XBOX |OT|

[trunkswd]

JRPGfan said:

trunkswd said:

Microsoft was clearly hoping Game Pass would keep growing to like 100 million subscribers, which is unrealistic. We don't know how many subs there are, but after the last increase they lost millions of subs. I had Ultimate tier maxed out at 3 years before the last increase thanks to MS Rewards. That is now down to 2 years and a few months. Once it runs out I will probably switch to PC Game Pass. 

I could see them investing less in third-parties to help lower costs as they now have a steady stream of first-party games. 

At one point they reached like ~34m game pass subscriptions right? before the price hike. 
I wonder how many they lost due to the price increase.

JRPGfan said:

trunkswd said:

From Jason Schreier:

"Seeing a lot of misunderstanding about this. Profit margin is the percentage of revenue that is kept as profit. A 3% margin means that for every $100 you make, you're spending $97 and keeping $3. Margins don't reflect how much money you're making; they reflect how efficient the business is.

"A business with 3% margins could be making millions of dollars and doing totally fine. But if you're part of a company like Microsoft, which has divisions with 40%+ margins, then it's much harder to convince the bean-counters to keep making big investments in your biz"

Post by @jasonschreier.bsky.social — Bluesky

But that is a profit margin.....   She never says that, she said a "accountability margin".
I think there has to be a reason for that word use, instead of profit margin, or net profit or some such.

Game Pass topped 34 million in early 2024. That was before the first Call of Duty game was day and date on the service. It most likely grew more from that point, but I am thinking it never hit 40 million as I am sure they would have announced that number. 34 million was the last time we got an actual number. So who knows where it stands now. The positive is there is growth once again now that they lowered the price for the Ultimate and PC tiers. 

Oh yes you are right that he is talking profit margin. My bad on that. I am not sure the difference between that and accountability margin.