Your logic is fucking retarded stop posting.
The entire point of revenue is the create or obtain more assets, which in turn create more revenue while still retaining those (monetary value) assets. Nothing is lost, while everything is gained (growth).
Half the people here seem to not have a grasp on basic financial knowledge, it’s actually worrying and I pray those posting are still living at home.
It's like you think Gamepass is still in it's early phases? It's been out since 2017-2018. Microsoft among other companies invest in growth sectors. You are correct in obtaining more assets gets them to that goal.
But like many others have been saying it has not paid off yet. I can make that assumption based on Fiscal 2021 evidence. They have a much higher increase in revenue but even compared to Sony who only made 2.7 Billion (est) in operating Income, they do not show those numbers.
If you have a service thats been out for 5 years and your growth is not showing the numbers that you really want for growth sector, and your spending more to try and get to that pie in the sky streaming number, something is wrong with your direction or equation.
And that has always been content. Microsoft is trying to buy their way like Netflix to be king of game service/streaming to all devices. But if your content isn't keeping people engaged to use said devices to stream your said content either it be a phone, laptop, smart tv/device then you are spending money with huge losses once you get to a certain threshhold. And if they cant get their studios in line then its going to be similar to Netflix/Streaming service dilemma's where people sub and unsub for specific time frames when there's exciting content to consume.
Microsoft has the money to write this venture off if they want, but the growth they have seen already so far is enough to keep people/investors happy because it helps grow other sectors of the company like Azure/Blade servers. Service sectors ect.
Microsoft is saying they are going after Apple/Amazon/Google and foreign entities like Tencent. But reality is it's just their goal, there's no evidence thus far that they are on track to reaching it.
And that would be because of main issue with Quality Content that is associated with the brand.
If the next couple years Microsoft literally has giant growth and most importantly retention of said growth in streaming/Gamepass subs, I would say their venture has in terms of growth shown fruit. But if retention similar to Netflix's issue becomes a obstacle, it's going to be hard to not see how much they are spending.
What I am saying is if they have to continue to buy at the rate they are, and their growth doesn't equate to their investment over the course of the next couple years. Then My equation will be correct in them spending more than what they are gaining in marketshare/users/subscribers/streamers.
Right now there are not 10's of millions of people playing xbox games on their phones. If it changes and starfield is a highly streamed game then I guess I'll eat crow. But the jest of it is Internet around the world is still a huge issue specifically in the US where it's the largest consuming country.
Like at this stage Microsoft needs Activisino/Blizzard more than anything they are producing internally. Next year or year after will really be a better gauge of data to see if habits change for titles like COD/Starfield being streamed or influencing high numbers of new sign up subs.