Sure on the existing revenue part but 11 million new subs part is way off I think personally. Unless they all cancel after just one month. Also doesn't take into consideration other potential spend in the eco system like the ultimate edition upgrades or spend on MTX in other GP titles these new users wouldn't have spent other wise.
this is not the point. But to show how messy GP is, we can also think on this:
let's take 20 dollars.
how do you divide those 20 dollars from a subscriber?
1.Do you divide them across all the game in the service?
2.Only on the games this subscriber plays?
what about the engagement time? .
if a subscribers only plays 1-3 hours of a title:
3. how do you determine the "revenue" coming form that game?
a. are you going to take the amount of content the game offers by the amount of time the subscriber plays?
b. Are you going to count "players reached" regardless of the amount of play time as a "sale"?
You think MS is expecting to add 11 million new subs (and keep them) every time they release a AAA game onto the service?
it's an hipothetical to show the gap between revenue generated by copies sold vs the new subscriptions needed to match that revenue.
To be clear I have no love for GP myself either but sales clearly don't matter to them. They are playing a very long game (that I don't see working out for them but still).
based on the leaked court documents we know that this "very long game" has falied.
at this point GP should be around 60M subscribers. they expected 100M by 2027.
if sales didn't matter to them?... why are the putting their games in PS and PC and claiming that they need help from other platforms? (business update)
the issue with GP is that day and date releases don't make any sense from a business perspective. (there is too much money left on the table). it wouldn't be an issue if GP had like 100-200M subs. also there is a complete obfuscation of feedback.