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Ryuu96 on 05 May 2023
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My Post

Xbox Hardware is needed for xCloud, Xbox Live Gold and the 30% Cut.

Microsoft makes literally billions from the 30% cut.

Lets put this simply, do you think that Xbox will be pulling in more than Activision-Blizzard-King if they went 3rd party? Not just more, they would need to double what ABK makes in order to do this whilst achieving the same revenues they have now.

Microsoft does not report profits of individual aspects of their business IIRC. Only the overall business. So all shareholders and us will see is Xbox going from a $16bn business to a maybe $10bn business, if not less.

Not saying it won't be possible in the far future but there is a lot of things that Microsoft has to do to grow its business to make this viable, as I detailed in my post.

And yes, Sony would likely demand Game Pass is 1st party only and even more than that they'd demand a revenue sharing, they aren't going to allow Game Pass on PlayStation for free, all the IPs Xbox has on Xbox make 100% of the revenue as well, Xbox IPs on PlayStation make 70%.

Right now it makes absolutely zero financial sense for go 3rd party.

Last edited by Ryuu96 - on 05 May 2023