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[Silent Viper]

We all know it but fucking lawyer needs to keep his mouth shut.

 

[assurdum]

We all know it but fucking lawyer needs to keep his mouth shut.

 

[jakinov]

You misunderstand me, I'm not arguing on the potential for GamePass to make a lot of money for MS down the road. What I'm saying is no one knows exactly when that will be. Is it 5 years or 10 years down the line? No one truly knows and for companies like Sony and Nintendo that don't have the capital and resources that MS has that's not a good option. MS can keep bleeding money with GP until it becomes profitable for them down the line but Nintendo and Sony can't afford to take prolonged losses for years, that all I'm saying. For them the idea of taking losses for a period of time on the hope that they make loads of money later isn't viable and that's why the GP model doesn't work for Sony or Nintendo for now at least.

They can definitely do it too. Microsoft has more money then them but it doesn't mean the CEO is going to let them touch the vast majority of that money. PlayStation and Switch are Sony and Nintendo bread and butter. Their leaders are more likely to risk a lot of their money if they actually wanted to do this. It's fine to take loses on new divisions and you don't necessarily have to spend your actual cash. As time goes by the money you lose should go down as you grow. I just don't think they are interested. I would also argue that Sony and Nintendo would hit high subscribers numbers faster due to high install base and owning more desirable content. If we circle back to streaming. not every streaming service grows at the same rate. Some grow faster because of others establishing the market or just because they have arguably better content. Microsoft took this many years to hit 18M but Sony/Nintendo might be able to exceed that in a much shorter time frame and continue to grow faster from there.

 

[ZywyPL]

That's how console market works since... forever. Maybe with few exceptions like recent Nintendo consoles, but the general rule is always the same - you want to push as many consoles on the market so that later on you can sell more software. The elephant in the room here tho is that not many people would be willing to spend 800, 1000, 1200$ on an XB/PS console, whereas hundreds of millions gladly do so on an iPhone/MacBook/iMac etc, and no one can blame Apple for that.

 

[IbizaPocholo]

Microsoft would like to remind you the Xbox definitely makes money

Xbox consoles are sold at a loss

www.theverge.com

“The gaming business is a profitable and high-growth business for Microsoft,” says a Microsoft spokesperson. “The console gaming business is traditionally a hardware subsidy model. Game companies sell consoles at a loss to attract new customers. Profits are generated in game sales and online service subscriptions.“

 

[NickFire]

Microsoft would like to remind you the Xbox definitely makes money

Xbox consoles are sold at a loss

www.theverge.com

“The gaming business is a profitable and high-growth business for Microsoft,” says a Microsoft spokesperson. “The console gaming business is traditionally a hardware subsidy model. Game companies sell consoles at a loss to attract new customers. Profits are generated in game sales and online service subscriptions.“

Considering how they quickly they seem to announce something whenever Sony does, I'm surprised it took this long for them to clarify that xbox is still making money.

 

[Kerotan]

So basically they're struggling to make a profit and without the 30% cut they wouldn't. No surprise especially with hardware. Ps4 spanked xbone so hard it was on fire sale the entire gen just to stay relevant.