Kagey K
Banned
Even if he did, people would accuse him of making the numbers up.
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Spencer: Game Pass is very, very sustainable right now as it sits and it continues to grow
So he didn't lol
kingfey
Banned
People will hate gamepass, since that thing threatens the ideal gaming world people have.
The idea of everyone playing 100s of games for cheap, makes no sense to them.
Its like someone owning an iPhone, and you scream at him for buying expensive iPhone.
I hate IPhone due to that, but it puts my phone to shame. The ability to face time other iPhone users is smart. Wish my Android phone had that, instead of that garbage google duo.
Bernd Lauert
Banned
I think it's mostly kids, college students and low income people. When you lack money, paying 60 bucks up front is hard to justify.I know. That's always been the craziest to me with the Xbox Live subs too. With the yearly option available at such a good price, who is buying those one month subs. A question for the ages.
But I'm sure a bunch are just recurring off CC at those high monthly prices too.
MarkMe2525
Member
When the poster you replied to said "they have 175 million a month to buy content". I'm pretty sure he/she was using "buy content" as a catch all for all of the things you mentioned above.
Goalus
Member
Why would he tell the competition how well their subscription business is doing?
Let them think it's a sinking ship and then serve a nasty surprise a few years later.
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DaGwaphics
Member
That's the good thing about GP pricing. They haven't hidden the best price behind a 12month sub. Great way to get Live for just $5 a month on top of the GP fee.
My cheapness was born at an early age, so I would have gone without for a few months if it came to it, just to get started on the lower pricing on Live/PS+.
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So let me get this straight you think Xbox Gamepass is currently making a profit?
Also if it isn't making a profit when do you think it will?
Will they need to charge more to make a profit?
Will users continue to subscribe at higher prices or without promotional offers?
Alot of vague shit and no numbers, it's like when I keep hearing Series S is a massive success, yet I keep seeing those in stock and in firesales on the UK with crazy trade I offers and all over Facebook marketplace for dirt cheap of unwanted presents. Like thats cool say how well you do and provide the numbers. We still haven't got any numbers on Series S sales while Sony has provided the numbers of PS5 sales. Hell we haven't even got numbers for game sales in years from Xbox.
Excess
Member
That is funny, huh?
I was once paying for XBL at $60. I ditched consoles this generation and now pay $10/mo. at $120/yr. for Game Pass on PC, so Microsoft is actually making more from me after deciding not to buy their console.
SenjutsuSage
Banned
That's game pass working, and it's what they want. They want you subscribed and engaging with their first party releases, but especially with anything else that catches your interest.
Oh yeah because people can't question their corporate overlords?REEEEEEEEE gamepass REEEEEEEEE!!!!!!
He didn't make any financial statements. His wording is just worthless pr fluff without any details. "Sustainable", what does it even mean in this context? His definition of "sustainable" can change everyday depending on conjuncture, because it's too vague term and you can manipulate it however you want.
Stuart360
Member
We havent had numbers since 2014.
So yeah its about time some of you let it go.
I hope they keep not giving us sales numbers so you concern trolls can keep pretending Xbox is failing, and then keep scratching your heads when Xbox post record revenue every quarter.
Goalus
Member
1. No
2. As soon as they have 100 million subscribers
3. No, unless they want to be profitable earlier
4. Yes
We get revenue numbers every quarter which are constantly growing.
Craig of War
Banned
A Live look at the Gamepass haters
Sosokrates
Report me if I continue to console war
I just find out you can do the xblg conversion trick even if ubhave already done it, but it wont be £1 u have to buy a month of ultimate for full price.
But even with this conversion trick its only about 50% cheaper.
12 months of gold on amazon is £50
So if u get 3 years = £150 + 1 mknth of ultimate is £11
So 3yrs = £161
£4.47/month
So its a bit under half price.
But even with this conversion trick its only about 50% cheaper.
12 months of gold on amazon is £50
So if u get 3 years = £150 + 1 mknth of ultimate is £11
So 3yrs = £161
£4.47/month
So its a bit under half price.
ManaByte
Gold Member
ZehDon
Member
What else are we expecting anyone from Microsoft to say?
"Oh, Gamepass? Fuck me - black hole of money. Complete black hole. Remember the Red ring of death? That was bad, right? That was like burning wheel barrows of money every day. Terrible. Really bad, right? So, Gamepass is like backing a semi trailer of thousand dollar bills stacked yay high *gestures to neck* and backing it right up to the rim of a volcano and just driving it in. It's insane. Insane. It's insane how much money we're burning."
It's all PR bullshit until someone drops the numbers, and I doubt Spencer is the man to do that. I'd expect Nadella to be the man to pull back the curtain when the time comes. Until then, I'll enjoy my cheap ass games and ignore the PR.
"Oh, Gamepass? Fuck me - black hole of money. Complete black hole. Remember the Red ring of death? That was bad, right? That was like burning wheel barrows of money every day. Terrible. Really bad, right? So, Gamepass is like backing a semi trailer of thousand dollar bills stacked yay high *gestures to neck* and backing it right up to the rim of a volcano and just driving it in. It's insane. Insane. It's insane how much money we're burning."
It's all PR bullshit until someone drops the numbers, and I doubt Spencer is the man to do that. I'd expect Nadella to be the man to pull back the curtain when the time comes. Until then, I'll enjoy my cheap ass games and ignore the PR.
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IntentionalPun
Ask me about my wife's perfect butthole
I hope you guys realize that the word "sustainable" appeared twice in the QUESTION Spencer was asked.
lol.. he's answering a vague question with a vague response, get over it.
lol.. he's answering a vague question with a vague response, get over it.
Insane Metal
Member
showmethereceipts.gif
12Dannu123
Member
The main reasons why Game Pass is sustainable for Microsoft.
- Microsoft has deep enough pockets to be able to make losses until they become the market leader.
- Microsoft owns the most expensive part of sustaining a subscription service. The backend services. For companies like Sony, Netflix, Disney etc, the more users they have, the higher the cost it is to stream. Cloud gaming having higher streaming requirements and needing datacenters to be in close proximity to users , you can see that the cost of Cloud gaming for companies that don't own their backend will quickly spiral out of control.
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mejin
Member
Riky
$MSFT
Good to hear the service on track, subscribers still buy games as well and spend money on DLC, I'm sure they said more than non subscribers. So just working out some ball park figures for subscriber numbers is only part of the equation.
I've purchased the FH5 premium add on and the Halo Infinite battle pass like millions of others, it's more than just the subs income.
I've purchased the FH5 premium add on and the Halo Infinite battle pass like millions of others, it's more than just the subs income.
God damn your triggered lmao
Captain Toad
Banned
Numbers?
Captain Toad
Banned
Why is that funny? Which is more important?
Kerotan
Member
Exactly. Quarterly report speaks louder then the billion dollar PR machine.
Mattyp
Gold Member
Revenue and returning customers and corning the entire market for the next lifetime, look at azure & office.
John Wick
Member
How do you know there are only 5 million
$1 subs and not 10 million? Until we have the facts it's all pure speculation.
baphomet
Member
So it's doing the exact same thing as game pass?
Captain Toad
Banned
There once was an actual commercial where someone said, "we are charging so little, we lose money on every sale, but we make it up on volume". That's what that logic sounds like.
Guilty_AI
Member
If i read it correctly, they would pay for tickets, in other words, lose money everytime someone used the service to watch a movie. Someone who watched movies frequently enough would give them losses.
WIth services like gamepass or netflix, theres basically no loss for the number of times someone downloads/plays/watches a game/movie. If someone uses gamepass to play a different game 2x a month or a new game every single day, it makes no difference for MS's pockets.
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MrFunSocks
Banned
I agree, but they've already gone and done it for the PS5 teraflops thing which is now an instant ban. All this $1 game pass crap should be handled the same if that's the precedent.
I pay $15 a month for GP Ultimate because it includes Gold which I need, and because I'm not a poor child and I have no problem paying a few bucks a month for a service that I use and enjoy. Same way I pay for Spotify/Prime/Netflix because I like them and find them great value. If $15 a month for GPU is too much for you, you're in the wrong hobby.
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THE DUCK
voted poster of the decade by bots
This may just be a coincidence, but I find almost all the people who say gamepass isn't sustainable are not on it.
He's straight up telling everyone the earth is round and the naysayers run out of the woodwork like a disturbed ant farm to say it's flat.
He's straight up telling everyone the earth is round and the naysayers run out of the woodwork like a disturbed ant farm to say it's flat.
thicc_girls_are_teh_best
Member
Your paranoia is not their problem, only your own.
That's interesting. Wonder what the highest subscription package is vs. the lowest-priced one, could give some insight on where the average lands (how high or low it lands, I mean). We could then probably extrapolate some of that to figure where the average GamePass subscription price is.
EDIT: Never mind I did some quick looking. In most markets the lowest Netflix plan is $8.99/mo while the highest is $17.99/mo. However in places like India, the lowest equals about $2.67/mo converted to American dollars, the highest about $8.74/mo converted.
So if Netflix revenue was $24 billion for the year, and that breaks down to 200 million paying $10/mo, then that's a little above the minimum subscription plan for "non-specialized" markets (i.e places besides India), where we can assume most of the Netflix subscriptions are. So if you extrapolate that towards GamePass, then the averaged subscription rate for its subscribers is somewhere between $10 - $11.50, maybe $12 per at most.
That doesn't mean EVERY sub is paying $10/mo, but it would mean even for the ones paying $1/mo on the convert stuff, there are enough paying $10/mo or $15/mo to balance out the average. This though is assuming GamePass revenue scales similarly to Netflix at current, but we don't know that for sure.
We can assume it does, though, meaning that at 18 million subscriptions (the last officially given number), GP should be bringing in between $2.16 billion - $2.484 billion annually. That though assumes a steady average of 18 million over the course of a year, with an average of subscription types equaling out to in that $10/mo - $11.50/mo range.
Again, the only substantive reason we can go with that assumption is going by Netflix's own numbers, where IIRC their peak subscriber count is something around 200 million (checked: ~213.56 million). I referenced this graph for the info. You can also see there that, even if there were fluctuations in subscriptions going down in-between, generally the number has only increased over time, you see no drop in the base count with that graph.
There isn't too much reason to assume things work wildly different for GamePass ATM so even you cut out 1.0678% of GP's official subscription number (to account for a missing equivalent to the Netflix figure), that still would leave 17.8 million subscribers contributing to the numbers I mentioned a few paragraphs above, for annual revenue of $2.136 billion - $2.457 billion. Those numbers are likely part of the Xbox gaming division revenue figure (which the most recent IIRC was something like $15.6 billion).
So yeah, basically if Phil is out here saying this, they probably have similar numbers internally. Of course, revenue != net profit, but given they are making net profit off Xbox division as a whole, GamePass operational costs can't be eating into that much any seriously.
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twilo99
Member
Same.
Kagey K
Banned
That was actually a SNL parody ad about a bank that only makes change.
Edit: The second one has the line you kind of remember.
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twilo99
Member
ye i can't stand that spencer guy
kingfey
Banned
Its basic math.
1$ is a promo code. Once that promocode ends, you activate the 15$.
Gamepass is mainly an xbox sub. People wont do that 1$ shit on their xbox, like certain playstation fans claim here. There is something called xbox live. A library, and games to play. You dont waste those, so you can play only on the 1$.
For pc people, you have something called download. Once you used your 1$ account, you have to delete every game, because the old game is registered to the other gamepass user. Only an idiot will keep doing this shit.
This is why gamepass haters are dumb, and I dont take them serious. They lack the critical thinking, so they claim bulshit shit like the 1$. The thing I listed you, disapproves their claim easily, yet they keep scream at 1$.
I want to ask these people a question. What do you think will happen, once you cancel your gamepass? Do you think you can play your online xbox games for free? Do you think, you wont be required to use xbox live? And if you use xbox live, do you think you can get gamepass again? You are kinda wasting your time. You have to pay 10$ a month for xbox live, once you cancel your gamepass. If you buy the 1 year xbox live, it will be converted to 4 month gamepass ultimate, when you activate your xbox gamepass. If you cancel your gamepass, you will need to buy 1 year xbox live, or pay 10$ xbox live monthly.
You see were I am going. This is why the 1$ is a joke. You have 12 month in 1 year. the sub was going for 4 years. How many millions will use the 1$? MS will be alerted, if people abuse it. There was that ea play hack, where we payed 1 year ea play 30$, for 4 month of gamepass ultimate. People abuse it, and MS patch it immediately.
kingfey
Banned
I like them to spout that shit. It shows they are dumb. 1$ deal is limited, and not available for everyone. Gamepass is supported on alot of countries. You need to give up your xbox account, to get that 1$ deal.
Captain Toad
Banned
What?
I am a console gamer only and I got 3 years of GamePass for $1. Why wouldn't I do that? I don’t understand your logic.
kingfey
Banned
You paid 180$ upfront. That is alot of money on other countries. Not everyone will pay that much money. Even if you paid 180$ for 3 years, you are locked on that platform and forced to buy gamepass games in the future, so they are getting their money.
That 180m for 1m is 180m for that month, and future 30% sales from these accounts. There is a catch though. You need to get 3 1 year xbox live cards. add it to your account, then, register to gamepass. Not alot of people will do it. because of that 180$ upfront.
i know shibobi and i suspect that this time he didn't get what Spencer was saying.
"we are burning cash for some gold pot in the end."
"No GamePass is very, very sustainable right now as it sits"
mean
"We are losing money right now, investing ... for some bigger future income. No"
"Gamepass it is not in fact burning money for some future gain .. and not burning money already today mean that it is in fact sustainable on its legs (can in fact survive with the earnings it is doing already) and it is also growing "
This is the only way, for a sentient human being, to translate Spencer's words, the rest are fancy flights of those who want that gamepass to be a black hole for Microsoft.
When it comes to eco-sustainability in energy consumption for example we do not use the word profitability to describe a situation in which enough energy is produced to SUPPORT one's needs. Spencer did the same
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Lognor
Banned
Most people aren't doing that trick. You really think a large number of people do that?
Captain Toad
Banned
A trick? It was an advertised offer. Unless we're talking about different things? I certainly wasn't trying to exploit anything.