Xbox Business Is Growing Profitably, Says Microsoft CEO Satya Nadella

“We’re uniquely positioned in the gaming market.”

Posted By | On 21st, Jul. 2017 Under News | Follow This Author @Pramath1605


People love to speculate about the overall profitability of the Xbox business for Microsoft- but it sounds like it is doing well enough for Microsoft to want to keep it around. Speaking at Microsoft’s financial conference call for the fourth quarter of fiscal year 2017, ended on June 30th, Chief Executive Officer Satya Nadella praised the state of the Xbox business, and discussed the strategic opportunities that it opens for Microsoft.

“Our gaming business now is more than nine billion dollars and growing profitably. The gaming world is growing faster than ever before from gameplay across multiple devices, to the explosive growth in streaming and esports, to new subscription services and mixed reality scenarios,” he said.

“We’re uniquely positioned to capture a large share of this opportunity because of our ability to unite the global community of gamers through Xbox Live – now 53 million-strong, and growing – and to enable new experiences across PC, consoles and mobile.”

Nadella also discussed the Xbox One X, and what it means for Microsoft. “Our approach is to let gamers play the games they want, with the people they want, on the devices they want,” he said. “At E3 we celebrated the passion of gamers by introducing Xbox One X, broadening our portfolio of gaming devices with the world’s most powerful console.”

The Xbox One X is due out later this year, on November 7. And while I am sure that Microsoft is doing well and making money, I do want to raise the question of just how viable the Xbox business will continue to be in the long term if Microsoft does not double down on its investment in actual compelling games that can solidify the appeal and identity of their brand on an ongoing basis.


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  • Luke Skywalker

    well, it’s profitable

  • XterminatorbotMK1

    “Uniquely positioned to unite gamers”

    In other more truthful words, you’re not being unique this whole generation and you’re just trying to lock gamers to your gabage os with your proprietary API on PC instead of using universal methods.

    What I see is more pr lies, propaganda and marketing spins from the head of Microsoft himself.

    • kma99

      And your sock account showed up too

    • Fweds

      Fake Upvotes ..

    • Mr Xrat

      “because of our ability to unite the global community of gamers through Xbox Live”

      It conveniently exposes their little “cross-play” swindle as well. I expect it to be as half-baked as Play Anywhere (what happened to that, anyway? No mention at E3) and their “backwards compatibility.”

  • Mr Xrat

    And yet they only ever report revenue.

    • kma99

      And yet you show up to complain anyway

    • Fweds

      Fake Upvotes.

    • LifeOnMars
    • Fweds

      Not fake at all, simply Google ‘ sony movie division losses’

      Even if on the next showing they show profit I bet it won’t be from the movie division.

      As for lone star capital ending it partnership .

      “In a blow to Sony Pictures, Lone Star Capital is ending its co-financing partnership with the studio after a series of film flops.”

      http://variety.com/2017/film/news/sony-pictures-loses-financing-partner-lone-star-capital-1202497702/

    • LifeOnMars

      Ok Sony movie division had a poor results last year, not that I care what company makes the movies I choose to watch.
      For its 2018 financial year, Sony forecasts its biggest overall operating profit in 20 years, expecting the company’s results to surge to $4.5B.

      Xbox hardware revenue fell 29 percent last year, year-over-year.
      That news is more relevant for a gaming site.

    • Fweds

      But the relevant point about it is they lose so much from movies etc that money they make elsewhere i.e consoles has to also cover those losses rather than going back into the gaming Division.

      Biggest Overall profit for Sony in 20 years would be nothing special when you look how much they were losing over those last 20 years.

      Year on year sales go up and down all the time as consoles get older.
      The Xbox one console sales would of also already started slowing down the moment they announced the Xbox1X as expected.

    • LifeOnMars

      Xbox One sales are slowing down, but the truth is that they never got started. I really think that XbolloX is their last throw of the dice before moving to Windows gaming. They have lost their way. Overpriced no new AAA exclusives ,against a dominant Sony and a rejuvated Nintendo they may well get squeezed into last place yet again.

    • Fweds

      !!! You have either just gone into Mrxrat mode or there are two people called LifeOnMars ?

    • LifeOnMars

      Don’t talk crap…..

    • Mr Xrat

      “Another?” When was this? Their quarterlies aren’t out yet. When they are I expect another meltdown from the usual BGST losers screaming the same conspiracy theories because they can’t count.

    • Fweds

      Look at every result from the last one.

    • kee1haul

      And the revenue is huge.

    • Mr Xrat

      You should look up operating income, Mark.

    • kee1haul

      You should look up imaginary friends.

  • Wei Feng

    Just like windows phone is also doing very well…

    • kma99

      Another troll account

    • Fweds

      Sony phones have never made Sony any money, like their movie division it’s another loss maker.

  • Evil_Annie_2015

    I guess he killed many dreams of those in the media had about MS quitting the gaming business.

    • Mr Xrat

      They’ll keep leeching off middleware like Havok and boosting their margins on rip-off subscriptions while feeding you PC/PS4 sloppy seconds you can convince yourself are AAA. As long as they do that, keep their disgusting executives quiet and they keep their usual malignancy from spreading, Xgimp.

    • Fweds

      Sony have many subscriptions they just don’t allow third party’s i.e EA to give consumers better value than what they offer you.

      The rest of what you wrote is just strange.

      All your Upvotes are now at 10. Fake Upvotes

    • Mr Xrat

      There’s Plus and there’s Now (in beta and available in three countries) and, erm, that’s it. Good job, Fweds, another own goal.

      The rest of what I wrote is just facts, kiddo.

    • Rickert

      And Playstation VUE. You know. TV TV TV. SPORTS SPORTS SPORTS.

    • Evil_Annie_2015

      “sloppy seconds”

      That’s exactly what you get from PS, from the value of their console iterations to their supposedly “upgrades”. And it doesn’t stop there, you also get close to nothing in the AAA department, a less reliable Network, and overpriced services….:)

  • Fweds

    If Sony or MS went out the survivor would have a field day costing the consumer far more for the same things.

    • LifeOnMars

      If it was not for Sony you would have be shafted by Micro$oft.

      Forced to purchase Kinect.
      Not be allowed to share games
      Always on.
      No free games with Gold membership.
      Gold membership required for Netflix.

      The list just goes on.

  • Smart guy

    It’s ppl like xrat who keep saying stupid stuff like that. No one should want any company console to die out. Not good for anyone. And then there’s b**chrat.

  • LifeOnMars

    Hey just read what I said, if Sony were not around this is what would have happened.

    • Smart guy

      No had nothing to do with Sony, it was the upset of the fans that had this changed not Sony lol

    • LifeOnMars

      If that is what you want to belive, the truth is that Sony would have left the Xbox One still born if they didn’t change their policy.
      https://youtu.be/JwYUGtI6guY

  • LifeOnMars

    I could agree with you, but then we will be both wrong.

  • LifeOnMars

    VGCHARTZ reports

    Microsoft has released its Q4 earnings report for the 2017 fiscal year. Gaming revenue increased three percent year-over-year to $1.6 billion.

    Xbox hardware revenue fell 29 percent year-over-year, mainly due to lower prices and lower console sales. Software sales increased 11 percent, driven by increased Xbox Live transactions(inludes PC & Phone).

  • LifeOnMars

    Sony phones are very good but the screens break too easily.
    Microsoft windows phone is well made but the apps and operating system is so poor..

    • Lockheede

      The Windows hardware and OS was great…the lack of apps killed it for me

  • Evil_Annie_2015

    I agree, and I strongly believe most of this “Xbox is doing bad” is something the media has created to prop up PS4 sale numbers. Of course, you will see the Sony fanboys running around with that, but they’re just mindless sheeps who repeat everything they’re told.

    The important thing to highlight is the fact that Nadella himself recognizes how profitable the Xbox Division is, which is a good thing for the entire gaming industry and gamers in general, and the same can be said for the PS’s success this generation.

  • Evil_Annie_2015

    Exactly, because a monopoly of the industry would benefit none either.


 

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