Can MS really afford all their big exclusives, day 1, on Ultimate/GamePass (PC+XB) for $ 1-15/month, long term?

no dude 1 dollar for your exclusive is gonna kill em

Sony is making billions off 60 dollars games like last of us 2

microsoft is making thousands off there 1$ exclusives like sea of thieves

@ProtossRushX: Well, the $ 1 price seem like a promotion only but I'm not sure if that's gonna last quite long once series X releases but might be perfect to entice more gamers into investing in the Xbox platform.

https://www.xbox.com/en-US/xbox-game-pass/pc-games?&ef_id=EAIaIQobChMI3eGfkLCR6gIVQD6tBh22pggEEAAYASAAEgLba_D_BwE:G:s&OCID=AID2000131_SEM_EAIaIQobChMI3eGfkLCR6gIVQD6tBh22pggEEAAYASAAEgLba_D_BwE:G:s

I imagine they stand to make a lot more money on royalties of third party content than they do through sales of their own games.

Recurring Game Pass subscriptions for a year are about the same as two full price games purchases a year. While it may seem they are giving everything away, console attach rates for the various systems the last few generations roughly place things between 7 to 10 games sold for each console purchased. So if they offer up all their titles at the cost of two full priced games each year, if they did this for all their users, it would be far from detrimental to them, revenue generated from that alone would surpass the revenues that would be brought in by normal console attach rates easily.

But I am sure we know not everyone will use the service, but if people are buying the system and buying the games then that is still great for them. I fail to see how Game Pass will be bad for them. I don't imagine their introductory pricing to entice new users will be their downfall.

The only way I see Game Pass and failing them is if they simply fail to sell it, and if Microsoft fails to sell their console to gamers. But right now the service seems to be in a state of growth, picking up more users and having more quality stuff added to its library. I am not worried about it.

Sure, if it wasn't profitable for them they wouldn't be doing it. They are a business at the end of the day.

Yes. Phil has been pushing the message that the best indicator of generational success for them is the health of their ecosystem, which isn't dependent on just the Series X.

I'm snagging a Series X and have Ultimate so I can play certain types of games on PC that I favor there(Gears Tactics) but the potential of a $199 or $249 Lockhart with 3 free months of GamePass will be a hot ticket for many this holiday season. A $199 console that plays all the newest games, is back compat and has a Netflix like service for $10 a month thats always chocked full of games? People will buy that and own it for years without ever buying a full game, just consistent, reliable money in MS pockets every month. Once they own it if they do purchase games, all the purchases will be digital where MS makes a lot in overhead.

So long as as many people as possible have access to the service they'll be fine.

Yep! The end goal is subscribers regardless of device. They have move more to platform focus than purely a device focus.

The answer to the question: Yes and then some.

Of course they can afford it. Not only that, but it's the wrong question...it should be can Sony afford not to compete with Gamepass?

Simply put, theres no money in console sales. Even if console manufacturers make $50 over component costs (Which are high this next gen) they still have marketing, distribution etc which wont be covered.

The money is and has always been in software and now subscriptions.

Theres 10m gp subscribers now. If ms can convince gamers to subscribe to gp for the life of the xsx, the income would be something around $900 per gamer over the price of the console....you do the maths.

Ask companies like EA with Access, Ubi with Uplay+, and Sony with PS+. Games are still sold physically and digitally, and address a growing market which focuses more on convenience. Profits on hardware have largely been negligible over the years, whereas software has been profitable.

As it is, i'd ask these company's finance departments.

Edit: My bad, not Sony. They don't offer new games on their sub service.

@lundy86_4: To be fair EA access also doesn't let you play games day one. But uplay and gamepass are a lot more expensive than psnow and ea access.

EA Access allowed immediate access to Anthem. From what I can see, they changed up the play... Anthem did shit the bed, so i'm not surprised.

Isn't GP only more expensive with Ultimate? That provides Gold MP AFAIK.

@lundy86_4: if you do psnow month to month it cost the same as gamepass but you can get a year of psnow for $60. I recently got it for $40 for the whole year.

They should be fine since 99% of their exclusives are flops.

@rzxv04: Look at what you just asked. Can a trillion dollar company afford that? Yes 100%.

MS isn’t holding back. I think when they have their July event, they are going to announce really good games. Not dumb kid games. Real games.

Can it afford it? Absolutely!

Is it the most profitable? That is yet to be seen. We’ll have to wait and see this next gen.

Yup, they can afford it. The thing is, how long will it be worth it to them? This is more of a play for trying to keep Xbox gamers from jumping ship out of their ecosystem as opposed to trying to make a profit. If they're burning millions with no avail, as in never showing healthy returns or gaining Xbox any more marketshare, MS will drop it. Or at the very least, scale back what's on the service.

Wasn't there a business strategy for brand strengthening where you actually plan to lose money in the short term then at some point of having confidence with your company, start becoming more expensive?

I'm wondering if that could happen or is happening. Might take a few losses but the brand will become much stronger eventually that people would be willing to pay higher prices later on.

I wish I didn't miss that. When was the sale? Would've gotten PSNow for $ 40 to play MGS4.

@rzxv04: You just missed it. It was going on from the 1st to the 17th.

@faponte13: Thanks anyways.

What exclusive?

@BlackShirt20:

Blackace as deluded as you always been.

Can a trillion dollar company give consoles for free it sure can buy it will not because that is not how business work.

Pretty sure a successful company like Microsoft have a plan and a good chance of making it work.

@tormentos: Why haven't they been giving out their consoles for free ever since the OG Xbox? They're worth billions so just give us everything for free!!!

It's funny how armchair executives on this forum thinks they know better than MS or that MS did or doing all that without any market research, focus testing or they aren't constantly running A/B tests on their services.

Can it fail, sure! Nothing is this world is fail safe but it won't fail for the reasons you're thinking but probably because someone come up with a better plan.

They are starting low to get a large sustainable scale of people to be “locked” into the ecosystem and will raise prices later.

On an unrelated note, it’s why I dislike Adobe. They knew people were using older versions of a program for a longer time before upgrading to the expensive new ones. They stopped that real quick lol

@tormentos:

The ones you refuse to play because you have real emotional feelings towards Sony

Bless HAH

Gamepass=saving ££££££££££

Nice

Profitable for them, at least. The GamePass model underserves certain game genres whose revenue is primarily front-loaded but that is the calculation. Now the greater issue is that it creates a race-to-the-bottom environment in that ecosystem where if you’re not part of the service the userbase is being conditioned to not pay for games, which is risky. But MS is betting big on keeping users engaged and pushing recurring or upgrade purchases, meaning the profits happen after entry. It certainly makes it easier to decide whether to keep funding a studio for their next game which is 5-6 years away if their current game is providing the needed revenue for operating costs.

I think you overestimate the amount of software the average console owner actually buys. One or two games a year tops for the average casual with a high potential for them being used or highly discounted. Gamepass means MS gets 2 full priced game sales per year with no chance of used or third parties cutting their profits.

Of course they can afford it. Will it be profitable for them? Who knows? Who cares? That's their problem, not ours.

As long as my Ultimate Gamepass sub which goes way into next year is honoured I couldn't care less.

@tdkmillsy:

Yeah they had that plan since 2001 did not work,they sold 25 million units and loss 4 billions,you people are too blinded by your love and hopes of a MS victory,money will not change the outcome dude.

Exactly. I always find it funny when gamers care so much about details like this.

@pc_rocks:

I think you mixed your accounts.😂😂😂

@bluestars:

So are you going to play the unbiased card again kindtito?😃

@tormentos:

You think Sony’s got anything anywhere near as good as gamepass?

PAAAHAHAHA

HA HA

Ha....

.

.

HaH

@bluestars:

Dude gamepass is a glorified ps now service nothing more,the moment sony say hey we will put our exclusives days 1 on ps now it would be exactly the same.

It is not a glorified PS Now service. MS PS Now equivalent is xCloud which is free in comparison to PS Now. 😎

Sony factually does not have ANY service that is remotely close the Gamepass.

Why Cows continue to put on their business suits, play fake accountant, and concern troll the books of one of the most consistently profitable companies on the face of the earth will continue to elude me.

Microsoft earned $51.975 billion dollars in OPERATING PROFITS (not revenue, profits) in the fiscal year ending March 2020. They are the second wealthiest company in the world ranked by market capital, and they have more cash reserves than the entire military budget of russia (the second most powerful nuclear superpower on earth, after the United States) multiple times over. Their market cap itself, more closely resembles the entire GDP of Russia or South Korea, than it does the market cap of Sony.

Lets make one thing absolutley clear, cows. Microsoft does not need your help making money. They dont need fanboys who hate them larping as accountants to do their bookkeeping for them. It is not your job or your place to concern troll "worry" about how Microsoft can afford anything, or pretend to be concerned if Phil Spencer can afford his light bill. Especially if you were silent when Sony was nearly brought to its knees as a company not that long ago. Look, just brag about Sony's first party, or some other such nonsense Cows. Just please retire this pants-on-head re(dacted) talking point.

All I can say is, to all who complain about $1 gamepass deals, and want them to raise the price, I promise you will get your wish next gen. I dont want to hear a single complaint when they're in a more aggressive position in the console war and decide to combine Xbox Live and Xcloud into gamepass and charge $15 as the base price for it next gen.

Calm down, Sony doesn't have anything remotely close to the game pass, and i don't see them having it in the near future.

@hardwenzen:

You are a fool gamepass is the same shit as PSn exactly tbe same shit,pay to rent games,the only difference is that sony both stream and let you download some games and that MS is putting its first party games on day 1,but the principle is exactly the same pay a monthly fee get access to a certain number of games if you dont pay anymore you cant play the games no more and the games arent yours.

So yeah much like games with gold is a rip off of PSN+ so is gamepass.

Are you serious? I gotta ask because i'm not sure with you.

PS Now is a meme, its not going anywhere and unless it evolves into something much better, it ain't got shit on the game pass. Call me when all PS exclusives are available on day 1 for $5 a month. Hell, don't even need to be day one, lets say week 1. Shit, not even week 1, lets be generous and give it a month 1. But it ain't happening because ps now is just shit.

@StrongDeadlift:

Yeah that was pretry much the case in 2001 as well one of the ritchest companies hell by that time,PC controlled the market and MS was on top now MS doesnt even have the most used OS google does.

Money has not save the xbox and won them a single generation,so go flash MS xash elsewhere most gamers dont care which is why the xbox is behind the PS4 and even the switch which launched years after the xbox one.

@StrongDeadlift:

Yeah that was pretry much the case in 2001 as well one of the ritchest companies hell by that time,PC controlled the market and MS was on top now MS doesnt even have the most used OS google does.

Money has mot save the xbox and won them a single generation,so go flash MS cash elsewhere most gamers dont care which is why the xbox is behind the PS4 and even the switch which launched years after the xbox one.

@Pedro:

Please elavorate how they are different.😂

This should be good.

I did. But you literally lacked the ability to understand. Not surprised.🤣

If Netflix can make money off of thousands upon thousands of films and shows, I am sure Microsoft can make money off of dozens (or hundreds? Not sure how many titles they have and will have) of games.

I'm still not sure how the money part works with subscriptions models, how they determine how much money a developer gets.

That's actually an interesting thought.

I guess MS will have data on which is played more and what type of gameplay pattern people have, then distribute? Hope someone finds out.

@Pedro:

No you did not you claim MS service which rund on the cloud is like PS now.

Then you make a false claim that sony doesnt have anything like gamepass.

1- Both are rental service ala netflix on xbox you are just force to download only for NOW,on PS now you can stream or download several games as well.

2-Both cover games from different generations.

3-In both cases if you stop paying you lose access to the games you get to play.

4-Both work on on console and other devices

The only difference is ms having its game on day 1 nothing more, and once MS bring its streaming service it would be exactly yhe same shit.