Gameplaylover
Member
What does he know? People here tell me otherwise and why shouldn't i trust them?
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Spencer: Game Pass is very, very sustainable right now as it sits and it continues to grow
FrankWza
Member
Halo Infinite Multiplayer is out NOW
File Size is: 26.2GB (7.00GB for high Texture Pack)
FYI
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mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Nah. Says the person that's being told something without much information. Most of us don't know much about any of this.
Which still doesn't tell us much. Because I don't know what revenue "they" thought it would bring..
He's the one given us this level of non-detail. I personally didn't ask him this question. I don't know what "sustainable" means in his context.
DaGwaphics
Member
I think what he's doing there is just pointing out that if the naysayers stopped and did a little basic math, they wouldn't be as confused by the approach in general.
As a subscriber, it's good to hear that everything is sailing along. Truly a great service. Plus, if you are a cheap gamer and traditionally wait for sales etc., it's exciting to play a great game on day one without needing to spend $60 or $70 on it.
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SlimySnake
Flashless at the Golden Globes
Yep to me, it's always been the same price they would pay for timed exclusives. They supposedly paid $100 million to Square Enix for Rise of Tomb Raider. A big game like that is probably going to cost around that much to buy. After all, unlike timed exclusives, the game is still available to be sold on other consoles and even on Xbox. If the Publisher can justify lost Day 1 sales with $100 to $200 million in a flat check then why wouldnt they take a guarateed payout? I am guessing FF7 remake cost around that as well. That game wouldve easily sold around 1-2 million on the Xbox in the first month or so.Yep, Epic paid 11M to GIVE all those games:
There’s no way it costs MS more than 150M per month to push +/-20 games per month on GP.
But people will never accept it.
Internal content is always cheaper than going out to BUY new content. Just ask netflix. They quickly switched from buying licenses of tv shows to producing content internally. I can promise you that Forza does not cost anywhere between $150-200 million they might be generating from gamepass every month. It's probably a $20-50 million game max.
So MS is left with a choice to buy a big game from say EA or Activision for the month of november. They can either pay EA $100-200 million for Battlefield or just eat the cost of Forza's budget.
Same goes for december. Halo is a far more expensive game. huge 700 person team. 6 years of dev time. Multiple delays. lets assume it's a $200 million game. Even if they dont get any new subs just to play Halo, they are still very close to breaking even. It really doesnt matter if they lose sales because gamepass just made them back their entire production budget. Will they get a huge profit from Halo's sales? probably not. Though looking at Forza numbers, they might. But even if they dont, Gamepass wouldve proved itself to be sustainable for November and December without acquiring any third party content.
Kagey K
Banned
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Javthusiast
Banned
GHG
Member
Looking at income figures without knowing expenditure is useless.
There's nothing confusing about the approach either, we've seen it time and time again over the years with subscription and across SaaS.
Because they are backed by Microsoft their cash burn runway could theoretically be infinite but the reality is that the business and shareholders will eventually want to see the endeavour become profitable.
SEGA_2012
Member
Because if the service is not profitable, at some point MS will close it. And that would be terrible because GP is great.
SenjutsuSage
Banned
Do the math Phil said. Leaving out Game Pass Ultimate, and only assuming 21 million subscribers. Game Pass is pulling $210 million per month and $2.5 billion a year.
Also with Ultimate and it obviously being above 21 million it's bringing more revenue than that. This is what Phil means. It's sustainable because it's bringing in this kind of crazy revenue.
Also with Ultimate and it obviously being above 21 million it's bringing more revenue than that. This is what Phil means. It's sustainable because it's bringing in this kind of crazy revenue.
Hezekiah
Banned
You know what would really realistic people believe that is the financials.
If it was the roaring success he claims it to be they would be transparent with the numbers - instead we get obfuscation.
That's not to mention the £1 deals for people resubscribing, and the free eight month deals in places like India.
If it was the roaring success he claims it to be they would be transparent with the numbers - instead we get obfuscation.
That's not to mention the £1 deals for people resubscribing, and the free eight month deals in places like India.
MrFunSocks
Banned
Absolutely! High schoolers and neck beard gAmErS are bastions of truth and market analysis experts. Microsoft have no idea how to run a business, are we even sure their financial reports are correct!? They probably forgot to carry a 1 somewhere and actually are bankrupt.
I bet their analysts and Phil Spencer don’t even know that Facebook is the most truthful and best source of news, the fools!
Hezekiah
Banned
Well I guess we don't have a choice, because they refuse to release the numbers...
Obviously
Kagey K
Banned
To be fair, it was Greenburg that said it wasn't a big profit play at the time, not Phil.
DaGwaphics
Member
MS isn't very transparent, that goes for all departments, that's their thing. However, if MS is giving up all of their sales for $1 GP subscriptions, revenue would have to be tanking in the Xbox division right? Hasn't really seemed that that is the case.
Kokoloko85
Member
Doubt its sustainable without MS’s other money
Hezekiah
Banned
How many Xbox PR articles/interviews have we had in the past six to twelve months?
Are they really concerned with their brand awareness or something, feels like there's been a dramatic uptick and a concerted effort to appear 'gamer friendly'. Like a year long charm offensive when they should let the games do the talking.
DaGwaphics
Member
While I'll admit I'm as guilty of the armchair business analysis as the next gAmEr here (probably worse), I agree it's important to let the people with real qualifications do their thing.
Great post.
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Hezekiah
Banned
Without the profit it's hard to tell anything really, and we only get that for the personal Computing sector, whereas in the 360 era you had it for Xbox so you could be more definitive.
Sosokrates
Report me if I continue to console war
Judging by that logic sony must be really concerned.
Brand awareness and hype adverts are there speciality.
Marketing is very important. Hearts and minds yall.
Sosokrates
Report me if I continue to console war
Neofire
Member
Lol someone isn't paying attention it seems but nice trollMicrosoft Corporation (MSFT) Stock Price, News, Quote & History - Yahoo Finance
Find the latest Microsoft Corporation (MSFT) stock quote, history, news and other vital information to help you with your stock trading and investing.
purvispisgah
Member
Sure, but it's not like there's anything we can do to change it. I'll just keep subscribing to and enjoying the service as long as I can.
It's honestly the best thing going in gaming right now.
Hezekiah
Banned
People were desperate to believe 30m subs too and look how that turned out lol.
freefornow
Gold Member
Phil reading comments from people who know more about Gamepass model than he does.
Kagey K
Banned
That's all the receipts anyone needs. They don't answer to you and it's not up to them to prove to you it's sustainable.Lol someone isn't paying attention it seems but nice troll
Hezekiah
Banned
When they see Series S consoles sitting on shelves, and then look at their own sales...I wouldn't imagine they're very concerned at all
.StealthGoblin
Banned
Maybe. We won’t ever know as they don’t release numbers.
On a side note, you and I have very different ideas of megatons! Hehe.
baphomet
Member
that's good they can survive on my $1 for 3 months.
I paid maybe $13 to Xbox this past year and played literally everything they released.
I don't doubt getting $120 a year from some people would be more than the ~2 games they would have bought at full price, but I pay a fraction of what I would have previously to them. like, 1-2% yearly.
I paid maybe $13 to Xbox this past year and played literally everything they released.
I don't doubt getting $120 a year from some people would be more than the ~2 games they would have bought at full price, but I pay a fraction of what I would have previously to them. like, 1-2% yearly.
Sosokrates
Report me if I continue to console war
When they see Series S consoles sitting on shelves, and then look at their own sales...I wouldn't imagine they're very concerned at all
Yeah, neither are Microsoft when they see there competition only has cross gen games next year after the whole "we believe in generations" spiel
DaGwaphics
Member
When they see Series S consoles sitting on shelves, and then look at their own sales...I wouldn't imagine they're very concerned at all
Not sure what you are getting at. Sony had been outselling MS by a good 2:1 margin globally for years. Numbers for PS5/Xbox Series are closer than they've been in a long time. Will things fall back to old patterns with time?
Either way, general brand positivity is certainly better than at this point in the X1/PS4 gen.
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When they see Series S consoles sitting on shelves, and then look at their own sales...I wouldn't imagine they're very concerned at all
What does this have to do with Gamepass sustainability?
Hezekiah
Banned
Are they? Where are you getting your numbers from?
PropellerEar
Member
Sosokrates
Report me if I continue to console war
Not sure what you are getting at. Sony had been outselling MS by a good 2:1 margin globally for years. Numbers for PS5/Xbox Series are closer than they've been in a long time. Will things fall back to old patterns with time?
Either way, general brand positivity is certainly better than at this point in the X1/PS4 gen.
Yes. If we look at the sales numbers sonys marketshare is decreasing.
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And by the time their extreme generosity dries up, you’ll be hooked on Gamepass. Because the content pipeline for 2022 - 2026 is kinda stacked.
They’re happy to play the long game here. For every cheapskate, there’s 10 people on a recurring $15 per month sub.
MrFunSocks
Banned
If game pass is growing at as fast of a rate as my ignore list is thanks to this thread then MS would be over the moon.
Sosokrates
Report me if I continue to console war
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DaGwaphics
Member
MS has said in earnings calls that Series is their "fastest selling" console line. Keep in mind that there can be steep penalties for deliberate misinformation in these calls or earnings reports in the US.
So, even if we say that Series has sold one more unit than X1 at this same point in time, and we compare that to the numbers that Sony has released, things are a lot closer than the last few years globally (in the US numbers have been relatively close all along).