| G2ThaUNiT said: I’m shocked at the 3% profitability margin. Here Satya and Hood wanted that at 30% lol. Phil and Sarah were clearly in desperation mode. |
They invested too much into getting tons of studios, and then put all the games on a subscription. The amount they were spending on creating gamepass content increased exponentially and with that the profit they were getting from each subscriber decreased. They tried to increase gamepass to $30 to fix this and there was a mass exodus of subscribers.
It's hard to make profit when so many of your fanbase are getting all your games so cheap. I stacked Gamepass PC at the beginning of this year for just £7/month. That's only a little more than the price of one game per year. They release just two games I'd purchase in a year and they're getting less money from me and that money has to be shared with other publishers.
How many fans do they have that would be spending $300+ a year just on their first party games? But instead just get gamepass which money needs to be shared with third parties.
I just don't see how they can have a high profit margin while giving away all their games day one on a subscription. Especially a subscription that sees them reportedly spend $1 Billion annually for third party content.
