350°

Xbox Game Pass Annual Revenue Was Nearly $5 Billion as Microsoft Boasts Success Across Platforms

Microsoft CEO Satya Nadella and CFO Amy Hood provided insight about the performance of the company’s Xbox gaming business. They also provided success data across platforms for COD:BO6, Minecraft, and Game Pass.

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simulationdaily.com
170d ago
Sciurus_vulgaris170d ago

This doesn’t explain the massive layoffs, a studio closure and several game cancellations. The Xbox’s console sales revenue dropped, but game sales and subscriptions make up the bulk of revenue and profits. I don’t understand this CEO, the company as whole has grown, so he cut 1000s of jobs. Maybe he needs a new mansion and bigger yacht?

SimulationDaily170d ago (Edited 170d ago )

Sony is doing extremely well, and still, they laid off people, closed studios, etcetera.

Microsoft and Sony are big companies that have several businesses, and these businesses aren't airtight. The fact that a business is doing well doesn't mean the big company isn't going to seek to increase capital efficiency to have more money to invest in other businesses.

Sony's CEO has been talking about this quite a bit on their own conference calls for the past 2 quarters.

Basically, big companies seek the mirage of infinite growth because it pleases investors, and there are few things that please investors more than "we're saving money (by firing people)" the second part is implicit, and fucked up, but that's how it works.

Listening to financial conference calls can be depressing when you hear executives basically boasting about how good they are at firing people. And they do that a lot.

Redemption-64169d ago

Do you seriously want to compare the number of people Sony laid off vs what MS has laid off? Also, which company has done sone so more times?

SimulationDaily169d ago (Edited 169d ago )

@Redemption-64: The fact that you talk about numbers tells me you really don't care about the people who get laid off.

Who cares who has done it more (besides silly console warriors)? They all do it. It's fucked up regardless of the numbers. And the numbers Sony fired are absolutely not negligible.

VenomUK169d ago

Revenue is not the same as profit. The fact the blogger who wrote this doesn’t understand because he has adopted the celebratory tone from the Microsoft press release.

Petebloodyonion169d ago

@Redemption
Sony made a similar percentage cut to their workforce. It’s important to remember that laying off 10 people from a group of 100 is proportionally the same as laying off 1,000 people from a group of 10,000. That’s why percentages are often highlighted in these types of news. Recently, Microsoft cut 9,000 jobs, which represented 4% of their workforce. Interestingly, Microsoft’s employee count grew from around 45,000 in 2019 to 85,000 in 2024.
https://www.geekwire.com/20...

PanicMechanic169d ago (Edited 169d ago )

Microsoft literally culled turn 10… you cant just chop a core studio and pass it off as “ahhh but it’s ok because even Sony does when they are doing well, it happens with all companies” - I’m sorry but that’s a completely pathetic excuse for Microsoft. These are signs of a dwindling brand. Sorry.

Petebloodyonion169d ago

@Panic
"Microsoft literally culled turn 10… you cant just chop a core studio and pass it off as “ahhh but it’s ok because even Sony does when they are doing well,"

Ms cut almost 50% of Turn 10 Studio
https://www.gtplanet.net/mi...

And...
Sony cut 50% of Bungie
https://www.blog.udonis.co/...

Just saying!

PanicMechanic169d ago

Petebloodyonion

Yea because Bungie is like.. totally a core PlayStation first party studio … and like only has a small dev count, of 700+? And turn 10, definitely not a core Xbox studio developing a staple franchise synonymous with the Xbox brand. Not at all… a huge studio of 200 that definitely needed to get rid of some fat..

Christopher169d ago

Not sure what bringing Sony up does to change the criticism. It's a corporation problem where they layoff people right before the end of FY rather than actually planning more accurately and shifting personnel around to work on new projects. It's a very cutthroat situation that's common in major corporations that pushes people out of the industry. This is not the best way to maintain knowledgeable talent.

+ Show (5) more repliesLast reply 169d ago
Smellsforfree169d ago

Microsoft's board needs to fire this CEO. He has been a disaster IMO. Windows and XBox brands have never been in a worse state. Steve Ballmer was a better CEO. Satya Nadella's only concerned with one thing: shoving Bing and Copilot down everyone's throats. They invest so much in redirecting us to stuff we don't want to use instead of making it something we want to use.

Profchaos169d ago (Edited 169d ago )

His beloved ai will be a better replacement

Genuinely they really care about windows or Xbox anymore it's a drop in the bucket compared to cloud

Christopher169d ago

The board is making tons of money because of his actions. The problem is how that is a short-term effect rather than the potential long-term effect of actually building up things with talent you re-utilize rather than toss aside every FY end.

blacktiger169d ago

Naw buddy, 10 is 10 ppl vs 9000 ppl.
Huge difference

Flewid638169d ago

You think they would at least thank all their employees with fat, life changing bonuses before giving them the boot. They could do that and still be rich but greed is greed I guess.

Profchaos169d ago

Or it does by laying off 9000 they can take their wages and call it profit as they are eliminating X cost from their supply chain.

And yes it's fucked up but businesses do it all the time to make their profits look better

Killer2020UK169d ago

It's not about whether or not they're in profit it's about whether the profit can be bigger. That's literally it and they'll not stop until they overload their workforce to the point of failure.

+ Show (3) more repliesLast reply 169d ago
Jin_Sakai170d ago (Edited 170d ago )

What’s the net profit?

SimulationDaily170d ago

Operating Income is announced only by business unit. The one that includes gaming, windows, and search had $3.19 billion, up 34% year-on-year.

169d ago
SimulationDaily169d ago

@Nacogi: reporting by business unit is literally the norm.

169d ago
SimulationDaily169d ago (Edited 169d ago )

@Nacogi: Sony reports by business unit as well. Games & Network is simply its own business unit.

Microsoft has been reporting by business unit in this way for decades since Xbox exists. They're not targeting anything.

Incidentally, no document they presented anywhere says they're not profitable, and I'm not sure where you invented that.

Why would I "support" it?

I don't care. I'm not a shareholder nor a console warrior, which are the only two categories that might care about trying so desperately to disprove that they're profitable (actually the desperation only applies to console warriros, shareholders are very happy with the data they get), when the business unit has been highly profitable for years and growing consistently, and there's absolutely zero reason to believe that does not extend to gaming besides *wanting* to believe so.

Console warriors are funny. They're even funnier in 2025🤷‍♂️

169d ago
SimulationDaily169d ago (Edited 169d ago )

@Nacogi: and why exactly do you care, besides the fact that you're a console warrior that can't accept that the other side is doing well?

Xbox has been part of the More Personal Computing business unit for decades. Microsoft has a myriad of businesses, so that's what's logical for them and their investors (who, incidentally, are very happy).

What console warriors think they should do to feed their delirious rambling on the internet is irrelevant to how they communicate to investors, which is what this is.

169d ago
PanicMechanic169d ago (Edited 169d ago )

Why did Microsoft report profit for the Xbox division during the Xbox 360 days? Didn’t have a problem doing it when it ACTUALLY made a profit. Mmmmmmm

No one likes a shill. Especially not for a trillion dollar corporation that treats people like garbage. Your favourite trillion dollar company sucks balls.

Everything MS touches turns to poo. I hate this company, and they have absolutely no idea what they’re doing in the gaming space🤷🏻 all in all, they’re a nett negative for the industry.

piroh169d ago

9000 jobless people...

We all know why MS hiding profit numbers.

+ Show (6) more repliesLast reply 169d ago
Lightning77170d ago

All I've been hearing this whole time is that GP was a money pit and not makin them money this whole time.

Despite showing ppl countless times GP was making them money. GP is part of the game's and service growth each quarter.

lodossrage169d ago

Almost everything makes money.

But how much do they profit? 5B in gamepass revenue doesn't mean much if it's costing more than 5B to maintain.

And just like with all streaming services, it costs more and more to run due to storage, licenses, etc. In short, their expenditures are going up just like their revenue.

When they come out and show profit, people will stop calling it a money pit as you say.

Lightning77169d ago (Edited 169d ago )

"But how much do they profit? 5B in gamepass revenue doesn't mean much if it's costing more than 5B to maintain."

Yeah ppl said the same thing when they had 3b$ in revenue awhile ago. As if they're not making money off it some how. If it wasn't profitable they would of quit the GP venture and go to something else. GP is closely tied to Xbox and its growth.

As I said if it was a money pit they would dump it. We know MS has no issue dumping and canceling stuff.

lodossrage169d ago

@Lightning77

That's not exactly true.

If a company thinks they have a long-term vision, it is willing to take a hit. Case in point, Xbox has never made a profit in gaming, yet they're still in the gaming business.

Why do you think they never have profit posted? Both Playstation and Nintendo have profit posted. But Microsoft only posts revenue.

You can even prove it to yourself. Type "Xbox Profits", "Nintendo Profits", and "Playstation Profits" in your search engine. Xbox is the only one that has no history of posting profit, just revenue.

And yeah, like you said, people said the same thing when they had 3B revenue. And do you know WHY? It's because costs keep going up along with the revenue. Hell, there's a reason Day 1 was taken away from the majority of Gamepass owners and if they want Day 1 games they're forced to pay the higher tier.

Lightning77169d ago

"If a company thinks they have a long-term vision, it is willing to take a hit."

Maybe GP was them taking a hit. But it was a long-term venture now they're bringing in money and lots of it from GP. The revenue only seems to increase.

"Why do you think they never have profit posted? Both Playstation and Nintendo have profit posted. But Microsoft only posts revenue."

Not sure and tbh They seem to boast about their revenue. If the venture isn't doing anything for them then they would shut it down and yes that is true if we look at the recent lay offs. They have no issue in taking things down with a blink of an eye.

I wouldn't worry too much about revenue and profits. If GP isn't doing what they need then they'll shut it down.

Yes now gamepass is designed to get ppl to sign up for the highest tier.

SimulationDaily169d ago (Edited 169d ago )

@lodossrage: you shouldn't talk about things you don't know, really.

Microsoft doesn't publish profit figures for Xbox because Xbox isn't its own business unit. They publish profit figures for the "More personal computing" business alongside search and Windows, because that's what games have always been part of.

And that business unit has been profitable and growing for a long time.

Sony and Nintendo publish profit figures because for Sony, games are its own business unit, and for Nintendo, they're the only business.

By your skewed logic, Windows never made a profit, since it doesn't get its own individual profit figures.😂

On the other hand, Microsoft posts specific revenue for gaming, search, and Windows because that's the norm in terms of financial reporting.

The "Xbox doesn't make a profit because they don't say it" argument is as valid as the "Konami makes money mostly with Pachinko" silliness by people who don't know how to read financial results.

+ Show (1) more replyLast reply 169d ago
MrNinosan169d ago

5$ billion won't cover salaries and production of games and hardware, which you should know by simple math, and as Xbox doesn't sell consoles nor games (well a few more now when released on Playstation), the GamePass revenue has to cover almost all expanses.

Lightning77169d ago

With Xbox games taking up most of the charts this whole time I'm sure they're doing fine.

Chevalier169d ago

@Lightning

Please show us in those financial reports what the PROFIT is instead of being an idiot who sticks their head in the sand. You can't even show a single thing proving its profitable. So yeah it IS a money pit.

"Despite showing ppl countless times GP was making them money"

Oh yeah? Where's the profit part of the report? Go ahead and show us since its 'making money'. Its sad idiots just parrot crap, but, can't prove at any point its profitable

Lightning77168d ago (Edited 168d ago )

First you show me where it's unsustainable and if it is why do they feed that thing hard each year? That's the bigger question. Why continue to poor 100s of millions in a failing business. Go ahead tell me? I'm asking you kids these questions and yet no answer, gee I wonder why.

They don't post profit. All you have during these quarterly earnings. GP is a major player in what revenue it brings each quarter especially including this one. Go ahead Again tell me, if it's a money pit why would they keep funding a supposed money pit where they'll be losing billions a year off it?

We know MS will kill ANYTHING that would lose them money.

Lightning77168d ago (Edited 168d ago )

"So you can NOT prove your OWN argument and people ask you to bring FACTS and you're argument is your own opinion?!"

Ok since you're 12 all I said was they're making more money each year from GP. Increase in revenue in which I already said show me where I said they made a profit specifically go ahead and show me kid? As always you bud into convos and are lost, very, very lost kid and never know anything.

"YOU keep suggesting its sustainable so PROVE it."

I've already made the scenario. If it wasn't sustainable, would they rid of it, yes or no? If it was unsustainable would they continue it because it's a money pit? It's simple scenario and yes or no question. Those are the facts I was talking about kid so pay attention and learn something for once in your life, or at least try anway. But I'm not surprised you think it's rocket science. I don't expect you to get it still if ever.

Easy by the increase revenue it brings. Now tell me why would they continue a failing venture like gamepass since it's hurting them so bad all these years. Don't dodge or make excuses answer it, now. These arguments go both ways kid where's your proof that it's not? The obvious proof is the increase in revenue and strong 1st and GP push each year So tell me the opposite hurry up where's your proof they're bleeding money tons of money billions a yea right and hurting badly right? Hurry up and tell me. No excuses BS now answer.

Ive exhausted my comments here so I can't reply back. Knowing you, you're gonna think you somehow won one over me when we know that's not the case at all especially and I mean especially someone like you.

Chevalier168d ago (Edited 168d ago )

"First you show me where it's unsustainable"

So you can NOT prove your OWN argument and people ask you to bring FACTS and you're argument is your own opinion?! Seriously its YOUR argument so the onus is on you to prove your OWN points. Absolutely 💯 idiotic. What kind of dumbass logic is that?

YOU keep suggesting its sustainable so PROVE it. Since you're so damned convinced go ahead and prove your own argument. Stop trying to pass off moronic opinions you have as fact. Facts are facts. Nowhere any where have you EVER shown a shred of proof this is sustainable. Microsofts OWN reports have shown that Gamepass cannibalizes their sales.

Don't forget Xbox also hide their converted Gold members now as Core members so thats not real growth.

"" It's called facts."

YOU said this. So again please show us the FACTS. Don't say you have facts when you got nothing to show. Absolutely moronic. We're still waiting for these 'facts'

Chevalier168d ago

"Ive exhausted my comments here so I can't reply back. Knowing you, you're gonna think you somehow won one over me when we know that's not the case at all especially and I mean especially someone like you."

You just proved your an idiot. Seriously all that BS and you didn't prove a thing. Yes companies to take losses to try to eventually make profit. It took Netflix 15 years and 250 million subscribers to make a profit. They're spending $18 Billion this year for content and have over 300 million subscribers. Gamepass has nowhere near the volume to cover up the $100 billion they spent on their purchases. Include their overhead on salaries and development cost on top of that $100 billion too. The only kid here is you clearly. You're too dumb to understand the bad optics so 🤷

Again link all these FACTS you got. Oh right you're to moronic to be able to do that. Stop trying to pass off your opinion as facts. Facts are facts and your shooting blanks.

+ Show (2) more repliesLast reply 168d ago
TheColbertinator170d ago

If Microsoft is happy, we are all happy. You, me and everyone you know and love. God bless you.

169d ago
Show all comments (102)
30°

PlayStation Store Holiday Sale Refresh Adds and Removes Titles

Sony has refreshed the Holiday Sale, as new titles are added and a lot have been removed.

40°

The Epic Games Store Has a Free Double Dose of Styx

The Epic Games Store is giving away two Styx games this week.

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terminalgamer.com
50°

Kotick claims lawsuit objecting to MS-Activision deal was "tied to Embracer's desire to boost sales"

Former CEO describes lawsuit filed by Swedish pension fund as a "collateral attack" on Activision Blizzard.

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gamesindustry.biz
OpenGL1d 7h ago

Yeah, the Microsoft deal has DEFINITELY worked out for everyone.

galgor1d 4h ago

Can this mother fucker just get lost already

PRIMORDUS1d 2h ago

He belongs in here ⚰️, hopefully sooner than later.

MrDead11h ago(Edited 11h ago)

Kotick Made $155 million from MS in the buyout, the little b*tch needs to stop whining. Thanks to this Microslop deal and massive industry consolidation thousands upon thousands of devs and other workers lost their livelihoods. This greedy piggie pervert needs shut up and f-off.