Microsoft Has Put Themselves Back In The Game!

[Cerebralbore101]

chakkra said:

Cerebralbore101 said:

The first article is from 2017. I'm sure they were somewhat profitable back then, since Gamepass wasn't full steam yet.

The second article doesn't list profits but rather revenue.

From Investopedia: Revenue is known as the top line because it appears first on a company's income statement. Net income, also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

https://www.investopedia.com/terms/r/revenue.asp

I'd just like proof that Gamepass turns a profit. That's all.

It is quite possible that Game Pass is not turning a profit yet; I don't think it is a secret for anybody that Subscription-based models don't tend to turn profits in the first few years of existence.

Now, since you seem to be so much interested in this topic, here is a short article that might help alleviate your concerns about Game Pass.

https://www.tweaktown.com/news/74188/game-pass-defines-entire-xbox-generation-drives-year-by-revenues/index.html

"Xbox Game Pass has consistently raised Microsoft's gaming revenues every year since launch, leading to new 2020 record highs."

Basically, MS's revenue went from $9.25b in 2014 to $11.57b in 2020. Now, I want you to think for a second how much less hardware (and software) Xbox sold in 2020 compared to 2014 and yet revenue still went up more than $2b in that timeframe.

And just to give you a little bit more perspective, Nintendo's revenue in 2020 was $12.1b. Let that sink in for a moment, Switch has outsold the Xbox about 7:1 in this past year, and had Animal Crossing and Pokemon in its roster, and yet Nintendo's revenue was just half a billion more than Microsoft's.

Revenue is not profit though.