The Take Two guy threw out 30M but it was confirmed to be 25M months later.
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Xbox Game Pass generated $2.9b revenue in 2021
- Thread starter Banjo64
- Start date
Black_Stride
do not tempt fate do not contrain Wonder Woman's thighs do not do not
But wait?
Werent they only supposed to be bringing in like $500 million.
Isnt that what GAF Finacial analysts told us?
Wasnt everyone using the $1 deal....so how did they get to 2.9 billi with 1 dollar subs?
Dont most people only sub for the month the game they want to play is out, then stop subbing anyway?
I am a fucking GAFFER!, I demand to know exactly how much profit, not revenue, fucking profit the service is actually making because thats gonna affect my decision to do absolutely fucking nothing but keep pounding at my keyboard.
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DeepEnigma
Gold Member
Sustainable.
.Pennywise
Banned
Please close the thread until some representative from Microsoft comes to NeoGAF and shows every receipts of the company, fully disclosed and signed by a third party lawyer and a certified public accountant. Because some people in the forum don't like the numbers shown.
SteelCurtain 59
Member
" ThAt'S rEvEnUe NoT pRoFiT" .........I'd love to see how much money people think Microsoft is spending on Game Pass alone where 2.9 billion in revenue would still be bleeding money and need to be propped up by Microsoft. We've already seen how cheap games like Guardians of the Galaxy were to get into the service, are some people expecting that they're spending several more billion dollars on getting games on Game Pass and that the 2.9 billion of revenue is terrible ROI?
Iced Arcade
Member
Number is almost as impressive as the hilarious downplaying comments here
adamsapple
Or is it just one of Phil's balls in my throat?
DeepEnigma
Gold Member
Still mad about Ragnarök 2022, huh?
.Pennywise
Banned
Yes. I'm so absurdly over the high heavens mad, that it made pre-order GoW Ragnarok and play it day 1.
Also, this thread should be closed ASAP. Someone call the mods fast please.
Ozzy Onya A2Z
Member
Honestly at this point in time it's all investment, right now it's buy up and write down against tax benefits from Xbox/MS holistically. The reality is right now away from acquisitions GP is making bank, gaining significant numbers, locking up GP devs/studios, still selling full price multi-platform (maybe that changes, and GP gets to PS or Ninty maybe) while there is a huge market opportunity with MS's multi-prong agnostic approach. They're really pushing their own hardware and everywhere else simultaneously too. It's a pretty blanket attack with the focused specialisation for each segment e.g. GP sell anywhere, Xbox has its own platform, support Windows/device gaming anywhere, cloud backed by Azure, peripherals, first party, third party, indie and hardware killing it plus plenty more in the pipeline.
That "it" factor has returned to Xbox, and they've done it in a broad stroke sense too e.g. solo games, family plans, hardware, value proposition, games selection/genre support, local vs online coop/PvP support, backward compatibility, OS/platform sustain, genres etc.
Xbox is making bank while covering costs. It's up, up and away from here. If I was in acquisition, build and market leader chasing phases still I'd be super happy turning over billions and having more than 75% of costs covered (conservatively guessing). IMO they've already been turning profit on GP for the last 1-3 years massively anyhow. Christ MS have almost recouped all of their ActiBliz purchase already, it's going to be covered before regulation approval. Insane.
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DeepEnigma
Gold Member
adamsapple
Or is it just one of Phil's balls in my throat?
SteelCurtain 59
Member
Guardians of the Galaxy on Xbox Game Pass Reportedly Cost Microsoft $5-10 Million
Marvel's Guardians of the Galaxy wasn't cheap.
www.gfinityesports.com
Probably less than 2.9 billion if that's what it cost for a relatively recent AAA 3rd party game
Markio128
Gold Member
Just to put things into perspective, GTA5 has made around 6 billion in revenue. One game. I believe ND’s UC4 and TLOU generated a billion each. Surely, there is more chance of making a profit when selling quality AAA games, than having them part of a subscription service day one? Sort of gives credence to Sony’s plan really.
Haggard
Banned
That game flopped so hard that it was in the 20 dollar bargain bin nearly immediately....
That is nothing you can generalize.
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Topher
Identifies as young
It is about sales revenue and Resident Evil definitely sells. For games like that Game Pass isn't feasible until the game maxes out sales revenue. The only AAA games we have seen on Game Pass even close to its launch date have been games that did not sell as well as expected such as Guardians of the Galaxy.
SteelCurtain 59
Member
I think you're proving the exact opposite of the point you're trying to make. Game Pass is making them more money than if UC4 and TLOU were released in the same year, and half of GTA 5's lifetime revenue in ONE YEAR, and that doesn't even account for the amount of money they're making by SELLING THE GAMES (which yes, they still sell the game and tons of people buy them rather than subscribe to Game Pass still). Once the Xbox studios start releasing tons of games and Activision/Blizzard games start being released on Game Pass those numbers will go WAY up.
Markio128
Gold Member
I think you’re missing an important point, in that those games I mentioned have made a substantial profit. Any fool can make revenue.
Haggard
Banned
You're mixing up profits and revenue.....
Biiig difference.
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adamsapple
Or is it just one of Phil's balls in my throat?
And once its done, all the ABK, and especially the K, generated revenue will make their annual revenue reports from the gaming division that much more rosier.
And to think the brand was almost shut down in the early 2010s. Amazing turnaround.
remember_spinal
Banned
But sony makes money off those games on top of their subscription service which they aren’t paying an arm and leg to support. Microsoft is only going to start losing more money the bigger games they release on it day one
Fully expect a significant price increase by teh end of next year, Cutting off those CoD sales on their platform is gonna hurt
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BennyBlanco
aka IMurRIVAL69
I love Gamepass on PC the value is worth it to me.
Same. I love it. So many good indies.
onnextflix5
Member
Who gives a shit how much revenue they are making, they could be making 100 billion, if their net profit is only 1 million it don’t mean shit.
Black_Stride
do not tempt fate do not contrain Wonder Woman's thighs do not do not
Lets assume their profit from Gamepass is only 1 million.
Then what, are you gonna give them financial advice, or are you worried about your dividends?
64bitmodels
Reverse groomer.
thats a lot of money
SteelCurtain 59
Member
Oh I get it, you think because Microsoft hasn't announced Game Pass profit that it must mean it has no profit and no profit potential. Even though it's still in growth phase of subscription services where the smart move is to reinvest all revenue back into the subscription service to grow it larger. If you had no argument you could've just said so
SportsFan581
Member
IKR. They would be giving this clown $99,999,000,000 worth of games and he would still be complaining about MS's balance sheets.
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SteelCurtain 59
Member
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64bitmodels
Reverse groomer.
BennyBlanco
aka IMurRIVAL69
My only real criticism of Gamepass PC is the launcher. A few years later and it still stinks. Why do I have to confirm I want to play the game from a windows popup every time I launch a game from their program? Every once in a while it will just not work at all.
SportsFan581
Member
Over how many years are we talking? Also, keep in mind that 20m copies only nets you 1.4b even if every copy sells for $70. Figure in discounted sales, retailer cuts, copies bundled, etc. and that number shrinks fast.
But certainly there is money to be made in both models. GTA is a perfect example of that for sure.
a multicultural team of v
Member
I mean, the operating expenses of Activision alone were over $5 billion in 2021.
SteelCurtain 59
Member
Because even though we have evidence of the contrary, people still like pretending that 100% of people on Xbox have Game Pass, and therefore nobody buys their first party games because they all have them with Game Pass
Markio128
Gold Member
You’ll have an argument of your own when you can show me the receipts.
Markio128
Gold Member
But how much more profit would they make if they weren’t on GP?
ByWatterson
Member
Not sustainable. No money. $1 subs.
No games. No one cares about TV.
No games. No one cares about TV.
SportsFan581
Member
Xbox's revenue numbers were substantially lower before GP started clicking with gamers. For them the move appears to have been a big positive.
DaleinCalgary
Member
Not really. it still takes 35 years of gamepass to pay for Activision
Ozzy Onya A2Z
Member
Yep, the current foundation they have with this turnaround is nothing short of amazing. The next 1-10 years of Xbox/GP look very bright indeed.
I think they are breaking even or lose not by much with GP Cost to run, this year like GP had very few AAA Game from 3P and all of are years old, Cost of these old AAA Games from 3P not that Big, GOTG cost on GP was like 5M. as for day 1 games from 3P this year pretty much were all indies, how much they are paying indies devs ? 1M ? 2M ? lets see for 100 games day 1 that like 100M or 200M cost to MS. also some games deals have milestone on numbers played and devs get parentage on that
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adamsapple
Or is it just one of Phil's balls in my throat?
I don't use PC GP as much as console GP but I've never had most of the issues I see people talk about. But then again I don't keep more than 2, 3 games installed (on PC) at a time anyway.
Hawking Radiation
Member
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
Dick Jones
Gold Member
The revenue figure shows an average of 16m subs in the year so if they started the year with 15m monthly subs and finished with 25m subs there are serious fluctuations in subscriber numbers or it remains constant at 15m and bounces to 25m in December.
It would be interesting to study what drives the numbers up and how long does that event last for before its drop. If it's only that month, do MS need a big hit every month or every 3 months to retain its users. Or is it tied to certain periods like the Christmas holidays that will always get a bump no matter what. In that case is there a need for a holiday game.
These revenue figures supplied are pointless without additional information. It can never be used as evidence of profitability or loss despite what posters in the thread think. The only thing it inadvertently shows is the average monthly subscribers in 2021, 16m.
It would be interesting to study what drives the numbers up and how long does that event last for before its drop. If it's only that month, do MS need a big hit every month or every 3 months to retain its users. Or is it tied to certain periods like the Christmas holidays that will always get a bump no matter what. In that case is there a need for a holiday game.
These revenue figures supplied are pointless without additional information. It can never be used as evidence of profitability or loss despite what posters in the thread think. The only thing it inadvertently shows is the average monthly subscribers in 2021, 16m.
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Iced Arcade
Member
The Activision games alone will pay for Activision within a couple years. King games alone will actually.
These comments lol
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StreetsofBeige
Gold Member
Who knew Microsoft’s strategy to cover Activision’s buy out would come from Game Pass revenue.
Buying Activision is considered an asset where there is inherent value.
I can tell you don’t own a house because because when someone buys a home (asset) the value of it doesn’t drop to zero where an owner needs 20 years to cover the purchase price.
Just to prove how dumb your statement is, Sony bought Jade Raymond’s new company that has zero games and revenue. So going by that the payback time is never.
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Bumblebeetuna
Member
We don’t know the breakdown of GP/GPU subscribers and it also doesn’t include PC… so how could you possibly have any idea of the number
Also GAF has been saying for years that the games offered are all cheap filler indie crap or old games so it can’t cost that much versus $2,900,000,000 in revenue.