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

First time over 5 billion is like "players walked 500 million miles in our game since launch."

The number by itself is a contextless meaningless irrelevancy. However, normies hear "5 billion" and are impressed, Microsoft/IGN/Xbox assumes? I will assume the article is not worth reading because the normies will misinterpret it as relevant without further context and I fear this is an intentional goal.

I feel like this type of metric should not be presented without also presenting the context needed to determine what it actually means. Data without context can be misleading. Presenting data without context is often intentionally misleading(not by the op, but rather the original author and not necessarily in this case, as mentioned I have not read it yet).

May we suffice it to say that Gamepass has earned more money than any previous year, over the last year?
Charlie Sheen Applause GIF
 
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We can't see warnings so how do we know anyone gets a free pass?
I just assume that because most reports never get any response from a mod, and there's rarely a ban either. Some people keep acting out and nothing ever happens. And then today, someone got banned for several weeks just for saying 'idiot.' A couple of days ago, I reported someone for multiple, much more serious and completely baseless insults, and the mods responded that there was a thread ban. That's basically nothing.
 
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 use PS+ to play with my friends not for free games. Generally speaking, for games I WANT, I buy regardless. Games I may just play I usually wait for PS+.

seth meyers get help GIF by Late Night with Seth Meyers
 
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 quoted me by accident, because I did not criticize GP. I only criticized Microsoft when they slowly phased out Games with Gold (my favorite feature) and then made their lowest tier of gamepass simply "you get only this small set of games…and you get to play online I guess 🤷‍♂️" …screwing over people like myself who just wanted the 3 games a month that won't suddenly disappear one day due to a monthly rotation.

Due to that I've been clearing out my games with gold library this year so that I can finally unsubscribe. If you want me to come back to team Gamepass, then tell MS to give me back my 3 games a month. I supported their gold subscription service for years, even during their darkest of times when games for gold was giving out extremely low quality titles, and they ripped away my basic tier for your rotational Netflix-for-games price hiked BS.

I don't play games like that and I don't even enjoy the idea of playing something on a rotational schedule. So that's why I am happy about this essential tier news and why you don't ever see me posting in those monthly GP threads. I have no reason to.

give-me-one-good-reason-rahul-dua.gif
 
First time over 5 billion is like "players walked 500 million miles in our game since launch."

The number by itself is a contextless meaningless irrelevancy. However, normies hear "5 billion" and are impressed, Microsoft/IGN/Xbox assumes? I will assume the article is not worth reading because the normies will misinterpret it as relevant without further context and I fear this is an intentional goal.

I feel like this type of metric should not be presented without also presenting the context needed to determine what it actually means. Data without context can be misleading. Presenting data without context is often intentionally misleading(not by the op, but rather the original author and not necessarily in this case, as mentioned I have not read it yet).

May we suffice it to say that Gamepass has earned more money than any previous year, over the last year?
Charlie Sheen Applause GIF
5 billion dollars of money is nothing like x distance was walked in a game.
 
Xbox Game Pass revenue reached a new record for Xbox over the last year, achieving "nearly $5 billion" in revenue for the first time.

This comes from the company's Q4 and full-year earnings results, covering the last twelve months ending June 30, 2025. While CEO Satya Nadella announced the milestone on the call, he did not provide specific revenue numbers for Game Pass.

Nadella also did not share subscriber numbers. 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, though this is unverified.

Some of that growth likely comes from price hikes on the service that kicked off in July of last year. But it hasn't hurt that Xbox dropped a number of new first-party games on Game Pass especially in the last quarter of the fiscal year, including The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle.

Overall, gaming revenue for Xbox was up 10% year-over-year and Xbox content and services revenue was up 13%, driven by growth in first-party content and yes, Xbox Game Pass. Hardware revenue was down year-over-year by 22%.

Despite these increases, Xbox recently laid off hundreds of workers across various parts of its gaming business and canceled multiple projects, including Everwild and Perfect Dark.





Here is the direct quote and the transcript from the earnings call:

"And Game Pass annual revenue was nearly $5 billion for the first time."

"Revenue 5 billion...Total cost 10 billion....Microsoft PR isstill fucking misleading...where is the profit??
 
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.
Netflix spent upwards of 29bil last year
 
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 don't really get your point.
It's not like Lies of P was a game I was super hyped about and then I went "wait no, I won't buy it because it MIGHT come to Ps+ in 2 years!".
It's just a game I'm mildly interested in and I always intended to buy it a few years down the line when it was on sale for cheap. Hell, the reason I didn't end up buying it for $30 was because I decided to wait until it was even cheaper lol.

I've never been opposed to the idea of subscriptions services being used as a way to dump older games so devs/publishers can generate some extra revenue from them once they've seen the sales trajectory decline. Makes even more sense for a game like Lies of P that just recently launched their DLC, this way they'll get more people to check out the base game and some might be enticed to buy the new content.

Full price release --> 10-30% sale ---> deep sale / subscription is a business model that makes sense IMO.
 
You quoted me by accident, because I did not criticize GP.
I've never been opposed to the idea of subscriptions services being used as a way to dump older games so devs/publishers can generate some extra revenue from them once they've seen the sales trajectory decline.

I didn't quote either of you on accident, and I didn't claim you were criticizing GP or being a hypocrite. It's totally fine to sub to PS+ and be happy about good games added. I was quoting you to point out that other people can be hypocrites if they do that, and then endlessly crusade against Xbox. None of the people I quoted I actually have any problem with. Buy whatever you want, sub, its your money. I just get so tired of the lying from the actual hypocrites. Those people can take any position you want, just why lie over and over about it and not even meet their own standards?
 
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.

I mean people who care about the future of gaming can care too, not that any of them individually matter enough for their gamepass sub to make a difference.
 
It's kinda wild how hard some people defend Game Pass around here, especially when there's plenty of talk and growing evidence out there, that it's having a negative impact on the industry by conditioning people not to buy games.

Microsoft even had to start putting games on PlayStation just to keep the numbers looking good for Papa Satya.
 
It's kinda wild how hard some people defend Game Pass around here, especially when there's plenty of talk and growing evidence out there, that it's having a negative impact on the industry by conditioning people not to buy games.

Microsoft even had to start putting games on PlayStation just to keep the numbers looking good for Papa Satya.

It's because they like not having to buy games and are not sensitive to the long-term repercussions. Microsoft is happy to either take the industry or tear it down until they are left with whatever hollow husk remains. Even while going third party, I don't think they will be able to stop their schizophrenic scheming for the big picture.
 
I just assume that because most reports never get any response from a mod, and there's rarely a ban either. Some people keep acting out and nothing ever happens. And then today, someone got banned for several weeks just for saying 'idiot.' A couple of days ago, I reported someone for multiple, much more serious and completely baseless insults, and the mods responded that there was a thread ban. That's basically nothing.
when you assume you make an ass of u and me

Fwiw mods can take action without you being notified
 
I mean people who care about the future of gaming can care too, not that any of them individually matter enough for their gamepass sub to make a difference.

Have you ever had playstation plus? Or xbox games for gold?

If you've ever claimed free games?

Do you worry about that and feel guilty about it?

Publishers dont have to sign up to gamepass. They aren't forced to make these deals. They must be happy with what they are getting paid. So what are you concerned about exactly?
 
Have you ever had playstation plus? Or xbox games for gold?

If you've ever claimed free games?
Gamefly? Blockbuster video? Cable TV? Apple music? HBO? GYM membership? All you can eat buffet? Humble Bundle? Steam sales? EPIC free games? Netflix? Buy 10 get 1 free coffee punch card? Used physical games?
 
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I just assume that because most reports never get any response from a mod, and there's rarely a ban either. Some people keep acting out and nothing ever happens. And then today, someone got banned for several weeks just for saying 'idiot.' A couple of days ago, I reported someone for multiple, much more serious and completely baseless insults, and the mods responded that there was a thread ban. That's basically nothing.

I've witnessed some absolutely horrific name calling over the last few days / weeks on here.

Im talking users to other users. Not to me.

Not cool imo.
 
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According to analysts, GamePass needs 50 million subscribers just to break even.

Let me guess what the current strategy is:

Cut costs using AI and increase the price of GamePass.
If this doesn't solve the problem by ~2027, GamePass will be shut down.

I think Phil Spencer is trying everything he can to keep Xbox running and therefore doesn't have time to give interviews all the time.
 
I've witnessed some absolutely horrific name calling over the last few days / weeks on here.

Im talking users to other users. Not to me.

Not cool imo.

Does you calling a decent member of the site a horrible human being count? simply because he provided some facts to dispel some of your unsubstantiated claims.

I have no probs with him doing his little receipts thing, but trying to label me as a shill is what triggered me. I am absolutely fed up with his whole contribution to this forum concerning other members. He is clearly a horrible human or something, with how he gaslights people and projects statements about who they are or what their intentions are when his are as clear as day.

Ironic because the recent theme in this thread has been about hypocrisy.
 
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I just assume that because most reports never get any response from a mod, and there's rarely a ban either. Some people keep acting out and nothing ever happens. And then today, someone got banned for several weeks just for saying 'idiot.' A couple of days ago, I reported someone for multiple, much more serious and completely baseless insults, and the mods responded that there was a thread ban. That's basically nothing.

The problem is that sometimes the user reporting is disconnected from reality and talks a lot of nonsense, thinking he is an intellectual elite.
Sometimes it's just victimhood
 
Ok cool one of the richest companies in the world made nearly 5more billion dollars why are people shocked about them making money ask all these crazy questions to appease them they doing what Microsoft does make revenue for there investors like me :) don't be shocked when it goes higher ….
 
Well you add in dev cost from first party games and the sales of those same games...plus all the others Gamepass sponsors...does that equal 5 billion? I doubt it, but I'm sure the profit numbers are much more humble. I still think they are in the black though.
 
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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.

Even if that's true (and we're accepting that without evidence), Netflix also delivers orders of magnitude more content than Game Pass.
Let's do the math:
  • Netflix: ~7,500 unique titles (around 4,500 movies, 3,000 TV shows)
    • Each show has multiple episodes. 2024 alone added over 10,000 episodes.
    • Conservatively, the platform hosts 33,000–35,000 individual pieces of content (movies + episodes).
  • Game Pass: ~450–500 games
That means Netflix has 66x more content than Game Pass on the low end. So Netflix spending 6–8x more for 66x more content isn't a point against Netflix; it's a point in favor of Netflix and against Game Pass. Let's break it down even further:

ServiceMonthly PriceApprox. Content CountCost per Title
Game Pass Ultimate$19.99~500 games~$0.04/title
Netflix Premium$24.99~33,000 titles~$0.0007/title

Netflix provides ~57x more value per dollar just based on quantity. And that's before you even consider accessibility (games require time, hardware, and skill) versus the low barrier of watching a show.

Also, look at their financials:
  • Netflix (2024)
    • Revenue: $39B
    • Expenses: $30.3B
    • Net Income: $8.7B
    • Profit Margin: ~22%
  • Microsoft Gaming Division
    • Game Pass still isn't profitable.
    • Starfield cost $300 to $400 million to develop and market, and couldn't even break even.
      • Estimated sales revenue: ~$280M
      • Estimated loss: $20M+ (on best-case scenario)
Games cost more and take longer to make. Developers are increasingly hesitant to put their titles on Game Pass because they risk cannibalizing sales for a one-time payout. Microsoft is betting on a model that is far less scalable than Netflix. To bring this home in response to your original statement:
  • Netflix should spend more because it has far more to offer.
  • Netflix is profitable. Game Pass is not.
  • Netflix's content is cheaper per unit, faster to produce, and easier to access.
Game Pass is the one failing to deliver ROI by every meaningful metric. Unless Game Pass radically changes its model or content strategy, I don't see how it could ever become profitable, let alone reach Netflix's level of success.
 
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The problem is that sometimes the user reporting is disconnected from reality and talks a lot of nonsense, thinking he is an intellectual elite.
Sometimes it's just victimhood
Interesting to know that wanting a conversation without insults is considered a disconnection from reality and victimhood. I always thought that was part of good manners and that civilized people could actually have a discussion without resorting to name-calling. Silly me! But it rather looks like i hurt your feelings by not going along with your nonsense about the completion rate. I'm really sorry about that.

I've witnessed some absolutely horrific name calling over the last few days / weeks on here.

Im talking users to other users. Not to me.

Not cool imo.
100% agreed.
 
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It's not about the spikes of a single game selling. It's the long burn where people replace their catalogues and rely on gamepass 100% and then they have them long term.
This has been the case since the beginning. Still non profitable, and with expensive to produce titles such as the yearly cod being on there, i am not seeing it doing well for them. Them firing devs after poor sales of a game is proof of this.
 
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If you're okay with playing what's on there, when it's on there, maybe.

I'd rather choose what I want to play and when I want to play it.
And there's nothing wrong with that, it's a great option to have IMO. Even if there's an occasional game that's available on it that you're interested in. I mean, a month of Game Pass will be cheaper than if you were to buy it outright.

Gamepass is pretty great to me.
Ditto. Will I auto renew for it monthly? Probably not, at least not right now. But I plan on getting a month anytime there are games present that I know I'll be interested in.
 
This has been the case since the beginning. Still non profitable, and with expensive to produce titles such as the yearly cod being on there, i am not seeing it doing well for them. Them firing devs after poor sales of a game is proof of this.
Could very well be. I'm just saying it's a long burn. Netflix mastered it and now does pretty well for itself.
 
Have you ever had playstation plus? Or xbox games for gold?

If you've ever claimed free games?

Do you worry about that and feel guilty about it?

Publishers dont have to sign up to gamepass. They aren't forced to make these deals. They must be happy with what they are getting paid. So what are you concerned about exactly?

Ah yes, the PS Plus and Gamepass are the same argument.

This is just another example of moving the goalposts, as delicately as possible. Sony isn't buying studios, throwing their games on GP, firing everyone, and moving on to the next like a Katamari snowball. They comparatively have a handful of titles with a different business strategy. Since both the service and the company running it are actually so different under the hood, we have to run for generic cover like "all sub services r the same lol". Sony still has issues, but the scale is on a different level and seem to change instead of double down. So you have to go all the way back over 20 years to bring up Psygnosis. And that's the "gotcha".

This argument that every time you redeem a free game, it's tantamount to supporting the systematic funneled destruction of Microsoft, is just weak. Mind you, MAYBE you are -it depends on the context, something easy to ignore when looking for the false equivalence.
 
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:
Well, it's also the fact that if you get an opposition plus essential, you keep the game for as long as you have the place you in place essential on game Pass when it goes away it goes away.
 
Even if that's true (and we're accepting that without evidence), Netflix also delivers orders of magnitude more content than Game Pass.
Let's do the math:
  • Netflix: ~7,500 unique titles (around 4,500 movies, 3,000 TV shows)
    • Each show has multiple episodes. 2024 alone added over 10,000 episodes.
    • Conservatively, the platform hosts 33,000–35,000 individual pieces of content (movies + episodes).
  • Game Pass: ~450–500 games
That means Netflix has 66x more content than Game Pass on the low end. So Netflix spending 6–8x more for 66x more content isn't a point against Netflix; it's a point in favor of Netflix and against Game Pass. Let's break it down even further:

ServiceMonthly PriceApprox. Content CountCost per Title
Game Pass Ultimate$19.99~500 games~$0.04/title
Netflix Premium$24.99~33,000 titles~$0.0007/title

Netflix provides ~57x more value per dollar just based on quantity. And that's before you even consider accessibility (games require time, hardware, and skill) versus the low barrier of watching a show.

Also, look at their financials:
  • Netflix (2024)
    • Revenue: $39B
    • Expenses: $30.3B
    • Net Income: $8.7B
    • Profit Margin: ~22%
  • Microsoft Gaming Division
    • Game Pass still isn't profitable.
    • Starfield cost $300 to $400 million to develop and market, and couldn't even break even.
      • Estimated sales revenue: ~$280M
      • Estimated loss: $20M+ (on best-case scenario)
Games cost more and take longer to make. Developers are increasingly hesitant to put their titles on Game Pass because they risk cannibalizing sales for a one-time payout. Microsoft is betting on a model that is far less scalable than Netflix. To bring this home in response to your original statement:
  • Netflix should spend more because it has far more to offer.
  • Netflix is profitable. Game Pass is not.
  • Netflix's content is cheaper per unit, faster to produce, and easier to access.
Game Pass is the one failing to deliver ROI by every meaningful metric. Unless Game Pass radically changes its model or content strategy, I don't see how it could ever become profitable, let alone reach Netflix's level of success.
We lack some of the most important information to be able to discuss this properly.

How and what do Netflix pay?

How and what do MS pay?

In theory there could be a counter argument that you are saying ms pays out more to devs so developers are actually getting a good deal. Which crushes the complaint that gamepass isn't healthy for the industry.
 
Ah yes, the PS Plus and Gamepass are the same argument.

This is just another example of moving the goalposts, as delicately as possible. Sony isn't buying studios, throwing their games on GP, firing everyone, and moving on to the next like a Katamari snowball. They comparatively have a handful of titles with a different business strategy. Since both the service and the company running it are actually so different under the hood, we have to run for generic cover like "all sub services r the same lol". Sony still has issues, but the scale is on a different level and seem to change instead of double down. So you have to go all the way back over 20 years to bring up Psygnosis. And that's the "gotcha".

This argument that every time you redeem a free game, it's tantamount to supporting the systematic funneled destruction of Microsoft, is just weak. Mind you, MAYBE you are -it depends on the context, something easy to ignore when looking for the false equivalence.

Sony have literally bought studios pushed for crazy gaas shit and shut studios because of their sheer incompetence and terrible senior management this gen.

They are literally doing the same thing
 
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.

Confused Will Ferrell GIF
Your really think AI integration is because XBOX sale are flatlining? I got news for you buddy, but people are going to start to get laid off all over the tech sector and be replaced by AI. This is not just a MSFT thing; we are now in the beginning phase of the AI boom, and tech companies are preparing their infrastructure for such changes.
 
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Well, it's also the fact that if you get an opposition plus essential, you keep the game for as long as you have the place you in place essential on game Pass when it goes away it goes away.
And goes on sale when its leaving incentivizing you to buy it with a giant full screen pop up ad.
 
Sony have literally bought studios pushed for crazy gaas shit and shut studios because of their sheer incompetence and terrible senior management this gen.

They are literally doing the same thing

Sony is doing it at a different scale, due to incompetence, and switching gears.

Microsoft is doing it as a symptom of being Microsoft and will only double down while scheming further.
 
I just assume that because most reports never get any response from a mod, and there's rarely a ban either. Some people keep acting out and nothing ever happens. And then today, someone got banned for several weeks just for saying 'idiot.' A couple of days ago, I reported someone for multiple, much more serious and completely baseless insults, and the mods responded that there was a thread ban. That's basically nothing.

Assumptions. Yeah...ok
 
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