The biggest Bets
Xbox Game pass
Windows 11
Microsoft cloud
In that order. They are going all in
From FY 15 cloud revenue was 5.8B , FY21 69.1B . Gross Margin 44 cents on the dollar and now 71 cents on the dollar
Moving our old customers to the customer's new. Game disks to digital.
Game pass is part of their business model bravery. Imagine a world where there is an xbox programed into your tv and you just stream from the cloud.
Big Azure Cosmos DB push, Microsoft viva and windows 365
Xbox All access is popular customers increasingly want to just bundle into a single monthly payment.
MS is the worse at Freemium/Free2play catagory.
They have tried with Office web apps , one drive , azure free account, teams , power bi , solitare , halo infinite for pc.
They have failed to make a freemium business with hundres of millions playing the free thing and 10s of millions paying.
$85m revenue from Solitaire a year from advertising.
Engineering 5 seconds to sign up , 5 minutes to wow
easy set up , sharing - look at wordle
Gaming CSA Revenue fy 22 3.9B , 3.8B hard ware aim to subs 6.8B , hardware 7b both FY30
xbox has gone from 30M MAU in fy 14to 55M Mau
adding new initiative - Microsoft Brand Love
Number 1-2 in market cap but ranked 4th of the group . They never make it to the top 3.
Higher brand love - price premium , try more of our products , come back and advocate for Microsoft
Product surfaces are incredibly valuable
Windows spot light reach /mon 5.7B impresion avg ctr 21% awarness , action center , soft landing 300m 1-5% activation , start menu 6B .06% acquistion , microsoft account promo 50M .4% conversion , edge new tab page 6.7B .2% usage
94% of in product game pass gross adds from microsoft account and start menu suggestions.
Sounds like they are really proud of the xbox series about its creation. Sounds like they are going to push more content like that
