Gamepass Numbers

[G2ThaUNiT]

src said:

Playstation makes $26B a year. Tiil Xbox comes anywhere close (it hasn't, in fact Sony predicts they'll take more marketshare this gen), Sony won't care. Neither will Nintendo.

Gamepass craters software sales. Its unclear if it is even profitable. To be profitable it essentially turns every game in F2P (+ sub cost), where the microtransaction spend by total users has to be greater than the sales revenue they would get by spending $60 to buy the game.

For SP games, that have very little to no MTX, they are subsidised by the MTX revenue of multiplayer games.

I think total PSN revenue is nearing $10B, so pubs from PS alone are getting $30B+ in revenue a year. Good luck trying to achieve that with Gamepass.

Why should you care? Why should anyone on this site care about how much money each of these companies make? I'm too busy playing more games than I can ever play for $15/month :) 

Seriously though, Microsoft is a $2 TRILLION company, whereas Sony is worth $140 billion and Nintendo is worth around $64 billion. Microsoft will always make more money than the competition. The gaming division of Sony takes up a HUGE part of their revenue, whereas it's all of Nintendo's revenue. They are both completely dependent on the business model gaming has been for decades now. If either of these companies gaming divisions start to falter, alarms will be going off. 

Microsoft is playing the long game on this because they can afford to. It'll be years and years before Game Pass starts making them a good amount of money. Microsoft is a service-based company, and they're incorporating the Xbox ecosystem into the business model that made them the powerhouse they are today.

Netflix didn't start making an insane amount of money and subscribers until they started investing into their own original content, and that's what Microsoft is doing. As long as Microsoft sees subscriber numbers and revenue continue to increase year over year, which it has been, they couldn't care less about losses. All they care about is getting Game Pass into as many people eyes and hands as possible. And that's working. What other gaming company can you play on Console, PC, mobile, web browser, and soon Smart TV? And all you need to transfer save data is by logging into your account. How much more consumer friendly can you get? 

Look at Epic Games. They've invested $500 million so far into the Epic Games Store on PC, and they're estimating it won't become profitable until 2027!!!!! 

So why doesn't everyone just go back to enjoying all of our favorite hobby, GAMING! We'll let the companies fight over our business.