this is on-top of all the lost sales from no one buying their first-party games.
Gamepass is not financially viable, it’s funded by microsoft office and azure. It never will be unless they get a huge majority of the market /and/ raise praises massively. Which is of course their goal as soon as they kill the concept of game ownership.
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.
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
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.
Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.
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.
Depends on how many used deals to upgrade Gold or whatever.
25 million x 10 = 250 million
250 million - 1 billion = −750 million
