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this post was submitted on 05 Feb 2024
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Games
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Rumors of Microsoft IPs going cross platform
The worrying aspect is that they seem to be trying to make non gamepass users pay for the development of gamepass games.
Gamepass is a massive drain on Microsoft, and numbers appear to have flatlined and not enough to pay for all the games made by Bethesda, Id, obsidian, Activision, blizzard and so much more.
So now I think they want to get non gamepass users to pay for the development and have gamepass users get the same deal they always did. Which is imo setting the industry up for some very turbulent times in the future as the cost of gamepass is buried under this, and the Xbox platform is further weakened as it gets deeper into the "no one buys games" pit.
But also less exclusives is good
How so?
Licensing and making games probably costs more than the revenue from subscriptions, would be my guess.
Considering how many subscribers they have and the cost, they are making a heck of a lot. They own many of the titles on there now with the Bethesda takeover. I can't imagine they would agree to any deal that would put them in such a position again (licensing costing more than subs, it would scale), after what they did with the contracts for the original Xbox whereby cost did not decrease on some of the hardware (or something weird like that).
nope. consider this
they don't have the income from retail games any-more, if you're an Xbox player, you almost certainly have gamepass. which means you aren't paying for a single game they produce. A decade ago a new Halo would come out and that would be 100 million in revenue day one. Now it's nothing.
They have to pay for the entire cost of development of multiple game studios. I'll highlight the ones for relevance, these are studios they have to pay salaries for hundreds of people for every month, as well as all the other costs of development, and then get no payday. Gamepass has to (but doesn't) pay for all of these: Bethesda Game Studios, ZeniMax Online Studios, id Software, Arkane Studios, Machine Games, Tango Gameworks, Alpha Dog Games, Roundhouse Studios, Blizzard, Treyarch, Infinity Ward, High Moon Studios, Toys for Bob, Raven Software, Sledgehammer Games, Beenox, Radical Entertainment, Rare, 343 Industries, The Coalition, Mojang. Ninja Theory, Playground Games, Undead Labs, Compulsion Games, Obsidian Entertainment, InXile Entertainment, Double Fine
Then they have to licence all the other games on gamepass, all the third party stuff on there currently that microsoft does not own. Again, this means that they don't make any money from game sales of those products, and also have to pay for them. Gamepass subscriptions currently probably covers this cost just about
Currently Gamepass can only exist thanks to microsoft azure and office 365. those to microsoft services pay for gamepass game development. This is why no other company does this, only microsoft can front the money from their other businesses.
Why wouldn't it scale? They're not stupid.
https://www.windowscentral.com/gaming/xbox/xbox-game-pass-has-over-30-million-subscribers-according-to-linkedin
30m last year, over $10 per month on average, $350m+ a month, plus game sales which, contrary to what you've said, still exist. New titles result in more console sales and more subscribers. They haven't shifted to this model to make less money.
They aren't losing money.
I want to be extremely clear about this, game sales functionally do not exist. We are not going to be discussing the validity of if xbox gamers purchasing Xbox games. We know they are not.
New titles are not resulting in more console sales and subscribers, as those have flatlined.
They have indeed shifted to this model to make less money so that they can be the one making money in a decade. It's extremely short-sighted to claim otherwise.
25m.> 30m subscribers is not flatlining. Where is a source about console sales and game sales stopping? "We are not going to be..." Uhh why?
https://www.windowscentral.com/gaming/xbox/xbox-series-xors-consoles-set-a-new-record-for-units-sold-in-december-2023-per-circana
Console sales higher than ever in December. BG3 just came out, which sells alongside COD: https://exputer.com/news/games/baldurs-gate-3-top-selling-xbox/
literally from your article.
from another ign article
33.3m, higher than I thought, and that's not including Core. 13% is great growth.
If it's part of a shift that includes dropping Xbox hardware, that's very much not a good thing. Less competition doesn't turn out well for consumers.
Yeah. Between these rumors and Microsoft not having a next-gen GPU contract yet, it's a possibility.
Hope I'm wrong.
Yeah but the Xbox fanboys are seething and Sony fanboys are whetting their lips at the thought of Starfield on ps5.
Yeah, I don’t think anyone is really that excited for Starfield at this point.
I’ve yet to see a single PS person excited about getting Starfield. At most, they’re like, “Oh, that’s nice,” and go back to doing other things.
I was being sarcastic. No one cares about Starfield.
And everyone else just realizes how bad this means things are going for the gaming industry as a whole.
This isn't good news for anyone who likes actually owning their games instead of just having a license, if they own a console.
That ship sailed in PC gaming forever ago, which is honestly fine considering storefronts like GOG exist, but it's still going to be a gut-punch to people who have invested financially heavily in the Xbox ecosystem.
It's going to mean smaller selections of games, more gambling/gacha bullshit, and "you'll own nothing and you'll be happy" will dominate the industry. When licensing runs out for music, they'll just pull a game instead of trying to "fix" it, if it's not profitable enough. We're entering an era where there will be a dead-zone of lost media and history because so much of it is increasingly locked up behind corporate barriers.
I have some bad news about the past few years for you...
Of all the games you want, Starfield is not one of them.
Sarcasm, yo.