MS will never tell us the real costs of Gamepass. Any profitable/not profitable discussion is moot. It is also not a simple question.
From all the articles:
"The costs from Game Pass includes fees paid to third-parties, marketing, and service cost".
One of the major costs of game hosting is server costs. It costs a lot to build/rent/maintain servers world-wide to ensure all your games are on-line 24/7, world wide. I have seen crude estimates for having PSN, they usually range in the $1billion environment.
MS has never told anyone anything about what they pay for their game servers (which would be Azure-based, obviously). My hunch is XBox has always freeloaded on Azure to "save costs".
The fact that MS is now selling its first party titles on Playstation is a sure sign Gamepass things are not as positive as one might think or Gamepass day one titles are eating way too much into first party revenue..
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