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Cerebralbore101 said:

How is it a long term win if millions less buy the games, MS doesn't grow their console userbase by huge amounts, (causing them to miss out on 3rd party royalties), millions of copies sold have to pay a 3rd party royalty cut to Steam, and millions more users just underpay by playing the games via gamepass?

I mean, Gamepass is $9.99 a month. If somebody plays 10 games a year, then MS is losing money. That's $600 for 10 games vs $120 a year from gamepass revenue. MS could sell those 10 games at $20 a pop, and still make way more money than Gamepass.

I'd kill to see a PnL sheet from Microsoft's gaming division, that was separated from the rest of their business.

People will still always buy games because they don't want to pay a sub which is fine. They will still get sales from Steam, and get more revenue this way than if they only released on the windows store. Game sales for MCC, Flight Sim, Grounded, etc. show this. Right now, Xbox is making all the right moves to increase brand awareness and increase the userbase than where the xbox one is at. 

Right now, 15 million people sub to gamepass. Some play 10 games a year, some play 15 games, or some play only 2-3. Sub numbers will continue to grow and likely hit 30-45 million subs in the next several years. This is a consistent stream of revenue so it really doesn't matter how many games someone plays.