Xbox Game Pass is a sustainable business venture, Xbox head Phil Spencer told Stevivor.
“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?
Second comment, lmao!!!
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.
The learned from Netflix. If you can get enough people paying the $5 a month then you make a lot of money.
@mikeslemonade That is correct, you make a lot more money off of monthly and yearly subscribers than one time purchases.
Reply to second comment! Lmao!!!
mikeslemonade Netflix? Netflix has $20 billion in debt and is operating at a loss.
@mikeslemonade 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
@Crazy I know right!!! might be crazy but i am sure that is how ANY business works. Lower prices to attract consumers.
How is that semantics? He literally said: “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.
@Silver Sony has been doing it for a lot longer with PSvue and PSnow. They must know that it works and can get away with it because MS will always be blamed. God bless their hearts.
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.
@Sceptic "There’s no model like that, for us,” 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?
Lol yeah.The narrative keeps changing. Its unsustainable or Sony did it first or...MS isnt competitive enough. Crazy!
Nobody is saying GP is bad because Sony didn't think of it first.
Dont forget the fallback arguments of, "xbox has no exclusive games lolz" "xbox has no 1st party studios lolz"
Yes. Spencer lies all the time. Do you realize how many promotions they have regarding Game pass? Kelloggs products Energy Drinks AMD Spotify Discord Their own free trials, $1 trials, free pgradea to UGP. They are giving it away like you've never seen. I have had GP 6+ months already. I have it for the max of the next 36 months. I have paid $100 for 42+ months of UGP.
@Septic If people are debating the value Xbox GamePass brings. They have lost there mind. I wish I had this subscription when I was younger.
sega channel 😉 Being a nintendo household i never had it, but my neighbour across the street did and we spend rainy afternoons in trying all the games
""Xbox Series X reveal had 45 million viewers. Sony PS5 announcement 329K viewers. Hilarious. " 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!
MS has never lied before....SMH
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 suspect that it's enough, it has to be.