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JRPGfan said:
Dulfite said:

If they release games on multiple platforms, they can projected much higher profits, which means they can go on a hiring spree to greatly expand studios to speed up production so what you just described doesn't happen.

I think thats the wrong way of looking at it.
The reality is gamepass cant support that many big AAA games, that they can now make, with all the big studios they have.

So they have two options:
A) Drop day-and-date on gamepass. Get xbox users to buy games, and still stay subbed to gamepass. Games can stay exclusive to xbox. Gamble on xbox, hope this turns into better console sales, and thus better game sells and subscriptions ect.

B) keep day-and-date on gamepass. Xbox console users, still get best bang-4-buck service, for games. In order to be able to finance, the losses, doing day-and-date on gamepass for xbox users, port games to PS5/Nintendo, and make them pay for it.

They choose option B)

Some of these studios are huge.
Can you imagine if Call of Duty stayed exclusive to xbox and pc?
The majority of their sales come from playstation.
Dropping playstation would mean 100's of millions of profit, going away, every year (CoD is huge).
And thats just 1 game.

Developement costs are big, and xbox console arn't selling that well.... its likely to end the gen, at like 40m.
With how many studios xbox now has, they need to find a way to not just lose money on keeping them.
(imagine spending $80-100 bn, buying studios, only to be loseing money from it? that wouldn't make sense)

^ this is what made them have to choose, between A and B.

I wouldnt be suprised if Microsoft is reconsidering even putting COD on gamepass.