Christopher dring 'clarifies' his stance on gamepass.

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"
No one reported his crap that was obviously retarded if you have 3 brain cells. He was literally corrected on X in real time.
 
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.

Yes, and I've already stated the following in response to SmurfMustard SmurfMustard :


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.

And prior to that:

They've fucked up this gen so bad that they need to go to Xbox for some crumbs.

Nah, I think they are just that stupid and they are scrambling around for scraps of revenue at the moment because of how much their GAAS decisions (and the Bungie purchase) have cost them this gen.

Nice try though.

It's like some of you fail to realise that when businesses do this sort of thing it's often as a last resort out of necessity.
 
Gamepass is profitable, it's simple... let me explain.

tenor.gif
 
Yes, and I've already stated the following in response to SmurfMustard SmurfMustard :




And prior to that:





Nice try though.

It's like some of you fail to realise that when businesses do this sort of thing it's often as a last resort out of necessity.
Totally agree.

Sony killed what 2 or 3 studios in the last 12 months or so and canceled their games plus just announced a game in Helldivers 2 coming to Xbox of all places

I don't think anyone here remotely believes if PS+ was more profitable Concord would still be alive today, sometimes things just need to die and Xbox as a whole has been ran into the ground
 
Not trying to convince anyone of anything, people can believe whatever they like, its human nature to do so


Both ways
I can assure you I'm not being emotional about gamepass.
Like you say people can believe what they want, im not arsed in trying to change people's mind, because I really don't care.
 
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"

It's equally funny when those who didn't have the time to post and create threads about the initial tweet later didn't have the same impetus to point out the correction... Which is simply a new example of how the way people act depends on the narrative.

Dring is an expert at generating this type of situation with his comments/"information"....
 
Last edited:
Dev costs not counted. It's not profitable. /

But that's not what it was designed for. It was supposed to be a loss-leader to kill sony and nintendo. But thats never going to happen and now its a financial black hole for the xbox division. Translated: the best deal in gaming™ is going to get a whole lot more expensive over the next 18-24 months.
 
It was profitable a few years ago sure. But now new subs have stalled and so many new day 1 games are being added. There's just no way they are making enough money to recoup all those development costs and make a good profit.
 
With all this discourse, it still just doesn't pass the sniff test to me. Nobody is coming out with definitive statements one way or the other and it's all ultimately just speculation because MSFT themselves don't release numbers, and won't tell us what metrics they are using to get to the "profitable" moniker.

And profitable has nothing to do with how healthy it is for the industry, which is seems almost certainly unhealthy.
 
He couldn't stand the heat so he folded like a pack of cards.

Gamepass didn't count 1st party games I believe.

Gamepass is still profitable even with those figured in...nah. Bull fucking shit. I got gaslighted about this for years. I no longer believe it. Never will again frankly.

The scales have fallen from our eyes and the truth was laid bare. There is no putting this genie back in the bottle.

He's saying it is profitable today(nah, don't believe it). Ask him if it was profitable at the time of the original lie. Also ask him what the point of them lying by omission was to us in the first place? Is the supposed rumor that gamepass is profitable today even with 1st party factored in(lol) ask him is that the point? Why is the point not that we were lied to? How is a supposed random "fact" from today's numbers supposed to change that? Baffle us with bullshit and the shills and fanboys will cover their ass, is that right? Is that what we are supposed to buy and just bebop on down to the store in a few months and buy a new xbox?
 
Last edited:
He is a journalist trying to report on finance and accounting concepts outside his wheelhouse the best he can. Unfortunately he's getting mixed up and it's understandable. Also doesn't help that Microsoft is muddying the waters by discussing lost revenue aka opportunity cost as this isn't an investor facing metric in financial statements and not a factor in financial statement profitability. However, development costs are and Microsoft had bizarrely chosen not to include.

 
He's saying it is profitable today(nah, don't believe it). Ask him if it was profitable at the time of the original lie. Also ask him what the point of them lying by omission was to us in the first place? Is the supposed rumor that gamepass is profitable today even with 1st party factored in(lol) ask him is that the point? Why is the point not that we were lied to? How is a supposed random "fact" from today's numbers supposed to change that? Baffle us with bullshit and the shills and fanboys will cover their ass, is that right? Is that what we are supposed to buy and just bebop on down to the store in a few months and buy a new xbox?
This is classic Microsoft PR stunt. "Only four games" "but actually he never said only four games"

Dring said initially they don't count the costs of making the 1st party games to fuel Game Pass. They "count" lost sales of those 1st party sales, and come up with the conclusion that it's still profitable. So much so that they started putting the games elsewhere.

Of course if you belive you would only sell 10 copies of your game to your fanbase used to not buy game, at the end you can math and say there are almost no lost sales.
 
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.
Given that they are both a platform holder and the largest publisher on the planet, wouldn't you immediately presume that their costs are many times that revenue? I honestly cannot reconcile the notion that Xbox is losing much less than 9 figures a year.

Phil: Game Pass is profitable.
Also Phil: If we don't get 100 million subs by 2027 we'll have to close down Xbox.
You almost forget the fact that their own projections were so deluded. There have been so many lies and copes and fantasies to keep up this farcical narrative that I think I might have to compile them. Anyone remember when Cloud gaming was going to help them onboard a larger share of the 2 billion "gamers"?
 
Last edited:
Literally an amoeba with glasses and no spine, for a company setting a world record in layoffs, game cancellations and studio closures.

This is Western games journalism.

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?

Then Dring is a bigger idiot than I thought, as MS themselves have admitted, in court, that Game Pass cannibalizes game sales.

And if Microsoft were lying about that, then it's an open-shut case to not trust them on anything. So why would Dring trust whatever rushed damage-control spiel given to him by MS now unless he is, in fact, an idiot?

I mean I hate to say that because I do agree with some of their takes, but we've gotta start weeding out the BS when it comes to games media literally hawking whatever a certain company wants the narrative to be. They are destroying discourse and actively helping contribute to destructive trends & habits in the market.

I may have some respect for you Dring, but I'm 100% holding you accountable here.

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

We don't need Dring's word to prove that Game Pass is unprofitable. We have leaked court documents, plenty of circumstantial evidence (i.e lack of courting big 3P Day 1 releases which in part led to purchasing Zenimax & ABK), yet more circumstantial evidence (lack of consistent sub updates, no Game Pass revenue figures shared with shareholders, plenty of devs who've mentioned it hurts their game sales, etc.), and so forth, to conclude that Game Pass is not a profitable venture.

Only people who can't think for themselves "need" someone like Dring to tell them what to believe.
 
Last edited:
Let me explain potential lost revenue to the layperson. It is... whatever Microsoft says it is, because said revenue never materialized. If they think they didn't lose any "potential" revenue, then they didn't. The part that matters is this:



So... I don't know what he thinks he clarified, other than saying the same thing with even more words. Potential lost revenue is phantom money. Sounds to me like he was "convinced" in some way to backtrack and damage control.

Having said that, when you separate Gamepass as it's own P&L, then it does kinda make sense to account this way. Basically the game studios become primarily cost centers (like R&D) operating at a loss (with whatever little revenue comes from MTX and direct sales) and they shield Gamepass from the bad rep. It's just silly to claim that as a victory for Gamepass when the studios are all taking a hit to prop it up. As long as MS is deluding themselves internally, studios will continue to be squeezed, until some form of sustainable business model emerges or they all shutdown.
 
Oh thank God. I get to hold off on my profitability analysis and stay subscribed now that we hear it's profitable again. At least for a month...
 
This is Western games journalism.



Then Dring is a bigger idiot than I thought, as MS themselves have admitted, in court, that Game Pass cannibalizes game sales.

And if Microsoft were lying about that, then it's an open-shut case to not trust them on anything. So why would Dring trust whatever rushed damage-control spiel given to him by MS now unless he is, in fact, an idiot?

I mean I hate to say that because I do agree with some of their takes, but we've gotta start weeding out the BS when it comes to games media literally hawking whatever a certain company wants the narrative to be. They are destroying discourse and actively helping contribute to destructive trends & habits in the market.
Which is exactly what Sneakers was saying in the other thread has the western media is garbage and just eating up whatever these companies are telling them and repeating it. No real journalism involved just parroting whatever you're told by the trillion dollar company that has consistently been caught lying and misleading people.
 


They're all crawling out today, huh?

And yeah, I respect Jason's reporting too...well, generally in some instances. But why are all these journalists making excuses for a multi-trillion dollar megacorp as if it's a defenseless child? What's wrong with them?

Also where the hell is this "growth" for Game Pass? It hasn't existed for YEARS, that's the reason Satya hasn't given a subscriber count update (officially) since early 2022. The growth has stalled and, I'd bet, is shrinking now that a lot of the loopholes and cheaper pricing are gone. The last time they had "growth" was when they rolled XBL Gold into Game Pass Core and added those numbers in.

Or what, is MS going to start counting Microsoft Account logins as Game Pass subscribers? "Growth" in subscriptions mattered so much to MS, apparently, that now they're simply publishing their games everywhere. Isn't that antithetical to driving traffic towards the subscription service? Enough evidence suggests that it is. It'd be like if Netflix released disc editions of their shows and movies Day 1 alongside them premiering in the service, back when Netflix was still in its early growth phase. That would have killed momentum for the subscription side since customer habits hadn't completely shifted away from physical media at the time.

The same problem now exists with Game Pass, and until MS actually commits by making games only available in the service, they won't train people to shift their habits at a mass scale to see any further growth. But we know MS won't do this, because Satya's on record saying he hates exclusives. Making Game Pass exclusives would mean not only abandoning individual releases on Xbox, but end ports to Steam, PlayStation & Nintendo as well.

Microsoft's thirst & greed for profits is a death knell for going the most obvious route for Game Pass route, so I guess "growth" in that way isn't important to them after all, Schreier.
 
Last edited:
Given that they are both a platform holder and the largest publisher on the planet, wouldn't you immediately presume that their costs are many times that revenue? I honestly cannot reconcile the notion that Xbox is losing much less than 9 figures a year.

I guess it depends on how you break out the cost. They can put it in its own sector and GP have publishing deals and not be in MS game publishing. I am sure there is an accounting shell game going on somewhere.
 
What the actual fuck is he talking about in this word salad mess? It literally gave me a headache reading it because it's so convoluted.

0180f830-5c3a-4a0d-a2d8-25f280d60907_text.gif


He's just saying the samething he said yesterday, but with more words. Real GamePass is not profitable, if you include the cost to make the 1st party games.
 
He's just saying the samething he said yesterday, but with more words. Real GamePass is not profitable, if you include the cost to make the 1st party games.

Not really .. he's explicitly saying that even if you include the 'lost revenue' from first party sales and even MTX income, it's still profitable.

But regardless to all that. sources have reached out to tell me that even when you include lost revenue associated with first-party party games (not just unit sales, but microtransactions), Game Pass is still profitable. So… that's great!
 
Last edited:
Yes, he didn't say that Game Pass "makes up" 100% of lost sales. The point is that the service still turns a profit even after accounting for those losses.

Also, remember that every game carries the risk of flopping. But with Game Pass, the failure of one game doesn't bring everything down, because subscription revenue keeps flowing, bringing security and predictability to the ecosystem. That's an important point to consider, instead of focusing only on how subscriptions might cannibalize the sales of successful titles.

In the end, if all of this is true, then Game Pass makes a lot of sense. It may not maximize profit for every individual title, but it lowers risk and ensures consistent income.

The question, at this point, should be whether the whole business model would be making more money going the more traditional route, particularly when staring dead in the face of a $70b acquisition. I have serious doubts and nothing Dring said initially or in his flipflop changes that. But ultimately it doesn't matter if it makes sense to you or me or Phil Spencer. Make it make sense to Amy Hood and Satya Nadella.

I actually brought up this point discussing the MS situation with HeisenbergFX4 HeisenbergFX4 the day before Chris Dring's shit hit the fan.

COD on Game Pass really was the ultimate test. At that point, the question is no longer is Game Pass "sustainable". The question becomes is Game Pass able to hit expected results from a $70 billion acquisition. For a company as hellbent on bowing to every stockholder whim as Microsoft is, the feeling around here and elsewhere that there are some incredibly tough times ahead for Xbox do not seem unwarranted at all.
 
does this statement:

negates this statement in relation to GP not accounting for the production cost of First part games?


No, the second statement does not negate the first one in relation to Game Pass (GP) not accounting for the production cost of first-party games.
I concluded that the second statement partially negates the first by addressing the concern about lost revenue (a key part of the earlier implication) and showing profitability holds despite this inclusion. However, it does not negate the core point that development costs remain unaccounted for in the Game Pass P&L, aligning with the first statement on that specific detail.
The second tweet reinforces the first rather than negating it. Both emphasize that while Game Pass is a successful and profitable service, it doesn't single-handedly pay for the high costs of first-party game development—Xbox still relies on additional revenue streams (game sales, hardware, etc.).


if you get triggered, don't @ me but Elon, Nutella and the Chinese party
No Problem Hands GIF by ElevenSportsBE
 
This Dring guy just needs to stop talking. I think this is the second or third time within the past two weeks he's unnecessarily stirred the pot because he apparently has no self awareness of how his words might be taken.

You can't blame anyone who poo-poo'ed all over his last X convo. Also....18 months ago you asked this? CONTEXT DUDE.
 
Not really .. he's explicitly saying that even if you include the 'lost revenue' from first party sales and even MTX income, it's still profitable.
Dude, 'lost revenue' is meaningless. Literally everything he added today is meaningless. The basic claim, that cost of game development is not factored at all, remains. See his new post on this page quoted by ChiefDada ChiefDada . It's the same perfume, but in a cloud of farts. Yes he corrected his claim on "lost revenue", but that shit ain't even a real metric to begin with. It's purely speculative.
 
Last edited:
Who the fuck cares if a multi trillion-dollar company makes profit on a product?
Consumers who are considering investing hundreds or thousands more into an ecosystem that may or may not exists ten years from now.

The same reason why Microsoft is so desperately trying to convince people its doing great, yet refuses to give actual data.
 
Last edited:
ERA post from 'eclips':

From the Activision/Microsoft FTC leaked court files:
Total Console Subs: 33.6M
Gold: 11.7M
Gold Net Rev/Sub $6.10

Game Pass EXCL PC: 21.9M
Game Pass Net Rev/Sub: $9.26

This was the only actual data I know of.

I don't know what year/s this is referring to, does anyone here know?

Are these annual or monthly, if they're monthly are they for a single month?
 
This Dring guy just needs to stop talking. I think this is the second or third time within the past two weeks he's unnecessarily stirred the pot because he apparently has no self awareness of how his words might be taken.

You can't blame anyone who poo-poo'ed all over his last X convo. Also....18 months ago you asked this? CONTEXT DUDE.

Yeah that part, without him clarifying beforehand, was just stupid. Asking for it to be taken out of context in forum warz.
 
Not really .. he's explicitly saying that even if you include the 'lost revenue' from first party sales and even MTX income, it's still profitable.


No, you aren't getting it. You have to include the actual cost to make the game too, to Gamepass. If you don't, then you are just lying to yourself as a business and to your shareholders. Few key points.

- MS adds a 3rd party game to GP (MS includes this as a GP expense)
- There's a cost to marketing GP (MS includes this as a GP expense)
- There's a cost to running servers that house GP and all the streaming stuff (MS includes this as a GP expense)
- There's a cost to making 1st party games that get added to GP (MS does NOT add this as a GP expense)
- There's lost revenue to adding a 1st party game to GP (MS includes this as a GP expense)



You can't make a game like Avowed for $75 Million and add it to Game Pass day one, and say "well of course it didn't sell great, it's on GamePass". But then not include any of the development cost of Avowed to GamePass expenses. That's cheating or "creative accounting" as Wall Street calls it.
 
It's quite simple really. Some people are trying top obfuscate things by saying 'including lost sales/cannibalisation' it's profitable - but that wasn't the question - the question is:
  • Is gamepass profitable if you take into account the complete cost of goods sold?
Another way to look at it:
  • If there was a GamePass Company who's sole product was GamePass - would this company be profitable?
Not: Spencer's It's profitable for us - weasel language

If you were running Gamepass Co - are you profitable or not? The answer is No - it is only profitable if it is inside MS with arcane accounting tricks where the cost of staff/offices/servers/HR/marketing/development/hosting etc is borne by other parts of the business.

It's a massive scam that anyone with a couple of brain cells can tell is not profitable. It is a value destructive, race to the bottom service. If it was brilliantly profitable then it would be being called out in financials every quarter - it is not. Satya removed GamePass performance from his own KPIs - it is not profitable or he would have kept that in. I mean how many signals do you need?
 
You can't make a game like Avowed for $75 Million and add it to Game Pass day one, and say "well of course it didn't sell great, it's on GamePass". But then not include any of the development cost of Avowed to GamePass expenses. That's cheating or "creative accounting" as Wall Street calls it.




Dev costs are recouped other ways, not just GP.

If you're going to add entire development cost of games under GP, even though they are recouping costs by other means, we might as well add the entire revenue stream of Call of Duty under Game Pass, even though it's getting most of it elsewhere.

Right? It'd only be fair if we do it that way. 🤔
 
Last edited:
No, you aren't getting it. You have to include the actual cost to make the game too, to Gamepass. If you don't, then you are just lying to yourself as a business and to your shareholders. Few key points.

- MS adds a 3rd party game to GP (MS includes this as a GP expense)
- There's a cost to marketing GP (MS includes this as a GP expense)
- There's a cost to running servers that house GP and all the streaming stuff (MS includes this as a GP expense)
- There's a cost to making 1st party games that get added to GP (MS does NOT add this as a GP expense)
- There's lost revenue to adding a 1st party game to GP (MS includes this as a GP expense)



You can't make a game like Avowed for $75 Million and add it to Game Pass day one, and say "well of course it didn't sell great, it's on GamePass". But then not include any of the development cost of Avowed to GamePass expenses. That's cheating or "creative accounting" as Wall Street calls it.
Agreed. But it's not cheating, as long as they separately report Avowed making a loss of X million dollars. This is basically marketing spin, which isn't illegal. It is certainly harmful in the long run though.
 



Dev costs are recouped other ways, not just GP.

If you're going to add entire development cost of games under GP, even though they are recouping costs by other means, we might as well add the entire revenue stream of Call of Duty under Game Pass, even though it's getting most of it elsewhere.

Right? It'd only be fair if we do it that way. 🤔

Ok so the MS accounting principles are:
  • all revenues -> allocate this to GamePass
  • all expenses -> allocate these to the individual studios
Brilliant - GamePass has infinity/NaN return on investment

Also now we know why all the studios are being closed, they are 100% cost centres that deliver zero value.
 
Top Bottom