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LudicrousSpeed on 08 May 2023
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Azzanation said:

Ryuu96 said:

Additionally, if they go fully 3rd party, then Xbox Live Gold has to die, and a large perk of Game Pass Ultimate is Xbox Live Gold. So what does Microsoft do to replace it? I can't think of anything right now, which would cause millions to drop back down to Game Pass Regular = Less revenue.

Oh and they'd have to port all of their titles over to PlayStation and Switch...xCloud isn't going to cut it, that is at least 5-10 years away from being a viable option. So add on the additional costs and workflow of porting dozens, perhaps hundreds of titles over to other platforms.

And you'll have some who will drop Game Pass if it doesn't have 3rd parties to fill the quiet periods.

They'd lose the currently millions subbed to Game Pass on Xbox unless they transfer their accounts over to PlayStation/Nintendo.

They' need to significantly expand their Mobile presence, they'd have to carefully transfer the millions of Xbox Game Pass users over, they'd have to MASSIVELY improve on PC, lets use an example, if I became a PC Gamer, I sure as shit wouldn't use Windows Store over Steam which means no Game Pass for me.

Evidently that is the case for a lot of PC users, they hate Windows Store/are entrenched in Steam.

Sorry for skipping you, I literally didn't see this post but ill respond.

Xbox drops Xbox hardware, this will open the gate for Sony to accept a 1st party only GP as well as selling more games separately on PS hardware (No, they cannot bring all their 1st party games across, as they still have to support their current hardware, which won't be a issue if they drop hardware in the future)

1st Party GP on 2 major console markets in Switch and PS means they will have over 200m+ customers that have access to GP, that will make up the cost of losing Live and digital software sold on the underselling Xbox hardware. Yes you cut a lose to gain a much bigger gain. 

Porting is not an issue. They have all the time they need to port games over, some are already on PS and Switch.

MS's end game is subs, removing hardware means they can remove the costs of billions in RnD, Customer support stations, exclusive deals etc. What they gain is 200m+ potential subs for GP which in return will continue to grow earning Xbox billions monthly, if they can score enough subs. This will easily make up any lost ground with hardware.

No offense but you are laughably off base with a lot of this.

1. there’s zero guarantee that Sony or Nintendo would allow GamePass on their platform, even a “first party only” version.  Right now Sony allows EA Play and a classics only version of Ubisoft+, neither of which offer what GamePass does. Nintendo doesn’t have either, probably because they consistently have weaker hardware than PS/Xbox and most EA and Ubi titles skip Nintendo hardware. How do you think a GP on Nintendo hardware would work? 

2. even if somehow MS got GamePass on PlayStation, it wouldn’t be GamePass as it currently exists. You admit they’d have to drop third party games. They’d also have no reason to include Gold in GPU anymore, so $10 is their main subscription. Only now they have to give Sony a large chunk of each sub. And you’re crazy if you think Sony will allow a service that puts games like Starfield and Halo and Fable and Horizon and Doom and TES into the service day one and cut Sony out of a lot of their sales cuts. If Sony allowed GamePass on PlayStation, they’d force MS to do it like EA does it and put their games into the service long after release. So now as a consumer, why do I even want GamePass? 

3. so now that we know GamePass doesn’t exist on Nintendo and sucks on PlayStation, that’s a ton of lost subs. Erase the truckloads of money they make off XBLG as well. Also they don’t just make money on digital sales, they get licensing fees on every disc sold, around 10-15%. So there’s a ton more money lost. And now instead of making around $50 on every physical game sold themselves and 100% of every digital game, they make around $35 on physical and $45-50 on digital titles (at $70). So again, tons of money lost. 

4. what this essentially boils down to is you are way off base concerning the amount of money MS makes off of services, software sold, and their store. There’s a reason they’ve stayed in the industry for decades despite finishing every gen way behind the leader. Because they make money. They make peanuts as a third party publisher. Ryuu is right, they’d have to double what ABK makes just to make as much as they make now as a hardware provider, and that’s before their acquisitions have started pumping out games. Once that happens they’ll make a lot more providing hardware.