[IGN] Xbox Game Pass Revenue Was 'Nearly $5 Billion for the First Time' Over the Last Year

It... probably won't be. As a reminder, it took Spotify 10+ years and 100 million+ subscribers to break even. It took Netflix 15 years and 150 million+ subscribers to become profitable.

Game Pass is at a fraction of their user base, and the production costs associated with video games are substantially higher than those linked with movies, music, or TV. I am sorry to tell you that the math works against Game Pass at the best of times, and that's before accounting for any inflated expectations for it that may exist within the parent company after springing for a $70 billion acquisition.
You're out of your mind if you think Gamepass which would include all of their developers and the service itself is anywhere close to how much Netflix spends a year. Netflix probably spends 6-8x times as much.
 
COD effect or was something else? There's nothing bigger than COD so has to be
More games.

2025 so far:
Avowed
Ninja Game 2 Black
South of Midnight
Expedition 33
DOOM Dark Ages
Tony Hawk 3+4
Wuchang
+ a bunch of smaller titles
++ an older COD

It must've helped. For me they've finally reached a point where their software output could justify the asking subscription price. This year I would've subbed without a cheap deal.
 
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You're out of your mind if you think Gamepass which would include all of their developers and the service itself is anywhere close to how much Netflix spends a year. Netflix probably spends 6-8x times as much.
Netflix spends $20 billion a year on $24 billion yearly revenues. MS spends $1+ billion on third party content acquisition, plus roughly $1.5 billion in developer salaries. MS expenses are less than $3 billion yearly. Plus the fact that Steam/Playstation/Switch sales revenues subsidize the first/2nd party content pipeline.

Thing with gaming is, they only need one major AAA game every 2 months, and few smaller ones in between. Since games can be played for months and years unlike movies.
 
Your guess is based on your PhD in Finance? Seriously where do you people get the balls to say things like that?
The guy could be right or wrong, and we've already heard they engage in creative accounting to make things look better for GP.

But I'm not sure it takes "balls" to write a post on a forum.
 
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More games.

2025 so far:
Avowed
Ninja Game 2 Black
South of Midnight
Expedition 33
DOOM Dark Ages
Tony Hawk 3+4
Wuchang
+ a bunch of smaller titles
++ an older COD

It must've helped. For me they've finally reached a point where their software output could justify the asking subscription price. This year I would've subbed without a cheap deal.


Posted this in the other thread, but GP reportedly earned 2.9bn revenue in 2022/2023~, this was part of the CADE leaks from the acquisition time. That 2.9~ has been increased to 5~ in two years. No doubt CoD played a big part but their general pipeline has also improved a lot since 2021~2022.

It's an admirable increase in their annual revenue for the service.
 
Yep. It's massively losing money. Which explains why Nadella that's on a crazy cost cutting exercise to raise more cash for AI has not only left the service up, but is happy to talk up revenue in an investors briefing.
Microsoft CEO's compensation no longer tied to Game Pass growth

Phil Spencer announces Microsoft is laying off nearly 2,000 people from its gaming division (that was january 2024)

And so on.

The "duty" of a CEO is to serve shit to shareholders and to tell them it is the tastiest food.
Why using "almost 5 billion" instead to tell us the real revenue?
Why keeping the subscriber number a huge secret, since years?
Why did he "forget" to speak about the profit of Game Pass and the games division as a whole?
Why didn't he share the sale numbers of the XSX and XSS?
How much worth are the "almost 5 billion in revenue" without telling us about the profit?

Oh, the revenue of the Game Pass is tied to the bonus payment of the CEO?
Smart guy and that explains the rised prices of the service..
Let's see, if the revenue goes up next year, without any new increase of the game pass price.
 
It... probably won't be. As a reminder, it took Spotify 10+ years and 100 million+ subscribers to break even. It took Netflix 15 years and 150 million+ subscribers to become profitable.

Game Pass is at a fraction of their user base, and the production costs associated with video games are substantially higher than those linked with movies, music, or TV. I am sorry to tell you that the math works against Game Pass at the best of times, and that's before accounting for any inflated expectations for it that may exist within the parent company after springing for a $70 billion acquisition.
I think you need to do some math here or at least put up some numbers to back your claims. Netflix needs to provide a constant stream of new content to watch. GamePass needs to drop a few decent games monthly some of which are outsourced. How many shows and movies does Netflix drop in a month and is the total really less than MS dropping a fraction of an AAA game and some others? Yes a single movie is cheaper than a game, but Netflix is putting out a lot of expensive movies and shows each month.

And no you don't have to account for the 70 billion acquisition as a single expense as that also makes money on PlayStation and PC. Same goes for most of their games now too.
 
I'm at a point where I'm not interested in what Microsoft has to say to launder the credibility of Gamepass. It's already been thoroughly discredited and I don't know why anyone else takes it seriously. It'll be pretty fun to bring up all of these celebratory statements the next time Microsoft downsizes a team or shuts studios.
 
I do laugh that the wording was almost 5BN for the first time like its a milestone. Like typically a milestone is actually hitting a target you name, not missing it by a bit. Not particularly meaningful of course, but it just speaks to the way things are always pumped to sound as good as possible. "I almost go to the top of the hill for the first time"..... I mean what does almost mean anyway? 4.9? 4.95? 4.79? Whotfk.
 
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But why they continue to fire a thousand people? It's okay of its wiping out woke dei infestation, but i highly doubt that it ranges a thousand individuals who are part of woke dei crap.
 
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Your guess is based on your PhD in Finance? Seriously where do you people get the balls to say things like that?
Microsoft spending close to a decade hiding profitibality of their Xbox division? 🤔

People have every right to question it when they hide data.
 
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Recently subscribed to PC Game Pass. I think I will keep it because it seems worth it on the fact alone if you play a lot of COD....and the price of PC Game Pass is slightly more palatable because of not having to pay for MP access on top of it.
 
That said, Game Pass subscribers are confirmed to have reached 34 million back in February 2024, and a Microsoft employee's profile suggested just two months ago that this number had reached 35 million
For sure, our bro Ass of Can Whooping Ass of Can Whooping has been very active with renewing his subscriptions, so we are definitely talking 35 million here.
 
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The service is good and thats all that matters to me and should be all that matters to anyone who doesnt have shares in MSFT. Even if you do have shares you should be happy from the boost this earnings call did to their share price.
 
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What could they realistically do to get to 100 million subscribers by 2030
Mobile. Gamepass is really a way to keep people in the Windows ecosystem, and that's worth whatever it takes to keep Apple at bay.
But why they continue to fire a thousand people? It's okay of its wiping out woke dei infestation, but i highly doubt that it ranges a thousand individuals who are part of woke dei crap.
When a company is trying to turn around (look up corporate renewal private equity firms), massive layoffs are always done. The strategy of "over-firing rather than under-firing" used by turnaround firms refers to a deliberate approach of aggressively reducing staff or resources beyond what might initially seem necessary when restructuring a company.

Firms prioritize slashing operational costs to stop financial bleeding. Over-firing ensures labor costs—one of the largest expenses—are significantly reduced, freeing up cash flow for critical operations or debt repayment. For example, XBOX might cut 30% of the workforce instead of 15% to create a leaner structure, even if some roles could theoretically be retained.

They also need to break that inertia in that mismanaged companies often have REALLY bloated or dysfunctional teams resistant to change. Over-firing removes entrenched employees or underperformers who may hinder restructuring efforts, signaling a cultural shift toward efficiency. For instance, Middle management layers are often heavily reduced to flatten hierarchies and speed up decision-making.

Over firing also created a margin of safety: If projections suggest a 20% staff reduction is sufficient, a firm might cut 25% to account for potential market downturns.

After initial cuts, firms may selectively rehire or bring in new talent aligned with the revised business strategy, ensuring only high-value contributors return.

There's also a psychological impact in that aggressive layoffs send a strong message to creditors, investors, remaining employees that the firm is serious about change.

Microsoft is using the Core Strategy Group, I would guess they put together a plan for this, but cannot be certain.
 
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PS monthly offering of old games aren't quite the same as GamePass' effect :messenger_grinning_sweat:

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My patience has been rewarded.
I was about to buy LoP, good damnt, time for another platinum, now give us KCD2 next month
I'm the retard who bought it at $30 again.

Fuck!
Lies of P!!!!! just got it one month ago. With that money could have bought the DLC.

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Nice!.
I almost got Lies of P for $30 a few weeks ago. I guess now I'm glad I ended up picking up something else instead.
Son of a bitch. I bought Lies of P 3 weeks ago!
damn it yet another month where I just grabbed the game that's promoted on PlayStation Plus this time it's lies of p.

You honestly never see stuff like this in GP threads. The fact that they have so many day 1 games means that people 99% of the time know that if it's not on day 1, it's rare that it comes to GP. They know that if they do want the game, they buy it. Every PS+ thread people are literally saying over and over that they are being conditioned to not buy because on PS+ you have to wait for up to 2 years before you know if it might be added. It's just such ridiculous hypocrisy. You literally cheer on the PS sub you're subscribed to and then post endlessly about hating GP which you're not even using. You will never criticize any of these people in the PS+ thread because you don't give a damn about any of this.

:messenger_poop: :messenger_poop: :messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop:
 
I'm on my year 3 of subscribing and the only downside for me is that there is simply too much choice so I always feel like I'm missing out on something.

Cost vs. entertainment value is very good in my experience.

I haven't bought a game on Steam or anywhere in almost 2 years
 
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You honestly never see stuff like this in GP threads. The fact that they have so many day 1 games means that people 99% of the time know that if it's not on day 1, it's rare that it comes to GP. They know that if they do want the game, they buy it. Every PS+ thread people are literally saying over and over that they are being conditioned to not buy because on PS+ you have to wait for up to 2 years before you know if it might be added. It's just such ridiculous hypocrisy. You literally cheer on the PS sub you're subscribed to and then post endlessly about hating GP which you're not even using. You will never criticize any of these people in the PS+ thread because you don't give a damn about any of this.

:messenger_poop: :messenger_poop: :messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop:

The false equivalence is astounding tbh. But certainly not surprising, since it's coming from someone who goes above and beyond in the defence of all things Microsoft.

Would love to know how PS monthly games are comparable with GamePass. You haven't even attempted to yet, so guess you're just trolling here.

You honestly never see stuff like this in GP threads

You must be oblivious.. because the amount of times I have read "game pass when?" has been significant and has been wildly mocked on this forum.

In addition.. GamePass' effect on the industry has been a concern from every type of stakeholder in the industry. Developers, publishers, console manufacturers, etc. It has also forced Microsoft's hand to go third party, pissing off a big section of it's blindly loyal fanbase.

So yeah, again.. love to know how PS Plus basic and GamePass is comparable. As what you have come up with so far is nonsensical.

Maybe stick to GIFs.

EDIT: Just seen the custom tag Gaslighter Pro.. ah that explains it
 
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Conditioning people to not buy games and therefore leading to publisher's taking less and less risks is good for no one.

Especially people on the industry losing their jobs.

Wait, so now GamePass is responsible for the problem with AAA stagnation that is going on in the industry? Just checking, GamePass influence fluctuates so much on GAF. From greatest service ever to irrelevant to conditioning people to not buy games to dead. It's been dead on GAF about 8,616 times.

So your idea is a service catering to the smallest platform is somehow influencing publishers across the entire industry. I'd counter that AAA is struggling because games take forever to make and a majority of them aren't worth $70 (or soon $80). That, and the explosion of F2P. Your real culprit here is free to play titles, go bitch there.
 
You honestly never see stuff like this in GP threads. The fact that they have so many day 1 games means that people 99% of the time know that if it's not on day 1, it's rare that it comes to GP. They know that if they do want the game, they buy it. Every PS+ thread people are literally saying over and over that they are being conditioned to not buy because on PS+ you have to wait for up to 2 years before you know if it might be added. It's just such ridiculous hypocrisy. You literally cheer on the PS sub you're subscribed to and then post endlessly about hating GP which you're not even using. You will never criticize any of these people in the PS+ thread because you don't give a damn about any of this.

:messenger_poop: :messenger_poop: :messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop:
You should know how it goes by now.

A does something, so it's amazing. B and C do the exact same thing, suddenly it's trash. And you can mix and match that however you want. Hardcore fanboys and console warriors couldn't care less about double standards, it's all about bashing the other side.

"Series X has 12TF" – OMG, what a monster. So great. Teraflops are overrated.
"PS5 Pro has 17TF" – OMG, what a monster. So great. Teraflops are overrated.

"Sony has the most profit out of all console manufacturers" – Incredible! Sony can't stop winning!!!
"Game Pass revenue: 5 billion" – But what's the profit??? What's the profit????????????????????

And countless more examples.
 
"Sony has the most profit out of all console manufacturers" – Incredible! Sony can't stop winning!!!
"Game Pass revenue: 5 billion" – But what's the profit??? What's the profit????????????????????
I mean Sony actually says how much profit it does, so it would be weird to ask about profit
 
You honestly never see stuff like this in GP threads. The fact that they have so many day 1 games means that people 99% of the time know that if it's not on day 1, it's rare that it comes to GP. They know that if they do want the game, they buy it. Every PS+ thread people are literally saying over and over that they are being conditioned to not buy because on PS+ you have to wait for up to 2 years before you know if it might be added. It's just such ridiculous hypocrisy. You literally cheer on the PS sub you're subscribed to and then post endlessly about hating GP which you're not even using. You will never criticize any of these people in the PS+ thread because you don't give a damn about any of this.

:messenger_poop: :messenger_poop: :messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop::messenger_poop:

One thing I learnt from this forum. Hypocrites, Hypocrites everywhere.

Try your best to laugh at them and not let it bother you. The hatred towards a great service like gamepass is sickening. Almost like a targeted attack, over and over again regurgitating the same shit for years. Its like people are trapped in a never ending circle of hatred towards a company that makes a plastic box that sits under your TV.
 
I keep telling y'all. 2025 is Xbox's year. Our year. Gamer's year. When Xbox wins, we all win. It's almost if they can't do any wrong this year!
 
You are in business to make a ROI not revenue number of engagements or new subscribers these useless numbers execs throw out these days when all that matters is how much profit either money or % did you return on your initial investment
 
Gamepass made Concord flop, made Nintendo skip a gen without a Mario Kart, made Rockstar skip a gen without a GTA, made Sony Close Japan Studios, Bend Studios etc, etc...
Well, Yeah, All the people who don't subscribe to Gamepass are spending their time in gamepass threads instead of paying for and playing games. It's all the fault. :)
 
content and services revenue was up 13%, driven by growth in first-party content and yes, Xbox Game Pass.
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GP prices raised by 20-25%.
What do they mean by first party content? Full game releases or MTX in the games? Or both? :pie_thinking:
Why do they have to make it so hard to try to work out the numbers, they should just tell us :messenger_weary:
 
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