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.
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.
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.
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.
Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.
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.
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.
Depends on how many used deals to upgrade Gold or whatever.
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