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yvanjean on 03 November 2020
sales2099 said:
HollyGamer said:

15 million subscriber alone (Xbox consoles, Windows store, Xcloud (smartphones ) will not coupe that money because it's not just 7.5 billion but add with game development budget, marketing budget, xcloud infrastructure budget and additional fee to pay on . Also 15 million subscriber also divide into many categories. 

I love this, so much to say. First, Microsoft has every intention to play the long game. In the last quarterly statement MS profited 13 billion. They all ready made back the purchase lol and then some. 

Then you have to consider GP isn’t all by its lonesome. It’s sustainable because you have people buying games outright on Xbox, Windows Store and Steam to provide short term revenue on top of a growing subscriber base. Minecraft still raking in money across all platforms.

Then you have indirect effects like DLC purchases of GP titles. Friend referrals to non GP owners. By itself who knows how GP is sustainable but as a ecosystem/gaming division it’s more then so. The bigger their 1st party gets the less they will need to rely on 3rd party deals. 

Zenimax acquisition is a 7.5 Billion asset for Microsoft, They don't need to recoup 7.5 Billion, they could keep Zenimax for 10-15 years and resell all of its assets and IPs for 7.5 Billion or higher in 10-15 years keeping all the profit made while they were the owners. Besides the time frame to recoup from the Zenimax investment could be 20-30 year if they intend to keep it forever. They also did not buy Zenimax to serve the 15 million subscribers, that's just the starting point, they intend for the purchase to really growth this number and increase year on year the numbers of subscribers.

15 Million subscribers X $15/month x 12 months x 10 years = 27 Billion $ Revenue
25 Million subscribers X $15/month x 12 months x 10 years = 45 Billion $ Revenue
50 Million subscribers X $15/month x 12 months x 10 years = 90 Billion $ Revenue
100 Million subscribers X $15/month x 12 months x 10 years = 180 Billion $ Revenue

Last edited by yvanjean - on 03 November 2020

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HollyGamer on 03 November 2020
sales2099 said:
HollyGamer said:

15 million subscriber alone (Xbox consoles, Windows store, Xcloud (smartphones ) will not coupe that money because it's not just 7.5 billion but add with game development budget, marketing budget, xcloud infrastructure budget and additional fee to pay on . Also 15 million subscriber also divide into many categories. 

I love this, so much to say. First, Microsoft has every intention to play the long game. In the last quarterly statement MS profited 13 billion. They all ready made back the purchase lol and then some. 

Then you have to consider GP isn’t all by its lonesome. It’s sustainable because you have people buying games outright on Xbox, Windows Store and Steam to provide short term revenue on top of a growing subscriber base. Minecraft still raking in money across all platforms.

Then you have indirect effects like DLC purchases of GP titles. Friend referrals to non GP owners. By itself who knows how GP is sustainable but as a ecosystem/gaming division it’s more then so. The bigger their 1st party gets the less they will need to rely on 3rd party deals. 

13 billion is not include for the cost of other thing. They need to recycle the profit to making games, marketing and paying to third party game publisher and game developer. In fact Microsoft it self said "they are not making money for Gamepass" https://wccftech.com/microsoft-admits-xbox-game-pass-isnt-really-making-a-lot-of-money-right-now/

That statement happen before they bought Zenimax, now after buying Zenimax they have other cost to cover, from loosing the capital, they also need to pay all 2 thousand and more employee and also pay their game budget development. It actually they have to spend more than just 7.5 billion. 

Dont forget Micorosft has shutdown many division and product 



HollyGamer on 03 November 2020
kirby007 said:
Raven said:

Why are people suddenly so concerned about how a company that has more total cash on hand than Sony is even worth will pay its bills from this acquisition? Microsoft has no pressure to ensure Game Pass/XCloud is instantaneously profitable or to recoup the money they used to purchase Bethesda. They made the profits to be used for this reason, otherwise it's just sitting around in a bank account somewhere.

because people only see big numbers but don't understand the value nor the economics behind it

I know how economic works and I know about investment. 



kirby007 on 03 November 2020
HollyGamer said:
kirby007 said:

because people only see big numbers but don't understand the value nor the economics behind it

I know how economic works and I know about investment. 

with your previous statements you prove the opposide



 "I think people should define the word crap" - Kirby007

Join the Prediction League http://www.vgchartz.com/predictions

Instead of seeking to convince others, we can be open to changing our own minds, and seek out information that contradicts our own steadfast point of view. Maybe it’ll turn out that those who disagree with you actually have a solid grasp of the facts. There’s a slight possibility that, after all, you’re the one who’s wrong.

HollyGamer on 03 November 2020
kirby007 said:
HollyGamer said:

I know how economic works and I know about investment. 

with your previous statements you prove the opposide

https://wccftech.com/microsoft-admits-xbox-game-pass-isnt-really-making-a-lot-of-money-right-now/

and  https://www.networkworld.com/article/2288711/125008-Microsofts-Graveyard-16-products-that-Microsoft-has-killed.html



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sales2099 on 03 November 2020
HollyGamer said:
sales2099 said:

I love this, so much to say. First, Microsoft has every intention to play the long game. In the last quarterly statement MS profited 13 billion. They all ready made back the purchase lol and then some. 

Then you have to consider GP isn’t all by its lonesome. It’s sustainable because you have people buying games outright on Xbox, Windows Store and Steam to provide short term revenue on top of a growing subscriber base. Minecraft still raking in money across all platforms.

Then you have indirect effects like DLC purchases of GP titles. Friend referrals to non GP owners. By itself who knows how GP is sustainable but as a ecosystem/gaming division it’s more then so. The bigger their 1st party gets the less they will need to rely on 3rd party deals. 

13 billion is not include for the cost of other thing. They need to recycle the profit to making games, marketing and paying to third party game publisher and game developer. In fact Microsoft it self said "they are not making money for Gamepass" https://wccftech.com/microsoft-admits-xbox-game-pass-isnt-really-making-a-lot-of-money-right-now/

That statement happen before they bought Zenimax, now after buying Zenimax they have other cost to cover, from loosing the capital, they also need to pay all 2 thousand and more employee and also pay their game budget development. It actually they have to spend more than just 7.5 billion. 

Dont forget Micorosft has shutdown many division and product 

Question...what’s your endgame to the “concern”? You’d think their accounting department, financial planners, and vision for the next several years would take into account all these costs associated with what they are doing? Any credentials you have are one of an outsider without the knowledge of inner workings. If you proved you have some credentials and insider claims other then “armchair economics” maybe I’d take your sentiments under consideration. 

Because all we have to be concerned about is what they are making for Xbox. That’s it. To me, any false claims of business concern tells me the non-Xbox camp has little to say that’s not blatant speculation. Which ultimately means Xbox is in a good place right now, arguably the best position it’s ever been before the start of a new generation. 



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

DroidKnight on 03 November 2020
HollyGamer said:

13 billion is not include for the cost of other thing. They need to recycle the profit to making games, marketing and paying to third party game publisher and game developer. In fact Microsoft it self said "they are not making money for Gamepass" https://wccftech.com/microsoft-admits-xbox-game-pass-isnt-really-making-a-lot-of-money-right-now/

That statement happen before they bought Zenimax, now after buying Zenimax they have other cost to cover, from loosing the capital, they also need to pay all 2 thousand and more employee and also pay their game budget development. It actually they have to spend more than just 7.5 billion. 

Dont forget Micorosft has shutdown many division and product 

Why does Microsoft have to suddenly take up the full tab of paying the employees?  Did Zenimax magically stop making money? Was budget development not already allocated and invested?  



...to avoid getting banned for inactivity, I may have to resort to comments that are of a lower overall quality and or beneath my moral standards.

sales2099 on 03 November 2020
HollyGamer said:
kirby007 said:

with your previous statements you prove the opposide

https://wccftech.com/microsoft-admits-xbox-game-pass-isnt-really-making-a-lot-of-money-right-now/

and  https://www.networkworld.com/article/2288711/125008-Microsofts-Graveyard-16-products-that-Microsoft-has-killed.html

Isn’t making a lot of money can simply mean “making little profit”. But let’s say your concerns are right, Game Pass isn’t the whole of the Xbox division. You have to look at the Xbox division as a whole. Game Pass isn’t alone.

That’s why they release games on Steam and Windows Store, along with those who buy outright on consoles. It all works together, hence an “Xbox Ecosystem”. 



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

kirby007 on 03 November 2020
HollyGamer said:
kirby007 said:

with your previous statements you prove the opposide

https://wccftech.com/microsoft-admits-xbox-game-pass-isnt-really-making-a-lot-of-money-right-now/

not sure why you think that link is useful that isn't in anyway related towards 1. the purchase of the studio 2. future growth 3. the rest of the xbox branch 4. scrapped products/ventures

it would suit you admitting being clueless, if you do i might bother explaining why its not just ooh must recoup my studio acquisition otherwise i would be wasting time.



 "I think people should define the word crap" - Kirby007

Join the Prediction League http://www.vgchartz.com/predictions

Instead of seeking to convince others, we can be open to changing our own minds, and seek out information that contradicts our own steadfast point of view. Maybe it’ll turn out that those who disagree with you actually have a solid grasp of the facts. There’s a slight possibility that, after all, you’re the one who’s wrong.

HollyGamer on 03 November 2020
sales2099 said:
HollyGamer said:

13 billion is not include for the cost of other thing. They need to recycle the profit to making games, marketing and paying to third party game publisher and game developer. In fact Microsoft it self said "they are not making money for Gamepass" https://wccftech.com/microsoft-admits-xbox-game-pass-isnt-really-making-a-lot-of-money-right-now/

That statement happen before they bought Zenimax, now after buying Zenimax they have other cost to cover, from loosing the capital, they also need to pay all 2 thousand and more employee and also pay their game budget development. It actually they have to spend more than just 7.5 billion. 

Dont forget Micorosft has shutdown many division and product 

Question...what’s your endgame to the “concern”? You’d think their accounting department, financial planners, and vision for the next several years would take into account all these costs associated with what they are doing? Any credentials you have are one of an outsider without the knowledge of inner workings. If you proved you have some credentials and insider claims other then “armchair economics” maybe I’d take your sentiments under consideration. 

Because all we have to be concerned about is what they are making for Xbox. That’s it. To me, any false claims of business concern tells me the non-Xbox camp has little to say that’s not blatant speculation. Which ultimately means Xbox is in a good place right now, arguably the best position it’s ever been before the start of a new generation. 

I am never said I am " Concern" . In fact i do believe they will making a lot of money in long term and " short term" . Making money in long term (of course full prediction and never 100% guarantee in any business model so far ). And also short terms with better probability. 

I do believe Gamepass is ultimate money maker, it's just  that making the games alone full exclusivity is just not part of their plan as well. To make a short term profit they can just sell games full price on other platform and making it free on their platform.  It's like making a double score by  single hit.