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IcaroRibeiro said:
Intrinsic said:

Its actually a very bad point. Because it's not taking all the associated costs of a subscription model into consideration.

Lets be generous here. Let's say Gamepass has a sub-base of 40M people today. And let's say those people are paying $9.99/month. Thats Thats a whopping $4.8B!!!

Where did you get this operational costs though?

About your rant... I wasn't even talking about any that, I was talking about profit margin. Subscription have a bigger profit margin because there is much less costs involved than in a retail market unless it's a fully digital market

I don't know where or how you guys seem to have got this notion that subscription models ost peanuts. That is simply not true.

And speaking of digital sales, you do realize that right now digital sales revenue on PS has overtaken physical sales right? And that is only likely to keep growing especially coming into next gen.

Truth be told I don't even know why streaming gets compared to direct sales. They are simply not the same business model at all. If you directly compare it to direct sales, then it becomes unviable and unsustainable. If you only look at its strengths then you ignore the draw of direct sales. So why even compare them?