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Xbox Game Pass generated $2.9b revenue in 2021
- Thread starter Banjo64
- Start date
Sosokrates
Report me if I continue to console war
If cod comes to it it will probably double the subscriber count in a day.
ANIMAL1975
Member
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Frank Horrigan
Banned
IMO threads like this should be banned on gaf as this kind of stat says nothing of substance.
Revenue posted not profit
Gamepass is unique so we have no yardstick to measure against. 3 bil could be amazing, or shit, we have no idea
How many people are subbed to $1 subs, how many people family share?
Does revenue indicate popularity, or are more people playing gamepass than are accounted for?
Does this figure include people who play EA play? (For example, i pay full whack for gamepass on xbox and on PC including EA Play for C&C but I have my brother on my account)
Too many questions, not enough data and it's a swamp for misinformation and an excuse to shit sling at one-another
Revenue posted not profit
Gamepass is unique so we have no yardstick to measure against. 3 bil could be amazing, or shit, we have no idea
How many people are subbed to $1 subs, how many people family share?
Does revenue indicate popularity, or are more people playing gamepass than are accounted for?
Does this figure include people who play EA play? (For example, i pay full whack for gamepass on xbox and on PC including EA Play for C&C but I have my brother on my account)
Too many questions, not enough data and it's a swamp for misinformation and an excuse to shit sling at one-another
SlimySnake
Flashless at the Golden Globes
Its probably 70-80% profit. They have a bunch of smallish titles this year on gamepass. nothing even remotely as big as Halo and Forza. For example, Guardians of the Galaxy cost them $5 million. Thats an AAA game that appeared only 5 months after launch. Indie games would cost far less.
DeepEnigma
Gold Member
I love how you change your post when you asked, “where is ANYONE in this thread…”Lol,DeepEnigma sorry deep, but 1 poster does not make it a thread where people are mistaking revenue for profit.
Just take the ducking ‘L’ bro
SportsFan581
Member
This thread makes me laugh at that other thread where users were so confident they had all the numbers worked out and MS was only at like $600m from GP. 
AmuroChan
Member
Guesswork doesn't move the stock. We need official numbers from MSFT at their quarterly earnings calls.
Banjo64
cumsessed
Jesus Christ no one red this?!...
Ass of Can Whooping
Gold Member
No excuse for the shit offerings they've had most of the year when it's bringing in that much money
Bonfires Down
Member
That’s equivalent to 402 Cooking Simulators per month.
SportsFan581
Member
Rest assured MS could not care less how you use the subscription once you've paid for it. It makes no difference to financial performance either, a $ is a $.
Sosokrates
Report me if I continue to console war
I love how you change your post when you asked, “where is ANYONE in this thread…”
Just take the ducking ‘L’ bro
The only people taking the L are the people who are trying to make out that main thing happening in this thread is posters falsely stating that this thread is about gamepass profit.
When the truth is, its 1 post that did that....
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Frank Horrigan
Banned
It's more that Microsoft are under-counting popularity of gamepass if they see 1 sub = 1 person. The only way around that would be to stop sharing, which would be massively unpopular ala Netflix
Banjo64
cumsessed
Dunno mate. I spent about 4 minutes in Power Washing Simulator drawing a massive cock and balls on the side of a crazy golf course. I also spelt out the words cunt and twat. Can’t do that on my PlayStation or Switch
That, and most people are old enough to have income.
itsjustJEFF
Member
It seems like very basic "reporting" on financials. I might be wrong, but I think its just "revenue" so it's just the top line before any of the operating cost is deducted. Those deductions would include wages, money spent on deals, real estate, etc anything that helps to keep GamePass operating.
They very well "could" be hemorrhaging, but I've never looked thru a Microsoft annual report, so I don't know how or If they break out the Xbox division into it's own category and deep dive or if it's "packaged" into a entire segment of their business.
EDIT: Even if they are "hemorrhaging" money, it's a plan for the future. I'm sure them losing for a period of time was one of their projections and besides... MS can cover it as the other parts of their business is doing very well.
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DeepEnigma
Gold Member
SlimySnake
Flashless at the Golden Globes
Yep. Clearly lining up their pockets with all that profit.
The day they announced that starfield and redfall were delayed out of their original 2022 window is the day they shouldve gone and paid up for Elden Rings and at least one other big AAA game this year. Hell, they didnt even make Forza Horizon's Hot Wheel expansion free. Im like you literally have no exclusives this year. cant you make an exception for an expansion just this one year?
Sosokrates
Report me if I continue to console war
Gamepass is without a doubt the best gaming service.
Whoevers idea it was at Microsoft deserves a raise.
Whoevers idea it was at Microsoft deserves a raise.
Jaybe
Member
It was Bonnie’s idea
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Now tell me how much of the 2.9 billion is the real Profit.This thread makes me laugh at that other thread where users were so confident they had all the numbers worked out and MS was only at like $600m from GP.
It is possible that your number will be even less)
SportsFan581
Member
The other thread was also referring to gross revenue.
Topher
Identifies as young
So that's 2021 revenue which was a good year for MS first party.
Business to business transactions? I'm not sure, but the codes had to originate from Microsoft. Perhaps selling them in bulk wholesale?
Business to business transactions? I'm not sure, but the codes had to originate from Microsoft. Perhaps selling them in bulk wholesale?
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onesvenus
Member
Don't most of those have a marketing agreement with PS? We know Sony added some anti-GP clauses into those
Sosokrates
Report me if I continue to console war
The xbox division will likely be in a loss for a few years because of the zenimax and other acquisitions.
Ass of Can Whooping
Gold Member
They won't be factored into P/L
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Topher
Identifies as young
Only one we know of it RE:Village. Anything else is just a guess.
Pelta88
Member
For the unaware...
The $600.000 XB paid to bring "Cooking Simulator" to GP counts towards GP's revenue.
The $600.000 XB paid to bring "Cooking Simulator" to GP counts towards GP's revenue.
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azertydu91
Hard to Kill
I don't know, one has Dreams and the other Splatoon, I think you can do it on any platform...But pc is definitely the easiest at dick drawing, it's so far above the other that they can be all distant second from a pc pov....Dunno mate. I spent about 4 minutes in Power Washing Simulator drawing a massive cock and balls on the side of a crazy golf course. I also spelt out the words cunt and twat. Can’t do that on my PlayStation or Switch
StreetsofBeige
Gold Member
Are you one of those “Game pass makes no sales due to $1 subs” but now move the goal posts because rev is almost $3B?Me waiting to see how much profit GP generated while watching the usual suspects pretend revenue is profit.
Don’t forget. Sony doesn’t publicize profits from their PS+ sub plans either. So don’t forget to go after them for not telling the world what profits they get from video game sub plans.
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Topher
Identifies as young
Kilau
Member
I don't really know how the codes end up out there but I imagine MS can track the codes redeemed to know who got them originally and how much they were sold to that entity for.
DeepEnigma
Gold Member
Ghost of Caelid
Banned
Yes. Money saved for consumer. Brand loyalty for company. Win win.
There must be more than meets the eye on this one.
If you look at the subscriber counts for 2021 - which will include PC players - and divide the revenue up, which it is claimed is only console, it puts the number at a number that's basically the retail cost of GPU, let alone solo GP.
This doesn't many sense when, whilst people like to joke about the $1 deal, there will be a lot of people taking advantage of that. There will also be many people using trials, the promotional memberships I keep seeing bundled with retail purchases even things like internet services etc.
For me this only works if they're booking the full retail value for all of the above as 'revenue' and then applying the discount as a cost on the balance sheet.
If you look at the subscriber counts for 2021 - which will include PC players - and divide the revenue up, which it is claimed is only console, it puts the number at a number that's basically the retail cost of GPU, let alone solo GP.
This doesn't many sense when, whilst people like to joke about the $1 deal, there will be a lot of people taking advantage of that. There will also be many people using trials, the promotional memberships I keep seeing bundled with retail purchases even things like internet services etc.
For me this only works if they're booking the full retail value for all of the above as 'revenue' and then applying the discount as a cost on the balance sheet.
Dick Jones
Gold Member
The revenue figure would count every sub as full price. The real question is how much is the expense on discount allowed on Gamepass sales. That would put an end to the debate on how $1 subs are common or not.
2,900,000,000 / $15 = 193,333,333 (months of Gamepass paid for)
193,333,333 / 12 months = 16,111,111 active subscribers in 2021 [assuming all subscribers subscribed for the full year and there were no new subscriptions]
The revenue number seem low compared to what was announced. In September 2020 the number was 15 million and in January 2022 it's 25 million. The only way for all these numbers to be correct is for a significant drop in numbers throughout 2021 who resubbed later in 2021 with the increase in subscibers or it stayed constant at 15m Gamepass subscribers and an extra 10 million joined in December.
2,900,000,000 / $15 = 193,333,333 (months of Gamepass paid for)
193,333,333 / 12 months = 16,111,111 active subscribers in 2021 [assuming all subscribers subscribed for the full year and there were no new subscriptions]
The revenue number seem low compared to what was announced. In September 2020 the number was 15 million and in January 2022 it's 25 million. The only way for all these numbers to be correct is for a significant drop in numbers throughout 2021 who resubbed later in 2021 with the increase in subscibers or it stayed constant at 15m Gamepass subscribers and an extra 10 million joined in December.
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Lol, what does this even mean? Of course ‘revenue’ isn’t ‘profit’.
I believe these numbers are for Xbox Gamepass subscribers alone. The article does say it doesn’t include PC Gamepass.
It’s an interesting, hard data point we didn’t have before. And the revenue figures seem better than many projections I’ve seen here.
anothertech
Member
Dam. Must be factoring in the Doritos and mountain dew sales.
Haint
Member
As I've mentioned before, the only people who know about the repeatable Gold Upgrade deal are a very small subset of nerds that live on nerd forums, discords, and deal sites. It's a relatively small group who acts as an advertising vehicle for the service, which is why they haven't ended it. The critical mass is paying the full $15 monthly, including the vast majority of people who did the upgrade deal in the first place, unaware it's repeatable.
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SteadyEvo
Member
That’s a great question. Most likely as ammunition for those invested in the console wars.
There should be a separate section for these topics. People acting like they’re attending share holder meetings.
Let’s just discuss the games damnit
Ok. I’m leaving now
onesvenus
Member
Well yes but I don't think it makes sense to have that only on RE:Village. There's nothing special about that game
Dick Jones
Gold Member
The revenue figure will never reveal the number of people using the $1 upgrade to Gamepass. That discount will only appear in the expenses figure.
The revenue figure will count each monthly sub as the full price regardless of what was paid.
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ChorizoPicozo
Member
How much in profits?
Game Pass is an investment so it's not expected to make significant profit in the short term. In the same way that it took Amazon 9 years to start making profits because they were reinvesting their revenues back into the company to feed its growth.
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