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Lol when he's asked about putting extremely expensive games like Starfield on Game Pass for free, how they make it work financially.

Phil's response: I think everybody understand that Game Pass isn't free.



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Direct Quote: "Game Pass is profitable, Xbox is profitable"



damn Phil!

There's a difference between a one-time purchase and an infinite source of recurring revenue.

And plot twist, you can still buy the game like normal! Everyone swears GP is the only way to play games on Xbox lol.



On Game Pass Profitability.

"Back in the olden days when we just did games on console and everytime we shipped a console we pretended that Sony and Nintendo didn't exist, so anytime you looked at a game you said hey you're not shipping this game on the full console base, you're excluding two thirds of the market, we're going to ship Halo 2 and we're not shipping it on Nintendo or Sony, nobody ever asked me "hey, how does the PNL for this game work when you're not selling it everywhere you can sell it"

"But now with Game Pass, people kinda get stuck and they say hey wait a minute, you're not selling every copy you can sell, how can you afford to do those games."

"The math is very similar, for us what you do on old school consoles, you said how many consoles are you going to sell cause Halo 2 launches, how long will those players stay on the platform and how many games will they buy and does that make it more cost effective to keep the game exclusive to your platform, lets be clear, we could have sold Halo 2 on PlayStation and Nintendo's platform and we could have sold a couple"

"We're going to make money on Starfield, we're going to grow Game Pass and Xbox will be a better platform on PC and console, for us it's about expanding our platform reach, and important games like Starfield will be catalysts for Game Pass growth but anytime you're growing the platform there is always a trade-off with games, we are not a 3rd party publisher"

Phil must get sick of the Game Pass profitable question.

Booty basically says ask the developers and they'll say they like having the community right at the start, Lol.

Last edited by Ryuu96 - on 12 June 2023

gtotheunit91 said:

damn Phil!

There's a difference between a one-time purchase and an infinite source of recurring revenue.

And plot twist, you can still buy the game like normal! Everyone swears GP is the only way to play games on Xbox lol.

Bruh legit... everyone forgets this shit. It's like they take the whole netflix thing literally. You can't buy a product or license on netflix.. but you can on gamepass with a 10% discount. 

Dents gonna dent. 



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Dream Team!



Pretty obvious, Microsoft has arrived after that show, all the Xbox teams are in a good place, and should continue to be going forward with a good cadence of games. Also pretty clear, they don't need Activision/Blizzard. They would certainly help, more is always better, but Xbox is in a really good place right now. I cant stop thinking about Clockwork Revolution, damn that was my game of show.



I am sure that Starfield will sell probably a lot of PC gamepass. It will also sell a lot on the PC as well because all those mod teams cannot wait to get their hands on another Bethesda game to play around with. The game will will have legs just like Skyrim today and we probably going to see multiple different versions released. So yeah, Starfield will easily make the money and MS of course is hoping that it move some consoles as well.