IcaroRibeiro said:
Subscription for unlimited availability of games only makes sense when the annual subscription per person is over the average money spending buying
The prime example in music subscription. USA music yearly spending in 2005 (year of iTunes launch) was 47 dollars per person. A Spotify yearly premium membership is 120 USD, of course these numbers are inflated because many people uses student subscriptions or family subscriptions, but even a half of the full price still over 47 USD/year. That's how USA music market is starting to recover after over a decade of steady devaluation
I don't know how much money an average american pays for console gaming, not gaming in general including subscription and hardwares, I meant only retail market. If it's over 120 USD a year then Microsoft is either losing money or mitigating their bad software sales because their consumers don't even meet the average spending threshold
Edit: I found this and it's for console marketing only, not including PC or mobile. Using 91 million as the USA console user base (source) it means ~393 USD on average, even it's counting both subscriptions and purchases still way over 120 USD
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The problem here is that you assume that every GamePass subscriber (out of 10 million) only pays for GamePass. Of course there are such people among them, but I bet that 90% of them still buy some games as well which brings the average annual revenue to more than just 120$
