Bloomberg: For the last 2 years Microsoft has pushed Xbox to hit profit margins of 30% an ambitious target that's far higher than the industry average

[In The Zone '98]

Why do you guys even care about this shyt? This is embarrassing.

Its relevant to Xbox owners on getting a new console

 

[CoolinInTheCut]

Its relevant to Xbox owners on getting a new console

Profit margins don't mean anything to the consumer. We don't even know how much of that is re-invested and where (business line).

 

[King Sun]

Profit margins don't mean anything to the consumer. We don't even know how much of that is re-invested and where (business line).

 

[Rekkapryde]

Bill came due on those acquisitions.

ain't shyt for free.

Corporate like "Where my money Phil "

 

[Gizmo_Duck]

Bill came due on those acquisitions.

ain't shyt for free.

Corporate like "Where my money Phil "

War chest was really a pay day loan

 

[Rekkapryde]

War chest was really a pay day loan

We joke, but it was.

You don't get 75 billion "for free". They expect that money to be made back.

 

[Rice N Beans]

Why do you guys even care about this shyt? This is embarrassing.

Embarrassing for MS.

As to why care, well, it explains a lot of the poor decision making. I'm sure this margin angle has been in place for longer than two years.

MS unfortunately hold the franchises I want to have newer experiences. So for me, personally, it lets me know I probably won't see newer titles in the franchises I love or they will attempt to be even thriftier on the development purse and possibly release even more duds in an attempt to cash in on an IP name.

 

[daze23]

@Kamikaze Revy

 

[Diondon]

All I ever cared about was Elder Scrolls
Long as I get that, I'm straight
The rest of Xbox is a pile of dog shyt

 

[Scaaar]

Every week a new article comes out justifying every thing I've said about M$, Gamepass, and their business acquisitions. Everybody with any basic business knowledge and critical thinking skills saw the writing on the wall except the Xbox faithful. @MeachTheMonster still in here caping lol

 

[Stone]

They’re delusional. Reality is there’s just too many games

 

[GambinoMakeItWork]

stop talking about Microsoft in this tech sub-forum you weirdos

 

[MeachTheMonster]

Every week a new article comes out justifying every thing I've said about M$, Gamepass, and their business acquisitions. Everybody with any basic business knowledge and critical thinking skills saw the writing on the wall except the Xbox faithful. @MeachTheMonster still in here caping lol

You doofies just get off on your xbox doom and gloom world.

As with the last time you engaged with me. You guys don’t live in reality.

Reality paints a picture of all gaming companies looking for ways to improve profit margins.

Sony Boss Says PlayStation Has ‘Room for Improvement’ When It Comes to Cutting Development Costs - IGN

Sony boss Hiroki Totoki has offered what he called his “frank impressions” of the PlayStation business, suggesting its studios can do more to cut development costs.

www.ign.com

Sony wants to improve PlayStation profit margins with more aggressive PC release strategy | VGC

Hiroki Totoki says the company has to “proactively work on” making more games multi-platform…

www.videogameschronicle.com

https://www.bloomberg.com/news/newsletters/2024-09-17/sony-s-playstation-5-pro-is-a-rethink-of-game-console-business-model

Sony Shifts Focus To Monthly Active Users Over Console Sell-In Units - PlayStation Universe

Sony's chief financial officer has revealed that the format holder is shifting focus from sell-in units to monthly active users.

www.psu.com

Me almost 10 years ago

Yall stuck with the antiquated console wars thinking.

Hardware moves too fast, and profit margins on hardware are too low. The money is in software and services. The idea is to get your software and services in as many peoples hands as possible. Having multiple hardware options is the way to go.

Monthly NPD means less and less as time goes on.

Yall claimed i was crazy then,

Come to find out this is EXACTLY where everyone in the industry landed.

Now the cac tweets are posting it and yall wanna run here like it’s some new shyt you just figured out.

Sony cult is some wild shyt

 

[MeachTheMonster]

Been talking about this for YEARS

I’m not the one in denial.

This will be another “meach” post that i come back years from now and tell you “told you so” and y’all will pretend it doesn’t exist.

One last time. Profit is not made on console sales alone.

Historically Console sales are supposed to lead profit.

In 2023 and beyond that’s no longer the case.

Software and services lead the way.

All console makers are gonna have to find a way to make profit in the new reality.

The state of video games 2025

https://www.matthewball.co/all/stateofvideogaming2025 The exhaustion of decade-plus growth drivers that grew players, playtime, and spend... coincided with evolving user behavior, changing monitization models, and growing “lock-in” effects…that exacerbated long running competitive and budgetary...

www.thecoli.com

It cost $220M to dev TLOU2 (The economics of AAA games) Update: Spider-man 2 info

Sony spent $220 million to dev TLOU2. Marketing costs are estimated another $200 million. Estimating they probably bring in about $50 cash per sale(Considering retailer cuts, Bundles, Sales, Server maintenance etc) they didn’t even break even on TLOU2 until it sold about 8 million copies. This...

www.thecoli.com

Each time yall rush in to call me crazy, just for years later the cac tweets to catch up then yall believe the shyt

 

[Fatboi1]

stop talking about Microsoft in this tech sub-forum you weirdos

"eMbarRaSsinG"