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Spencer: Game Pass is very, very sustainable right now as it sits and it continues to grow

kingfey

Banned
To me sustainable would be a business that brings in profit or on the way to, growing every year. Do increased MTX from the games they give away plus the relatively paltry monthly sum compensate for the enormous amount of capital they have to put to fund first party games, plus existing deals, plus future deals, plus lost third party sales (due to expectations to be on GamePass), plus taxes, plus infrastructure costs? How does this compare with the traditional model?

Those are the details people need to believe Phil, who from an objective pov, is basically a used car salesman who will say anything to sell Xboxes.
That is not how long term plan works. You dont bring in profits. You use those profits to increase the value of the service.

How do you even have a good value service, if you arent investing it?

Lets say you have 500$. You buy a lemonade stand in. Do you keep all the money the lemonade stand in made it for the day, or you use those money to bring more flavours, bigger stand in? In order for you to make more money from these lemonade, you need to have bigger lemonade stand in, that can hold on more cups. That way you can sell more lemonade cups. The more you sell, the more you get. Once you have enough money, you will upgrade your cart, to a store, and keep investing those money.

That is how gamepass is working now. Every profit it generates goes back to the system, in form of new day1 games. It will attract more people, who will spend money. The more sub you have, the more money you generate, and reinvest those money, to have even more subs.

Goal for now is 50m-60m subs. That is when you will see excess cash. That sub number will cover the games that is coming to the service, and have more money on hand. 60m at 8$ average is $480m a month. Gamepass monthly games cost wont exceed $100M-$150m. So you will have $330m as extra money.

As of now, gamepass money at 23m sub*8 is $184m.
 

kingfey

Banned
Yeah MS could probably be more transparent about the numbers, but what is the end game for those that really need to know. It just seems like you are just looking for the big gotcha moment or something.

Or are you waiting to hear how successful it is before investing your $1 for the GP trial.
They need numbers, which will passed soon. Lets say, the need $200m profit. What happens when gamepass makes tripple of that. Do we increase the profit again?

Service like this are growth type. Its hard to measure it using normal profit numbers. Yet gaffers here insist on numbers.
 

MrFunSocks

Banned
Did nobody look at the financial info from the Apple and Epic court case? The reason that it's so sustainable is because it's a 2 trillion dollar company that can afford a loss. It cannot continue to survive the way it is, games that have cost hundreds of millions to develop come to the service for free on day one? It's a way of buying love from consumers and the reason that it's "very sustainable" right now is because Microsoft will accept the loss because they're happy with the growth in XBOX. What happens when they fail to meet expectations several times? XBOX doesn't make money for Microsoft. To make it profitable it would need to be about £30 a month. Which is almost like a small phone contract. So either enjoy it while it lasts or wait for the price to go up because I promise you. It will. Look at how long TES and Starfield have been in development for. The hundreds of millions poured into them. And they've reduced their market from Sony and Nintendo platforms where most people will download and play them cheap through GamePass. Like I say. Enjoy it while it lasts. The day Microsoft decide they aren't happy losing money anymore the shit will hit the fan.

The Netflix of gaming concept doesn't quite work the same way. It isn't an apples to apples comparison between games and movies/TV.
None of these games cost hundreds of millions of dollars to develop.

As the court case has shown, it really doesn’t cost much to get these games on game pass on day 1. Epic paid out like $11 million to get like 2 dozen games given out completely for free, not even as part of a subscription service.

What are you basing your “to be profitable it would need to be 30 a month” on?
 

sainraja

Member
I think people on this forum need to stop branding anyone who might say something even slightly not in favor of Game Pass to be a "hater". Why do you have to be so defensive about Game Pass? Discuss the points being brought up or just don't participate. There is no need for the child-like bullying. Come on. It's a FORUM!

People can be wrong. People can also be right. If you like Game Pass, that's good and people discussing it's sustainability aren't going to take that away from you nor is it an attack on YOU personally.
 
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Papacheeks

Banned
Yeah MS could probably be more transparent about the numbers, but what is the end game for those that really need to know. It just seems like you are just looking for the big gotcha moment or something.

Or are you waiting to hear how successful it is before investing your $1 for the GP trial.

For me it's about funding AAA big budget games. And mainly I want to see their metrics in how they track game activity. Because thats connected in my eyes further down the road in how projects are green lit or sequels to games that may or maynot have gotten a lot of playtime on the subscription.
 
I think people on this forum need to stop branding anyone who might say something even slightly not in favor of Game Pass to be a "hater". Why do you have to be so defensive about Game Pass? Discuss the points being brought up or just don't participate. There is no need for the child-like bullying. Come on. It's a FORUM!

People can be wrong. People can also be right. If you like Game Pass, that's good and people discussing it's sustainability aren't going to take that away from you nor is it an attack on YOU personally.
Head of Xbox: GP is sustainable.

Random hater: No it's not sustainable.

You: both sides are valid. You have to consider both sides.

No Way Reaction GIF by MOODMAN
 

Papacheeks

Banned
Head of Xbox: GP is sustainable.

Random hater: No it's not sustainable.

You: both sides are valid. You have to consider both sides.

No Way Reaction GIF by MOODMAN

No.

Until they release numbers or some kind of breakdown, then it's literally Phil just saying that, until we see actually numbers of what gamepass pulls in revenue wise, what operating costs are that we can deduct, then he can say things like that all night long. Also notice he not once mentioned profit, just that its sustainable which is super open ended.

You go ahead, when numbers just hit the internet, PS5 12.8 Million, XBox 6.7 Million.

 

reksveks

Member
For me it's about funding AAA big budget games. And mainly I want to see their metrics in how they track game activity. Because thats connected in my eyes further down the road in how projects are green lit or sequels to games that may or maynot have gotten a lot of playtime on the subscription.
I am also interested in their internal metrics for a successful project.

If its purely ongoing engagement or ongoing revenue numbers on the title basis, then it would be worrisome.

I hope the non-suits are thinking about something like revenue per game including the subscription costs so it includes the factor of niche/single-player games bring in new users. It also means that their games need to focus on bring in new users. That's a reasonable compromise for me if they were having a single metric across all projects.
 
No.

Until they release numbers or some kind of breakdown, then it's literally Phil just saying that, until we see actually numbers of what gamepass pulls in revenue wise, what operating costs are that we can deduct, then he can say things like that all night long. Also notice he not once mentioned profit, just that its sustainable which is super open ended.

You go ahead, when numbers just hit the internet, PS5 12.8 Million, XBox 6.7 Million.

If You Say So Shrug GIF
 

Banjo64

cumsessed
I think people on this forum need to stop branding anyone who might say something even slightly not in favor of Game Pass to be a "hater". Why do you have to be so defensive about Game Pass? Discuss the points being brought up or just don't participate. There is no need for the child-like bullying. Come on. It's a FORUM!

People can be wrong. People can also be right. If you like Game Pass, that's good and people discussing it's sustainability aren't going to take that away from you nor is it an attack on YOU personally.
This is the most bizarre take considering a bunch of weirdos lobbied the mods to ban Game Pass threads.
 

sainraja

Member
Head of Xbox: GP is sustainable.

Random hater: No it's not sustainable.

You: both sides are valid. You have to consider both sides.

No Way Reaction GIF by MOODMAN
Well...that is not quite what I said but there is no harm on actually considering/evaluating both situations. Head of Xbox is naturally not going to say anything that will make the service the business is trying to promote look weak in any way.
 

sainraja

Member
This is the most bizarre take considering a bunch of weirdos lobbied the mods to ban Game Pass threads.
I think what people asked for was to consolidate the discussion. Do you really want people to hop between multiple threads discussing the same thing? And from what I recall, it wasn't always about an important update or change to game pass that warranted a new one. lol Nice try trying to present the situation as people asking the threads to be banned (consolidation ≠ banning). That's not really what happened and the point shouldn't be lost on you that we're in a new thread, not that consolidated thread because many people also complained otherwise.

EDIT

I guess you might be wishing otherwise now since it seems you can't handle any question or criticism of Game Pass and you just want it all to go into that one thread. :D
 
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Kssio_Aug

Member
No.

Until they release numbers or some kind of breakdown, then it's literally Phil just saying that, until we see actually numbers of what gamepass pulls in revenue wise, what operating costs are that we can deduct, then he can say things like that all night long. Also notice he not once mentioned profit, just that its sustainable which is super open ended.

You go ahead, when numbers just hit the internet, PS5 12.8 Million, XBox 6.7 Million.

Episode 7 Reaction GIF by The Bachelor
 

FrankWza

Member
I do wonder if some people fundamentally think that gamepass has to be profitable as its own revenue stream to be sustainable.
I think that’s the point. Everyone knows it never has to be. I think mentioning profitability is a way of checking the constant promotions and hype by users and insiders. the company backing it is one of the largest in the world and could sustain just about anything for years and years if it wanted to. There’s a handful of companies that could do the same without it being a huge departure from their core business. GP is the best deal in gaming.
They’re giving away new games day 1 and have had the $1 loophole open for years with no end in sight. But it isn’t some shrewd business move that other companies can copy or blueprint. It’s a smaller division of a company that is so big, it can afford to do just about anything to keep a foothold in an industry where it is consistently outsold and out maneuvered by other, smaller companies. It’s a last ditch effort that can’t fail because of that.

It’s all fair. Business is business. But there’s nothing to brag about here.
 

NickFire

Member
Yeah MS could probably be more transparent about the numbers, but what is the end game for those that really need to know. It just seems like you are just looking for the big gotcha moment or something.

Or are you waiting to hear how successful it is before investing your $1 for the GP trial.
I thought the first sentence of your post was a genuine question, but the second sentence makes me wonder if you're just taking a shot at people.

Regardless, I will bite. I personally want to know how profitable it is because I think the service has some obvious positives now that the big games are starting to come out, but I am worried about the back end. If I take the plunge it will be solely for the big new gen exclusives and occasional big third party new gen games. The old gen games, indie games, etc., have no value to me (I am not knocking them - this is just my personal preferences). So profitability matters to me, because the only way it would be a great deal is if the cost of renting the few games I want, actually comes in lower than the cost of purchase when the new generation comes to an end. And if the service is not profitable, that makes me think the subscription cost will have to go up. Having seen the aborted attempt to hike Gold, I am worried about just how high GP will be in a couple years.

I doubt I'm the only person who is skeptical if renting is really going to be a better deal than purchasing long term based on their play time habits.
 

Banjo64

cumsessed
I think what people asked for was to consolidate the discussion. Do you really want people to hop between multiple threads discussing the same thing? And from what I recall, it wasn't always about an important update or change to game pass that warranted a new one. lol Nice try trying to present the situation as people asking the threads to be banned (consolidation ≠ banning). That's not really what happened and the point shouldn't be lost on you that we're in a new thread, not that consolidated thread because many people also complained otherwise.

EDIT

I guess you might be wishing otherwise now since it seems you can't handle any question or criticism of Game Pass and you just want it all to go into that one thread. :D
This is a forum and discussion is great (as long as it’s on my terms).

You got all of that from one sentence, I’m impressed.
 

Nikana

Go Go Neo Rangers!
I think what people asked for was to consolidate the discussion. Do you really want people to hop between multiple threads discussing the same thing? And from what I recall, it wasn't always about an important update or change to game pass that warranted a new one. lol Nice try trying to present the situation as people asking the threads to be banned (consolidation ≠ banning). That's not really what happened and the point shouldn't be lost on you that we're in a new thread, not that consolidated thread because many people also complained otherwise.
Would have been fine if there was any communication to why and what was and wasn't allowed. Threads just started disappearing/consolidated and being closed even though they were in the parameters of the "rules." It was never really sorted out to my knowledge and now we have come full circle.

I am all for consolidated if it makes sense but lets not pretend a majority of the pushback was to somehow make conversation flow better.
 

FrankWza

Member
I think what people asked for was to consolidate the discussion. Do you really want people to hop between multiple threads discussing the same thing? And from what I recall, it wasn't always about an important update or change to game pass that warranted a new one. lol Nice try trying to present the situation as people asking the threads to be banned (consolidation ≠ banning). That's not really what happened and the point shouldn't be lost on you that we're in a new thread, not that consolidated thread because many people also complained otherwise.

EDIT

I guess you might be wishing otherwise now since it seems you can't handle any question or criticism of Game Pass and you just want it all to go into that one thread. :D
Absolutely. Whenever I pointed it out I was accused of being a hall monitor. When it comes to bragging it’s ok. When it’s criticism let’s put it all into one thread.
 

sainraja

Member
This is a forum and discussion is great (as long as it’s on my terms).

You got all of that from one sentence, I’m impressed.
And OK — I wasn't saying that and you know it. I was asking people in this thread to just discuss the topic given we're all on a forum here. But that for some reason keeps bothering you. :D
 
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sainraja

Member
Would have been fine if there was any communication to why and what was and wasn't allowed. Threads just started disappearing/consolidated and being closed even though they were in the parameters of the "rules." It was never really sorted out to my knowledge and now we have come full circle.

I am all for consolidated if it makes sense but lets not pretend a majority of the pushback was to somehow make conversation flow better.
I am not sure what the status is right now but that main thread has been dead for a while and we do get individual Game Pass threads so it's kind of back to being the way it was — just doesn't seem like spam now on the main forum.

Before Game Pass was even a thing, I thought it was pretty common for forums to combine a main topic into one. Anyway, this thread isn't for discussing what happened in the past. Banjo64 just succeeded in deviating the discussion towards that. He was fishing and some of us took the bait. We should get back on topic though.
 

Banjo64

cumsessed
And OK — I wasn't saying that and you know it. I was asking people in this thread to just discuss the topic given we're all on a forum here. But that for some reason keeps bothering you. :D
Keeps bothering me? I replied once to you, with one sentence, which was my only reply in this thread (and now twice more due to this small exchange).
 

Nikana

Go Go Neo Rangers!
I am not sure what the status is right now but that main thread has been dead for a while and we do get individual Game Pass threads so it's kind of back to being the way it was — just doesn't seem like spam now on the main forum.

Before Game Pass was even a thing, I thought it was pretty common for forums to combine a main topic into one. Anyway, this thread isn't for discussing what happened in the past. Banjo64 just succeeded in deviating the discussion towards that. He was fishing and some of us took the bait. We should get back on topic though.

Like I said, we have come full circle. When big events/shakeups/moments etc happen theres always multiple threads as things keep happening. Look at when lead ups to console launches or E3. Theres a ton of threads that probably could be combined but it usually doesn't happen unless the topics at hand are literally identical. There was a ton of pushback on the PS5 cerny talk that spawned a ton of SSD threads.

What it comes down to is people being triggered on both sides and complaining. If the thread is flowing. Why close it? Make fun of it, who cares. But its a forum, not a debate.

But I digress.
 

MacReady13

Member
Right. But why assume a large percentage are in on these deals? Not you specifically, but a lot of Game Pass detractors assume that. And it's a very silly assumption. If you look at any type of subscription service most people are not doing these deals. Or at least not long term. My cable bill was one example. Another would be Netflix. There are occasionally deals for Netflix, but people aren't waiting for such a deal and then loading up their subscription. Most people are not paying that close of attention to it. When I look at my credit card bills I don't even register those nominal amounts I'm paying for subscriptions (Game Pass, Netflix, Spotify, etc.). They are just automatically paid. And I think Game Pass defaults to auto renew which since that is the default you can assume most are not changing that. And thus once those who have a deal has their subscription expire all of a sudden they're paying $15/month.
Fucking PLEASE! Every bloody time I just onto the Series X they are promoting the $1 game pass deal. Every fucking time. You're telling me that the millions of Xbox owners aren't taking advantage of this deal?
 

MonarchJT

Banned
No.

Until they release numbers or some kind of breakdown, then it's literally Phil just saying that, until we see actually numbers of what gamepass pulls in revenue wise, what operating costs are that we can deduct, then he can say things like that all night long. Also notice he not once mentioned profit, just that its sustainable which is super open ended.

You go ahead, when numbers just hit the internet, PS5 12.8 Million, XBox 6.7 Million.

fanboyism hate: the post
 

John Wick

Member
I think that’s the point. Everyone knows it never has to be. I think mentioning profitability is a way of checking the constant promotions and hype by users and insiders. the company backing it is one of the largest in the world and could sustain just about anything for years and years if it wanted to. There’s a handful of companies that could do the same without it being a huge departure from their core business. GP is the best deal in gaming.
They’re giving away new games day 1 and have had the $1 loophole open for years with no end in sight. But it isn’t some shrewd business move that other companies can copy or blueprint. It’s a smaller division of a company that is so big, it can afford to do just about anything to keep a foothold in an industry where it is consistently outsold and out maneuvered by other, smaller companies. It’s a last ditch effort that can’t fail because of that.

It’s all fair. Business is business. But there’s nothing to brag about here.
This is the truth fangirls can't get their head around. GP is a thing because MS can afford to sink billions into it. It wouldn't be sustainable without MS funds propping it up.
No one is claiming it's a bad deal because it's a mint deal which I subscribe to myself. Best deal ever considering what I paid for 4 years.
 

Kssio_Aug

Member
Fucking PLEASE! Every bloody time I just onto the Series X they are promoting the $1 game pass deal. Every fucking time. You're telling me that the millions of Xbox owners aren't taking advantage of this deal?
Definitely not happening to me. As far as I know, these deals are only offered to people who have never subscribed before, or that have unsubscribed and did not return for quite a long time. So, the deal is basically just for non-consumers, to try to hook them into the service.
 
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John Wick

Member
Definitely not happening to me. As far as I know, these deals are only offered to people who have never subscribed before, or that have unsubscribed and did not return for quite a long time. So, the deal is basically just for non-consumers, to try to hook them into the service.
You let GP run out then buy Xbox Live Gold 12 months sub. Stack it if you want. Then just pay £7.99 or whatever the price is to convert it to GPU for 12 months or more
 

twilo99

Member
Definitely not happening to me. As far as I know, these deals are only offered to people who have never subscribed before, or that have unsubscribed and did not return for quite a long time. So, the deal is basically just for non-consumers, to try to hook them into the service.

You stay strong buddy, you stay strong..
 

MacReady13

Member
How many of you that hate on game pass actually HAVE GAME PASS?
Tried it. Never used it. Not once. Didn't like most of the games offered or I owned the games that were on there. Used it only for Xbox Live to play games online. Wasn't interested in downloading a game knowing that once I stop paying microsoft for the sub service the game is unplayable for me. Much rather purchase my games and play them at my own pace when I like.
 
Tried it. Never used it. Not once. Didn't like most of the games offered or I owned the games that were on there. Used it only for Xbox Live to play games online. Wasn't interested in downloading a game knowing that once I stop paying microsoft for the sub service the game is unplayable for me. Much rather purchase my games and play them at my own pace when I like.
Totally legit reason to not like Gamepass. It's not for everyone.
 

twilo99

Member
Tried it. Never used it. Not once. Didn't like most of the games offered or I owned the games that were on there. Used it only for Xbox Live to play games online. Wasn't interested in downloading a game knowing that once I stop paying microsoft for the sub service the game is unplayable for me. Much rather purchase my games and play them at my own pace when I like.

If you don't like the games they have, there is no point in paying for it.
 

MScarpa

Member
If you don't like the games they have, there is no point in paying for it.
I guess what I don't understand is how many games are available on there, and not wanting to play even a couple. Look I enjoy GAMES, not the console war that has been going on since forever. If you like to JUST PLAY GAMES, and don't care what console it is on, I don't see how Game Pass is bad but that's just me. I'm not a collector. I also hate having to put a disc in every time I want to change a game. I enjoy the convenience.
 
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