Gamepass is profitable

[Mnementh]

SvennoJ said:

Mnementh said:

Yeah, you *could* argue that without gamepass selling the games would be more profitable. But that is really a hard calculation to do, is it? Gamepass may or may not less profitable, but it is profitable and it is also more stable than the risky game business is overall. I think if your goal is a sustainable system for developing games for players, than Gamepass can work. Not that I trust MS to not muck it up, especially seeing the recent layoffs. But that said: the reasons for the layoffs isn't Gamepass, it is the greed to have more than just line go up, the line must go up *faster*.

That's not what all the continued layoffs are suggesting...

But indeed, profitable and sustainable are two different things when the goals are "line must go up faster" (and chase the next trend, AI) 

Gamepass is simply not doing good enough to keep the XBox business safe. The game business side is less stable now...

It's rather that Satya Nadella doesn't care about gaming. Xbox downfall is the acquisition of Activision, because CoD is a profit monster, which makes the people at MS wonder: why support games that have 5% profit, if there is one that has 15% (or whatever are the numbers).

Gamepass is profitable and sustainable. It is just not as crazy money generating. Instead MS wants to bet everything on AI.