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Dulfite said:

If MS was smart, they should be able to make profit regardless of what their GP subs.

A quick internet check got me to a site that claims the average gamer buys 10 games over a console's lifetime. Let's go with $50 a game (some buy at 70 yes but many will buy discounted). That's $500 over 6 years, or $83 a year. Xbox % cut would be 30%, so $25 a year and $2 a month.

GP players from that 34 mil number are spending $11-17 a month right now (Phil said that 34 mil was full paid customers, not discounted ones). That's $132-$187 a year from these gamers, which is a lot higher than the $83 they'd typically get from purchases for the typical gamer. From what I've read, it sounds like third part payouts + other expenses amount to around $3 billion annually, and they are pulling in probably $5.3 billion or more, so that's 44% leftover for MS after third party companies get their share.

So for third party games, they should be getting more of the pie on GP than they did with game sales and the pie itself is bigger monthly and annually than the pie for game sales in the first place.

Paid customers, just means, they didn't count, ones that created a sub from a free month or two, from a coke bottle, bag of chips ect (free trials).
Back from those Xbox leaks during the trail (Activsion-blizzard), we found out the avg was like $9.26 pr sub. I have no idea how much they spend on paying 3rd party.... or how big a loss in potential sales it is for their own 1st party games (vs traditional game sales).
(you have to factor lost game sales into the equation as well, because dev costs of makeing games, isnt free).

If the pie is bigger, I dont think MS is thinking, 3rd should get more for it.
This is their xbox vision, they want their gameing devision to make good profits (what company doesn't).

Supposedly Sony only had like a 6% profit margin, last time they release data.

Last edited by JRPGfan - on 16 February 2024