Spencer: Game Pass is very, very sustainable right now as it sits and it continues to grow
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
This is LITERALLY word for word how I took Spencer's statement by the way. For all the fools that want to say me or others are "paranoid".
sircaw
Banned
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Kiraly
Member
On that forum they are now accusing Satya of having an agenda as he refuses to release hard numbers for the Office Commercial products and cloud services division.
ToTTenTranz
Banned
Yes, because they explicitly say so in the earnings report:
Nope. Windows is a source of increased revenue whereas Gaming is mentioned as a source of increased operating expenses.
Windows marketing is also a source of increased expenses, but despite that Windows' revenue is growing whereas the Xbox software and services are not.
Whatever growth money they're making from games sold on Steam, Xbox and Windows Store is resulting in a zero-sum result despite 2021 being a year of substantial growths in the gaming software industry.
The data we have from their earnings report point to Microsoft's videogame sales' income (Minecraft, Doom, AoE, etc.) being used to bankroll Gamepass.
Perhaps this is what Phil Spencer means with sustainable.
Don't think you are paranoid. I am on the following bandwagon.
I do wonder if some people fundamentally think that gamepass has to be profitable as its own revenue stream to be sustainable.
kingfey
Banned
And you are going after the CEO, when he dropped day1 AAA games on the service.
Numbers are bulshit and you know it.
Do you think, a failing service will get day1 games from the company. Games like Halo infinite, Forza 5, AOE 4? Not to mention those upcoming AAA games?
If you want a weak service, look at psnow. It can't even get AAA games, for more than 3 month, Max would be 6 month.
That is how I see whether a service is profitable or not. If they keep doing that day1 games, then the service is making money.
MS dropped out of windows phone, after it failed. Gamepass would have had the same fate, if it was bad as you make it.
Topher
Identifies as young
Who said Game Pass was a failing service?
Panajev2001a
GAF's Pleasant Genius
So is the variation of the price of fish in Tokyo, it also happens… regularly.
kingfey
Banned
They keep asking for numbers, which implies the service is failing and not sustainable.
Lognor
Banned
Can you link me to that advertised offer?
Zathalus
Member
This post made me check up on Grim Dawn (as I am a fan of it as well) and good news, Grim Dawn is releasing December 3rd.Grim dawn has just been given to Microsoft for certification. I have been waiting for this damn game for years now.
It is my most favorite game of all time, i had 1200 hours played on it on my PC, before my PC died.
Grim dawn is going to be an Xbox exclusive, i am hoping there is a deal on the series s this xmas, so i can pick one up as i would love to play ori 1+2 plus, i am a big fan of quake as well, which i believe will be made exclusively in the future on the Xbox platform.
I would definitely take advantage of game pass if the deal is good enough to me.
At the moment i game on a ps4, i prefer sony as a platform as i love god of war, rachet, horizon bloodborne etc.
I think the game pass is, getting better as time goes on, a few years ago i thought it was pretty rubbish but with the purchase of all those games companies, i think it's on the right path.
A new fall-out game, not that multi-player rubbish they released would suit me to a tee.
Do i want game pass to fail, nope,
Hope that clears up my angle
he is wrong. Sustainable does not mean in any language that they are losing money.
Edgelord79
Gold Member
Good to see they finally got past the certification process. Excellent game. Will be dusting off yet another spellbreaker built for this one.
lefty1117
Gold Member
as reksveks posted above, I think it's likely they have some sort of annual revenue per user target that they chase, and as long as they meet or exceed that number then the xbox Live service as a whole is doing well. Tracking the individual elements may not tell the whole story, because one line item could literally be nothing but an expense, a cost of sales, whereas the DLC or RMTs that are generated are the real revenue lines. As long as the average Gamepass user is spending x amount a year, maybe that target is $80, factoring in the sub cost as well. And like in most cases these days you'll have a percentage of users that are under and the percentage that are over and then the 1% whales that are really pushing things.
RafterXL
Member
Your "concerns" are just like all the other "concerned" "devil's advocate " type nonsense in this thread. You have no legitimate concerns about Gamepass other than how to invent a narrative that suits you so you can scree about it on a gaming forum.
Literally nothing about Gamepasses financials "concern" you in any way, shape or form, unless you're just looking to piss in the cornflakes because you are "bombarded" with positive news that doesn't involve your toy of choice.
Hilarious you post that to my post when it's been multille pages of that exact kind of energy from the usual suspects in this thread. Gamepass thread?...time to get out my pitchforks!
Nowhere in Spencer's quote did he remotely imply it wasn't profitable, Shinobi is just pulling that out of his ass. Spencer literally says they are NOT buring piles of cash for a future pot of gold. That's literally the opposite of what Shinobi implies.
Further the fact that he assumes a price hike is the same FUD he, and others, have been spreading for years now.
Anyone who believes this doesn't understand the difference between Microsoft and Sony/Nintendo. It's also why none of this even matters as anything other than console wars. Gamepass could run and expand forever and it wouldn't dent Microsoft as a company, even if made no money. At the end of the day all that matters is that they are happy with it, and they clearly are.
purvispisgah
Member
This sort of comment just shows a fundamental lack of understanding of Microsoft's goals. There is no "gamepass alone" in their business model. GamePass is an entryway into Azure. More than anything else, the goal is to increase the amount of time people interface with their cloud computing services.
Which is both much harder to conceptualize for people used to thinking of these things as boxes to buy in a store (hence NeoGAF discussion on the topic) and more difficult to report in a traditional fiscal way.
None of this is to say that Microsoft is right, by the way. This could all fail. But at least critique it for what it is, and not for what it isn't
Bernd Lauert
Banned
Playstation's content & services revenue growth was also zero-ish percent. Nice try I guess.
Lognor
Banned
I don't know about price increases coming, but I thought it was very clear that Game Pass was not yet profitable. I read something from someone in the know (Tom Warren I think) not too long ago that said as much. Not sure there are many people arguing that it is profitable at this point. How long did it take Netflix to become profitable? It might be a while, but that doesn't mean they're going to shut the service down. Far from it. Probably going to spend even more money on content.
Jaysen
Banned
Most of the whiners can't get passed their own anger that Game Pass is so popular to even contemplate anything meaningful.
zaanan
Banned
Seriously? Guy posts excellent data (some of which "interested parties" in this thread have been denying exists btw), makes a great comparison using Microsoft's real world earnings report numbers, then makes a reasonable guesstimate as to how it is sustainable, and your only response is to retort "well Sony's numbers aren't any better!"??? Man, if that isn't console warring, I don't know what is.
JackMcGunns
Member
Bernd Lauert
Banned
Read what I quoted from him before you accuse me of nonsense.
SportsFan581
Member
@
ToTTenTranz
are you sure you aren't misconstruing the numbers just a bit? It was a slow time in third party releases and the "Covid" effect was diminishing. This can be seen in Sony's report as well where operating income decreased by 21% YoY. The fact that MS's gaming services grew enough to cover the shortfall is impressive, and that's why they specifically pointed that out in their report.
ToTTenTranz
are you sure you aren't misconstruing the numbers just a bit? It was a slow time in third party releases and the "Covid" effect was diminishing. This can be seen in Sony's report as well where operating income decreased by 21% YoY. The fact that MS's gaming services grew enough to cover the shortfall is impressive, and that's why they specifically pointed that out in their report.
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sircaw
Banned
CatLady
Selfishly plays on Xbox Purr-ies X
On a gaming forum the main concern should be what new games are coming to game pass. If you own a lot of MSFT and you're so concerned about the Game Pass numbers of a trillion dollar company you should be whining about this lack of "transparency" on CNN Money not NeoGAF.
Revenue growth for software using fixed conversion rate of 100:1 for JPY. 4% growth for Sony, due to a 10% increase in DLC/MTX, decrease in full game sales.
Comparison between Xbox and Sony isn't equal because Xbox includes Services. Don't know what impact that does really.
Reminds me that I need to do the missing Japanese publishers in my data set.
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sircaw
Banned
sircaw
Banned
Have not even played the last 2 expansions, super duah excited for the game, i really hope more people support it.
Riky
,
DarkMage619
gets your wallets ready for Grim dawn, NO excuses.
zaanan
Banned
Why is it a problem for you if some random people on the internet think Gamepass is not all it's cracked up to be?
Kiraly
Member
What is the data that people deny exists?
SportsFan581
Member
kingfey
Banned
Their stupidity is what is pissing me off.
The take they are spouting is something else, even when we keep telling them.
Topher
Identifies as young
No, it implies they are not going to necessarily believe claims without evidence. Nothing wrong with that.
It isn't even that serious.
kingfey
Banned
I got mad for little bit. I need to remember this is the internet. Almost lost myself.No, it implies they are not going to necessarily believe claims without evidence. Nothing wrong with that.
It isn't even that serious.
xHunter
Member
Dont worry you can just request a ban in case you go too wild and then create a new acc like the last time. No one will notice.I got mad for little bit. I need to remember this is the internet. Almost lost myself.
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Captain Toad
Banned
A store can lose money on every item they sell, but can still be profitable of they sell enough items?
kingfey
Banned
I have no interest in making new accounts. I dont want to lose myself to internet. I have real life to focus on.
sircaw
Banned
You have been taking this a little bit too seriously.I got mad for little bit. I need to remember this is the internet. Almost lost myself.
Like Kumite levels of seriously
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Plantoid
Member
And?
kingfey
Banned
It seems I have been losing to my old self. Once international break ends, I will direct my attention to soccer. This past 2 weeks have been boring.You have been taking this a little bit too seriously.
Like Kumite levels of seriously
Topher
Identifies as young
sircaw
Banned
It's not good to take things too seriously, especially when it comes to gaming, it's meant to be a hobby after all.
At the end of the day, we might play on different platforms or like the different games but i bet there are more things we have in common than not.
console Waring is silly and stupid, and sometimes it can get pretty heated on here.
I remember having a really red heated moment with
Stuart360
a long time ago, i deeply regret some things i said in that conversation, Still pains me to this day.I think we should all unite together and fight the real enemy on these forums.
Mod of War
EviLore
Bill O'Rights
sircaw
Banned
how can i bloody relax when you show that, especially the right chick. ffsJust relax. Imagine you are at the beach. Here.....
Reported for causing strife
SportsFan581
Member
Technically, but I wouldn't advise trying it. LOL
However, if you became known as the store that had the lowest prices on everything because you sold at zero sum margins, it wouldn't be long before other earning opportunities would come around. Specifically from vendors jockeying for position/shelf space in your super popular new store.
mejin
Member
Yes, because they explicitly say so in the earnings report:
Nope. Windows is a source of increased revenue whereas Gaming is mentioned as a source of increased operating expenses.
Windows marketing is also a source of increased expenses, but despite that Windows' revenue is growing whereas the Xbox software and services are not.
Whatever growth money they're making from games sold on Steam, Xbox and Windows Store is resulting in a zero-sum result despite 2021 being a year of substantial growths in the gaming software industry.
The data we have from their earnings report point to Microsoft's videogame sales' income (Minecraft, Doom, AoE, etc.) being used to bankroll Gamepass.
Perhaps this is what Phil Spencer means with sustainable.
ToTTenTranz
Banned
@
Revenue growth versus operating income. Operating income implies subtracting expenses, and in that sector Microsoft's report hampers the effect of Gamepass' expenses by including Windows sales income in the "Personal Computing" bracket. However they do mention an increase in expenses form that side.
Sony had a YoY revenue growth in Q2 of 27.5%, but operating income decreased like you said because they only stopped selling the PS5 at a loss sometime in late July / early August. And they don't have the worldwide sales of the world's leading consumer O.S. for PCs to hide that.
SportsFan581
Member
Revenue growth versus operating income. Operating income implies subtracting expenses, and in that sector Microsoft's report hampers the effect of Gamepass' expenses by including Windows sales income in the "Personal Computing" bracket. However they do mention an increase in expenses form that side.
Sony had a YoY revenue growth in Q2 of 27.5%, but operating income decreased like you said because they only stopped selling the PS5 at a loss sometime in late July / early August. And they don't have the worldwide sales of the world's leading consumer O.S. for PCs to hide that.
My bad I did read that wrong.
Good for them. Probably helped that they had some newish software going. I'm sure MS will look better with FH5 and Halo numbers figured in.
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