Microsoft Surface packs a staggering payload of cool tricks, but there’s one unassuming feature that’s likely to attract game developers: the USB port.
During the conference call for Q2 of FY2026, Microsoft CEO Satya Nadella and CFO Amy Hood talked about the future of the xbox business.
«partly offset by growth in Xbox Game Pass.»
I take it with a big grain of salt. They've been reporting nothing about GP, only words.
We still don't have any hardware numbers, no software units sold, no subscription numbers, no PC vs console GP, we don't have any profit numbers ... we literally have nothing but overall revenue and words.
Does it really matter? Are you shareholder? Gamers have to stop acting like these companies owe us something. Its obvious everything is down. Thats completely normal in all businesses. It will be up and down again.
Yes, since they don't get tired spewing out word salad 12 months a year.
"Biggest launch", "millions of players", "growth of", "here look our revenue", "We buy ABK", "We'll bring you 1st party every quarter", "Biggest this, biggest that", "We always wanted to share games with everyone", "We're growing", "biggest launch", "millions of players", ... you get the point.
They either shut up.
Or deliver numbers like Nintendo, Playstation, hell even Tencent does.
On a sidenote:
Just years ago, Microsoft wanted to buy out a whole lot more than just Zenimax and ABK. They even wanted to push Sony out and collect Nintendo in.
You bet your butt I'm demanding numbers.
In an article discussing industry matters, telling people to not worry or want better information on the industry is antithesis to the whole point of it. I'm going to try this out with all those review articles. I mean, who cares about scores, just try it out for yourself, that's the only opinion that matters.
«In an article discussing industry matters, telling people to not worry or want better information on the industry is antithesis to the whole point of it.»
Well.
That's it.
Case closed!
He might be a shareholder you can get a etorro or whatever online platform about and throw 20 bucks into Microsoft boom shareholder
Yes, it matters. This is business! Some gamers have to stop acting like it only matters when the company they prefer wants to play ball.
The fact that shareholders are also in the dark im sure is also completely fine with you and Microsoft doesn't owe them anything either amirite? Not withstanding how silly and potentially inappropriate it is for someone to defend a public company from hiding sales information, you are also completely wrong.
@varora
Thank you.
For over 10 years we've been in those quarterly discussions.
Yet Nintendo and Playstation are the only manufacturers that deliver numbers, that deliver proof, that give us numerical baselines to either brag about or compliment them.
The only fraction that's been pulling doooozens of doooozens, hundreds and thousands of word salad bribberish comments out of their Xbox'clestotitis fan cloud is the die hard Xbox community.
And by doing that they're even defending that downward spiral Xbox is suffering from.
Bring the numbers buddies, or else just stfu.
Nintendo and Playstation can deliver all the numbers they want. It doesnt matter much because hardware isn't the only way to make money in the industry. Maybe decades ago but not now. That's why you see sony putting more and more games on PC. They know its the games that keeps the money coming. Consoles stagnate but not the software.
The fact is that Microsoft was and is never gonna outsell them. The competition's console sales doesnt really affect Microsoft"s profit margin much if at all.. Look at how many more consoles sony sells and then go look at what they report in profit. The gap is nowhere near the gap in console sold. Hardware doesn't dictate market trends.
Microsoft doesn't report xbox profit, so how can we compare them.......
Console sales lead to those software sales, thats not a theory its a fact, old days, these days... doesn't matter, one company is doing much better than the other, and thats partly because of said console sales...
I really think Call of Duty underperforming, the raise in subscription prices and Hoods ridiculous expectations of 30% return. Is what led to the lower numbers.
Could you show us the profit charts while you're at it? Would love to see this 'gap' you mentioned. Should be easy to show that right?
This whole report is confusing to me until I remember content and service are separate. Content went down... okay we get that because COD 'bombed' but Services went up because of the price increase which mitigated most of the lost from the cancelations. Okay got it.
I wouldn't blame the results on Amy but she sure as hell had unreasonable expectations.
GamePass has put Xbox in a bad position where the absolutely need PlayStation to make their numbers. So if a big game like COD bombs... they got a problem.
The fact that their service revenue (GamePass) can't drive growth on its own is a huge red flag. That was supposed to be the whole point.
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Microsoft announced its financial results for Q2 of fiscal year 2026, including an update on its gaming business.
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I don't why people waste their time replying to the alt-account clown. Their comment is going to get flagged as spam as it always does and those comments (and all replies) will eventually disappear. Better to ignore them and carry on constructive debate with those not scared to post with a permanent account.
@raW: “ I don't why people waste their time replying to the alt-account clown.”
He suffer from from keyboardrhrea and can’t wait the average month of clean posting to have a permanent account.
.
@taco: “ Funny that this website actually works again when there's prime opportunity to slam on Xbox.
LOL it's all admins ever give a shit about
The funny thing is that it’s at random at least for me, sometimes is working find and other times it doesn’t let me do anything even flag the spammers.
This isn’t a us vs them it’s a everyone is in the swamp up to the neck
Funny that this website actually works again when there's prime opportunity to slam on Xbox.
LOL it's all admins ever give a shit about
Pretty surprising on revenue and content being down. Obviously hardware being down is expected, but you'd think that the GamePass price hike, CoD, and things such horizon 5 coming to PS5 would drive things up. No wonder MS is all-in on the multiplat strategy, don't really have choice at this point. There might be another GP price hike this year.
COD is likely the issue. It appears BO7 is doing significantly worse than BO6. Game Pass is apparently growing, so the problem isn't there.
@Varora: What you "hear" (from your uncle who works at Nintendo?) is irrelevant when the CFO of Microsoft says the opposite in the conference call.
Incidentally, "content and services" are down, not just services, which include Call of Duty. If you don't know how to interpret financials, don't try 😂
Edit: Oh wait... another troll account made 46 minutes ago. I really need to learn to check before engaging. 😂
I noped my way out on the last price hike. Whilst Ultimate was convenient for a while being also able to Play on PC, it became too rich for my blood.
Wonder how the goalposts will be moved this time, it shifted from exclusives and console sales, to revenue, where now then.
No goal post. It was down last January also. Amy Hood predicted this was gonna happen. You gave us and downs, that's simply how it works.
Think it was down last January but I don't know why. There is probably a genuine reason for it.
There is no incentive to buy into a closed ecosystem with no exclusives. I wish they would just make windows lite or steam os bootable on the Xbox so long time fans who still own the console can get some enjoyment.
All consoles are closed eco systems. This in itself is not a problem but a closed eco system without exclusives is pointless when there’s alternatives that have them.
This is also why Microsoft has been marketing really hard for the elimination of exclusives in general. They are out of the console business and into publishing games and subscription services. They need exclusives to die so they can end the battle with console markets.
@yb it's games and services are are on PC, tablets, phones and TV's not just found on Console. Even it's games are on other systems.
It's not closed at all. It's games going everywhere is probably the worst idea MS did you're right about that.
You do know that DivineHand is talking about the hardware losses, not the games, right? The hardware is a closed system. It has seen two digit declines each year for at least 3 years in a row.
And Microsoft wants to release another super expensive console next gen? Bizzaro world economics over there. Phillip Bartholomew Spencer will be promoted on the strength of these loses. Lol
Their next console has to be released. I could only imagine how much R&D they've already put into their next platform.
Its a PC.. I don't think they spent a lot of money to R&D the idea of releasing a prebuilt PC. And they are not subsidizing it so by that token I don't see any reason why they wouldn't release it unless they pivot from hardware altogether.
They're just releasing a PC. And they don't intend to subsidize the cost so it's going to priced like any other PC and probably expected to ship PC-like numbers and not the many millions that consoles sell. After that, they'll eventually go third party and xbox hardware will be a thing of the past. Sega says hi.
Forza Horizon 5 has reportedly sold more than 5 million copies on PS5.
All are winners here. Especially Microsoft who actually has a audience now that will buy their games. While I do miss the competition from Microsoft as a consumer, it is nice getting those games without having to buy another console and get another subscription. I just wish they released proper physical games.
Yup fully 100% agree with you. On one hand I'm sad the way Xbox as a platform as gone. On another hand as you said one console is all you need really now for majority of games.
Wish they did release this physically as well as age of empires, flight sim, age of mythology.
It's a hard narrative to kill when MS confirms it by having to reach out to other platforms in order to get sales.
@Frosty as usual you make no sense. With your logic then PS needs PC since those games are on there and HD2, deathstranding on Xbox. They're reaching out for sales because console is no longer enough.
More reason for Microsoft to ditch Xbox and release on PS and PC. Imagine if Nintendo stopped faffing on with consoles, their games would reach eye popping sales, but they love control and that's losing them millions or billions a year. Mario Kart 8 and World on PS5 and PC, what sales would they hit?
This comment makes absolutely zero sense. Nintendo is never leaving the console industry as a manufacturer; they have the second highest selling system of all-time, and some of the highest attachment rate of any developer ever. The PS5 won't even touch Switch 1 sales, so why would Nintendo even entertain the idea of this? MK8D sold 70 MILLION UNITS on the Switch. That is the "eye popping sales" you're going on about, if anything Sony wants that for their games that they never get.
What you're saying is, if Nintendo ditched consoles, it wouldn't make a bigger killing from releasing all of its games on PlayStation and PC, maybe even Xbox if Microsoft grows a backbone? Mario Kart 8 and Breath of the Wild as examples, what sales would Nintendo hit on PlayStation 5, PC and Xbox Series X? Nintendo could still bang on with controllers, joycons and cams etc. to bulk up its profits. Nintendo has been holding back its fans for years now when it comes to tech. Last time it was up there was with the GameCube and that generation, it was the second most powerful console, Xbox being top in terms of tech, followed by PlayStation 2 then Dreamcast. Average tech holds back AAA games, the Switch 2 is apparently up there with PlayStation 4 tech. I agree that the Switch has pulled off some amazing games, although some games were Wii U ports. I understand that Nintendo will never leave the console industry, but it most definitely has missed the boat when it comes to maximising game profits. Nintendo has only been on top (not handhelds) with the NES, Super NES, Wii and Switch, but the Switch is a handheld console, Nintendo skipped that generation and didn't release a home console and that's also the case with the Switch 2. The Switch isn't anything new to a certain extent, as SEGA's Nomad and Sony's PSP could be connected to a TV. Some gamers can't accept that Nintendo pulled out of the home console market with the release of the Switch, comparing to sales of home consoles is a pointless exercise. I don't care about PC gaming, but I hope Microsoft ditches consoles for PC and PlayStation. Most gamers are fed up with all these consoles and game sales at an all-time low, gaming does need a single format. One tech, we all choose which brand we want to buy and that's it. It has never done the likes of VHS, DVD and Blu-ray any harm and someone mentioned on here a number of years ago, owning a Sony DVD player, you could only watch Sony produced movies and play Sony produced music CDs.
Replies(6)I agree. Nintendo is leaving billions on the table. If they left console gaming behind and let us say released a mainline Pokémon game on android and IOS, in addition to console and PC, I cannot imagine the amount of profit they would enjoy.
Modern phones are good enough to play most Nintendo switch games so if they made a mobile controller that can interface with android and IOS phones, they could port games like Mario Kart 8 to mobile phones and other consoles. I am sure they would be enjoying sales from both their own unique controllers and the game sales itself.
The only thing they stand to lose is the 30% cut from all software sales being released on their system. Perhaps they believe they can earn more from that vs sales of their own IPs on other platforms.
Mario Kart 8 apparently hit just under 70 million sales on Wii U and Switch, although that figure includes the game packaged with the console, so I'm not sure on single game sales (disc, card and download). No Nintendo console out there, I think Mario Kart 8 would've hit bigger sales when you add Android and IOS, which is a good point. Nintendo's games don't exactly need ground breaking tech, but if that was there with a single format, Nintendo could then keep up. Don't get me wrong, I love the Switch and Switch 2, but PS4 tech games going into 2026 and onwards, again, it's a limited console from Nintendo.
Nintendo games already reach eye popping sales. In fact, neither PlayStation nor Nintendo really HAVE to put their games on other systems. Even Sony's PC releases don't sell anything big (outsold of outliers like Helldivers II).
That said, I agree about Microsoft with Xbox. Outside of being a gateway to Game Pass, they should drop the platform and cut their losses. Stick it out as a 3rd Party pub and make bank that way.
so what.. just have PlayStation in the console space? Great news for innovation and pushing each other to be better.
Yeah it makes way too much business sense for these games not to be on PS and PC. If it's 300 million Sony got 90 million from simply allowing the sale of the game. MS need to get the development house in order so these games can come out at the same time that's when you make real big money
This is correct. There is a lost sale aspect by not being available day and date on PlayStation. Halo is day and date so everything else should be too. This may not be possible all the times but they are not served at all by taking the Forza 6 route. No one is buying and Xbox or getting GamePass to play the next Forza. When the realize this they will just enforce day and date for all games.
@Wommens @Potdy Keep creating those alt accounts!
The truth is Forza, Gears and Halo and Starfield and the WHOLE SLATE will be going to PlayStation.
Microsoft has sold more copies of Forza on PS5 then it did on Xbox Series S/X.
The RAM price rise could lead to the 'Xbox PC' being delayed - if that happens Microsoft might not release it at all.
Stop running defence for a trillion-dollar company that doesn't know you exist.
The way I see it, most racing gamers prefer playing on Playstation. It has been so since PS1.
As I said before, that Forza Horizon 5 would do well on PS5. So I was right
Racing games have primarily been an arcade + PC endeavor in-terms of popularity. GT and Forza pale in comparison to the decades of arcade/PC simulator racing games that defined the genre. iRacing, Assetto Corsa, Rfactor, NR2003, Automobilista, GTR 2/GT Legends, GPL, GP4, Daytona USA, Richard Burns Rally, SEGA Rally, Virtua Racing, etc..
Console games have only just started on the path to comparing to them, but even then, the physics on PC are unmatched.
Again you don't know what you're talking about. Daytona/SEGA Rally, as examples, never sold ANYWHERE NEAR what GT has and has never been as popular either (particularly in EU). Put out a new Daytona and GT8 and watch the latter absolutely dog walk it in sales. On top of that, most of those games are very different from one another. They can co-exist. If you want to go there, the highest selling "racing" series is Mario Kart. Hint: console. It hasn't been an Arcade + PC > console for a very long time.
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90% sure this is a duplicate story.
ill get a surface for sure cant wait portable gaming is meant like this.
nice
smart phones and tablets are not any good for serious gaming so how is using one as a controller for your console going to make it good for console gaming, and dont say its a wii u rip off or an attempt for wii u style gaming the wii u controller is a controller with touch screen. phones and tabs are just touch screen and anybody that owns one (exc xepria play) will know there only any good for quick casual games. bad time to be an xbox 360 owner unless your one of the few lunatics that get down with kinect and think this is the next best thing. hardcore 360 fans enjoy trying to play smart glass kinect enabled games. forza, halo, gear of war and fable with new crappy controls yay
I'm a dev... and I'm not psyched....