Queensland country boy, raised on hard work and good manners. Sports fanatic, musician, gamer, CFO & Financial Analyst. No regrets, no anger, no fear!!
So, are we ready to start the conversation about Microsoft mismanagement of Xbox and Xbox senior management??
Or are we still ignoring that there is a problem.....???
What if...
The Japanese government declared Sony, Nintendo, the T1 Japanese publishers (Capcom, Sega, Square, Bandai Namco, Fromsoft and Konami) and T2 publishers (Koei Temco, CyberAgent, Falcom etc.) All security level one companies, no foreign takeovers allowed 🤔😉
Check this out.
So ABK contribution for the revenue growth was $2.08b, total gaming revenue growth was $2.4b.....
So Xbox Revenue without ABK grew a whopping $320m....
Always read the fine print and SEC filings reports.
So 112 MAU for PlayStation is a problem, yet 120 for Xbox is excellent??
Xbox includes console and PC might I add.....
PlayStation made about $880 million from 112 MAU in the same quarter where Xbox made about $420 million from 120+ million MAU....
What's the problem again...?
I was asked what I thought about the Sony/Bungie story.
Apart from it being just another Tuesday in terms of how business works, I would also point out that Big, Bad Sony embedded into the buyout agreement payments directly to BUNGIE STAFF to ensure they stayed onboard (1/X)
I was asked in the past few days about PS buying a major like Take Two.
Yeah, sure. PlayStation could drop $25bil on Take-Two where that cash goes to the shareholders, then have to fund all the game development on top of that, or
They could just invest $25bilion into games...
For all those who are stoking the fires of PlayStation day & Date on PC, I kindly point out that Revenue and Sales are not the issue.
Costs are the issue PlayStation is facing. Day & date on PC would INCREASE COSTS.
Just pump the brakes, Sony won't throw away cash for nothing.
Major
#Xbox
#GamePass
changes & price increases coming Sep 12th! 👀
GP Standard - $15pm, $180py, online play + catalogue but no day date games
GP Ultimate - As is but increase to $20pm, $240py
GP PC - As is but increase to $12pm, $144py
GP Core - As is $10pm, $75py from $60py
I challenge you to present a business case that supports your argument with actual numbers.
Microsoft is struggling to make any advancement in market impact and so far it seems they are no where even close to PlayStation and Nintendo on Revenue with their model, so why bother??
Seems those eliminations were pretty serious.....
First quarter inclusion of ABK was a loss position.
Seems I do know what the fuck I am talking about.....
So those who are asking what the sales numbers are for Horizon Forbidden West, this is a rough estimate based on available information from a 5 minute google search: somewhere between 9 and 14 million.
Based on this combined ranking:
Something something something Hold the line something something......
Blah blah Profitable and sustainable blah blah......
Them numbers don't lie it seems.
@PostUp_SOG
Couple of questions:
1) why are you using 2015 as base year when FY16 ended in March 2017.
2) why are you using US inflation on a global comparative?
3) did you factor in all the FX impacts to your assessment, given the Yen has deprecated over 40% against the USD since 2017?
@Riskit4TB
I'd suggest not using Microsoft versus Sony news stories that are two months apart as your source information as evidence of PlayStation versus Xbox.
SIE is not Sony, SIE is a division of Sony.
What operating profit has Xbox made?? Whats their forecast and investment plan??
Sony is 1 what in debt??
What did they liquidate?? They had $44bil cash in bank last year, they moved $30bil into trust for acquisitions.
Companies can acquire other companies many different ways: equity raising, debt/equity swaps, share swaps, structured loans etc.
@faulkie87
@kingdavidotw
Mr financial analysis
Sony is 1 in debt
2 the liquidated everything they could last year to get 18 billion to spend
Now they have 16 billion
Ea is 37 billion
How will they buy EA ?
@DeekeTweak
Accountability margin would include only that which would be accountable to their business segment.
Given the methods in which MS accounts their expenditure I highly doubt this margin includes any MS software or hardware costs, including cloud and servers
@Riskit4TB
I said SIE is not Sony.
You claimed SIE was down 13%, which cannot happen as SIE is not listed.
Furthermore, using the parent companies to compare individual segments, completely ignores the actual profit drivers within Microsoft.
You going to answer my question at all??
What if:
Microsoft sold Xbox.
Microsoft could get $20b+ cash injection, plus unload a heap of costs (and arguably a non-profitable business segment), construct further income streams via the tools, software and cloud infrastructure back end that the studios use...
So just looking through the PlayStation financial information, they're indicating a 32% increase year on year the same quarter for sales. That's quite interesting.
That number does not include Spider-Man 2.........
@BRAP_Podcast
Hang on a minute....🤔🤔
We all know ABK was profitable right up until just before the acquisition closed.
So if layoffs are to get Xbox profitable, that would mean....
Xbox was not profitable before the acquisition closed. 😏
Given there are a number of people who keep carrying on about 'Microsoft Big Money', please instruct me on this Statement of Financial Position (Balance Sheet) where all this big Cash on hand balance is for Microsoft??
Link:
For all those bitching, complaining and having a sook about rumours today, ask yourself this question:
Would you rather they go multiplatform, or be closed down??
Welcome to the real world of Microsoft business leaders taking an 'interest' in an underperforming division.
So....
Does Phil now have to sack his CFO for lying to investors.....🤔🤔🤔
Or are the 'not in our plans" comments just good wordsmith abilities.. ???
Or was this another about face in reaction to fan outrage...??
Certainly going to be an interesting next few weeks....
@Riskit4TB
So why bring up this financial comparison in the first place if you aren't knowledgeable in business, financial reporting and has no interest in that stuff??
@PaulTassi
Show the Whole paragraph you coward.
The MMO, Smart Devices and PC sales being down dragged the segment.
Learn to read financial reports, or get someone who can interpret them to help you.
Click bait chaser......
Without changing the existing agreement and arrangement.
Simple as that.
The media who write this stuff should know better, be held to account for their feeble writing and treated same as any other media site who publishes false and misleading information.
For the fuckwits who were banging on about PlayStation must go day & date as it's so fucking important.
Check out the actual size of the PC gaming market......
Going forward it is going to be shrinking in relevance too
Post acquisition. This wasoney commited by the buyer to go directly to the employees, not the shareholders.
For comparison (since the console fanboys love to misinterpreted and fail to comprehend the simplest concepts) MS is not paying a single cent to any of the ABK staff (2/X)
For those who asked....
ABK reports for March quarter 2023 and impact on Xbox performance from MS slide deck for March 2024.
Less revenue= bad, higher expenses = bad.
Operating environment and economic impacts do matter.
Was asked to put some thoughts to words on the ongoing talent leaving MS gaming, spurred by the news today of JS leaving.
Talent acquisition not my speciality,
@BRAP_Podcast
more your area so feel free to provide feedback.
Hmmmm....
Sounds and seems like they already knew who was going to take over when they announced Jim was retiring.....
If you know, you know.
Will be an interesting time, especially going back to a split of the top role.
All the best to them both.
@BradSmi
@Nintendo
@Sony
Will your 10 year offer include access to having the titles on PS+ same as Gamepass??
Otherwise you are not really producing a valid proposition to allay the market restriction concerns.....
Not a single cent is going to employees, all.of that $69bil+ is going to shareholders and executives.
So, before jumping on the bandwagon and claiming doom and gloom, do yourselves a favour and get fully educated on the issue.
Additionally, beware these 'reports' (3/X)
@stephentotilo
How much money did Xbox make out of that hottest game??
That's why things are where they are.
If the subs on GamePass barely moved, Xbox lost money on Palworld.
Think about that.
For those who were watching along on the exchange with Mr Riskit, this was the tweet in motion when he tapped out and hit the block button.
Feel free to tag him since I no longer can respond to him (by his choice).
As pointed out by
@nib95_
and as I mentioned on
@BRAP_Podcast
earlier today - the Q&A always has more info than the presentation.
Additionally, the strategy discussed in this clip will have solid, tangible data to support the pathway decision., not a 'lets suck it and see'.
As per prior business documentation,
#PlayStation
CEO's Herman Hulst and Hideaki Nishino, re-affirm that only PS live service games will see PC day date releases.
Tentpole titles (single player narrative experiences) that are the "back-bone" of PS, will continue to get staggered
@Otikage
PlayStation don't give a fuck. They are happy for them to wait.
Why you ask??
Well, it means they can sell you a two year old IP for $60, not risk a day one launch title being cracked and pirated in 60 seconds, or reducing the double dip sales impact.
The number don't lie.
@astaranx
That's their total liabilities, not just long term debt (which for Sony is currently about USD $8.9 billion, Microsoft last reported long term debt was $47 billion)
That number you are showing is Total Liabilities, which is what is used to calculate the Debt Equity Ratio.
@stlcty03
If a company is declared level one for national economic security then influencing ownership by a foreign entity is prohibited.
Basically, no one other than a Japanese domiciled company or approved investment organisation can buy it.
No chance Microsoft could get anything then
@kingdavidotw
Since when is having over $16bil on hand and another $20bil in trust being broke??
As a business owner you should know how to read financial statements.
Remember I'm a Financial Analyst, reading and deciphering a companies financial statements is my thing.
There's an awful lot of people on this app who criticised Spider-Man 2 after the June showcase for PlayStation very fucking quiet all of a sudden.....
It doesn't matter what platform you play on. Don't judge games until they are in the hands of the players
They are full of misconstrued motions about how business works and who has the knowledge. A Dev in an organisation of a thousand people would have no idea what is happening at the Board level, neither would senior managers. The board has little to no power to take over (4/X)
Bit of an initial summary.
Additionally, Sony are eating a huge amount of costs still thanks to the FX movements, which is visible in the Cashflow Statements.
Pretty good considering the economic climate.
That's it. So this idea that the two members of Sony who sit on the oversight board for Bungie will 'take over' the studio is extremely naive. The board may eject and replace some management, however they cannot simply absorb Bungie into PS Studios (6/X)
Original tweet & now.
Considering how well they performed in the last quarter PlayStation don't need 'mega franchises', it seems they can make good money without them 😏😉
@NextGenPlayer
That's a nothing article.
Numbers are full of estimates and assumptions. No where do they even mention the treatment of exclusive games, Gamepass only games or even the elimination impact of Xbox sales.
Plus it's based on historical information.
Read the fine print.
As the primary function of a board is to ensure compliance and governance is met, reporting to shareholders is adequate, risk is managed and management is effectively doing their job. All the board can do is sack the senior management if they seem the failure severe enough (5/X)
Take Two with a combined $2.9 billion (yes, billion) goodwill impairment to end up with a $3.7 billion loss for their FY2024......
Can't wait to see what it was they bought that went south in value.....
Have you noticed the stark difference between the acquisitions of PS & Xbox?
PS: longer term partners with a great culture, high quality and driven to continuously evolve their maximum levels moving forward. They understand the commitment and top shelf production levels expected
What many individuals forget is the purchase of a major publisher or studio group does not mean the money goes into that studio.
MS will pay $70+ billion to close out ABK purchase, however will still have to kick in cash above this to continue operating and making games.
@WOOLLEY_GAMER
@G4TV
Nothing on PlayStation?
Who the fuck is this person?
Do they just ignore PlayStation or something?? They have more games confirmed for Q1 and Q2 2022 than what was suggested from Xbox as 'whatever Obsidian put out'!?!?!?
Clearly a biased opinion and should be announced as one
Slide from today's Q2 report and the same slide from the corresponding Q1 report. Note the FY23 Q2 graph total of $14.24b is the same in both.
They have not added the ABK amounts into the prior year comparative, thus the huge % growth numbers stated are not a true comparison.
@Zuby_Tech
Appreciate the shout mate.
Days like today suck, though are completely unavoidable if those charged with decision making actually pay attention.
@insomniacgames
What kind of performance enhancing shit are you guys on?!?!?!
Congratulations and all the best for delivering these two massive items.
P.S can I have some of whatever it is your on?????
@JrEwing7500
You look at one small segment in isolation and consider that a poor result.....??
Even though PS had their best Q2 in history with bringing in just short of USD $5.4 billion revenue and still $300mil+ profit in challenging global circumstances.
Poor...?? Really....??
KOJIMA PRODUCTIONS officially announced a new "Action-Espionage Game" 🎮 on today's "State of Play"
🎥Click here to watch State of Play
With the full support of SIE, this new action espionage game will use cutting-edge technology and a stellar cast to
So you are now suggesting an article that has confused yen with USD is an accurate source??
That article has been debunked as incorrect multiple times over the last few days alone.
Does the 1.79 trillion in cash and cash equivalents not raise a flag to you??b
So, for those championing and cheering on acquisitions, clearly you are less interested in having more investment into games themselves and more interested in making rich people richer.....
How PS calculated their MAU: 'Monthly Active Users is an estimated total number of unique accounts that played games or used services on the PlayStation™Network during
the last month of the quarter'.
Curiously, how many could be playing offline from PS network....?? 🤔🤔
I'll talk on this slide a little bit more:
Keeping in mind this quarter was a Call of Duty launch quarter and a holiday sales quarter so revenue should be well up.
This revenue stated here is pretty much all the other platforms excluding Xbox storefronts (1/...)
@Bankenrepublik
@DeekeTweak
Pay attention would you.
Xbox does not record any costs for the use of Azure, Cloud, Office or associated engineering.
They do not include over a billion dollars in related costs in the Xbox business unit.
Even though it's Microsoft property.
That's the point I am making.
Sony has a cool Ghostbusters installation at their booth with screens all around you and haptics on the floor. It's like (basic) VR without a headset. Was very cool!
#CES2024
@stlcty03
No matter what MS tries, Japan is fiercely defensive of its sovereignty...
Plus the US senators writing to Japanese officials demanding an enquiry did absolutely no favours to MS 😉
@SnapBlastPLAY
Get your numbers straight and stop fucking up the comparisons.
PlayStation revenue was down 2% Y/Y, Xbox was down 7% Y/Y. Revenue is not profit. So Xbox was 2.5x worse than PlayStation with revenue.
PlayStation operating profit was down 37% Y/Y, to USD $408 Million PROFIT.
In terms of a peek at the future for PlayStation, these two slides tell an interesting tale.
Reduction in sales, increase in Operating income suggests less internal development of content to be sold....
@SenninSage
I do not see Xbox as profitabile. Phil said it was profitabile 'for them'. Meaning their segment within MS.
Add in all the costs that are not included (which is widely known and confirmed in the MS financial statements notes) and get a true profitability view.
@Zuby_Tech
It's more aimed at those who are claiming it's a done deal that day and date will happen, or that PlayStation will be forced to do it.
Those individuals clearly have not been paying attention 😉
@ProjectXbox17
Gran Turismo Sport did ok.....
Over 14 million players since launch and just over 180k players online about 5 minutes ago.....
Seems compelling with numbers like that.
@XcloudTimdog
So 112 MAU for PlayStation is a problem, yet 120 for Xbox is excellent??
Xbox includes console and PC might I add.....
PlayStation made $895 million from 112 MAU in the same quarter where Xbox made about $420 million from 120+ million MAU....
What's the problem again...???
The same principle can be applied to any gaming platform holder. $25 billion would fund 250+ AA and AAA games. Far better for gaming consumers than simply giving cash to shareholders and then having to find funding to develop the games.
The predictable outcome here is when the bean counters realize they make a lot more money by selling full-price games on PS5 than giving them away on Game Pass, resulting in closing Game Pass day 1 titles perk. What a crazy whirlwind end to the strategy misstep that is Game Pass.
We’ve cleared the new deal for Microsoft to buy Activision without cloud gaming rights.
In August, Microsoft made a concession that would see Ubisoft, instead of Microsoft, buy Activision’s cloud gaming rights.
Read more:
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