And how many of those studios published a game on Xbox platform in last quarter? Double Fine with Psychonauts 2? Or you expecting Game Pass subs to skyrocket without AAA first-party games?
I mean, if there won't be big uptick in GP subs after Age IV, Halo Infinite and FH 5, then it is may be time for panick...
The problem for me is when I say stuff like this I feel like some folks (not necessarily you) will read it as covert cry of "doom!" for Xbox.
Its simply not that binary.
Here's the thing: They have an extensive roster of titles in development, no doubt all targeting different launch dates. That's a constant spend which in turn is intended to provide sustained mid-to-long-term uplift to the service and ecosystem. That's the fundamental underlying equation in my view.
The issue with this sort of deferred-return business plan is that its prone to interference based on forecasts made out from current conditions. In simple terms they look at how fast the car is going and make a determination of whether to step on the gas or not.
In this instance "speed" is their profit/loss ratio, and "stepping on the gas" is proactively changing the product release cadence and perhaps content in order to improve their performance. So for instance, more suggestions are made to add mtx, potentially edgy content get smoothed off, schedules get more firmly imposed etc.
Its a complicated thing because no doubt they'll be looking at growth across different segments (PC vs console GP), demographics, etc. In order to fine-tune their approach.
The bottom line is that things seem to be going OK for now, but just OK. Their competitive position hasn't changed greatly, but with this huge slate of ongoing first party product their costs have to have skyrocketed. I'm sure that MS can afford to keep buying studios, what I'm dubious about is the rationale that says this makes good sense business-wise when so much is yet to be proven.
I can well understand them wanting to give the impression that another huge purchase is just around the corner, because that's good for business. But that being said even with the embarrassment of riches they have already promised for the future, is it really showing up on the balance sheets right now?
There's a ceiling to everything, the only question is how when your business starts to bump against it.