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Xbox Game Pass generated $2.9b revenue in 2021

ANIMAL1975

Member
Part of the CADE support documentation that Microsoft supplied.
...
Popular Now: NASA's Webb telescope catches a giant spider out in deep space...
Jesus Christ no one red this?!...
Scared Fear GIF by South Park
 
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IMO threads like this should be banned on gaf as this kind of stat says nothing of substance.

Revenue posted not profit
Gamepass is unique so we have no yardstick to measure against. 3 bil could be amazing, or shit, we have no idea
How many people are subbed to $1 subs, how many people family share?
Does revenue indicate popularity, or are more people playing gamepass than are accounted for?
Does this figure include people who play EA play? (For example, i pay full whack for gamepass on xbox and on PC including EA Play for C&C but I have my brother on my account)

Too many questions, not enough data and it's a swamp for misinformation and an excuse to shit sling at one-another
 

SlimySnake

Flashless at the Golden Globes
As a gamer, I don't care. I just play the games.

As a MSFT stockholder though, I very much care what the profit margin is. I hope GP's path to profitability takes much less time than say Netflix did.
Its probably 70-80% profit. They have a bunch of smallish titles this year on gamepass. nothing even remotely as big as Halo and Forza. For example, Guardians of the Galaxy cost them $5 million. Thats an AAA game that appeared only 5 months after launch. Indie games would cost far less.
 

AmuroChan

Member
Its probably 70-80% profit. They have a bunch of smallish titles this year on gamepass. nothing even remotely as big as Halo and Forza. For example, Guardians of the Galaxy cost them $5 million. Thats an AAA game that appeared only 5 months after launch. Indie games would cost far less.

Guesswork doesn't move the stock. We need official numbers from MSFT at their quarterly earnings calls.
 

Stuart360

Member
2.9nil and that doesnt include PC Gamepass?, damn.
Either they are making an absolute killing from mtx on the service, or there are a lot more people paying more than the $1 a month that some poeple on here like to say 'everyone' is paying.
 

Sosokrates

Report me if I continue to console war
I love how you change your post when you asked, “where is ANYONE in this thread…”

Just take the ducking ‘L’ bro
duck running GIF

The only people taking the L are the people who are trying to make out that main thing happening in this thread is posters falsely stating that this thread is about gamepass profit.

When the truth is, its 1 post that did that....
 
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Hmm, but that goes against the narrative that Game Pass is hemorrhaging money and that Microsoft is using their Azure and Office money to sustain it
It seems like very basic "reporting" on financials. I might be wrong, but I think its just "revenue" so it's just the top line before any of the operating cost is deducted. Those deductions would include wages, money spent on deals, real estate, etc anything that helps to keep GamePass operating.

They very well "could" be hemorrhaging, but I've never looked thru a Microsoft annual report, so I don't know how or If they break out the Xbox division into it's own category and deep dive or if it's "packaged" into a entire segment of their business.

EDIT: Even if they are "hemorrhaging" money, it's a plan for the future. I'm sure them losing for a period of time was one of their projections and besides... MS can cover it as the other parts of their business is doing very well.
 
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SlimySnake

Flashless at the Golden Globes
No excuse for the shit offerings they've had most of the year when it's bringing in that much money
Yep. Clearly lining up their pockets with all that profit.

The day they announced that starfield and redfall were delayed out of their original 2022 window is the day they shouldve gone and paid up for Elden Rings and at least one other big AAA game this year. Hell, they didnt even make Forza Horizon's Hot Wheel expansion free. Im like you literally have no exclusives this year. cant you make an exception for an expansion just this one year?
 

Dolodolo

Member
This thread makes me laugh at that other thread where users were so confident they had all the numbers worked out and MS was only at like $600m from GP. :messenger_tears_of_joy:
Now tell me how much of the 2.9 billion is the real Profit.
It is possible that your number will be even less)
 

Topher

Gold Member
So that's 2021 revenue which was a good year for MS first party.

Wonder how they calculate people like me that buy cheap gold codes and convert. I’ve never paid the actual monthly fee.

Business to business transactions? I'm not sure, but the codes had to originate from Microsoft. Perhaps selling them in bulk wholesale?
 
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onesvenus

Member
Elden Rings, Saints Row, Gotham Knights, Castillo Protocol are pretty much the only big AAA titles to release this year outside of CoD and some PS4 first party games, so they shouldve put all those $3 billion into securing them. highly doubt they wouldve cost more than $200 million each.
Don't most of those have a marketing agreement with PS? We know Sony added some anti-GP clauses into those
 

Sosokrates

Report me if I continue to console war
Now tell me how much of the 2.9 billion is the real Profit.
It is possible that your number will be even less)
The xbox division will likely be in a loss for a few years because of the zenimax and other acquisitions.
 

azertydu91

Hard to Kill
Dunno mate. I spent about 4 minutes in Power Washing Simulator drawing a massive cock and balls on the side of a crazy golf course. I also spelt out the words cunt and twat. Can’t do that on my PlayStation or Switch 🤷‍♂️

tenor.gif
I don't know, one has Dreams and the other Splatoon, I think you can do it on any platform...But pc is definitely the easiest at dick drawing, it's so far above the other that they can be all distant second from a pc pov....
 

StreetsofBeige

Gold Member
Me waiting to see how much profit GP generated while watching the usual suspects pretend revenue is profit.

giphy.gif
Are you one of those “Game pass makes no sales due to $1 subs” but now move the goal posts because rev is almost $3B?

Don’t forget. Sony doesn’t publicize profits from their PS+ sub plans either. So don’t forget to go after them for not telling the world what profits they get from video game sub plans.
 
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Kilau

Member
So that's 2021 revenue which was a good year for MS first party.



Business to business transactions? I'm not sure, but the codes had to originate from Microsoft. Perhaps selling them in bulk wholesale?
I don't really know how the codes end up out there but I imagine MS can track the codes redeemed to know who got them originally and how much they were sold to that entity for.
 

chonga

Member
There must be more than meets the eye on this one.

If you look at the subscriber counts for 2021 - which will include PC players - and divide the revenue up, which it is claimed is only console, it puts the number at a number that's basically the retail cost of GPU, let alone solo GP.

This doesn't many sense when, whilst people like to joke about the $1 deal, there will be a lot of people taking advantage of that. There will also be many people using trials, the promotional memberships I keep seeing bundled with retail purchases even things like internet services etc.

For me this only works if they're booking the full retail value for all of the above as 'revenue' and then applying the discount as a cost on the balance sheet.
 

Dick Jones

Gold Member
The revenue figure would count every sub as full price. The real question is how much is the expense on discount allowed on Gamepass sales. That would put an end to the debate on how $1 subs are common or not.

2,900,000,000 / $15 = 193,333,333 (months of Gamepass paid for)

193,333,333 / 12 months = 16,111,111 active subscribers in 2021 [assuming all subscribers subscribed for the full year and there were no new subscriptions]

The revenue number seem low compared to what was announced. In September 2020 the number was 15 million and in January 2022 it's 25 million. The only way for all these numbers to be correct is for a significant drop in numbers throughout 2021 who resubbed later in 2021 with the increase in subscibers or it stayed constant at 15m Gamepass subscribers and an extra 10 million joined in December.
 
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Ozriel

M$FT
Nah. I don’t believe it. it’s not profit

Lol, what does this even mean? Of course ‘revenue’ isn’t ‘profit’.

So subscribers went from 25 million down to 15 million and back up to 18 million?

I believe these numbers are for Xbox Gamepass subscribers alone. The article does say it doesn’t include PC Gamepass.


IMO threads like this should be banned on gaf as this kind of stat says nothing of substance.

Revenue posted not profit
Gamepass is unique so we have no yardstick to measure against. 3 bil could be amazing, or shit, we have no idea
How many people are subbed to $1 subs, how many people family share?
Does revenue indicate popularity, or are more people playing gamepass than are accounted for?
Does this figure include people who play EA play? (For example, i pay full whack for gamepass on xbox and on PC including EA Play for C&C but I have my brother on my account)

Too many questions, not enough data and it's a swamp for misinformation and an excuse to shit sling at one-another

It’s an interesting, hard data point we didn’t have before. And the revenue figures seem better than many projections I’ve seen here.
 

Reallink

Member
Thats 16 million subs paying $15 a month?
Or whatever it is there a lot not doing the $1 deal...

As I've mentioned before, the only people who know about the repeatable Gold Upgrade deal are a very small subset of nerds that live on nerd forums, discords, and deal sites. It's a relatively small group who acts as an advertising vehicle for the service, which is why they haven't ended it. The critical mass is paying the full $15 monthly, including the vast majority of people who did the upgrade deal in the first place, unaware it's repeatable.
 
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Alphagear

Member
Question is how much did they spend.

Pretty useless showing the 3 billion figure if they spent 4 billion on running the service for the year for example.

Those GP games don’t come free especially Day 1.
 

Dick Jones

Gold Member
As I've mentioned before, the only people who know about the repeatable Gold Upgrade deal are a very small subset of nerds that live on nerd forums, discords, and deal sites. It's a relatively small group who acts as an advertising vehicle for the service, which is why they haven't ended it. The critical mass is paying the full $15 monthly, including the vast majority of people who did the upgrade deal in the first place, unaware it's repeatable.

The revenue figure will never reveal the number of people using the $1 upgrade to Gamepass. That discount will only appear in the expenses figure.

The revenue figure will count each monthly sub as the full price regardless of what was paid.
 
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FireFly

Member
Me waiting to see how much profit GP generated while watching the usual suspects pretend revenue is profit.
Game Pass is an investment so it's not expected to make significant profit in the short term. In the same way that it took Amazon 9 years to start making profits because they were reinvesting their revenues back into the company to feed its growth.
 
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