Microsoft reveals a rare look at concrete Xbox Game Pass earnings, with the subscription breaking $230 million in subscriber revenues in a month's time.
But Jim Ryan said Gamepass is not sustainable.
This is revenue not profit. There is a cost of running the service.
I get the feeling this isn't the first time this has been explained to him in articles about MS revenues, but it never sinks in.
FFS! Why on Earth is there illiterate, innumerate people crowing about $230 million revenue? Without any other figures to give it context such as licensing fees, server running costs and advertising, it’s not possible to know if this is fabulously successful or a loss-making venture. What we can definitely assume is that $230 million is not NET profit! ALSO, whilst so much internal Microsoft info was leaked the fact that the net profit wasn’t revealed alongside this number is because Microsoft likely didn’t share it with the court! Why do you think that is?
Please note this is for "one month". Generally speaking, the contractual negotiations for game pass titles are for a period of time, not a month to month basis. So if a game pub is paid $10m to put their game on GP for 1 year... MS has made that $$ back in one month with 11 more to go before the title is removed. now obviously there are multitude of games that comprise the game pass catalog and all of which take a cut but this is still impressive for just one month. Only the publishers know if their deal is worth it or not and so far many have said it has been worth it.
If it was doing so great, they'd be screaming their profits from the rooftops, instead we get Phil saying they're considering exiting gaming completely if things don't turn around dramatically for GP by 2027 (in other words, this may be their last generation in gaming, and GamePass is their last hope, and so far it hasn't delivered).
What the cost to payout developers a month and run the service? This is only half the picture.
half? YOU MEAN LESS THAN HALF! The contract, the debt based system and so on
Cost to run the service, cost to include games into the service, cost of day one games, publicity costs, paying salaries, bonuses, benefits to the God knows how many people they have right now based on all the developers and publishers they had and the ones they bought. Licensing fess for the engines they use on their games, any cost related to game development besides employees, do we add the money they put into buying all these developers and publishers in there?
Why is it we never see this with other companies? Sony releases number of consoles sold, or developers talk about copies sold, but we don’t hear “great but what’s the profit margin?” Yes revenue isn’t profit, but why is that only an issue when it comes to Game Pass?
Your name never checks out
Revenue is not profit!
So did N4G
Xbox game pass has been profitable for years. You take all the revenue you make and now have the buget for the next month. Don't go over that budget and profit. Rinse and repeat.
This is why people look at you as a massive troll/blind fanboy. That's revenue not profit their is a massive difference.
You literally have no clue, we've explained this revenue Vs profit argument to you numerous times. Do you have no ability to learn and remember ? You say the same shite everytime 😂🤣
Jesusjohn, Thank you guy for pointing that out. It won't matter though.
Well how much profit did they make last month? You realize revenue & profit is two different things right?
It isn't https://www.reddit.com/r/Ga... Growth on gamepass has plateaued. Revenue is not profit. They've blown Billions acquiring publishers. There is a reason they don't publish the profit numbers or sale numbers at the end of the day.
It is when 90% of the games are trash.
Phil Spencer also said so... "We may exit the gaming business if Game Pass subscribers off consoles don't increase a lot by fiscal year 2027"
@Obscure_Observer You thought you found an angle to attack but you completely missed the point. Aim better next time.
its not long term, as phil said in an interview ha.
Ahh so 23million divided by $15 per month = 15.3million subscribers. They say they have 20-30 million. So now we know they have as many not paying as those who are. Either through Microsoft rewards which they're stopping... or conversion stacked subs. Or maybe something else I'm not aware of.
Do you think they are including DLC and add-on purchases in the subscriber revenue because subscribers are still spending money?
Even though it looks like most users are paying over $200 per year for Game Pass Ultimate, there a more than a few legacy accounts that paid much less upfront for many years of service to come. Microsoft’s accounting folks might spread that out over time, but realistically, those legacy accounts won’t contribute to monthly revenue until their current subscription term ends. So revenue isn’t a good indication of total subscriber numbers,
Where are you getting your $15 figure from? There's so many variables in how people can pay, it seems there no way to guesstimate a figure to go off of.
Well that's an average just for sake of easy math. For example it's 12.99 a month in uk which is about equal to 15dollars. I believe it's 18dollars in USA. But that's per month, you save if buying 12 or 24month. So the 15 figure is literally for easy math and a nice middle sum to take a base from
With all the numbers Leaking about how much they paying Each dev a MONTH and Yearly. its no wonder xbox division has yet to turn a profit and gamepass is far from being profitable at all. with the big leaks and the amount they paying game wont ever be profitable as it is now