LudicrousSpeed said:
$6,000,000 per game is an estimate based on my purely guessed number of $5 per month from every GamePass subscriber. It also assumes every game gets paid the same amount of money (they don’t). Your 85k sales assumes every game in the service costs $70 when a vast majority of games don’t cost that much. Hell, a large chunk of GamePass games probably don’t cost half of that. It also assumes publishers get every penny of that assumed $70 price, which is of course ridiculous. All that will matter for publishers is if the checks they get from MS and revenue from GamePass players offset the initial cost of entry a user typically has to pay, which of course they now don’t have to pay because the game is in GamePass. |
You're just concentrating on the math of an example grabbed out of thin air. What matters is the second and third paragraph of my reply.
If the total size of the pie stays the same, subscriptions services just take an extra cut from the pie. Same as the $10 publishing fee to put games on consoles. With first party games that fee doesn't earn the platform holder anything extra, yet via a subscription service, it is a way to get more money for the platform holder.
So if the pie doesn't grow, the development budgets shrink with this added revenue stream (for the platform holder).