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Dulfite on 01 February 2021
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eva01beserk said:
Dulfite said:

When was the last time it was for that cheap? I haven't seen it in a while. I doubt many of us are using the cheaper entry fee. They are making TONS of money off it per their newest financial report. There are also now 18 million subscribers as of the last call. Even if literally everyone was paying 1 dollar, that's $18 million a month or $216 million a year. But we know a lot of people are paying the full $10 for regular or $15 for Ultimate, so let's just go with conservative numbers. Let's say only 8 or the 19 million are paying $10-15 (let's average it to $12.50) and the other 11 million are only paying $1 (which I highly doubt btw). That's $132 million a year from the $1 group and $1.2 billion from the full paying group for a total of a little over $1.2 billion a year. Again, I think that is a very conservative number. And yes, I'm aware they have to offset cost of purchasing expensive studios, securing third party games on Gamepass, etc. But there are other areas they are generating money from having Gamepass. They make a LOT more money off selling PC's with windows/office 365. Historically, Sony and Microsoft haven't made much and have usually lost money for each console sold. So every console that ISN'T sold because someone bought a PC (such as myself, when I was about to buy a Series X but then decided to buy a more expensive gaming laptop), creates a lot more money for them because of all the other, non gaming software that they make money off of.

Could be. But lets not forget the main issue with these subscription services is that they lack content that pulls and keeps people subbed. You see it like the reports of Disney plus and Netflix and others that people sub for a month to play or watch the one thing they like then cancel and repeat. For you to assume that these people stay sub indefinitely is just absurd. Now im looking into this as if you are offering a service meant fo the more value oriented consumer then it seems obvious to me that thuse looking value will see the benefits of only subbing for a month at a time and playing the titles they want. Because if you notice that they dnt mention if those subs are concurrent, and on the last report they said individual subs. People are not fooled anymore by PR speak. 

Who cares if they are concurrent? They are gaining more month over month and year over year than they are losing on "one month/one year and done" kind of people. They can deal with the concurrent problem down the road with more added features that entice people to stick around. All they care about is the money coming in. And by the way, just because they aren't talking about concurrent numbers isn't an indication of how many aren't re-subbing. The rate could be much better than you think, we can't assume it's bad. The fact that Disney+ has had such tremendous growth over such a short time span, as well as HBO Max, and Gamepass, and Office 365, and the fact that these companies are posting major profits during financial reports shows this method works.