Xbox |OT|

[Ryuu96]

G2ThaUNiT said:

Ryuu96 said:

Game Pass saved Xbox but even if they shut it down 2 years ago we would be going through the exact same issues as we are right now, issues which aren't even exclusive to Xbox, the entire industry is a mess right now, Game Pass has nothing to do with the current issues and Hi-Fi Rush would have underperformed with or without it, as it did on PlayStation and Steam.

Activision just made Microsoft desire more, if you see Activision with 30-40% profit margins then you look at XGS/Bethesda with less than 10%, as a money dude you're going to think "Why can ABK do it but we can't? What do we need to change?" and they'd be asking those questions even if Game Pass didn't exist because even without Game Pass, XGS/Zenimax won't have anywhere close to ABK's profit margins.

Not even Sony does who have like double the amount of consoles sold as Xbox and multi-million selling IPs on the regular.

I bet the CFO of Xbox, Tim Stuart, was salivating when he saw ABK's profit margins lol

Idas comment is closer to reality I reckon so yeah.

If you're a financial dude and see Activision has basically killed everything and focused solely on COD but have profit margins of 30%+ while XGS+Zenimax have below 10% then you're going to start asking questions as to why we bother with all these smaller IPs instead of turning Bethesda into a Fallout factory like Activision did with COD and get these big money makers out faster.

We straight up heard from Phil in the trial that Microsoft is starting to demand that Xbox gets its profit margins closer to Microsoft's core businesses, things like Windows, Azure, Office, etc. Those things likely have a profit margin of 20%+ at minimum. Another thing, ABK has these profit margins by being fully multiplatform so yeah they'll take that too.

Sony's profit margins are below 10% and I think Nintendo's are between 10-20%