Oh my god they wrote that document in an older version of Word (I guess?) and transferred it into a website. The source code of this document is god awful. I know nobody cares, but as a website maker dude I do - and this is hurting.
> The company took a $1.2 billion charge in the quarter in connection with its decision to cut 10,000 jobs, revise its hardware lineup and consolidate leases. The charge includes $800 million in employee severance costs.
How long does it take to recoup $800m in severance from 10k employees?
Doesn't this make one wonder "are more layoffs coming"/needed?
We were all criticizing their board in the comments for laying off 10k or whatever it was. Maybe we should be thanking them that it wasn't more? Not saying I think this, just... not an "unfathomable" argument.
Given the still strong performance this might be it. The cuts were across teams, but some teams, such as HoloLens and 343i seemed to be hit harder. They also need to clear way for bringing on board over 10k new employees from Activision.
Really depends on who was let go, since salaries are on such a curve. Back of the envelope guess-timate though, that's 80k per person, and if we use the mean total comp of 191.8k (an SDE II from levels.fyi), that's 80/191.8*12months = ~5months?
Though this is potentially really wrong because it includes stock which isn't really prorated like that, and doesn't include payroll tax and benefits they won't have to pay.
Benefits costs add up quite significantly, not just the pay. Pay is made up of base pay + bonus + stock. The stock based comp is weird accounting tricks too where you dilute existing shareholders to pay employees. The direct cost to company there is buy backs but I don't think total buybacks == dilution through SBC.
So you have to take into account just the base pay + benefits.
This one is the most embarrassing of all, i wonder how different that would have been if they had a handheld instead of 2 console with 2 different performance profile, that seems redundant
When you look at Nintendo, it's night and day the amount of console they are about to sell, more than both Sony/MS combined each quarter
Anecdotal but I used to be a die hard Xbox guy. After the 360 I got really lost on the naming scheme. I want to buy an Xbox but I have no idea which one is the latest. Is it the Xbox Series X One? Or the Xbox X Series X? no fucking clue
I know, I can do like 5 minutes of research and find out. But I don't care THAT much. If I knew it was called an Xbox 5 I could use that time researching on just going to Amazon and buying it instead.
Also, my friends have all gotten older and they're no longer on an Xbox and are using Nintendo switch/phones as their casual gaming device.
I'm right there with you - not many of my friends (we're in our young-mid 30s) game that much, and when they do it's pretty casual. I have an Xbox One and I have the game pass, but to be honest it's mainly for when my friends come over and we play FIFA, Madden, etc... - something pretty casual. I cannot for the life of me remember the last time I played a non-multiplayer game.
Everyone who still likes gaming and is into playing with their SO, their kids, or relatives that I know plays on Switch, which to be fair is an awesome device.
We're in the Switch boat with a 9-year old, and even though I sometimes look at my friends and their PS5s/latest Xboxes with envy it always comes down to the unsavory catalog of games. The violence/sex/other kinds of mature content is a big drawback to families like us (even if you don't buy those kinds of games, the visibility is still too high).
A pipeline of high quality, broad interest games is still something Xbox is lacking. It's taking quite a while for the Xbox Game Studios acquisitions to bear fruit.
Hence a handheld would have served well for small hit games, including backward compatibility with XONE/360, it could have also been a catalyzer for their cloud/online services and a bridge with PC gaming (they own windows), Nintendo is profiting from it since most of their catalog (except for their 1st party) comes from PC ports
That's exactly Valve's strategy with the Steam Deck, they are capitalizing on it, and it seems to be a good idea, that's unfortunate for xbox, maybe for the next gen
The Steam Deck relieves so much pressure on Xbox and Sony. All they have to do is play nice with Proton and they are handheld ready. If the Deck fails, there's no hit to their bottom line. Sony has has fully embraced it with their push to PC.
This coupled with AMD's FSR 2/2.1 I'd argue. FSR can dramatically lower energy requirements while still maintaining acceptable image quality, and is critical for most of the Sony games to run at reasonable frame rates on the Deck.
The issue for Xbox is they need to push more subs to game pass, but they haven’t had the tent pole titles to support that consumer behavior. If they want subscribers they need 3-4 big games each year to come exclusively to game pass. They have struggled to release games and when they do release they are often in a less than stellar state.
I wonder if that accounts for the Activision purchase?
If it's just purely revenue, yeah, that's ugly. Sad because I got the Xbox Game Pass maybe 3 months ago and while I rarely game, I've really enjoyed it - the fact that I can just hop on and play whatever I want in the cloud is really cool. The fact that it comes bundled with all EA games too is great. Will suck when they inevitably have to bump up prices, because right now it's the best value in gaming hands down.
If Windows OEM had a 1:1 direct relationship with Windows PC shipment, that is a ~40% decline. I am assuming this is Q2 YoY.
If we look back at Earnings Release FY22 Q2 [1], Windows OEM revenue increased 25%. So while FY22 Q2 growth was an outliner and hard to sustain, the 40% decline is still very bad.
This also explains a lot of of pressure and negative talk from PC components OEMs like DRAM and SSD, to vendors like Dell and HP. It will be even worst if Smartphone sales dont pick up some of the spill overs. We are looking at another possibility of DRAM and NAND trading at negative COGS.
We should have a better understanding of the market once Apple publish their Data in a few more days.
They only went up due to covid and online working.
Point is, the time to replace computers every two years has gone by, and even smartphones are on that point (most countries aren't that much into 2 year replacement phone contracts).
I doubt very much that most consumers will bother to buy new computers to replace their Windows 8.x and 10 installations.
They will keep using what they have, even without updates, until they eventually break down beyond having the local PC store repair them, and then they will buy a new computer.
Same applies to everyone using smartphones on pre-paid cards.
Realistically, besides the enterprise customers, it's mostly gamers still buying Windows PCs (most of them build it themselves out of parts and likely reusing an upgrade-able Windows 8+ key, instead of buying a prebuilt with OEM Windows). I guess they were trying to get into education as well (Chromebook compete), but with kids back in person that boat has sailed.
Pretty diverse. Gaming, corporation/office stuff. What could they expand into next 3-5 years other than OpenAI? Hardware? They already failed at Zune/I doubt they want to make a phone.
> The devices are manufactured by original equipment manufacturers, including Pegatron, and are designed to be premium devices that set examples to Windows OEMs
Pegatron makes the Surface apparently. Not like Microsoft can cut Dell out of the loop and make their own laptop (not that I think that's high margin either...)
As ex-Nokia, on that case they did it to themselves.
First for the kind of management we had regarding Symbian vs Linux, angering the Symbian developer community, always changing the development stack, deciding to bring a Microsoft person which decided to go all in on Windows Phone, when the R&D culture was pretty much anti-MS during those days (Symbian/Linux), and having a contract clause for a nice bonus if Elop managed to sell the company.
Your response appears to be much more emotionally driven than articbull’s. He is simply acknowledging their business model and the fact it is clearly a system that works, you’re assigning it some kind of value.
I read it again and i can see that, you are right, that wasn't the intent, i felt the comment was trying to downplay losses, so i felt the need to remind the differences, even more so since they just announced laying off 10k employees, including destroying the entire AR/VR/MR team
Yeah sorry I didn't mean it to come across that way!
I see their core business as changing, and they're being resourceful in leveraging acquisitions to continue to deliver shareholder value into the future.
I think this is a strategy that many companies have historically executed on very badly.
Revenue was $52.7 billion and increased 2%
Operating income was $20.4 billion GAAP and $21.6 billion non-GAAP, and decreased 8% and 3%, respectively
Net income was $16.4 billion GAAP and $17.4 billion non-GAAP, and decreased 12% and 7%, respectively
Diluted earnings per share was $2.20 GAAP and $2.32 non-GAAP, and decreased 11% and 6%, respectively
