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Comment on Microsoft spending $1B annually on third-party Xbox Game Pass titles

simple@lemm.ee ⁨1⁩ ⁨year⁩ 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.

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Zehzin@lemmy.world ⁨1⁩ ⁨year⁩ ago
There’s a difference between “profitable” and “how much money Microsoft wants to make after investing billions in something”

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- RvTV95XBeo@sh.itjust.works ⁨1⁩ ⁨year⁩ 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.
  
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  - Gigan@lemmy.world ⁨1⁩ ⁨year⁩ ago
    Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.
    
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Centillionaire@kbin.social ⁨1⁩ ⁨year⁩ 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.

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- Melonpoly@lemmy.world ⁨1⁩ ⁨year⁩ ago
  25 million x 10 = 250 million 250 million - 1 billion = −750 million
  
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  - smeg@feddit.uk ⁨1⁩ ⁨year⁩ ago
    I think $10 is per month, so multiply that by 12 to get the $3B
    
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    Melonpoly@lemmy.world ⁨1⁩ ⁨year⁩ ago
    I knew I got something wrong lol
    
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- phillaholic@lemm.ee ⁨1⁩ ⁨year⁩ ago
  Depends on how many used deals to upgrade Gold or whatever.
  
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