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[Karim]

He practically claimed the same stuff with different turn around words...I mean " I was told that first-party games have their own P&L separate to Game Pass as they make money via other means. I felt this piece of internal accountancy might mean Game Pass is profitable, but it sure does put pressure on the margins for its internal games and POSSIBLY means some studios don't make as much profit (or any profit at all). "
To me he just repeated the same concept softing the words.

 

[HeisenbergFX4]

Here's another thought - if it were truly profitable then Xbox wouldn't be porting everything to other consoles along with the fact that they wouldn't be shutting down studios, cancelling games and making layoffs across the board.

Actions speak louder than words.

Beats me I have no idea if its profitable or not because even if it was slightly profitable all those other actions could have taken place simply because the profit wasn't enough for shareholders who are the final boss

If I am being perfectly honest it doesn't matter to me if its profitable or not, I just knew this retraction was coming

 

[Karim]

Also he practically said MS told him they make profits trust me bro and nothing more detailed is mentioned....

 

[T-0800]

Big 'the file is on my desk oh wait there is no file' energy coming from this guy.

 

[StereoVsn]

Phil be like .. hey Chris..

"Be careful of your health and stay away from windows, even if they are in the basement".

 

[Baemono]

From his tweet (assuming it is true), Game Pass makes up for lost sales and still generates profit, then it makes more sense to keep it than to go back to a 100% traditional direct sales model, right?

From his tweet, that's what I understand:
Game Pass revenue - game pass third party deals = >0$ so profitable. 1st party games aren't counted cause they're « free » (which shouldn't be the case, in any regular company, they would've made some form of financial transaction for licencing fees and stuff)

 

[Facism]

Jez weighs in

lol weighs in

 

[LordCBH]

Jez weighs in

Given Jez's track record, this is a sign that Gamepass loses them billions a year.

 

[HeisenbergFX4]

Given Jez's track record, this is a sign that Gamepass loses them billions a year.

Likely

I didn't intend for it to be any sort of evidence, just tried to be sarcastic giving him as "proof"

 

[Three]

Saying it's profitable but without explaining it how.

So the first-party studios have other means to sell their games (PC, PS5), okay. But how game pass is profitable before these games are sold outside this service? What happens when these games don't sell on other platforms or services? Or this a "Trust me Bro" PR move to save face?

He's literally repeating himself and saying what others have been saying. Gamepass doesn't cover the cost of their studios so they have to sell on other platforms or have mtx in their games.

 

[Rush2112]

Ok so now he says its profitable. Why? because someone talked to him.

 

[PauloRoberto]

You have to be extremely stupid to believe that gamepass is profitable... why? Because MS would never allow anyone to forget how profitable this service is if that is the case.

 

[azertydu91]

Ahh, my bad. Reading is a gargantuan task without coffee in the bloodstream. So it's not profitable outside of accounting shenanigans, that makes sense.

No problem man this tweet is a wall of text for not much info , it is easy to get lost into it.

 

[ElFenomeno]

You have to be extremely stupid to believe that gamepass is profitable... why? Because MS would never allow anyone to forget how profitable this service is if that is the case.

Bingo. Microsoft would have shouted from the rooftops if GP was a hit.
The fact that we are even having this conversation proves the contrary.

 

[DR3AM]

Xbox # 1. Let's go Phil

 

[Mephisto40]

Profitable for who? Microsoft, or the studios they keep closing that are forced to use their "profitable" platform?

 

[Esppiral]

Backpedalling much?

 

[kpopSuperstar]

You absolute tools who were 100% sure he was factually correct about this yesterday need to get a grip. 90% of the people in here buy into everything.

 

[SmurfMustard]

Here's another thought - if it were truly profitable then Xbox wouldn't be porting everything to other consoles along with the fact that they wouldn't be shutting down studios, cancelling games and making layoffs across the board.

Actions speak louder than words.

Aren't competitors shutting down studios, cancelling games and making layoffs across the board?

 

[Negotiator101]

Likely

I didn't intend for it to be any sort of evidence, just tried to be sarcastic giving him as "proof"

Didn't Jez write a scathing article on Microsoft just recently?

Gamepass is profitable and he's only stating this as a fact, but because the Gaf majority don't like this fact and presumably because it contradicts them, his statement isn't valid?

They all ran with it on a thread yesterday only to be disproved today and it's really got to them.

I could care less if it's profitable or not as I don't worry about a trillion dollar companies finances but everyone believed this Dring guy yesterday because it fit in with their agenda, today it doesn't and now they question him? Hypocritical much?

 

[Peroroncino]

Ok so now he says its profitable. Why? because someone talked to him.

or he's a retard that decided to run with information he received 18 months prior, I also doubt he rechecked exact wording of what was said before he tweeted it

there's no conspiracy here, just a dude who's been known to put out bad info and backtrack it, it's not his first time and surely won't be his last

 

[HeisenbergFX4]

Didn't Jez write a scathing article on Microsoft just recently?

Gamepass is profitable and he's only stating this as a fact, but because the Gaf majority don't like this fact and presumably because it contradicts them, his statement isn't valid?

They all ran with it on a thread yesterday only to be disproved today and it's really got to them.

I could care less if it's profitable or not as I don't worry about a trillion dollar companies finances but everyone believed this Dring guy yesterday because it fit in with their agenda, today it doesn't and now they question him? Hypocritical much?

Jez has lit MS up since the layoffs and right before that he was singing Xbox praises on how bright the future was so the dude can't be taken seriously at all

Its human nature to believe what they hold dearest as like you point out yesterday was the gospel that GP lost money based on some anonymous "Xbox told me" Tweet and now today the dude is lying and being forced to say something different.

We are on a gaming forum where the vast majority has a favorite platform and likes stuff that paints the other platform in a negative light, its all good

 

[ZehDon]

Sounds like he got a talking to about running on unknowns.

 

[GHG]

Beats me I have no idea if its profitable or not because even if it was slightly profitable all those other actions could have taken place simply because the profit wasn't enough for shareholders who are the final boss

You should try explaining this to poppabk :

MS can just release whatever is as positive as possible for xbox because shareholders dont really give a shit about it.
Is Valve a poorly run business? They seem to be doing pretty good, but we dont know their financial state because they dont have shareholders to keep happy.

It's difficult to keep up with whether or not shareholders matter in the context of Xbox.

One one hand they apparently don't care whether or not gamepass is profitable, but on the other hand when it comes to layoffs, games cancellations and studio closures it's their fault and nothing to do with the profitability (or lack thereof) of the overall business model.

-------

Aren't competitors shutting down studios, cancelling games and making layoffs across the board?

Yes, because the business decisions they have made are are either not sustainable or not profitable.

But for some reason when it comes to Xbox people want to pretend that everything is rosy and that they are making these decisions for the fun of it.

 

[HeisenbergFX4]

You should try explaining this to poppabk :



It's difficult to keep up with whether or not shareholders matter in the context of Xbox.

One one hand they apparently don't care whether or not gamepass is profitable, but on the other hand when it comes to layoffs, games cancellations and studio closures it's their fault and nothing to do with the profitability (or lack thereof) of the overall business model.

Shareholders are the only thing that matters and in all honesty anyone that actually knows if GP is profitable or not aren't speaking to people like Dring or Jez or the likes

 

[adamsapple]

[]

 

[gerth666]

Here's another thought - if it were truly profitable then Xbox wouldn't be porting everything to other consoles along with the fact that they wouldn't be shutting down studios, cancelling games and making layoffs across the board.

Actions speak louder than words.

It's so obvious isn't it.
That's how business responds to losses.
Yet people don't see it. Make it make sense.

 

[HeisenbergFX4]

It's so obvious isn't it.
That's how business responds to losses.
Yet people don't see it. Make it make sense.

I way more pin the mass layoffs on piss poor console sales and years of mediocre to just bad games

GP being profitable or not is the least of their problems and would likely correct itself if they games were great

 

[djjinx2]

A lot of people took him seriously in the other thread, now that he's saying otherwise no one takes him seriously anymore lmao people don't want to know the truth, they just want something that fits their narrative

Fucking post of the week. The other thread was a blood bath of "durrr I told you so, I called this years ago hurrrrrr"

Fucking internet idiots

 

[Clintizzle]

Who cares about what journalists with their bullshit sources have to say.

NeoGAF shareholders know that a trillion dollar company has an unprofitable subscription service. Thats all that matters.

I personally am not a shareholder so dont care if the service is profitable or not. Yes, i dont care if it means job losses or game cancellations either. The truth is Microsoft is not in the business of making gamers happy. Anyone who works for them should know that creativity is not a priority and shouldn't feel secure in anyway.

 

[MayauMiao]

I guess the Xbox cheque have cleared.

 

[Jaybe]

It probably helped when all that Xbox Live subscription revenue which is basically pure profit got relabeled Game Pass Core

 

[justiceiro]

Another easy win for game pass. Haters should give up by now and deal with it.

 

[GHG]

I way more pin the mass layoffs on piss poor console sales and years of mediocre to just bad games

GP being profitable or not is the least of their problems and would likely correct itself if they games were great

Great games = more console sales && = more gamepass subscriptions

Meanwhile Phil:

"I see commentary that if you just build great games, everything would turn around. It's just not true that if we go off and build great games, all of a sudden you're going to see console share shift in some dramatic way."

 

[HeisenbergFX4]

Great games = more console sales && = more gamepass subscriptions

Meanwhile Phil:

"I see commentary that if you just build great games, everything would turn around. It's just not true that if we go off and build great games, all of a sudden you're going to see console share shift in some dramatic way."

Which is another reason I say all those people have to go and bring some fresh ideas in there though its likely too late to change anything

In all honesty I don't care if they sell another console or not but I want their tent pole games to be good as I loved old Halo and Gears

 

[Calverz]

You absolute tools who were 100% sure he was factually correct about this yesterday need to get a grip. 90% of the people in here buy into everything.

People are very emotionally attached to all this around here.

 

[gerth666]

I way more pin the mass layoffs on piss poor console sales and years of mediocre to just bad games

GP being profitable or not is the least of their problems and would likely correct itself if they games were great

We know games cost upwards of £200m to make, Microsoft have loads of studios to support. They have to pay publishers to get their games. Sales have bombed on the platform.
You are never going to convince me that they make profit from gamepass.
Netflix lost money for years, Amazon, paramount, Christ I'm not even sure Disney are still bleeding cash.
If everything is so cosy, why do they hide the Xbox quarterly results?

Sorry mate you are not going to convince me, maybe if Phil Spencer showed me their results personally. Then I'd even doubt it.

At the end of the day it doesn't matter what I or anyone thinks, you love the service and think your getting a good deal so crack on and enjoy I say.

 

[HeisenbergFX4]

We know games cost upwards of £200m to make, Microsoft have loads of studios to support. They have to pay publishers to get their games. Sales have bombed on the platform.
You are never going to convince me that they make profit from gamepass.
Netflix lost money for years, Amazon, paramount, Christ I'm not even sure Disney are still bleeding cash.
If everything is so cosy, why do they hide the Xbox quarterly results?

Sorry mate you are not going to convince me, maybe if Phil Spencer showed me their results personally. Then I'd even doubt it.

At the end of the day it doesn't matter what I or anyone thinks, you love the service and think your getting a good deal so crack on and enjoy I say.

Not trying to convince anyone of anything, people can believe whatever they like, its human nature to do so

People are very emotionally attached to all this around here.

Both ways

 

[ChorizoPicozo]

The damage is done. The truth has been exposed. Now what?... A price increase? Why, if it's profitable. Xbox is in turmoil, and the power struggle within is more than obvious

 

[Calverz]

Both ways

All ways!

 

[Drunkensamurai]

so sick of this guy.

 

[Calverz]

The damage is done. The truth has been exposed. Now what?... A price increase? Why, if it's profitable. Xbox is in turmoil, and the power struggle within is more than obvious

The damage is done so I guess I be leaving.

 

[azertydu91]

All ways!

 

[adamsapple]

The damage is done so I guess I be leaving.

Careful now, he's going to start quoting Smash JT videos and say "but I don't really follow him"

 

[Baemono]

It's funny cause I had a look to Xbox enthusiasts and websites, no one reported Chris' initial tweet from yesterday, but now everybody is picking up his "correction" saying "see it's profitable"

 

[playbignbox]

Here's another thought - if it were truly profitable then Xbox wouldn't be porting everything to other consoles along with the fact that they wouldn't be shutting down studios, cancelling games and making layoffs across the board.

Actions speak louder than words.

Porting games to another platform, canceling games, closing studios and laying off employees? This reminds me of another company that is in its most profitable generation, so maybe some of its actions don't quite reflect what you're thinking.

 

[Adam_802]

lol there it is

 

[drganon]

so sick of this guy.

People who say "mathing" shouldn't be allowed to interact with others.

 

[The Mad Draklor]

A lot of people took him seriously in the other thread, now that he's saying otherwise no one takes him seriously anymore lmao people don't want to know the truth, they just want something that fits their narrative

Actually, what people pointed out was the amount of qualifiers he had to use to describe Gamepass's (lack of) profitability on both his initial and "backtracked" statements.

 

[AJUMP23]

If you have 30 million people paying $10 a month (due to multiple SKUs) that is $300 Million a month. That is good money. If it is $15 a month that is $450 mil a month. If there is a sub breakdown, then that would help. I think they can easily be profitable at 3.6 billion in GP revenue annually.