Gamepass is profitable

[SvennoJ]

Mnementh said:

SvennoJ said:

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.

For how much longer though. Gamepass has benefited immensely from the back catalog, games that had already paid for themselves and went on gamepass for some extra revenue.

That back catalog is only getting older and further exhausted. We see it in the rising prices for gamepass. Where it will balance out remains to be seen. Fact is the 69 billion acquisition isn't providing the boost to gamepass that MS wanted. Continued layoffs and publishing games on competing platforms shows that. 

And the ultimate problem with MS is, it's not sustainable for MS if it's not growing fast enough. They simply pivot to something else, which is AI today.