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Forums - Microsoft Discussion - All New Microsoft Studio Releases Will be On Xbox Game Pass

How do they make a profit on that ?



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yvanjean said:
pitzy272 said:

Make a little research? I suppose I understand what you meant 😜. I asked my question bc I hadn’t done research yet. That was the point of my asking.

@1st link

This is the XBO, so I was talking about XBO exclusive games—not 360 or OG Xbox. I’m fully aware of xbo’s library, and I have an XBO myself. And unfortunately, the only XBO exclusive I’ve played and actually liked was cuphead (which was fantastic). Maybe that’ll change when I finally play sunset overdrive. 

Seem to me you were trying to flame on Microsoft... their exclusive games are so rarely good?

It's one think to say that Microsoft Studios releases are the best game available on any consoles but to say that their game aren't good is simply trying to get a rise out of people. 

They've had excellent release this Gen - Halo 5, Halo Wars 2, Gears 4, Ori, Quantum Break, Dead Rising 3, Sunset Overdrive, Halo Master Chief collection & Forza Series.

Then there was the good release Super lucky Tales, Rare Replay, Scream ride, Zoo Tycoon, Recore, D4, Ryse: Son of romes.

I bet there a few lackluster game like lococycle and any of the Kinects games that weren't so good but that hardly worth mentioning. 

You seem to have listed almost all exclusives and consider the majority to be good to excelent. That would probably not be the same feeling someone that isn't invested in the ecosystem have.

S.T.A.G.E. said:
DonFerrari said:
If it drives up the adoption rate it may mean a lot of assured revenue, they will probably make it 12month sub only to avoid the cheapskates.

This. Good thinking. The best way to think when you see something that’s too good to be true is to use your most educated guess based on trends (not holding it as the answer) and rather as measure of a caution. 

MS is a business and would only make a move if it makes they more money than if they didn't.

LudicrousSpeed said:
DonFerrari said:
If it drives up the adoption rate it may mean a lot of assured revenue, they will probably make it 12month sub only to avoid the cheapskates.

That's not really how these services work. I mean, look at XBL and PS+. They offer $60 year long subscriptions, but they still offer $25 three month sub options, and $10 a month options. If Sony or MS has a big month in "free" games offered on their online service, they don't temporarily suspend one month subscriptions. What you call "cheapskates", businesses see as fringe customers. Someone might subscribe for a month to check it out because hey, it's only $10. They might also buy microtransactions or DLC for one of the games included in the service. But that doesn't mean that person would subscribe for $60 for a year. That requires a higher up front investment. You'd be surprised at how many people pay $10 a month on a renewing subscription for XBL/PSN when they could buy a year long sub and save money.

It's the same logic Walmart uses when they allow anyone to return anything even without a receipt, for store credit. They know when these people go spend that credit they'll also spend their own money on other stuff. On paper a $10 sub even say, three months out of the year is already half of what a $60 subscriber pays and if someone is subscribing for particular games, they're gonna spend some money on DLC.

S.T.A.G.E. said:

SOUnds good but I see through it. It will be riddled with microtransactions. They’ve definitely been paying attention to the games as a service trends for longevity on a first party front.

No more than gaming is "riddled" with microtransactions already. At least in this case you don't have to plop down $60 per title to be fed microtransactions.

That last part of your post is strange because between Sony and Microsoft, with games like The Show, Uncharted's multiplayer, Last of Us multiplayer, GT Sport, etc etc, talk late last year about exploring more in the microtransaction area, and shifting from hardware to the MAU stat MS loves.. even Nintendo now is joining with paid online and are more prominently using DLC.. not to mention Amiibo. I mean, it doesn't matter what console you have, this is the future of the industry. These are businesses who exist to make money for shareholders and this is what makes money.

 

edit, I still think that this is such a goddamn amazing deal for gamers, that something must not be communicated yet. Similar to the Gamestop game swapping program they announced and then killed before it even started. My guess is the games will be neutered somehow. For example State of Decay is in the Game Pass program right now, but it's not the Year One Survival Edition. You get the base game, but the DLC is not included, even though AFAIK there was never a version of SoD on Xbone that DIDN'T include the DLC.

Sure I could be wrong and they offer all games on release even if you just pay for that month (and when you do a 1 year sub it could be paid monthly, so the amount would be lower, at least that is how it would be done in Brazil where paying per month is usual for almost everything).

MS surely will have to test and adapt to see how they will have most income and regular customers. But all in all I see it having great potential for revenue on Xbox and future interactions.

AngryLittleAlchemist said:
How do they make a profit on that ?

MS is a smart company that knows how to profit, whatever model they offer have been through and through tested and saw to make profits, the only way they wouldn't profit is if the service bombs or if their model analysis was totally off.

But if let's say 1/3 of the XBL customers adopt Gamepass monthly that is additional 150M USD per month, that would be equivalent to MS launching a good received game every month, but actually doing it like only once every 3 months.



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Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

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AngryLittleAlchemist said:
How do they make a profit on that ?

Preventing people from throwing their Xbox to the trash seems like a good strategy for profit.



If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.

Slade6alpha said:
Seems like a desperate move by MS.

It is, but not for the reason you're implying. They want to transform the industry into an all-digial one. That's all this is about. Nothing more. 



dx11332sega said:

Glad I never used my 1 month free game pass that was included free for my Xbox One X though I kinda feel somewhat wanna be a late secret santa and give the code to anyone since i dont have money problems

 

edit: Or should I keep my game pass

I'll take it if you really just want to give it away



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Great deal and all, but its a step closer to a digital only future. I don't like it.



Yeah, there's no doubt that this is MS's big push towards digital only. I understand that those who want physical copies don't like but I myself look forward to digital becoming the standard even more.



AngryLittleAlchemist said:
How do they make a profit on that ?

Initially there may be a loss of profit, but as time goes on and MS releases more exclusives (they are currently working on expanding their first party), subscription numbers will increase, and they'll eventually have several million people paying them $120 a year for Gamepass. Also, you have to remember that they'll still be making money from DLC and microtransactions on these games. You also have to take into account that some people will try a game on Game Pass, realize they like it, and then buy a copy using the Game Pass discount. And then you have to account for the other benefits. More people are likely to try their games now, which will lead to increased awareness and popularity for their IP's. That's going to be particularly useful for new IP's, the Xbox fanbase this gen has shown a hesitance towards trying new IP's, which has lead to lackluster sales for new IP's like Sunset Overdrive, Quantum Break, and ReCore. However, with future new IP's being on Game pass from day one, people may be more likely to try them than they would normally be when they had to buy the new IP.



That's pretty crazy. I wonder how it works out for Microsoft.



DonFerrari said:
yvanjean said:

They've had excellent release this Gen - Halo 5, Halo Wars 2, Gears 4, Ori, Quantum Break, Dead Rising 3, Sunset Overdrive, Halo Master Chief collection & Forza Series.


Then there was the good release Super lucky Tales, Rare Replay, Scream ride, Zoo Tycoon, Recore, D4, Ryse: Son of romes.

I bet there a few lackluster game like lococycle and any of the Kinects games that weren't so good but that hardly worth mentioning. 

You seem to have listed almost all exclusives and consider the majority to be good to excellent. That would probably not be the same feeling someone that isn't invested in the ecosystem have.

Every game that I list has excellent all have Metacritic score of 75 and above. Therefore, I'm not making the statement has someone invested in the ecosystem but rather reviewers.

This is what to expect going for ward if you subscribe to game pass. 



Tommy Jean, CPA, CGA