Gamepass always gets compared to Netflix, that's why I singled it out. I personally think Prime, Disney+ etc. are much better business models than Netflix, at least long term.
Ultimately, it comes down to growth.
At the end of the day Disney+ isn't all that similar to Prime and is probably more similar to Netflix than Prime Video.
I'd love to hear how Prime Video is a better business model than Netflix.
Most of these streaming services are in very different situations than each other let alone the situation Microsoft is in with Game Pass.
Microsoft just took a huge gamble on GamePass by buying Activision for 70 billion dollars. If the gamble fails, you'll see Microsoft end up selling Activision at a significant discount. If GamePass and Activision fail, likely so does Xbox. And I think they're painting themselves into a dangerous corner that you can already see not working well for Netflix.
So much of the value here is based on a handful of IP.
The reality is that Microsoft bought at a really absurd covid inflated number (so did Sony btw, but obviously smaller scale). It looks like things are starting to really come down to earth on the market, but Activision's stock is probably staying afloat based on the microsoft purchase.
TakeTwo is down 41% in the last 6 months.
Square Enix is down 25% during the same time period.
EA is down 13%
Ubisoft is down 19%
When a CoD killer comes out (and you don't need to take CoD to 0% market share to kill it, even a 25% drop in market share is a killer) what is the value of activision?