Microsoft won’t mention Xbox Live users and gaming revenue in earnings reports any longer
Xbox One didn’t get off to the best start in comparison to the PlayStation 4 at launch in 2013, and the latter did appear as the more dominant console in terms of unit sales moving ahead. Fast forward a few years, and as of this June, Xbox One unit sales trail the PlayStation 4’s by about fifty million. Microsoft has stopped reporting sales figures for some time, and now, the company is moving another step forward in terms of decreasing transparency regarding its gaming figures.
As spotted by Twitter user @DomsPlaying, the tech giant is now introducing a new metric for Xbox One, namely, “Xbox content and services revenue growth” (via Windows Central). With this change, the company will stop reporting gaming revenue, as well as Xbox Live monthly active users, in its earnings reports. However, gaming revenue will still be reported in Securities and Exchange Commission (SEC) filings.
How much is Microsoft committed to services?
It will longer include Gaming Revenue or XBL Monthly Users in its earnings reports. (Though will keep Gaming Revenue in SEC filings.)
Instead, it’s reporting “Xbox Content & Services Revenue Growth.”
Includes subscriptions & cloud. pic.twitter.com/Vi8qokX6cC
— Dom (@DomsPlaying) September 18, 2019
The new metric will be revealing the following figures:
- Year-over-year percentage revenue growth for Xbox services
- Xbox content and services revenue includes Xbox Live (transactions, subscriptions, cloud service, and advertising), video games, and third-party video game royalties
Microsoft believes that this will provide its investors with more value in terms of indicating long-term health of the gaming business. Another reason why this change is being made may have to do with the company’s Xbox Game Pass service. If more gamers keep subscribing to the service, this would mean that software sales will obviously be negative impacted. This could be why the company has decided against disclosing the ‘Gaming Revenue’ figure. Either way, it will now be much more difficult to gauge the growth of the service.
On the topic of Microsoft’s earnings, earlier today, the tech giant announced an increase in quarterly dividend and authorized $40 billion in share repurchases.