• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Microsoft has a commanding lead in the “Netflix for Games” race

OmegaSupreme

advanced basic bitch
25m users paying $10 averege. No counting MTX sales for the games that have mtx like EA games. Not counting dlc sales for games that have dlc. not counting game sales, for the games that are on discount when they leave the service.

25m*10=$250m for 1 month. 3rd party games are agreed based on bulk, instead of a single copy sales. So MS gets discount. That would be 50m-100m at maximum. So gamepass is making $150m a month, or $1.8b a year.

Gamepass is extension on xbox store. It doesnt cost that much to run it. And since MS is investing those money, we cant calculate the profits, due them paying for future games.

This is just subscription fee. Its actually more than these figure.
That's not profit. I'll answer it for you then. Nothing. Nada. Zip. Granted I'm going by what MS has said so its possible I could be wrong. Lol
 

Swift_Star

Banned
You need long term money to run it. These subscriptions arent 1 time payment.
Sony can actually fund it. But they need to keep it for a long term. And keep providing contents nonstop to keep the subscription alive.

Long term is their issue. If they can fix that, they would make alot of money. Compared to MS, they have big advantage, because of japanese publishers being able to back them.
They can run it like Disney is doing. It’s not rocket science. But they don’t need to. It’s not their bread and butter, just like it’s not Disney’s. MS wants to be the Netflix of gaming, Sony and Nintendo don’t want that. And Disney don’t want to become Netflix.
 

kingfey

Banned
It doesn’t cost much to run gamepass? How much do you think they’re paying for AAA publishers to put their games on GP? Do you think this is cheap? Lmfao
Same as how Sony is able to afford timed exclusive games like FF7R.

AAA games cost cheap, when you buy millions of copies.
 

Hezekiah

Banned
Its not like 10m decided to leave the service at once.
For everyone that leaves the service, new person joins. Its why these subscription services go up, instead of down. Guess you missed that one.

To make it simple to you.
January 2021: Gamepass 18m.
January 2022: Gamepass 25m.

I dont see them going down. All I see is increased guarenteed revenue.
Well if you see guaranteed revenue, then it will be so.
 

kingfey

Banned
That's not profit. I'll answer it for you then. Nothing. Nada. Zip. Granted I'm going by what MS has said so its possible I could be wrong. Lol
Because its a long term investment. Any money they make, will go back to subscription service, like funding their games, or more AAA games.
If it was that easy to increase the subscription, Netflix would have made tons of money.
 
They won't put first party games on day and date. They won't. That's the biggest appeal of gamepass. Maybe they'll make some deals for third party day and date but that's as far as they'll go. Unless the market flips upside down.

Between the current games they buy exclusivity for now, and their first party games, that would be a pretty steady flow of new content to keep people subscribed, combined with a solid backlog to attract other subscribers. I'd argue the potential is there for much more money, especially given the relatively lower attach rate. I think your faulty premise is the assumption that people will just subscribe for 1 month for the 1 game they want. But if you have a steady flow of content (whether new day 1 releases or high quality/popular games that aren't new), people won't stop subscribing. Yes there will people who do that, but it'd be far from a majority, and most of those people wouldn't be the ones willing to spend $70 for that game.

If people aren't mass unsubscribing from Xbox Game Pass, why would they from Playstation's when most people agree they have the better exclusives? The reason they won't do it is because they probably can't afford the initial losses that a subscription service like Game Pass requires, but given their quality exclusives and extensive backlog (which was way bigger than Xbox's pre Activision buyout), a true Playstation Game Pass competitor would be absolutely massive and almost certainly make them more money than they're making now
 

OmegaSupreme

advanced basic bitch
Because its a long term investment. Any money they make, will go back to subscription service, like funding their games, or more AAA games.
If it was that easy to increase the subscription, Netflix would have made tons of money.
Insert soon gif. How long do you think they'll throw away billions?
 

kingfey

Banned
They can run it like Disney is doing. It’s not rocket science. But they don’t need to. It’s not their bread and butter, just like it’s not Disney’s. MS wants to be the Netflix of gaming, Sony and Nintendo don’t want that. And Disney don’t want to become Netflix.
That is viable business. Same as how other Hollywood industry let netflix do its job, until they saw what they were making, and decided to copy them. And now you have netflix copy cat subscription movies and tvs.
 
That's not profit. I'll answer it for you then. Nothing. Nada. Zip. Granted I'm going by what MS has said so its possible I could be wrong. Lol

If Xbox Game Pass was profitable right now it would be incredibly dumb by Microsoft, they should be putting 100% of their Game Pass revenue back into getting new games for the service. It's way more important to massively up the subscriber count right now, once they get to a satisfying number that's when they'll start to try and profit from it, but as of right now they're trying to make basically everybody subscribe to Game Pass so that they can get an astronomical amount of money from it, while still being able to spend enough to keep it a super demanded service
 

kingfey

Banned
If Xbox Game Pass was profitable right now it would be incredibly dumb by Microsoft, they should be putting 100% of their Game Pass revenue back into getting new games for the service. It's way more important to massively up the subscriber count right now, once they get to a satisfying number that's when they'll start to try and profit from it, but as of right now they're trying to make basically everybody subscribe to Game Pass so that they can get an astronomical amount of money from it, while still being able to spend enough to keep it a super demanded service
That is how subscription service pretty much work.
Invest heavily everything it makes back to the service. Reap the benefits once the profits exceeds the investment.
 

yurinka

Member
25m users paying $10 averege.
No, we have no idea of the ARPU of GP, pricing changes depending on countries and currencies plus many people upgraded their Gold account for $1 and there are many places that provide free PC GP months. Must be way lower, because Sony with ~2x the game subs and way less cheap or free options to get the sub, Sony makes almost ~$1B/quarter from their game subs.

~25M x~10=~$250M/month, while Sony makes around ~$300M/month.

If Xbox Game Pass was profitable
MS would have said it's profitable, but instead said it's sustainable.
 
Last edited:

laynelane

Member
Between the current games they buy exclusivity for now, and their first party games, that would be a pretty steady flow of new content to keep people subscribed, combined with a solid backlog to attract other subscribers. I'd argue the potential is there for much more money, especially given the relatively lower attach rate. I think your faulty premise is the assumption that people will just subscribe for 1 month for the 1 game they want. But if you have a steady flow of content (whether new day 1 releases or high quality/popular games that aren't new), people won't stop subscribing. Yes there will people who do that, but it'd be far from a majority, and most of those people wouldn't be the ones willing to spend $70 for that game.

If people aren't mass unsubscribing from Xbox Game Pass, why would they from Playstation's when most people agree they have the better exclusives? The reason they won't do it is because they probably can't afford the initial losses that a subscription service like Game Pass requires, but given their quality exclusives and extensive backlog (which was way bigger than Xbox's pre Activision buyout), a true Playstation Game Pass competitor would be absolutely massive and almost certainly make them more money than they're making now

Jim Ryan spoke about this subject. You use the word "afford" and he used the word "sustainable" but maybe it's one and the same. He's basically saying games cost too much to make to put them day one on a sub service. He also mentions expanding and growing the existing ecosystem which likely means things like the ten upcoming GaaS games as opposed to creating a GamePass competitor.
 

kingfey

Banned
No, we have no idea of the ARPU of GP, pricing changes depending on countries and currencies plus many people upgraded their Gold account for $1 and there are many places that provide free PC GP months. Must be way lower, because Sony with ~2x the game subs and way less cheap or free options to get the sub, Sony makes almost ~$1B/quarter from their game subs.
Gamepass=$10
gamepass pc=$10
Gamepass ultimate=$15

Average price is $11.6, since we have no idea how many each have.

The 1$ is for first 3 month, then translates to $15 after that. Unless you keep creating new accounts everytime. These are minimum users, not enough for 100k.

Sony is 60*47= is almost 3b a year. Same as gamepass users at 25m paying $10 average for 1 year.

We arent even accounting Xbox live gold revenue in this case here.
 

kingfey

Banned
Does ms have a ubiquitous game engine? Do ms own fortnite? Why are you comparing these two companies? Epic isn't doing a subscription service.
Because that is how much they paid for free games. That is how much it will cost MS to get those games on gamepass.
Unlike Epic, MS isnt giving them those games for free. They are using it for 1 year, and that is it.
 

OmegaSupreme

advanced basic bitch
Gamepass=$10
gamepass pc=$10
Gamepass ultimate=$15

Average price is $11.6, since we have no idea how many each have.

The 1$ is for first 3 month, then translates to $15 after that. Unless you keep creating new accounts everytime. These are minimum users, not enough for 100k.

Sony is 60*47= is almost 3b a year. Same as gamepass users at 25m paying $10 average for 1 year.

We arent even accounting Xbox live gold revenue in this case here.
And you aren't counting profits. You know... the important part. Sony has them without gamepass. So does ms for that matter.
 

kingfey

Banned
It came out in 2017. It's not a new service.
A service that was started from the ground, instead of adding Xbox live gold users, and renaming them gamepass.

They invested on it, and now the current revenue sustains the service, and pays for the games, instead of MS paying for them.

Basically what netflix did before they made netflix big.
 

kingfey

Banned
And you aren't counting profits. You know... the important part. Sony has them without gamepass. So does ms for that matter.
What are you counting?
The 2x userbase which Sony has over MS?

We are just comparing what the subscription fee produces. Not the mtx sales or other revenue. Just the upfront money.
 

Beechos

Member
I think its really because sony hasnt stepped into the game. Once spartacus launches that 60% will surely go down even further. I also would hardly consider 60% dominant.
 

DeepEnigma

Gold Member
oh snap GIF
 

fallingdove

Member
There is no competition for gamepass at all.
Only way there would be a competition, is having day1 games. I doubt Sony or Nintendo can afford that.

Other systems, doesn't have a big library like MS.

Your hot takes are so disconnected from reality. What an interesting world you must live in.

Having this streaming share must be good for Microsoft… I guess? I can’t say I particularly like Game Pass or gaming subscriptions in general but I guess some people don’t mind loosing ownership or have infinite amounts of time to play average games.
 

kingfey

Banned
Your hot takes are so disconnected from reality. What an interesting world you must live in.

Having this streaming share must be good for Microsoft… I guess? I can’t say I particularly like Game Pass or gaming subscriptions in general but I guess some people don’t mind loosing ownership or have infinite amounts of time to play average games.
You dont own games at all. You own the key that is on the disc.
Also, no one here wants to give up owning games.

The only reason I am interested in gamepass, because it allows you to buy your games. The moment they stop that, and I will be adios. I am out here.
 
gamepass dis, spartacus that..man I wish gaming discussions were about actual fucking games, not how much money these corporations that give no shit about us make. We used to have so many singleplayers to be excited and now we have like 3-4 per year and we already finished 2 of them. Amazing time to be a gamer..fucking not.
 

kingfey

Banned
gamepass dis, spartacus that..man I wish gaming discussions were about actual fucking games, not how much money these corporations that give no shit about us make. We used to have so many singleplayers to be excited and now we have like 3-4 per year and we already finished 2 of them. Amazing time to be a gamer..fucking not.
Aside of elden ring, most good 3rd party games are delayed. Its gonna be boring chatting until September. Each console should have their own exclusives coming soon, and some good 3rd party games.
 
Your hot takes are so disconnected from reality. What an interesting world you must live in.

Having this streaming share must be good for Microsoft… I guess? I can’t say I particularly like Game Pass or gaming subscriptions in general but I guess some people don’t mind loosing ownership or have infinite amounts of time to play average games.

Says "You're disconnected from reality".

A couple mins later says "Gamepass users like losing ownership, or just Infinitely play average games".

Pot meet kettle.
 

The_Mike

I cry about SonyGaf from my chair in Redmond, WA
Gold is included in Game Pass Ultimate. Many get GPU by upgrading their Gold account for $1
Got any numbers for it? I'm certain you have a source.

I would like to do it, but I can't afford the price up front so I have to pay monthly.
 
Sony fumbled the bag. They bought that one company to make their infrastructure. And then had a crappy PSNow for years that nobody cares about. And its not like PSNow's library is so much worse than GamePass's. Its not. Its comparable. Maybe even better. Its just using it sucked
 

kingfey

Banned
All about the streaming wars now, since software sales wars are pretty much non existent and favor one platform more often than not.
Software sales now belong to pc. That is the undisputed king. Since it won't lose users at all, but keep gaining unlike Consoles.

The only device to contain both exclusive Consoles. The only device to contain both 3rd party exclusive games.

Gabe Newell is laughing from his yacht now.
 

Hezekiah

Banned
Unless it is more than the "PS Now and PS+ merger" that it's rumored to be, I can't see it even making a dent, honestly might even increase Game Pass' lead if people start comparing what's offered for the price. It would need some Day 1 games to even be relevant in the comparison (or at least come soon after release), let alone to be anywhere close to "stopping" Game Pass.
Not going to happen. Like most consumer electronics companies, Sony is in the business of providing top level content and maximising profits, not subsidising a subscription service.
 
Last edited:

DeepEnigma

Gold Member
Software sales now belong to pc. That is the undisputed king. Since it won't lose users at all, but keep gaining unlike Consoles.

The only device to contain both exclusive Consoles. The only device to contain both 3rd party exclusive games.

Gabe Newell is laughing from his yacht now.
Warring over streaming services are a new level of cuckdom tho.
 

BennyBlanco

aka IMurRIVAL69
Still not interested.
GP is just an alternate backdoor to the Xbox One always online DRM fiasco, and people are praising it: you're all digging your own "I own nothing" tomb.
Phil is not your buddy.

There are increasingly less games I care to own forever. Like I’m playing Guardians of the Galaxy on gamepass. It’s good. It’s a fun game. I’ll probably finish it. Am I gonna want to replay it ever in the future? Probably not. And if I do I’ll just buy it on Steam for dirt cheap.
 

Topher

Gold Member
"It's still a small slice of overall gaming".

Yeah, subs haven't exactly taken the world by storm. Game Pass has an easier entry point as there were already millions paying for Xbox Live Gold and the promotions to nudge them towards GP have been significant, but just in terms of Xbox owners less than half are subscribed. I think subscriptions are going to be a slow burn for the industry.
 

kingfey

Banned
GP is just an alternate backdoor to the Xbox One always online DRM fiasco, and people are praising it: you're all digging your own "I own nothing" tomb.
All consoles are. Without internet connection, you wont get any updates. Even your controller needs an update.

Phil is not your buddy.
No one is. These guys are after your money. We are just using forums that is all. If we get banned, our efforts here would be worthless. That is how I see cheering for these people.
We might get a little bit overboard here, but the consensus is still the same.
Neither Xbox/MS, Playstation/Xbox, Nintendo, Steam, Epic, Gog and those other publishers are your friends. They dont care about you aside of your money. Its that simple. We dont exist to them. We are just a wallet for them, to expand their system.

I would advise you not take any takes here serious.
 
Last edited:

Lognor

Banned
I didn't realize ps now was so small. The same market share as ea play and Google play pass (what the hell is this?).

Sony has a lot of catching up to do if they want to be serious in this space. Microsoft is just so far ahead it'll be difficult for Sony to compete....
 

Boglin

Member
I didn't realize ps now was so small. The same market share as ea play and Google play pass (what the hell is this?).

Sony has a lot of catching up to do if they want to be serious in this space. Microsoft is just so far ahead it'll be difficult for Sony to compete....
Sony has failed miserably with marketing PS Now. Many people still believe it's a streaming only service where you can't download and play games locally.
 

reinking

Gold Member
I don't view Spartacus as a gamepass competitor, I just see this as a cumulation of the services they already into one. Unless they drop 1st party games day one gamepass is still going to be the #1 service
It is absolutely being done to compete with Game Pass. What will be interesting to see is if Sony starts rolling all of their "subscription" numbers into a single service name to pump up the numbers instead of separating out PS+ and PSNow numbers.
 

Topher

Gold Member
How fuck are you looking at that stat in the op saying it’s the service spent the most money in and still asking that? Wtf 😳

That stat doesn't indicate profit, but it really doesn't matter at this point. The current strategy for Game Pass is growth, not profit. That's my opinion, but it makes sense. Similarly, Netflix wasn't profitable for quite some time as the were growing its subscription base.
 

Fafalada

Fafracer forever
This is purely for netflx type of subscription. Aka Psnow, Luna, EA play, stadia, Uplay+.
Some of these are nothing like the others. Like if we are literal about this(and given that this is arbitrarily excluding other subs, we should be) - the only actual 'netflix type sub' is Luna.
Stadia is a platform(and a mostly dead one at that), not a sub, Apple is being apple exclusive (so nothing like NF, also isn't monetization a hybrid as well?), UPlay+ and EA Play are device specific and not at all like NF, and PSNow business model is a weird cross-breed that isn't quite clear what it is.

Of course - arbitrary goal post are arbitrary - but GP's only real competitor right now is itself (let's face it - Luna is a joke so far even if you only compare it with XCloud).
 
Top Bottom