The subscriber base continues to grow rapidly, and the feedback from developers and MS is that the service has also increased game sales. The real ace in the hole will be Game Pass combined with Project xCloud if they handle it the right way.
Xbox Game Pass - PC And Ultimate - News, Stuff And Recommendations
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Here’s a good interview:
The big XO19 interview: Xbox boss Phil Spencer on Game Pass, streaming and Project Scarlett
At Microsoft's big XO19 event in London yesterday, Xbox boss Phil Spencer told the gathered press all about Game Pass, …
www.eurogamer.net
This part is important as well:
What I'll say for us - and I'm trying to figure out how much I want to dive into this because it could get messy - giving developers a business model that's already working at scale inside of a subscription - and I think there's some confusion out there whether Game Pass works. Game Pass works as a business model. There's no doubt about that. Even today. It works. It works incredibly well - allows us to go and invest in the studio acquisitions we've done and the quality of content we're building over the next two or three years that's gonna show up. It's an integral part of the business model that allows that. And we also do retail.
Gamelab 2020
Summary:
Summary from Reddit:
He also mentions that they saw the feedback for their last show and have learned from their mistakes. Expect the July show to be miles above the last IX. He ALSO said "We want you to hear the games, not the console" when asked about the Series X's form factor Exciting times ahead. |
Watched it. He says nothing about Gamepass breaking even, let alone being long past it.
When Microsoft insinuates Game Pass is past breakeven, my guess is that the accounting is lumping in the entire business. They aren't including 1st party dev cost which is a huge portion of the expense. They attribute additional software sales to Game Pass so its fuzzy math. In actuality, if it was that easy to be profitable, others would be as aggressive.
What I believe (with no hard evidence) is that investment in Game Pass (including 3rd party deals and 1st party investment) will far outpace Game Pass revenue for a few years. You can hide the real cost of Game Pass on the balance sheet. Netflix was losing money and still had an insane market cap. These types of businesses opportunities are long plays. There's a tipping point. Is that tipping point 30 million users? 50 million? 80 million? Who knows. Regardless Game Pass is in it's infancy. No point in reading too much into the financials. Fact that Microsoft is kicking the tires of WB tells me that the early results are either on schedule or ahead of schedule.
What I believe (with no hard evidence) is that investment in Game Pass (including 3rd party deals and 1st party investment) will far outpace Game Pass revenue for a few years. You can hide the real cost of Game Pass on the balance sheet. Netflix was losing money and still had an insane market cap. These types of businesses opportunities are long plays. There's a tipping point. Is that tipping point 30 million users? 50 million? 80 million? Who knows. Regardless Game Pass is in it's infancy. No point in reading too much into the financials. Fact that Microsoft is kicking the tires of WB tells me that the early results are either on schedule or ahead of schedule.
They just say it's working as a business. People read that as it's making money. I don't read it that way. I think it's beyond proof of concept, heading in the right direction and other parts of the business playing off of it help sell it's long term potential.
14:07: He discusses the recoupment of development costs in Game Pass and they are already seeing it, and they are past the threshold of subscribers that they needed.
Threshold to break even.
Investment is going way up however. I believe we're about to find out in 2 weeks that the investment/cost of Game Pass is going to be much, much higher than it was in 2019. Either way, it's looking good.
Threshold to recoup cost of a singular game, it isn't even clear what kind of games he is talking about. But even then, just because it generates X amount to cover gears 5, doesn't mean tgey actually make money.
Not saying it doesn't make money. But recouping game cost is only part of their spending on the service.
I hope Game Pass continues to grow for those who enjoy it. It’s not for me however. I will always buy my games.
Yeah. 10 mil subs at$10 is 100mil a month...best case scenario not factoring in cheaper 3/12 mont subs or the constan try for $1 promotion. It isn't that much money.
This is for those games you don't buy.
It will continue to grow. Especially once they get it mobile.
I know, I just can't bring myself to do it. I can't even find time to play the games I buy at the moment.
I dont know. 1.2 billion in annual revenue seems to be pretty decent. Not knowing their expenses doesn't give us a really good view of the overall health of Gamepass, but 1.2 billion in revenue is nothing to shake a stick at.
It sounds like a lot, but is it really? Without knowing expenses the number is rather meaningless.
Neither Xbox Nor CDPR Needs ‘Cyberpunk’ To Launch On Game Pass
Despite rumors, Cyberpunk 2077 heading to Xbox Series X Game Pass does not make any sense.
www.forbes.com
Came here to bash XBox. I hope GP burns in hell. It’s EVIL! Right VaLLiancE
Yeah, this could go either way for me.... I do love fallout and consider fallout 4 a masterpiece (as opposed to the alternative gaming historians that says otherwise) so I hope it has some magic left from that.
Agreed, I loved F4 was probably my favorite SP game this gen. Not sure what to expect from 76. I did put some time into Elder Scrolls Online awhile back. From what I played I thought they did a good job making an Online Elder Scrolls game I had some fun with it just didn’t have the time to invest in it.
Yeah, I tried to get into eso at the release on xbox but felt it was a bit too much investment, I did buy a mount shortly before dropping off though lol
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