They need more subscribers. Period. They cannot afford to support all of the AAA studios they have purchased, with the amount of subscribers they have now. Starfield most likely didnt bring in enough new subscribers, and Xbox gamers make it frequently known they will not buy games. Their only chance, is to gain subscribers from other consoles. Its been assumed for a while now, that gamepass is most likely not profitable. If you look at what they spend to bring outside games to the service, theres almost no way it can be. Now add in all of the acti studios they have to pay for.
Talk about shooting yourself in the foot and rubbing it in shit, they could do with looking at what the market wants rather than share holders, they have the console to turn it around.
They just need to improve their first party titles.
He said it is “profitable for us”. Which is a very very weird way to say something is profitable. Not profitable for shareholders? Its marketing speak. Also, their profitability, can fluctuate, by the month. Jusy because it may have been profitable thenone month he said it, doesnt mean it is still profitable. They just bought Activision, for $69 billion dollars. They now have to support all of those studios. So whatever revenue they had coming in, that gamepass may have supported, just got offset by $69 billion, AND the costs to run the studios.
They don’t need it to be profitable. Microsoft makes money hand over fist as a whole company. They are more than capable of taking losses for YEARS in their gaming division without actually hurting. Game pass doesn’t need to be profitable, it needs to exist so it can hurt sales enough that Sony and Nintendo are not considered competition anymore. Then they can do what they want. IE jack up prices.
Not really true, seeing as the only two profitable things in Microsoft history is Windows software and their servers.
Their phones, ar, kinect, zunes, xbox, gamepass, xcloud, Microsoft glass, mixer, Skype, Internet Explorer, MSN, media player etc etc etc have NEVER made a penny profit combined.
The sales of windows/office and their server hosting is literally the only things that have made a profit.
Microsoft can’t afford to keep software developers? Unless MOAR GAMEPASS? Tell me you’re talking out your ass without telling me you’re talking out your ass.
They need more subscribers. Period. They cannot afford to support all of the AAA studios they have purchased, with the amount of subscribers they have now. Starfield most likely didnt bring in enough new subscribers, and Xbox gamers make it frequently known they will not buy games. Their only chance, is to gain subscribers from other consoles. Its been assumed for a while now, that gamepass is most likely not profitable. If you look at what they spend to bring outside games to the service, theres almost no way it can be. Now add in all of the acti studios they have to pay for.
Talk about shooting yourself in the foot and rubbing it in shit, they could do with looking at what the market wants rather than share holders, they have the console to turn it around. They just need to improve their first party titles.
That’s how enshittification works.
You lure customers in with loss-leaders - spending shareholders money.
Once you get customers locked in, you decrease the value you give them.
Once you sucked all the value away from the customers, you then suck that value away from shareholders.
Nothing left
But it worked so well for Embracer Group
This is straight cap according to Phil Spencer, Gamepass is already profitable
He said it is “profitable for us”. Which is a very very weird way to say something is profitable. Not profitable for shareholders? Its marketing speak. Also, their profitability, can fluctuate, by the month. Jusy because it may have been profitable thenone month he said it, doesnt mean it is still profitable. They just bought Activision, for $69 billion dollars. They now have to support all of those studios. So whatever revenue they had coming in, that gamepass may have supported, just got offset by $69 billion, AND the costs to run the studios.
They don’t need it to be profitable. Microsoft makes money hand over fist as a whole company. They are more than capable of taking losses for YEARS in their gaming division without actually hurting. Game pass doesn’t need to be profitable, it needs to exist so it can hurt sales enough that Sony and Nintendo are not considered competition anymore. Then they can do what they want. IE jack up prices.
They have shareholders they are responsible to answering to. Yes. It has to be profitable.
Not really true, seeing as the only two profitable things in Microsoft history is Windows software and their servers.
Their phones, ar, kinect, zunes, xbox, gamepass, xcloud, Microsoft glass, mixer, Skype, Internet Explorer, MSN, media player etc etc etc have NEVER made a penny profit combined.
The sales of windows/office and their server hosting is literally the only things that have made a profit.
Microsoft can’t afford to keep software developers? Unless MOAR GAMEPASS? Tell me you’re talking out your ass without telling me you’re talking out your ass.