Phil Spencer confirmed that Game Pass is profitable

Please don't try and start console war shit.
Let this thread die peacefully.

I'm guessing that the people whose posts you love to regurgitate, over at resetera, haven't bumped their version of this thread yet. So you're against it.

The moment they do you'll give us an update.
 
Last edited:
Why do you think all the other big publishers aren't following the GamePass model?

It's either boosting revenue relative to the old model or it's dulling profits relative to the old model.

Why aren't you more skeptical of PR statements from corporate leadership?

Big publishers like EA or Ubisoft? They already have sub services. Vast majority of publishers aren't big enough to have sub services. Sony is following into the GamePass model now too. Your post comes off as very ignorant.

What PR statement are you talking about? Wasn't this an interview answer?
 
nuclear explosion GIF
 
But why are we only counting the cost of these third-party deals? A large portion of first-party game development costs should also be accounted in the "Gamepass costs" because those games are made available day one to GP subscribers, which affects lifetime game sales.

Same goes for server and xCloud hardware costs.
Funny enough, you got the answer
 
But why are we only counting the cost of these third-party deals? A large portion of first-party game development costs should also be accounted in the "Gamepass costs" because those games are made available day one to GP subscribers, which affects lifetime game sales.

Same goes for server and xCloud hardware costs.

Damn......you nailed this one
 
It's not hard to move some numbers around and appear profitable. It all depends where you allocate the costs.

Not saying this is happening but certainly something to watch.
 

"Ok, I need to correct/clarify something. First, Xbox Game Pass is profitable, even when you factor in the lost sales for its first-party teams, sources who would know have told me.

Over 18 months ago, I checked with Xbox about what's included in the Game Pass P&L. Basically, I was looking to see if Game Pass's costs factor in the impact to unit sales of their internal studios. 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).

That doesn't actually matter in real terms, but seeing the impact Game Pass was having on first-party games, and the amount of money Xbox was spending on studios, I wanted to check if the full impact of the service was being considered in their 'Game Pass is profitable' line.

(This was before Xbox started publishing fully on PS5. Studios can now make stronger margins on premium sales as a result of that move)

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!

Right. Tony Hawks is out. Let's get back to that!"

 
Last edited:
"Ok, I need to correct/clarify something. First, Xbox Game Pass is profitable, even when you factor in the lost sales for its first-party teams, sources who would know have told me.

Over 18 months ago, I checked with Xbox about what's included in the Game Pass P&L. Basically, I was looking to see if Game Pass's costs factor in the impact to unit sales of their internal studios. 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).

That doesn't actually matter in real terms, but seeing the impact Game Pass was having on first-party games, and the amount of money Xbox was spending on studios, I wanted to check if the full impact of the service was being considered in their 'Game Pass is profitable' line.

(This was before Xbox started publishing fully on PS5. Studios can now make stronger margins on premium sales as a result of that move)

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!

Right. Tony Hawks is out. Let's get back to that!"


What exactly is clarified? It's the same claim with different words.
 
Last edited:
Top Bottom