Microsoft spending $1B annually on third-party Xbox Game Pass titles (www.gamedeveloper.com)

submitted 11 months ago by Goronmon@lemmy.world to c/games@lemmy.world

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[-] simple@lemm.ee 26 points 11 months ago

Spencer revealed the figure during an interview with Windows Central and stated that Xbox Game Pass is "financially viable, meaning it makes money," despite that outlay.

That's interesting because they missed their milestone for 2021 and 2022 then stopped reporting their numbers for 2023. I kind of doubt they're making a real profit from Game Pass, else they'd be boasting about it more.

[-] Zehzin@lemmy.world 20 points 11 months ago* (last edited 11 months ago)

There's a difference between "profitable" and "how much money Microsoft wants to make after investing billions in something" and I'd wager it's a big one

[-] RvTV95XBeo@sh.itjust.works 7 points 11 months ago

I get what you're saying and I'm sure all the MBAs at Microsoft are shitting bricks, but I never fully understand why a company would be disappointed with a service like this one even doing only slightly better than breaking even.

Not everything needs to have infinite growth and gigantic margins as long as $-in > $-out.

[-] Gigan@lemmy.world 5 points 11 months ago

Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.

[-] victron@programming.dev 1 points 11 months ago

I get what you saying, but I think (when it comes to video games) MS is in not position (and hasn't been for a while) to spend in something that doesn't gives them a solid profit. I like Game Pass, but since 2021 I subscribe only any other month or so, the novelty wore off and I have a big enough backlog to keep me occupied. MS needs (hear me out lol) some strong first party AA line up to make GP attractive.

[-] deus@lemmy.world 7 points 11 months ago

I bet MS agrees with you which is probably why they've bought Bethesda and Activision Blizzard.

[-] Centillionaire@kbin.social 4 points 11 months ago

Last year they reported 25 million subscribers. Even if every single one of those was the $10 plan, that equates to $3 Billion. Seems like they are doing okay.