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Another xbox/gamepass thread

Leyasu

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Gamepass concern threads are two a penny on here or on other sites. "Is it viable?", "How long can they sustain it?", "Those games are not for the service!", "Microsoft are bleeding money" etc. We have all seen them, and understand the all consuming concern.. Plus we all know that Microsoft have openly admitted that they ain't making much money yet on the service. This is a long game, future thinking investment..

But amongst all the concern for Microsoft and it's financials in those threads, no one really talks about Disney or it's acquisitions from when Iger became CEO or what they forecast before they launched Disney +. Setting up a streaming service is a huge initial outlay..... I am sure that people are not so stupid that I would need to write out what happens until you reach the subscriber amount necessary to make money right?! Disney forecast that they would not profit from Disney + until 2025. That is also taking into consideration that they are entering an already crowded market, populated by some big players.

Now we come back to Microsoft. They have been aggressively pushing gamepass with cheap upgrades and lots of deals. They invested quite in a bit in acquiring those studios starting back in 2018, paid EA to bring play to the service, paid for day one launches for quite a few games this year and next, and finally did something today that nobody believed anyone would do. Bought a publisher, thus acquiring I.Ps and the studios to work on them. All of which will come to gamepass day one on Xbox and PC.

I mentioned Disney because of their acquisitions and their profit forecast for their streaming service, I also get the feeling that Microsoft have looked at them in regards to their strategy in the run up to Disney +. Given the time needed to make games, I would bet that Microsoft are not expecting to make it all back next gen either. The next five years will be setting the stage for the generation after, changing the narrative, organising their studious and I.Ps so that the games flow every quarter and getting the message out that all those games are now not only exclusive to Microsoft, but are also available through a very reasonably priced subscription service. Yes people, I feel that after the current contractual obligations are met, you will only be able to play their games on Xbox or PC. Sony gamers should be expecting bad news regarding Elder scrolls and a lot of other once multiplat I.Ps in the future.

Today they mentioned 15m subs. Pretty soon PC gamepass will be leaving the cheap monthly and going up in price, all access is just about to net a few mil new full paying subscribers also. Cheap deals will be few and far between in the future I reckon. Microsoft are moving their pieces in to position.

Given what has happened today, I would not write off another big purchase like this again in the not too distant future for Microsoft Perhaps Sony will open their warchest as well. Not that I am condoning a consolidation of industry mind you. But it is easy to see a compelling subscription service hitting 10s of millions of subscribers and generating a lot of revenue and obviously profit.... Something Microsoft is also obviously seeing too.

What does everybody think?
 
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Kokoloko85

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LOLCats

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netflix wasn't profitable for a long time. its a risk, but MS probably likes what they are seeing in terms of growth opportunity. Same as Disney+, it has a lot of potential if they keep adding quality content.

but at what number of paid subscribers does MS start making money? who knows could be years.
 
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Leyasu

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netflix wasn't profitable for a long time. its a risk, but MS probably likes what they are seeing in terms of growth opportunity. Same as Disney+, it has a lot of potential if they keep adding quality content.

but at what number of paid subscribers does MS start making money? who knows could be years.
Yeah, that’s hard to say. But I don’t think that they plan on recouping everything in the upcoming gen. I get the impression that this is the long game. Longer than people here and other sites are thinking.
 

LOLCats

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Yeah, that’s hard to say. But I don’t think that they plan on recouping everything in the upcoming gen. I get the impression that this is the long game. Longer than people here and other sites are thinking.
yep, i want to say it took netflix 10 years to turn a profit (or longer). honestly not much different here. content costs a ton to make, but you need to have a ton of subscribers to make profit.
 
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DunDunDunpachi

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High sodium content detected.

I did try to not go too heavy on gamepass. But it is hard to not see where things are headed.
I'm not salty, I've just discussed your talking points a dozen times over since Game Pass launched. It's a subscription. It will follow the arc of other subscriptions. This isn't an Xbox thing. It's not even a gaming thing. It's a business thing.

When you are ready to acknowledge the business aspects of this decision, then perhaps I will take your estimate as to "where things are headed" more seriously. Until then, these are loss leader strategies that will devalue gaming and race to the bottom. See: humble bundle, PS+, TV steaming services, EGS, and mobile gaming market.
 

sobaka770

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Gamepass exists since 2018 so if their horizon was 5 years they have 3 more years to get into the green. With Bethesda acquisition I think this timer just got reset again.
Let's be clear: Microsoft believes in subscription services a lot as Satya Nadella made almost all of their products work this way to great results especially in cloud and MS Office space.

However the value of gamepass and its impact on industry is hard to predict. Gaming is not Netflix or Disney+. Even a short game can last 10s or 100s of hours which means that people don't need a huge library of games, game budgets are high for AAA titles, big publishers will not put their games on gamepass in foreseeable future if ever.

So short term this might be actually looking benefitial as Microsoft pumps money into the service and takes losses on actually putting big games on gamepass at a loss to grow subscriber base. However if critical mass cannot be reached, gamepass will be just another mode of gaming with AA games which would justify the profits generated by the service.
 

Edokataki

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My god... Is this forum name Neogaf or Neogamepass, hell there are 3 gamepass threads on the first page. Why you care so much if it's profitable or not, do you have nightmares if Microsoft lose more money every day at gamepass or what? Why you advertise this thing so much, do you all have shares in this company? Microsoft DOES NOT NEED YOU or your promotion campaign or your concern, they are one of the biggest companies in the world. And gamepass is very good, for 12€ I tried Vampyr and DMC5 and found that I DIDN'T like these games and saved me 100€ buying them new, and I played dead cell even though I found it stupid game before playing it and I end up playing it for over 30h and loved it. But my god STOP IT, it's enough we got it gamepass is better that sex, is better that your mother love is better than water BUT if you all Xbox lovers don't talk every second day about gamepass Phill Spencer will not get angry at you.
 

Cyberpunkd

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My god... Is this forum name Neogaf or Neogamepass, hell there are 3 gamepass threads on the first page. Why you care so much if it's profitable or not, do you have nightmares if Microsoft lose more money every day at gamepass or what? Why you advertise this thing so much, do you all have shares in this company? Microsoft DOES NOT NEED YOU or your promotion campaign or your concern, they are one of the biggest companies in the world. And gamepass is very good, for 12€ I tried Vampyr and DMC5 and found that I DIDN'T like these games and saved me 100€ buying them new, and I played dead cell even though I found it stupid game before playing it and I end up playing it for over 30h and loved it. But my god STOP IT, it's enough we got it gamepass is better that sex, is better that your mother love is better than water BUT if you all Xbox lovers don't talk every second day about gamepass Phill Spencer will not get angry at you.
If you want less Gamepass threads you can start by not looking actively for them, resurrecting a 4-month-old thread just to complain about Gamepass.
 

GHG

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My god... Is this forum name Neogaf or Neogamepass, hell there are 3 gamepass threads on the first page. Why you care so much if it's profitable or not, do you have nightmares if Microsoft lose more money every day at gamepass or what? Why you advertise this thing so much, do you all have shares in this company? Microsoft DOES NOT NEED YOU or your promotion campaign or your concern, they are one of the biggest companies in the world. And gamepass is very good, for 12€ I tried Vampyr and DMC5 and found that I DIDN'T like these games and saved me 100€ buying them new, and I played dead cell even though I found it stupid game before playing it and I end up playing it for over 30h and loved it. But my god STOP IT, it's enough we got it gamepass is better that sex, is better that your mother love is better than water BUT if you all Xbox lovers don't talk every second day about gamepass Phill Spencer will not get angry at you.

You just bumped this thread genius.
 

Edokataki

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If you want less Gamepass threads you can start by not looking actively for them, resurrecting a 4-month-old thread just to complain about Gamepass.
I did not saw that was 4 month old.... I just like reading people opinions and saw 2 threads on the first page about the same thing and saw this one at similar threads and got frustrated for how much people advertise this thing like they are paid for it. I like game pass and has saved me money and gave me the opportunity to play some awesome games and find out some popular games to be not so good for me. But I think some people are sick on the head here talking like it's the second coming. And sorry to resurrect a dead thread....
 

Cyberpunkd

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I did not saw that was 4 month old.... I just like reading people opinions and saw 2 threads on the first page about the same thing and saw this one at similar threads and got frustrated for how much people advertise this thing like they are paid for it. I like game pass and has saved me money and gave me the opportunity to play some awesome games and find out some popular games to be not so good for me. But I think some people are sick on the head here talking like it's the second coming. And sorry to resurrect a dead thread....
I get why you might be frustrated, but in current environment of job loss, pandemic, economic anxiety, rising economic inequalities people really value Gamepass of providing them with terrific value. Mind you, I do not think the current prices are sustainable in any way, I think Microsoft already started to wind down some XBL cards.
I wonder when they will decide to kill the GPU conversion trick - they probably has data saying it is not a large percentage so they don't bother.
 

Hobbygaming

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I just buy a single month’s worth of Game Pass whenever Microsoft brings out a good game. It didn’t cost me anything last year.
Lol I bet many others are doing this as well, it's going to be tough to sustain subscribers especially if they ever raise the price
 

Almanac

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Lol I bet many others are doing this as well, it's going to be tough to sustain subscribers especially if they ever raise the price
I do this as well. Same goes for PS+.
Since I don't play online it's the best deal for me. Cool game? Ok, 10 bucks and unsuscribe.
 
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mcjmetroid

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Pretty much. They're acting like proselytes. Must spread the Gospel of Phil or something. In a few years they'll be tapping Nintendo customers on the shoulder.

Hey hey hey but did you get that game with Game Pass?!
Gamepass can be a very social thing though. Especially when it comes to online games.

Both having access to the same games so you can play online together can definitely drive a conversation and many of them.
Not to mention the excitement of talking about the latest games released for it.
More people almost tell about it than Xbox itself.

Some users can probably be smarmy about it mind you, mostly fanboys trying to rub it in people's faces but I can see why it's the talk of the town in general.

It's kinda hard to ignore.
As far these threads on whether it's good for the industry or not? Amm I don't know just roll with it, life's too short to be worrying about stuff like that.
 

CeeJay

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Its easy to compare GamePass to such services as Netflix or Disney+ but there is one key distinction between the games industry and other media industries.

An overwhelming percentage of the total revenue made by games nowadays is from in-game purchases. Sure this is heavily skewed by the mobile market and people spending money of F2P games but it is still a key distinction non the less. The Fortnite generation seem to be quite happy to spend money on cosmetic items in F2P games and I think that Microsoft are trying to tap into this revenue stream with Gamepass. Kids have always used pester power to get parents to spend small amounts of money on things like collectable cards that are strategically positioned in parts of stores where queues naturally occur after being bombarded with adverts shown on kids TV. Its been a staple of the toy business for a long long time. This same kind of business model is nowadays employed in games such as Fortnite to sell cosmetics. Obviously Microsoft (and other third parties) don't want to make all their flagship titles F2P so how do they tap into that market?

The Gamepass model can tap into that market. The gift voucher is something that is really easy for a grandparent or other relative to buy for a child and i'm sure there are loads of kids at Christmas who got a Gamepass gift voucher. Even if not a gift voucher, a Gamepass subscription is really attractive to a parent as it will give their kids access to a huge library of games that their friends (who also have Gamepass) have access to as well. So, you have all these kids playing all these games that to them feel just like F2P games and it's only a small step after that to start pushing the micro-transactions through various marketing channels on TV and social media.

Older gamers i've noticed seem more interested in ownership where as younger games seem more comfortable with F2P and subscriptions without ever owning the games. The "subscribe or buy" model allows for both of these distinctly different demographics to be targeted effectively. Gamepass is not just about that monthly sub, it's also those microtransactions that factor into the economic viability of the model.