Cerebralbore101 said:
chakkra said:
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.
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Revenue is not profit though.
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I... did not say it was?
We already know that your concerns about Game Pass will not be alleviated, but let me throw you another line, just for fun:
“Digital content on console platforms, mobile content, and subscription spending were among the largest growth segments”
https://venturebeat.com/2020/09/14/august-2020-npd-madden-and-ufc-supercharge-u-s-game-sales/