Spencer revealed the figure during an interview with Windows Central and stated that Xbox Game Pass is “financially viable, meaning it makes money,” despite that outlay.
Zehzin@lemmy.world
on 04 Dec 2023 14:38
nextcollapse
There’s a difference between “profitable” and “how much money Microsoft wants to make after investing billions in something” and I’d wager it’s a big one
RvTV95XBeo@sh.itjust.works
on 04 Dec 2023 14:57
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I get what you’re saying and I’m sure all the MBAs at Microsoft are shitting bricks, but I never fully understand why a company would be disappointed with a service like this one even doing only slightly better than breaking even.
Not everything needs to have infinite growth and gigantic margins as long as $-in > $-out.
victron@programming.dev
on 04 Dec 2023 15:07
nextcollapse
I get what you saying, but I think (when it comes to video games) MS is in not position (and hasn’t been for a while) to spend in something that doesn’t gives them a solid profit. I like Game Pass, but since 2021 I subscribe only any other month or so, the novelty wore off and I have a big enough backlog to keep me occupied. MS needs (hear me out lol) some strong first party AA line up to make GP attractive.
Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.
Centillionaire@kbin.social
on 04 Dec 2023 16:15
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Last year they reported 25 million subscribers. Even if every single one of those was the $10 plan, that equates to $3 Billion. Seems like they are doing okay.
Melonpoly@lemmy.world
on 04 Dec 2023 17:03
nextcollapse
this is on-top of all the lost sales from no one buying their first-party games.
Gamepass is not financially viable, it’s funded by microsoft office and azure. It never will be unless they get a huge majority of the market /and/ raise praises massively. Which is of course their goal as soon as they kill the concept of game ownership.
scrubbles@poptalk.scrubbles.tech
on 04 Dec 2023 21:36
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Yup, it’s obvious once you connect everything why Microsoft is doing this. They’re monopolizing the game market - and most gamers couldn’t be more excited. When I was on Reddit I called out how competition was good and this was bad and was always met with the majority of people saying “nuh uh, they’re going to put them all on game pass for only $9 a month!”
Kids let me tell you the story of Netflix.
deweydecibel@lemmy.world
on 05 Dec 2023 00:24
collapse
Netflix at least didn’t plan to be what it became from the start, they even experimented with releasing some of its originals on Blu-ray for a bit. But when every shitty heavy hitter in the entertainment industry comes after you, you’re gonna learn to be shitty real fast.
Microsoft is a whole different brand of monster. They have a long, long history of terrible anti-competitve practices, fucking over their own consumers, flagrantly ignoring complaints, and making deeply underhanded moves. In many different markets, for decades. The Xbox One release was almost literally a thesis statement. They could not possibly have broadcast any clearer who the fuck they are and what the goal is.
And still, still, people defend them. They downplay everything and fall head over heels for their marketing bullshit.
That’s why we’re truly fucked without regulations. It’s not just because corporations are terrible and will do incredibly underhanded shit at the drop of a hat to raise profits, it’s also because the vast majority of the consumer base is fucking stupid. Incapable of pattern recognition and imagination, and unwilling to change their patterns even slightly. It’s really, really, really easy to see the negative effects of a Microsoft dominated gaming market. And the consumers can’t see it.
threaded - newest
That’s interesting because they missed their milestone for 2021 and 2022 then stopped reporting their numbers for 2023. I kind of doubt they’re making a real profit from Game Pass, else they’d be boasting about it more.
There’s a difference between “profitable” and “how much money Microsoft wants to make after investing billions in something” and I’d wager it’s a big one
I get what you’re saying and I’m sure all the MBAs at Microsoft are shitting bricks, but I never fully understand why a company would be disappointed with a service like this one even doing only slightly better than breaking even.
Not everything needs to have infinite growth and gigantic margins as long as $-in > $-out.
I get what you saying, but I think (when it comes to video games) MS is in not position (and hasn’t been for a while) to spend in something that doesn’t gives them a solid profit. I like Game Pass, but since 2021 I subscribe only any other month or so, the novelty wore off and I have a big enough backlog to keep me occupied. MS needs (hear me out lol) some strong first party AA line up to make GP attractive.
I bet MS agrees with you which is probably why they’ve bought Bethesda and Activision Blizzard.
Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.
Last year they reported 25 million subscribers. Even if every single one of those was the $10 plan, that equates to $3 Billion. Seems like they are doing okay.
25 million x 10 = 250 million
250 million - 1 billion = −750 million
I think $10 is per month, so multiply that by 12 to get the $3B
I knew I got something wrong lol
Depends on how many used deals to upgrade Gold or whatever.
this is on-top of all the lost sales from no one buying their first-party games.
Gamepass is not financially viable, it’s funded by microsoft office and azure. It never will be unless they get a huge majority of the market /and/ raise praises massively. Which is of course their goal as soon as they kill the concept of game ownership.
Yup, it’s obvious once you connect everything why Microsoft is doing this. They’re monopolizing the game market - and most gamers couldn’t be more excited. When I was on Reddit I called out how competition was good and this was bad and was always met with the majority of people saying “nuh uh, they’re going to put them all on game pass for only $9 a month!”
Kids let me tell you the story of Netflix.
Netflix at least didn’t plan to be what it became from the start, they even experimented with releasing some of its originals on Blu-ray for a bit. But when every shitty heavy hitter in the entertainment industry comes after you, you’re gonna learn to be shitty real fast.
Microsoft is a whole different brand of monster. They have a long, long history of terrible anti-competitve practices, fucking over their own consumers, flagrantly ignoring complaints, and making deeply underhanded moves. In many different markets, for decades. The Xbox One release was almost literally a thesis statement. They could not possibly have broadcast any clearer who the fuck they are and what the goal is.
And still, still, people defend them. They downplay everything and fall head over heels for their marketing bullshit.
That’s why we’re truly fucked without regulations. It’s not just because corporations are terrible and will do incredibly underhanded shit at the drop of a hat to raise profits, it’s also because the vast majority of the consumer base is fucking stupid. Incapable of pattern recognition and imagination, and unwilling to change their patterns even slightly. It’s really, really, really easy to see the negative effects of a Microsoft dominated gaming market. And the consumers can’t see it.