Gamepass Numbers

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gtotheunit91 said:

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. 

See, its people/consumers like you that allow capitalist companies to abuse laws, job security, workers rights and attempt to carve society to their will.

Unlike you, there are regulators, government agencies, academics, business analysts that do attempt to find out the ethics of businesses and their models. Consumers, unless they wish to be tools, are increasingly aware of the consequences of certain business models.

MS is such a 2 Trillion company that Xbox got dominated by Playstation and Nintendo 3 times out of 4 LMAO. Xbox fans love to throw around MS's marketcap like its some be all end all, when it just shows their lack of business acumen.

MS got to where it is by platform economics that even the US government considered anti-competitive: Windows. IE, Bing, Office, and now Azure all try and use their Windows monopoly to become popular products. It worked for a while and still does (Teams vs slack) but MS learnt the hardway that Windows is not as big as it was in the 80s. It got handily beaten many times by Apple, Google, Sony, Valve, Amazon, Zoom etc

Windows gaming got destroyed by Steam. There is little hope Windows gaming store can in anyway compete with Steam so MS uses Steam as well.

Epic thinks by burning money with timed exclusives they will compete, but it turns out their store lacks many ways what Steam has, and Valve has some great exclusives of their own. Epic's best push is Fortnite, a game that has been in massive decline since 2018 and is mostly played on console.

Xbox got dominated by Playstation, especially in the business model of being a platform holder. Sony have beaten MS by 120:50 in hardware and now get near 70% of all third party sales.

Being dominated both on the PC and console side, Xbox is now going to service subs, as way to form its own dominant platform. There are numerous reasons why the gaming industry and business model is bad for the sub model but I will put it simply.

Netflix, Spotify, Disney+ are very open in their growth. They give quarterly sometimes even monthly updates on sub count, sub types, and a ton of other data to clearly show growth.

Spotify's revenue grew 10 times in 4 years. Netflix had an exponential increase in revenue.

Gamepass is nothing like Spotify or Netflix.