Xbox acquires Bethesda

[Barkley]

Pyro as Bill said:

Barkley said:

You haven't run the numbers correctly. You're assuming that 100% of the subscription money is profit for Microsoft it is not. They do not make $10.8 Billion profit a year from 60m subscribers, we can't assume it's even $7.5 billion.

The subscription from gamepass ultimate includes gold, thus that money is being used for where that goes (server maintenance, games with gold etc)

Gamepass ultimate includes third party titles, so more of that money is going to third party publishers.

Gamepass ultimate includes EA Play now, so money from it is going to that.

Gamepass ultimate includes XCloud, so money from it is going to running these cloud systems.

No 10m subscribers does not give microsoft $150 Million to spend on a AAA game and 60 million does not give them $10.8 billion to spend every year, not even close.

Spending $15 on gamepass utlimate does not give MS $15 to spend. That money goes to gold server maintenance, xcloud, third parties and now EA access too.

The actual money MS get from gamepass could be as little as $2 a month from subscribers or as high as $10 a month, we literally do not know because we don't know how much money they are giving to third parties or for ea access or running costs for xcloud or etc etc etc. But MS themselves have already said it's not super profitable for them at the moment.

Though one figure we do seem to have, MS gave Capcom $19 Million to get Devil May Cry 5 on gamepass. One third party game.

I never mentioned profit. I was showing how easily it works, it's potential and why PS5 sales aren't needed. It's the reason why everybody is doing it. EA seems  more than happy with theirs at $2.50/month.

The 3rd party deals are the only real cost. We know Epic, Valve and until recently Nintendo could all do free online and free games without passing on the cost to consumers and MS would be heavily invested in the cloud with or without XB anyway.

Ignore 3rd parties and imagine Nintendo starts their own GP but only for their 1st party games. Can you see how profitable they would become with 25-50m subscribers even if nobody bought a physical game ever again?

"Ignore 3rd parties and imagine Nintendo starts their own GP but only for their 1st party games. Can you see how profitable they would become with 25-50m subscribers even if nobody bought a physical game ever again?" - Yes because 100% of the money would be going to them.

"EA seems  more than happy with theirs at $2.50/month." - EA charges $15/month for EA Play Pro, the sub that gives you access to all there games day one. Same as UPlay+.

You are talking about profit because you say 60m subscribers means they can buy Zenimax every year, they can't because all the money from those 60m subscribers wouldn't end up in there bank account for them to spend. You even mention profit next.

"In regards to profit, 10m subs @$15 ($1.8bn/yr) is equivalent to selling 30m full price, digital, first party games every year ($60/$60)."

In terms of revenue, not profit..... $1.8 billion in gamepass sales does not give them the same money as $1.8 billion in first party software sales