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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[-] 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.