Xbox |OT|

[EpicRandy]

the-pi-guy said:

Ryuu96 said:

I know he's formerly PR of Xbox but I don't buy his argument Tbh. Hi-Fi Rush with or without Game Pass would have underperformed, it flopped on PlayStation and Steam too, where Game Pass doesn't exist. Redfall can't be attributed to Game Pass at all. He's right that Game Pass has stagnated but Game Pass is still profitable on its own.

I think something the streaming industry is still grappling with, is how do you measure that success?

How do you measure how successful the subscription is overall?

If MS is spending $4 billion on development every year, but they make $3 billion through subscriptions and $3 billion on game sales, they're overall profitable. But is the subscription profitable? It arguably is and isn't.  The subscription is simultaneously making them more than they need it to, to be profitable, but not individually profitable. 

I'm guessing something like

• t =  monthly time spent on a specific title
• T = monthly time spent on gamepass
• r =  monthly revenue associated to a specific title
• R = overall gamepass revenue
• C = MS cut amount

r= (R-C)*t/T

I have included a ms cut to support 3rd party but it may also apply in case of 1st party.