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Forums - Microsoft Discussion - Microsoft Has Put Themselves Back In The Game!

kirby007 on 04 October 2020

because that validates what exactly?



 "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.

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LudicrousSpeed on 04 October 2020

Why does it even matter if GamePass turns a profit for MS? It’s not the type of service you launch expecting quick profits. These services take time before you start to see a real return.



kirby007 on 04 October 2020
LudicrousSpeed said:
Why does it even matter if GamePass turns a profit for MS? It’s not the type of service you launch expecting quick profits. These services take time before you start to see a real return.

now now, calm down... dont start bringing common sense around these parts



 "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.

Cerebralbore101 on 04 October 2020
LudicrousSpeed said:
Why does it even matter if GamePass turns a profit for MS? It’s not the type of service you launch expecting quick profits. These services take time before you start to see a real return.

Well all I wanted was for people to admit MS is burning money now to hopefully make a ton of money in the future. See my post a few days ago, that pretty much agrees with what you just said. https://gamrconnect.vgchartz.com/post.php?id=9224201

It just irks me that MS hides behind financial smoke and mirrors, for the purposes of marketing. Microsoft's marketing department is the epitome of this meme...

Edit: Just imagine if Nintendo was this loudmouthed, and arrogant during the Wii U era.

Last edited by Cerebralbore101 - on 04 October 2020

sales2099 on 04 October 2020
Cerebralbore101 said:
smroadkill15 said:

https://mspoweruser.com/microsoft-reports-higher-gaming-revenue-xbox-live-users-last-quarter/

https://www.geekwire.com/2018/microsofts-record-setting-10b-gaming-year-compares-rivals-sony-nintendo/

Right now Gamepass is profitable, even if it's not by much according to Greenberg in July when they announced Gamepass was at 10 million subs. Now it's at 15 million subs, and may even hit 20 million by the end of the year with the way it's growing. 

The first article is from 2017. I'm sure they were somewhat profitable back then, since Gamepass wasn't full steam yet.

The second article doesn't list profits but rather revenue.

From Investopedia: Revenue is known as the top line because it appears first on a company's income statement. Net income, also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

https://www.investopedia.com/terms/r/revenue.asp

I'd just like proof that Gamepass turns a profit. That's all.

https://screenrant.com/microsoft-xbox-one-console-sales-low-fiscal-2020/amp/

“This net profit in gaming revenue is the result of “Xbox content and service revenue[being] up $943 million, or 11%.” Minecraft, third-party games, and subscription growth were responsible for this improvement, as was higher engagement brought about by COVID-19 lockdowns. Aug 3 2020.”

Quick google search. Xbox division on the whole is profitable. You make the mistake of thinking Game Pass is by its lonesome in making or losing money. By all accounts it brings in more money via DLC purchases for games people wouldn’t have played otherwise. As well as recommending to non GP users. Thinking of profit purely in terms of just sub revenue is only looking at a piece of the puzzle. 

And this is them making a profit while in 3rd place. New gen means faster growth and more profit if they start things right. 

Last edited by sales2099 - on 04 October 2020

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

 

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Cerebralbore101 on 04 October 2020
sales2099 said:
Cerebralbore101 said:

The first article is from 2017. I'm sure they were somewhat profitable back then, since Gamepass wasn't full steam yet.

The second article doesn't list profits but rather revenue.

From Investopedia: Revenue is known as the top line because it appears first on a company's income statement. Net income, also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

https://www.investopedia.com/terms/r/revenue.asp

I'd just like proof that Gamepass turns a profit. That's all.

https://screenrant.com/microsoft-xbox-one-console-sales-low-fiscal-2020/amp/

“This net profit in gaming revenue is the result of “Xbox content and service revenue[being] up $943 million, or 11%.” Minecraft, third-party games, and subscription growth were responsible for this improvement, as was higher engagement brought about by COVID-19 lockdowns. Aug 3 2020.”

Quick google search. Xbox division on the whole is profitable. You make the mistake of thinking Game Pass is by its lonesome in making or losing money. By all accounts it brings in more money via DLC purchases for games people wouldn’t have played otherwise. As well as recommending to non GP users. Thinking of profit purely in terms of just sub revenue is reductive. 

And this is them making a profit while in 3rd place. New gen means faster growth and more profit if they get things right. 

The original source for that information is from here: https://www.gamesindustry.biz/articles/2020-07-31-microsofts-full-year-gaming-revenues-nearly-flat-for-fiscal-2020

And I don't see any mention of profit in the gameindustry.biz article.

I don't mean to be a dick, but where exactly in MS's full year financials does it say that the Xbox division made a profit this year?

Last edited by Cerebralbore101 - on 04 October 2020

chakkra on 04 October 2020
Cerebralbore101 said:
smroadkill15 said:

https://mspoweruser.com/microsoft-reports-higher-gaming-revenue-xbox-live-users-last-quarter/

https://www.geekwire.com/2018/microsofts-record-setting-10b-gaming-year-compares-rivals-sony-nintendo/

Right now Gamepass is profitable, even if it's not by much according to Greenberg in July when they announced Gamepass was at 10 million subs. Now it's at 15 million subs, and may even hit 20 million by the end of the year with the way it's growing. 

The first article is from 2017. I'm sure they were somewhat profitable back then, since Gamepass wasn't full steam yet.

The second article doesn't list profits but rather revenue.

From Investopedia: Revenue is known as the top line because it appears first on a company's income statement. Net income, also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

https://www.investopedia.com/terms/r/revenue.asp

I'd just like proof that Gamepass turns a profit. That's all.

It is quite possible that Game Pass is not turning a profit yet; I don't think it is a secret for anybody that Subscription-based models don't tend to turn profits in the first few years of existence.

Now, since you seem to be so much interested in this topic, here is a short article that might help alleviate your concerns about Game Pass.

https://www.tweaktown.com/news/74188/game-pass-defines-entire-xbox-generation-drives-year-by-revenues/index.html

"Xbox Game Pass has consistently raised Microsoft's gaming revenues every year since launch, leading to new 2020 record highs."

Basically, MS's revenue went from $9.25b in 2014 to $11.57b in 2020. Now, I want you to think for a second how much less hardware (and software) Xbox sold in 2020 compared to 2014 and yet revenue still went up more than $2b in that timeframe.

And just to give you a little bit more perspective, Nintendo's revenue in 2020 was $12.1b. Let that sink in for a moment, Switch has outsold the Xbox about 7:1 in this past year, and had Animal Crossing and Pokemon in its roster, and yet Nintendo's revenue was just half a billion more than Microsoft's.



Cerebralbore101 on 04 October 2020
chakkra said:
Cerebralbore101 said:

The first article is from 2017. I'm sure they were somewhat profitable back then, since Gamepass wasn't full steam yet.

The second article doesn't list profits but rather revenue.

From Investopedia: Revenue is known as the top line because it appears first on a company's income statement. Net income, also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

https://www.investopedia.com/terms/r/revenue.asp

I'd just like proof that Gamepass turns a profit. That's all.

It is quite possible that Game Pass is not turning a profit yet; I don't think it is a secret for anybody that Subscription-based models don't tend to turn profits in the first few years of existence.

Now, since you seem to be so much interested in this topic, here is a short article that might help alleviate your concerns about Game Pass.

https://www.tweaktown.com/news/74188/game-pass-defines-entire-xbox-generation-drives-year-by-revenues/index.html

"Xbox Game Pass has consistently raised Microsoft's gaming revenues every year since launch, leading to new 2020 record highs."

Basically, MS's revenue went from $9.25b in 2014 to $11.57b in 2020. Now, I want you to think for a second how much less hardware (and software) Xbox sold in 2020 compared to 2014 and yet revenue still went up more than $2b in that timeframe.

And just to give you a little bit more perspective, Nintendo's revenue in 2020 was $12.1b. Let that sink in for a moment, Switch has outsold the Xbox about 7:1 in this past year, and had Animal Crossing and Pokemon in its roster, and yet Nintendo's revenue was just half a billion more than Microsoft's.

Revenue is not profit though.



Has on 04 October 2020

As a consumer, my concern is what is the best deal for me, not how to help a corporation make a profit. I don't care if the trillion dollar company offering that deal is profiting or not. Considering they are one of the biggest most profitable companies in the world, I'm sure Microsoft has the whole profit part figured out, so I'll leave it to them.

Therefore, I don't really care if gamepass is profitable or not. It is a great deal, so I use it.



smroadkill15 on 04 October 2020
Cerebralbore101 said:
smroadkill15 said:

https://mspoweruser.com/microsoft-reports-higher-gaming-revenue-xbox-live-users-last-quarter/

https://www.geekwire.com/2018/microsofts-record-setting-10b-gaming-year-compares-rivals-sony-nintendo/

Right now Gamepass is profitable, even if it's not by much according to Greenberg in July when they announced Gamepass was at 10 million subs. Now it's at 15 million subs, and may even hit 20 million by the end of the year with the way it's growing. 

The first article is from 2017. I'm sure they were somewhat profitable back then, since Gamepass wasn't full steam yet.

The second article doesn't list profits but rather revenue.

From Investopedia: Revenue is known as the top line because it appears first on a company's income statement. Net income, also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

https://www.investopedia.com/terms/r/revenue.asp

I'd just like proof that Gamepass turns a profit. That's all.

If Xbox was making a profit in 2017, you can bet they are still profitable now, and you asked about Xbox one being profitable for the generation. I know what revenue is, but I just brought it up to show how Xbox was doing really well. 

I brought in my sources you asked for. How about you bring me a source stating Xbox one wasn't profitable? 

Aaron Greenberg already said, "Gamepass is not very profitable" ie still profitable.