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Shinobi-san said:
Chicho said:

"I know there's a lot of people that like to write [that] we're burning cash right now for some future pot of gold at the end," Spencer said. "No. Game Pass is very, very sustainable right now as it sits. And it continues to grow."

https://www.vgchartz.com/article/451506/phil-spencer-xbox-game-pass-is-very-sustainable-right-now/

Big budget games have been few and far between for the last couple of years. I would imagine that MS has plans to ramp this up given the recent developer studio purchases. Once that starts to ramp up and Xbox starts to develop games on the same level of Sony it would be interesting to see how they balance that out. If the payoff is as obvious as some are making it out to be why are others not following?

Edit: Also the question of sustainability is not akin to 'burning cash'

How many companies do you know has the capability to actually do something on the scale of GP.  Think about it this way, MS owns the software and hardware and server farms around the world.  They have invested billions on those server farms and continue to invest more.  MS is a software/service company now unlike what they were before and thus GP fits right into what they do best.  The cost for MS to do something along this line is way cheaper then lets say Sony who would have to purchase space for their service including putting their hardware around the world, upkeep etc.  Think about it this way, even Google and Apple use MS servers to host some of their products, that should tell you something about the global reach and capability of MS in the service space.