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[jm89]

Who died?

Your usual attempt at coping

 

[cireza]

It states nothing about profitibilty. Financially viable doesn't mean profitable. If that was the case then why don't MS say Azure is financially viable instead of stating it's profitably??? Clearly your the one having reading issues.

It is written makes money. If they were losing on money on this service, he would not have said the words "makes money".

At the end of the day I am losing money, but I am going to say that I make money instead.

Can't believe the amount of spin some of you guys put on anything he says. Accept that they are making money and move on with your life.

 

[Rawbutt Jellybean]

Sounds like a waste of billions and nothing to show for it

It's pretty sad when you think about it. With that kind of investment they could be churning out banger after banger. Instead it's mostly just mediocre, half finished games with no sign that it's going to change.

 

[DaGwaphics]

It is written makes money. If they were losing on money on this service, he would not have said the words "makes money".

At the end of the day I am losing money, but I am going to say that I make money instead.

Can't believe the amount of spin some of you guys put on anything he says. Accept that they are making money and move on with your life.

IKR, we've even seen court documents showing the profit percentages expected by MS for $ invested in Xbox, etc.

 

[Bumblebeetuna]

But last time he explicitly stated it was profitable, it still resulted in an 8 page thread here filled with skepticism. People demanded to see the balance sheets, all the cash flows etc.

News - Drama - Phil Spencer confirmed that Game Pass is profitable

www.neogaf.com

Now he tried to ELI5 by not only saying it’s financially viable, but confirming it makes money for MS. And you’re still skeptical

Is that the thread where the worriers said he was lying because he said it was profitable “for us” and they tried to imply that means something else entirely?

 

[Ozriel]

Phil says all sorts of shit that suits the company he works for.

First you say you need more transparency from Xbox and want a statement specifically confirming GP is profitable. Then you turn around to insist you wouldn’t believe anything the head of Xbox says.

MS has no problem sharing Azure, office and other divisions profits. Yet Xbox is never shown. Why?

MS aggregates their earnings reports in a way their shareholders want.
If you want to have precise Xbox data, I suggest you become a shareholder at MS and then ask for the granularity you want.

When they were leading they used to shout it from the rooftops. What changed?

‘Leading’? In gaming profits? When was that?

 

[Ozriel]

It's pretty sad when you think about it. With that kind of investment they could be churning out banger after banger. Instead it's mostly just mediocre, half finished games with no sign that it's going to change.

I don’t understand, you’re proposing they pay no money for content for their popular subscription service?

They’ve invested billions in significantly beefing up their first party setup, so that’s certainly not a money issue. Do you understand that this thread is about them paying money for games like Lies of P, Atomic Heart, Persona, Wo long, A Plague’s Tale and Monster Hunter Rise to come to GP?

 

[Rawbutt Jellybean]

I don’t understand, you’re proposing they pay no money for content for their popular subscription service?

They’ve invested billions in significantly beefing up their first party setup, so that’s certainly not a money issue. Do you understand that this thread is about them paying money for games like Lies of P, Atomic Heart, Persona, Wo long, A Plague’s Tale and Monster Hunter Rise to come to GP?

No, I'm saying with that kind of money and proper management they could and should be pumping out a significantly better first party library. Instead they're mostly focusing on being a modern GameFly while they churn out an incredibly mediocre library.

 

[Ozriel]

No, I'm saying with that kind of money and proper management they could and should be pumping out a significantly better first party library. Instead they're mostly focusing on being a modern GameFly while they churn out an incredibly mediocre library.

They’re doing both. And most people agree that - thanks to their investment in 3rd party content - ‘mediocre’ isn’t a word you’d use to describe GamePass.

Every single one of their first party studios is funded and is engaged in making games. Only thing a $1bn infusion would enable is more studio purchases. You’d prefer that?

 

[cebri.one]

Why would you put the entire development cost of first party games on GamePass when they’re sold at retail?

Millions of copies of Starfield and Forza Horizon 5 sold across Steam and xbox console, but we need to put all the dev costs on the subscription service?




Imagine comparing the cost of content acquisition and preparation of Netflix and GamePass. Netflix spent close to $17bn on content alone in 2022.

Not to mention claiming a streaming only model is equivalent to a streaming + retail model. Thats not logical at all.



More first party content coming in, plus Activision content from 2024. I don’t think anyone credibly believes that GP is destined to get worse

It makes so much money that they don't detail it in their financial reports.

 

[adamsapple]

First you say you need more transparency from Xbox and want a statement specifically confirming GP is profitable. Then you turn around to insist you wouldn’t believe anything the head of Xbox says.

Phil Spencer "Game Pass makes money"

Somewhere on GAF

 

[Rawbutt Jellybean]

They’re doing both. And most people agree that - thanks to their investment in 3rd party content - ‘mediocre’ isn’t a word you’d use to describe GamePass.

Every single one of their first party studios is funded and is engaged in making games. Only thing a $1bn infusion would enable is more studio purchases. You’d prefer that?

Again, with the amount of money they're investing and with proper management they could and should have a killer library but they don't. I'd prefer they make good games.

 

[Ozriel]

Again, with the amount of money they're investing and with proper management they could and should have a killer library but they don't. I'd prefer they make good games.

Good point, but one that has nothing to do with the subject matter at hand, which is third party content for GamePass.

 

[Rawbutt Jellybean]

Good point, but one that has nothing to do with the subject matter at hand, which is third party content for GamePass.

I'd prefer if they focused on making good games instead of making a good rental service ("the subject matter at hand").

 

[Ozriel]

I'd prefer if they focused on making good games instead of making a good rental service ("the subject matter at hand").

You don’t realize that ‘third party games’ in the OP means their first party studios aren’t involved, and hence have no focus dilution?



Heck, GP is a major reason why their first party setup expanded.

 

[THE DUCK]

Intersting how 90% of posters seem to forget that games make money on traditional sales and add on sales while trying to suggest that the money brought in from gamepass is the only revenue line.
A billion on third party considering lack of consitant 1st party releases seems the least they could do though to keep subs happy.

 

[Rawbutt Jellybean]

You don’t realize that ‘third party games’ in the OP means their first party studios aren’t involved, and hence have no focus dilution?



Heck, GP is a major reason why their first party setup expanded.

So MS is just incapable of making quality games then. I thought making gamepass their primary focus was taking away from their need to create an appealing first party lineup.

 

[adamsapple]

So MS is just incapable of making quality games then. I thought making gamepass their primary focus was taking away from their need to create an appealing first party lineup.

 

[mckmas8808]

And what profitability of a service has to do with price of consoles?

Jesus guys, you are stretching.

But to answer your question. They raised prices so they can earn more money and keep margins intact. Same as any other company on the planet. Inflation is not meant to eat profit margins (God forbid that) so the inflation is passed onto the consumer.

I know it's shock, but that's how capitalism works.

You answered your own question.

 

[Ozriel]

You answered your own question.

How? He’s clearly talking about hardware margins here. Distinct from the subscription service.

 

[Jayjayhd34]

Straight up thought of titanic as soon as read it

 

[mckmas8808]

How? He’s clearly talking about hardware margins here. Distinct from the subscription service.

One has something to do with the other. It's not like these things are happening in separate bubbles.

 

[TaylorSwiftFan]

For reference, they made $3.9 bn from subs in FY22.

From subscription services like Gamepass - probably mostly from gamepass core.

 

[pasterpl]

So MS is just incapable of making quality games then. I thought making gamepass their primary focus was taking away from their need to create an appealing first party lineup.

MS got metacritic publisher of the year couple years ago, halo infinite was voted neogaf game of the year (and it still being supported, and getting better with every update), forza horizon series is the best arcade racer out there critically acclaimed and selling very well, AoE are one of the best RTS out there, Flight Sim is technical marvel, Starfield - very solid game with lots 10/10, games like pentiment, hi-fi rush are just gems, forza motorsport is very solid “sim” racer etc. Plus we have got dozens of games in development that we know of. On top of all of this first party we have got games like Lies of P, STALKER2 and many more on gamepass day 1 (this what this thread is about). You silly attempts at trolling don’t work my friend.

 

[Godot25]

One has something to do with the other. It's not like these things are happening in separate bubbles.

Of course they are both parts of overall console financials.

But what you are implying is just bullshit. Do you think that Sony raised prices of PlayStation Plus because they were selling PlayStation 5 consoles for 429€ during last weeks? I don't think so. Pricing of hardware is independent from pricing of services. Goal of hardware price is to loose as little as possible (or to earn as much as possible) while being competitive with other brands. Goal of the sub service is to being profitable and to fund itself and content acquisition for future.

Sony and Microsoft raised prices of their subscription services because content acquisition become more expensive and they passed that increase onto consumers to keep overall profitability of those services.

 

[Roger Rabbit]

If Microsoft’s focus is on growing GamePass and not on selling Xboxes, I can’t help wondering why they continue to make Xboxes instead of negotiating with Sony to bring the service to PS.

I guess either they have crunched the numbers and think that they make more money (either now or in future) by doing it this way than by paying a fee to Sony, or Sony refuse to allow it. Or maybe Microsoft think that eventually they will outlast Sony’s gaming division.

Seems a no-brainer to me. Microsoft get a load more potential customers for GamePass, which is said to be their objective, and no longer have to research, develop, manufacture or distribute the consoles. Sony does all that donkey work. Meanwhile Somy gets rid of its most similar competitor and gets a load of new games on its system.

I think it’s better for us with Sony and MS in competition so I hope it doesn’t happen.

 

[C2brixx]

If Microsoft’s focus is on growing GamePass and not on selling Xboxes, I can’t help wondering why they continue to make Xboxes instead of negotiating with Sony to bring the service to PS.

I guess either they have crunched the numbers and think that they make more money (either now or in future) by doing it this way than by paying a fee to Sony, or Sony refuse to allow it. Or maybe Microsoft think that eventually they will outlast Sony’s gaming division.

Seems a no-brainer to me. Microsoft get a load more potential customers for GamePass, which is said to be their objective, and no longer have to research, develop, manufacture or distribute the consoles. Sony does all that donkey work. Meanwhile Somy gets rid of its most similar competitor and gets a load of new games on its system.

I think it’s better for us with Sony and MS in competition so I hope it doesn’t happen.

Hardware for Microsoft is a displine the company wants to have. Its the reason Surface PCs exist. Even if Xbox hardware just breaks even its a plus for Microsoft to have in house hardware engineers instead of outsourcing that know how.

 

[iHaunter]

Yeah I can see this, even in 2023, lots of day 1 high quality titles this year.

Well, lots of Day 1 titles anyway.