

Game & Network Services net sales: ¥4.3 trillion ($27.5 billion, up 17%)
Game & Network Services operating income: ¥290.2 billion ($1.9 billion, up 16%)

We can see that Sony had a revenue of $27,5 billion and operating income of $1.9 billion in 2023.

XBOX had a revenue $16 billion in 2023.

Activision Blizzard had a revenue of $7 billion and $2,15 billion in net income. Activision Blizzard alone is more profitable than Sony's gaming division.

If you combine XBOX+ Activision Blizzard revenue it will still be lower than Sony total revenue of $27 billion, but XBOX will be more profitable even with lower revenue.

Also, we don't how much impact the aqcuisition will have in XBOX revenue growth through Game Pass, live service games and mobil games which is in development. The end of the fiscal year for 2024 will show how much bigger XBOX has become compared to Sony.

A lot of people are under the impression that MS games on all platforms is a bat thing. Business 101 is that you need to get your software in as many hands as possible and if that means selling it across the board than so be it. People need to move on from the idea that in order to "win" you need to sell more plastic boxes than your competitor.

No. In order to "win" you have to make the most money and MS is in a very good position to do just that in 2024/2025.

I seem to have ruffled some feathers last night when I was drunk before I went to bed lol. Either way even if I was miss remembering some stuff I was still right about Sony's revenue being more then ABK & Xbox combined and the higher revenue from them is nothing more than a fanboy prediction.

Okay I'm going to be honest, I'm cool with them having this fancy "when everybody plays we all win" catchphrase, but when you repeat it over and over again, word for word as if it is something pseudo-religious, it just sounds so artificial. I don't know how to explain it, but I think it would have more weight if they didn't say it every single opportunity they possibly can fit it in.

@MrMagic It is not an unrealistic scenario after the mega aqcuisition of ABK.

Sony revenue: $27 billion.
XBOX+ ABK= total revenue of $22 billion.

XBOX can futher increase revenue through multiplatform sales and increasing sub growth on Game Pass. XBOX will have its strongest first party content during the period 2024-2026. There will be many games coming out on game pass and as multiplatform sales at full price.

Sony has a total of 20 studios in which 4 of them are supporting studios like Bluepoint, Nixxes, Valkyrie Entertainment and Neon Koi.

XBOX has over 40 studios which make a variety of different games like mobile, live service, AAA, AA and indie games. XBOX has a powerhouse of 20.000 employees which can produce a massive content every single year.

It is expected for XBOX to drastically increase revenue in the coming years, and there's a serious chance to become the market leader by surpassing Sony. But even if it doesn't surpass Sony in terms of revenue, XBOX is still more profitable than Sony even with a lower revenue.

https://gameworldobserver.com/2023/10/20/xbox-studios-list-microsoft-gaming-activision-blizzard-bethesda

https://www.essentiallysports.com/esports-news-as-per-reports-playstation-scores-the-lowest-in-profitability-as-compared-to-xbox-and-nintendo-but-rules-in-revenue/

All I'll say is this, is nadella still at Microsoft?

If answer is yes, then Xbox will always be in trouble, just like Microsoft will be.

This is why I never listen to all the doom and gloom. Xbox console sales may be down, but they are still making more money per gamer than both Nintendo and Sony. They still have the #1 sub service in gaming and the potential there, especially with the lineup of games just announced is HUGE. Just look at the early years of Netflix and what happened with their overall revenue and overall profit as time went on. Even Xbox game sales are up double digits the last 5 years even with Game Pass in the mix.

Hell, I regret upgrading to a PS5 at this point. I did love Returnal, but beyond that I could have played everything else on my PS4 pro. I don’t blame Xbox One users for not updating yet as there wasn’t a whole lot of games compelling people to. That just changed in a big way with this show. Will be interesting to see if MS sees an uptick in hardware sales after that show.

@Phil-Spencer-Gate

Yeah, I fully expect Xbox to leapfrog over Sony in overall revenue in the next few years. It’s pretty much inevitable at this point.

@GuyinPA75 Microsoft has record revenue and profit under Nadella, and it has become the most valuable company in the world with $3 trillion marketcap. Nadella isn't going anywhere until he decides to retire.