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I thought MS's revenue from PC was trifling compared to console as they've no reasonable store there. Only GPU subs and some game sales.
I wasn't very clear. I meant bigger compared to Sony's.
So what you're telling me is that MS has 2/3rd the revenue that Sony has, but has only sold 50% of the consoles. That's precisely my point: 33% more revenue per console sold. The fact that PC gaming revenues are a small part of the reason for this doesn't change the reality that MS doesn't need to sell as many units as Sony to do well in the gaming space.
You can attribute that to GamePass which does bring in a lot of revenue. However, the highly speculated and debates point is how profitable it is.
Well, yeah, Gamepass generating revenue is the point, right? Making money off customers is exactly what a business does, and Microsoft have figured out a way to extract revenue from it's customers that is more efficient than Sony when looking at revenue per console sold. Profitability is an unknown, but all public statements imply the Gamepass is doing well enough for Microsoft to continue the program.
You need revenue to make money, but without knowing costs and profit/loss, revenue is pointless.
Only recurring 10% annual growth? Which industries have such predictable growth? You're living in cloud cuckoo land, mate.
The comment was made in early 2023. They were at -3% at that time, so that would be the baseline of where they were at when the statement was made. They are at +13% now, a year later. I'm not predicting the growth and this statement isn't about the growth of an industry, but about a single company that both made a statement about projected revenue, and a company that clearly has room to grow based on their current market position. People look at "double in 7 years" as some unachievable number, when it's not if you calculate growth compounded year over year. Actually, it's even more achievable when you consider that Microsoft did not own Activision when that statement was made, and from memory, ABK revenue was something like 2/3 what Xbox's was. If you hit 175% revenue at the end of the first year, you only need 3 years at 5% growth for 3 years or 6 years at 2% growth to hit 200%.
Pointless how? In the conversation of "Microsoft wants to double Xbox revenue" then only revenue matters. Also, again, all public statements about Gamepass from Microsoft/Xbox claim that it's profitable for Microsoft. So what we know is Gamepass generates revenue and Gamepass is profitable.
MS has 2/3 of the revenue because hardcore players generally buy the console before casuals, so the first let's say 20 million customers will spend a lot more than the successive 20 milion. Also we have games like Minecraft, whole publishers (Bethesda and acti) so we can't isolate console revenue vs console revenue fairly. If we could the difference would be much higher.
Microsoft's revenue now (2024Q1 in financial terms) is where is was three years ago (between 2021Q3 and Q4). Like most companies, Microsoft's revenue goes up and down. This is no different to Amazon, Apple, Google and Sony.
I am referring to the metric that profits are the usual metric of a successful business model. But I accept that Microsoft have adopted other metrics, like monthly active user engagement, which deviate from that norm.
I can't find any articles talking about this, and every time sales numbers come out for games playstation is the best selling version by a pretty big margin. Ps plus numbers were around 47 milion and gamepass is probably at 29-30 milion. The problem with all of this is that Microsoft doesn't share much of anything about the Xbox division, so we don't really know, we can just guess (wrongly)
It will be as there's more PS owners. MS making relatively more money for market slice would see proportionally more titles sold to XB than PS. eg. Hardware in the ratio 1:2 XB
S but game sales in the ratio 2:3, MS would be making more money from game sales per user than Sony.PS Plus numbers include the lowest tear subscription that just includes online play and a few games. Microsoft stopped reporting Gamepass numbers back when the lowest subscription they had was Live Gold. Now that Live Gold is retired, the numbers would be more comparable, if they ever release them. IIRC there were 30+ million gold accounts in the 360 era. I would doubt that number is lower today, but you can't just ad the Gamepass and Live numbers because Gamepass Ultimate includes both.
I just learned that live gold became Xbox games pass core, so they must have passed 30 milion subscribers. As far as sub engagement Microsoft got Sony beat there, or maybe there is a limit to how many subscribers you can have, even when your userbase is bigger. I can see 50 milion being that wall.
