“I know some people — I’ve seen it — some people say, ‘Oh, they’re just kind of burning money left and right in order to gain customers so they can trick you into raising the price later.’
“There’s no model like that, for us,” he said. “We feel good in the business that we’re running now. We’re definitely investing in it, but not investing in a way that’s unsustainable."
There you go. Straight from the horses mouth. Now let me guess...he's lying right?
LOL! Well I guess XGP is unsustainable and it will bankrupt Xbox /s
All that marketing might, all that push for this service and all that money spent on studios, only to throw it away because....I dont know, maybe for Xbox cares so much for gamers that its just practically giving games away lol.
Come on people. You really think Xbox haven't thought this through?
To me, the people saying its unsustainable is proof of just how incredible XGP is - that people think its too good to be true.
Difference is, Netflix needs to make money eventually from their subscribers. Game Pass doesn't really. The purpose of Game Pass isn't mean to be money making service. It adds value to the Xbox ecosystem and that's where the returns on investment come from.
He's just playing with semantics again. When he says "we're definitely investing in it", that means burning money to get customers now at introductory rates that go up later. Investing=spending more now to get returns later. If they ever got as successful as PS, they'd probably either raise rates or add a tier for Day 1 releases, imo
“Some people say ‘Oh, they’re just kind of burning money left and right in order to gain customers so they can trick you into raising the price later.’
“There’s no model like that, for us“
That’s possibly the clearest I’ve ever heard Phil say something
@aconnellan, if you look closely, he's saying he doesn't plan on tricking you. No denial of "burning money" to get customers, which he cleverly positions as "investing"
They did the same thing with Xbox live before the 360 released. They give out 2 months free with any game that had Live enabled on it for free. Then they stopped doing that altogether and the only vouchers that they gave out were a small 48 hour ones.
There are so many arm chair businessman who swear it’s not sustainable on this website they apparently know more then Microsoft themselves a business that’s been going before they were even born
Let me see if I can replay your logic: If company was founded before you were born, you do not know more than the "company", and are foolish to question them.
1st of all, MS has failed on plenty of endeavors - they're definitely not infallible. Secondly, speaking for myself personally, I don't think their "give it away" approach for now is a bad business move. They have cash to invest, it may be a sensible gamble - but I don't think they're profitable on this yet.
Its too simple. They are running out of talking points when it comes to XGP so naturally they wont like this. Now its all about how much of a profit haha...how about we just celebrate a consumer friendly service that also benefits the devs/pubs and provides tons of value to gamers...why spin it to a negative?
You're off topic. And who said that was suppose to be negative? I thought it was pretty funny actually. Not funny in a negative way, but funny in a funny way. The same way I was able to laugh at the Xbox fridge, I found that funny too.
Someone needs to make a meme of N4G sweating over the red button right now. XGP is burning money, or MS arent willing to take risks with their money. Which will they press?
MS doesn't own TGA so your comparison is FAIL, Automatic79. TGA announced viewer numbers for their own whole show, not for XSX specific. Cheers, spinner!
The model is to sell the subscription as well as the typically higher-per-dollar-spent DLC. I have no clue how much they're making on DLC, but it must be enough.
“I know some people — I’ve seen it — some people say, ‘Oh, they’re just kind of burning money left and right in order to gain customers so they can trick you into raising the price later.’
“There’s no model like that, for us,” he said. “We feel good in the business that we’re running now. We’re definitely investing in it, but not investing in a way that’s unsustainable."
There you go. Straight from the horses mouth. Now let me guess...he's lying right?