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Hynad said:
goopy20 said:

Look, we all have different tastes in games. Personally I love stuff like Wasteland 3, battletoads, Grounded as well a AAA game like TLOU2. Only thing I'm saying is that Sony and MS are going with completely different strategies and it will show in the types of games they'll be focusing on.

Sony is all about story telling and single player blockbusters. If you don't like those sort of games, you're in luck because they wouldn't work with the GP model. MS will be about quantity, smaller scale games and experiences that keep people engaged with GP over a long period of time. Elder Scrolls Online, Tell me Why... perfect games for GP. Doom Eternal, Gear 5.. not so much. 

Did you just call The Elder Scrolls a “smaller scale game/experience”?

Please, don’t comment about XBox from here on out.

At this point, you should be banned from discussing anything MS/XBox altogether.

He was perma'd a while ago :P



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sales2099 said:
HollyGamer said:

For Gamepass, even Blockbuster Movie streaming never had truly exclusives product. Gamepass alone will not coupe the lost for 7.5 billion. Unless they want to watered down Blockbuster games to become 2A games or even 1A games. There no such free stuff in this world or cheap stuff that equal to premium. They can just sell high price on PS or Nintendo or other device and making it free on gamepass or Xbox ecosystem. 

Who said it’s exclusive? It’s Xbox, Windows Store, Steam, Game Pass and Xcloud via smartphone/tablet. DLC is also a great way to have GP subscribers pay on top of their monthly sub. 

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. 



HollyGamer said:
sales2099 said:

Who said it’s exclusive? It’s Xbox, Windows Store, Steam, Game Pass and Xcloud via smartphone/tablet. DLC is also a great way to have GP subscribers pay on top of their monthly sub. 

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. 

Well, the numbers add up: 15M @$10 x 12Months = approx 2 billion per annum. 

Also, this acquisition doesn't need to "pay itself off". The purchase was as "cash and carry" as it gets. It wasn't money for recouping. It was money they could literally burn through to get an advantage. 



HollyGamer said:
sales2099 said:

Who said it’s exclusive? It’s Xbox, Windows Store, Steam, Game Pass and Xcloud via smartphone/tablet. DLC is also a great way to have GP subscribers pay on top of their monthly sub. 

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. 

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.



Raven 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. 

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 think people should define the word crap" - Kirby007

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HollyGamer said:
sales2099 said:

Who said it’s exclusive? It’s Xbox, Windows Store, Steam, Game Pass and Xcloud via smartphone/tablet. DLC is also a great way to have GP subscribers pay on top of their monthly sub. 

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. 



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

 

Raven 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. 

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.

It’s textbook concern trolling. Maybe Holly was doing it unintentionally but it’s a very common anti Game Pass argument.

Its value is unmatched...which other console maker gives away 1st party games day 1? Nobody. So instead of giving credit to where it’s due people on the other side naturally have to trash it. But there’s nothing to trash because the competition doesn’t have a better system.

So what to do you ask? Talk hypothetically. Act like it’s so good a deal that it’s unsustainable. Talk like you are a faux businessman then a gamer who plays games. Pretend it’s gonna bankrupt a corporation that profits 10+ billion every 3 months. 



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

 

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

Tommy Jean, CPA, CGA

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 



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.