Xbox acquires Bethesda

[Pyro as Bill]

Barkley said:

Pyro as Bill said:

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.

$20m deals with 3rd parties would be peanuts. Once MS can deliver a good AAA game per month, they won't need 3rd party deals. 10m subscribers is enough to cover the cost of those 12 games per year.

"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+.

That's one sub yes, the basic is $2.50/month ($30/yr)

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.

If Nintendo had 60m subscribers ($10b/yr) and 12 first party games cost them ~$2b/yr to make, could they afford the ~$7b needed to buy Zenimax?

"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

It's a like for like comparison using the profit margins between digital rentals, digital sales and physical sales.