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Game Pass’ Massive Growth Is Bringing Developers Some Surprises

Tsukumo

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Mar 5, 2011
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No surprises for me.
Aside the Jrpgs I've bought for Switch and PS4, the only games I've bought this and last year on Xbox are games I've played and FINISHED on Gamepass.
So far:
Control, Darksiders Genesis, Man-eater, Indivisible, Rage 2, and My friend Pedro.
Didn't buy Outriders, Throne breaker and Fallen Order, because fuck People can fly, fuck Cdpr and fuck EA.
 
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poodaddy

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Gamepass is probably the best thing to happen to gaming in terms of value for the consumer in the history of the hobby. Just my opinion. I have no allegiances or biases, I just think it's a great service, especially for families. My daughter's in the living room right now eating folks on Man-eater, and I've been digging on tons of stuff downstairs in the den, while the wife uses it to check out games on the PC both upstairs and down. When we're traveling we can check out games on the phones. I mean, goddamn man.

It's just really fucking convenient honestly.
 

Spidey Fan

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Is your console set as a home console? It should give you a month of play once you select go offline in the settings or if you have an internet outage. I tested it myself and I could play GP offline just fine.
i was unable to do it on time. gonna try it this time. thnx.
 

Spidey Fan

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How did you do that?
you need a fresh account. or have your sub expired. buy 3 year live gold subs. then use the 1$ promo event. and you will get 3 year gamepass ultimate. the catch is, you need to spend 180$ for the 3 year live gold, and have no gamepass account.
 

Spidey Fan

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So you spent $181 for 3 years.
i didnt. i didnt know there was this trick. all i knew was the 30$ (20$ as key code) 4 month ea play one, which i couldnt abuse it. And i am not spending 181$ at once. i can afford 15$, and cancel anytime i want to.
 

LordBlodgett

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Dec 8, 2020
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As much great value is game pass just an internet outage is enough to make all those games useless. I had` 3 days internet outage, and i couldn't even play all of my game pass pc, or on the x1s. good thing i had couple of xlive games, and games that I bought installed.

I hope Microsoft fix this problem. otherwise, the service is good.
Were you unable to play them because you didn't have them installed or something? If you have Gamepass games installed you can play them for 30 days without the having to check in, and I did exactly that this year in February when storms took out my Comcast line for a couple of days
 
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JerryinSoCal

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Yep, indie Games like Destiny 2 and Outriders. Not to mention every EA game.
How long was Destiny 2 on the market for sale before it came to GP? around 3 years wasn't it? It didn't launch on GP and it never would unless MS threw A TON of money at them to cover what they would have made hat it been sold at retail. Outriders sales were likely lowest on xbox and the EA games are just trials that are included with EA play when they do offer them or the old shit that most people who wanted it have already played.
 

Spidey Fan

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Were you unable to play them because you didn't have them installed or something? If you have Gamepass games installed you can play them for 30 days without the having to check in, and I did exactly that this year in February when storms took out my Comcast line for a couple of days
i did both the pc and the xbox option now. i would have been frustrated if someone havent told me this.
 
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Spidey Fan

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How long was Destiny 2 on the market for sale before it came to GP? around 3 years wasn't it? It didn't launch on GP and it never would unless MS threw A TON of money at them to cover what they would have made hat it been sold at retail. Outriders sales were likely lowest on xbox and the EA games are just trials that are included with EA play when they do offer them or the old shit that most people who wanted it have already played.
isnt destiny entire expansion? compared to the normal one on steam?

outriders was new ip, and after avengers mess, people were warry of their new game. gamepass just made outriders 1 on xbox sales, and number 2 after that. peoplet wouldnt have bought it, if it werent for gamepass advertisement.

ea is free on gamepass. on playstation side, you pay 5$, compared to nothing with gamepass. The real deal will be this new year releases. if ea will do day1 on gamepass.
 

Spidey Fan

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Lol that assumption didnt take long be nonsense.
Might be profitable = not profitable :messenger_tears_of_joy:
its profitable. its just era people are brilliant economists with master degree, and knows more than Microsoft.

here is my analysis.
 

Kokoloko85

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Sep 26, 2019
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its profitable. its just era people are brilliant economists with master degree, and knows more than Microsoft.

here is my analysis.

Your analysis is wrong lol

https://segmentnext.com/2021/05/06/xbox-game-pass-profits/


Mainly because I still see $1 offers for gamepass everywhere including my instagram and you have no idea how much MS is spending on it
 

Spidey Fan

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Your analysis is wrong lol

https://segmentnext.com/2021/05/06/xbox-game-pass-profits/


Mainly because I still see $1 offers for gamepass everywhere including my instagram and you have no idea how much MS is spending on it
i made the 1$ segment, maybe you should clearly check it. even the 1$ wont stop it being profitable. remember, 5m at15$ is enough for 45 million subs at 1$. you are also denying the purchase game option, the dlc sale, and the mtx option. i spent 25$ on fifa this week (my entire mtx, since i started gamepass seriously this march). 25*0.3=7.5$ or 7 gamepass members paying 1$ for 1 month at your math. Now tell me, if that isnt profitable.

forgot to mention, they are reinvesting to the service. sorry for overlooking the article. my bad, its my fault. still my point stands. its just they wont see pure profit, due to reinvestment.
 
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6502

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Had the PC version at xmas for £1. Unsubbed after a week or two.

I like the idea but downloading games (even at 80meg) and having my ssd crowded just to try games was not worth it.

If they had a stream option to try the games rather than going through the ball ache above would make me return.
 

Spidey Fan

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Had the PC version at xmas for £1. Unsubbed after a week or two.

I like the idea but downloading games (even at 80meg) and having my ssd crowded just to try games was not worth it.

If they had a stream option to try the games rather than going through the ball ache above would make me return.
pc version needs a rework. the console one is fantastic though. hope they put on steam.

for my case on pc, i just gog, since its easy to manage them.
 

CitizenZ

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Jan 14, 2021
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its profitable. its just era people are brilliant economists with master degree, and knows more than Microsoft.

here is my analysis.

You are missing so much data, you may want to go back to that pathetic university and get a refund.
 
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Spidey Fan

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You are missing so much data, you may want to go back to that pathetic university and get a refund.
the data is 1 game, 1 dlc 1 mtx purchase, 1 sub. i went with all minimum, since people still dont understand what gamepass is bringing for Microsoft.
people spend more than what i estimated. same for others. all my data are the lowest possible profit.
 
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DarkMage619

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Your analysis is wrong lol

https://segmentnext.com/2021/05/06/xbox-game-pass-profits/


Mainly because I still see $1 offers for gamepass everywhere including my instagram and you have no idea how much MS is spending on it
Let's just assume Game pass isn't profitable. How does that impact gamers thinking its an outstanding value? If MS makes no money do all the games stop being fun to play?
 

reksveks

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Had the PC version at xmas for £1. Unsubbed after a week or two.

I like the idea but downloading games (even at 80meg) and having my ssd crowded just to try games was not worth it.

If they had a stream option to try the games rather than going through the ball ache above would make me return.
Has to be in the roadmap but Microsoft needs to get the licensing deals sorted probably. It's also on the roadmap for console as well. Stream games on the console whilst downloading.

Are we back to the profitability of gamepass? FML
 
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Kokoloko85

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i made the 1$ segment, maybe you should clearly check it. even the 1$ wont stop it being profitable. remember, 5m at15$ is enough for 45 million subs at 1$. you are also denying the purchase game option, the dlc sale, and the mtx option. i spent 25$ on fifa this week (my entire mtx, since i started gamepass seriously this march). 25*0.3=7.5$ or 7 gamepass members paying 1$ for 1 month at your math. Now tell me, if that isnt profitable.

forgot to mention, they are reinvesting to the service. sorry for overlooking the article. my bad, its my fault. still my point stands. its just they wont see pure profit, due to reinvestment.

Atm its not profitable. Maybe in the future but depends on how much they are spending, especially with more expensive studios under there banner now
Let's just assume Game pass isn't profitable. How does that impact gamers thinking its an outstanding value? If MS makes no money do all the games stop being fun to play?

No of course not. Just not sustainable for the future if it carries on being unprofitable. Especially if more game studios will rely on it in the future
 

reksveks

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Can we stop purely looking at Gamepass as a single service with a single PNL analysis? I don't think that's how Microsoft are looking at it, Amazon doesn't look at Prime/Prime Video like that.
 

Dr Bass

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Jun 6, 2013
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It's profitable. Not sure what you're on about.
Game pass is certainly not profitable. That much is completely obvious. If you doubt that just do a little back of the napkin math, assume the BEST case (everyone is paying full price from day 1) then even compare that to costs that we know (money spent on studios). Not even that is close. Then you consider ongoing monthly costs to support studios no longer really selling games but including them as part of GP …

Then you have MS basically saying it’s not making them money (believe this was Aaron Greenberg).

The bet is surely to hope xcloud clients take off, or that GP will include games with a lot of micro transactions. There is no way it hits profitability otherwise. This has been discussed ad nauseam.
 

Coolwhhip

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Aug 26, 2019
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Let's just assume Game pass isn't profitable. How does that impact gamers thinking its an outstanding value? If MS makes no money do all the games stop being fun to play?

If something looks to good to be true, its probably too good to be true. Which could mean a higher subscription in the future, games being removed or less games or whatever. Gamepass does sound good though, I rarely have the patience to finish games.
 

Bernd Lauert

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Game pass is certainly not profitable. That much is completely obvious. If you doubt that just do a little back of the napkin math, assume the BEST case (everyone is paying full price from day 1) then even compare that to costs that we know (money spent on studios). Not even that is close. Then you consider ongoing monthly costs to support studios no longer really selling games but including them as part of GP …

Then you have MS basically saying it’s not making them money (believe this was Aaron Greenberg).

The bet is surely to hope xcloud clients take off, or that GP will include games with a lot of micro transactions. There is no way it hits profitability otherwise. This has been discussed ad nauseam.
Xbox was profitable in 2019. They added Zenimax since then as an expense, but Gamepass also grew by something like 10m subscribers. It's profitable.
 

Kokoloko85

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It's profitable. Not sure what you're on about.
Its not profitable. Not sure what you’re on about

https://segmentnext.com/2021/05/06/xbox-game-pass-profits/

 
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Kokoloko85

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Ah the good old. But is it profitable? Like we should actually care.

If you want a service, studio, company to carry on for the longterm then you want it to be profitable.

Thats why its a good thing when Xbox, Playstation or Nintendo release positive numbers.

Companies are willing to risk and lose money for awhile but not for the long term unless they are sure it will make money
 

Bernd Lauert

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Its not profitable. Not sure what you’re on about

https://segmentnext.com/2021/05/06/xbox-game-pass-profits/

Your reading comprehension is lacking. He never said it's not profitable. He said they're aggressively re-investing.
 

Kokoloko85

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Your reading comprehension is lacking. He never said it's not profitable. He said they're aggressively re-investing.
Nowhere has said its profitable.

Heavily reinvesting from and probably investing from other Xbox profits and doesn’t mean Gamepass is profiting like you are saying.

Theres more than 1 link and source saying its not profitable. None are saying it is profitable
 
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Bernd Lauert

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Nowhere has said its profitable. While you say it is.

Theres more than 1 link and source saying its not profitable. None are saying it is profitable
We have the 2019 Xbox numbers, and Gamepass has grown a lot since then. There's no reason to believe it's not profitable.
 

Kokoloko85

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We have the 2019 Xbox numbers, and Gamepass has grown a lot since then. There's no reason to believe it's not profitable.
First link is 2021, Im not just quoting Aaron in the 2nd link. Not sure if the link has showed up.
Heavily reinvesting from and probably investing from other Xbox profits and doesn’t mean Gamepass is profiting, close to or will do.

Maybe eventually everything becomes streaming, but doesn't it will carry on with this model.
Its a good deal and maybe Nintendo and Playstation will do the same with 1st party or maybe its profitable enough and they wont.

Part of me would be interested but I like own certain games, and depends on price.
 
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Bernd Lauert

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First link is 2021, Im not just quoting Aaron in the 2nd link. Not sure if the link has showed up.
Heavily reinvesting from and probably investing from other Xbox profits and doesn’t mean Gamepass is profiting, close to or will do.

Maybe eventually everything becomes streaming, but doesn't it will carry on with this model.
Its a good deal and maybe Nintendo and Playstation will do the same with 1st party or maybe its profitable enough and they wont.

Part of me would be interested but I like own certain games, and depends on price.
The first link is Tom Warren speculating. With the 2019 Xbox numbers I mean actual numbers Microsoft had to provide in court. This also goes against Tom Warren's argument that Microsoft would've told the shareholders if there was a profit. Xbox was profitable in 2019 and yet Microsoft kept it to themselves.
 

Kokoloko85

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The first link is Tom Warren speculating. With the 2019 Xbox numbers I mean actual numbers Microsoft had to provide in court. This also goes against Tom Warren's argument that Microsoft would've told the shareholders if there was a profit. Xbox was profitable in 2019 and yet Microsoft kept it to themselves.
Pretty sure they’ve released revenue and profits.
No1 has stated it has made profit which is still more likely
 

Bernd Lauert

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Pretty sure they’ve released revenue and profits.
No1 has stated it has made profit which is still more likely
Microsoft shares Xbox revenue but not profits. That's why everyone is speculating. They had to release profits in court in 2019 though. They were redacted but someone fucked up and showed them on a different document. It was 2.2b dollars, excluding hardware.
 

Spidey Fan

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Again with your made up facts. Ms hasn’t posted any figures so we don’t know yet if it is. If it was making mega bank they’d be shouting it from the roof tops.
Your having problems with profits.

Actual Profits are when you earn money after all expenses, and you don't spend it on anything. Microsoft is spending that money on gamepass. Any profit they make, it goes to invest on gamepass.

Its like stock. You buy cheap stock. You sell them at higher. You have the option to cash in. Or use that money to buy other cheaper stocks, so you can sell them again at higher price. This time, you have more stocks, because you made profit on the last stock you had. The more you invest in, the more profit you make, and reinvest it again. Making 100k$ in to a 10m$.

1st stage gamepass profit $1b. Using the money on gamepass, means more games, more subs, more profit. This time profit is $2b. Then you reinvest in again, and you afford more games, and you keep growing your subs even more, making more money than 1st stage. That is where Microsoft is in. Investing period. They don't cash in any profits. They use those to grow the sub even more. That is why we had outriders and mlb the show day1. Because gamepass gave them enough money. Or else, they wouldn't have bothered with it.
 
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namekuseijin

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> Other people saying they feel like they don't own it if it's just on Game Pass. So they buy it! That, to me, seems crazy!

probably because it is - let's not forget that "fan" is short for "fanatic".


Alot of gamepass games are hidden gems with DLC to buy. It makes sense that if you download a game for "Free" and you enjoyed it, you'd be inclined to purchase the DLC.
yes, that's a viable business model. Like launching TES VI huge open-world in the service for free and all the side-missions and main campaigns as DLC - later collected as a single ultimate edition for PS5 release...
 
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Spidey Fan

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First link is 2021, Im not just quoting Aaron in the 2nd link. Not sure if the link has showed up.
Heavily reinvesting from and probably investing from other Xbox profits and doesn’t mean Gamepass is profiting, close to or will do.

Maybe eventually everything becomes streaming, but doesn't it will carry on with this model.
Its a good deal and maybe Nintendo and Playstation will do the same with 1st party or maybe its profitable enough and they wont.

Part of me would be interested but I like own certain games, and depends on price.
Gamepass allows you to buy your games, like Playstation and Nintendo, but at better angle. At those stores, you can't try the games you buy. With gamepass, it acts as demo for you. If you like it, you can it. If not, then you won't.

I tried control and soul caliber 6. Both game fun. But I won't buy it. Before, I had desire to buy it, but wasn't sure. But now I am after trying it. Its not my cup of tea.

Also they can't do service like that. They are low company, which all counts on their 1st sales, and 3rd party cut. Day 1 would ruin their business, because they don't have dlcs or mtx to offset the potential revenue loss. Xbox games are generally full of dlcs, cosmetics. So they aren't worried about losing potential sales on gamepass, compared to the other 2. Its why ea and ubisoft are on mtx. Game sales alone isn't enough to be sustainable these days, with games being high production. You need another revenue to be in the business. Or else, you will be a past (konami).
 

Spidey Fan

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> Other people saying they feel like they don't own it if it's just on Game Pass. So they buy it! That, to me, seems crazy!

probably because it is - let's not forget that "fan" is short for "fanatic".



yes, that's a viable business model. Like launching TES VI huge open-world in the service for free and all the side-missions and main campaigns as DLC - later collected as a single ultimate edition for PS5 release...
They won't ever put tes6 on Playstation ever. That would make their purchases worthless.

The entire bethesda deal was gamepass. You can only play bethesda games on gamepass. Pc/xbox/xcloud. But you need gamepass account for that.

Putting it on other services makes gamepass not appealing. Only pc is excluded, because bethesda is pc games.
 
Mar 6, 2016
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Nowhere has said its profitable.

Heavily reinvesting from and probably investing from other Xbox profits and doesn’t mean Gamepass is profiting like you are saying.

Theres more than 1 link and source saying its not profitable. None are saying it is profitable

We have the 2019 Xbox numbers, and Gamepass has grown a lot since then. There's no reason to believe it's not profitable.

Welcome to arguing with Bernd. Where he passes his opinion as fact and then doubles down on it without any evidence.

Passing digital revenue off as profitable for gamepass isn’t fact either, since that covers all purchases on Xbox store including dlc irrelevant of gamepass.