Game Pass Growth Misses The Mark

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GoldenElementXL

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#1  Edited By GoldenElementXL
Member since 2016 • 6508 Posts

Source

Uh oh…

Why it matters: Xbox Game Pass is often touted as the best deal in gaming and its subscriber count is a shorthand measure of Microsoft’s gaming success.

By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

  • In the company's prior fiscal year, which ran from mid-2019 through mid-2020, Game Pass subs were up 86%, exceeding a target of 71%.

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deactivated-618bc23e9b1c9

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#2 deactivated-618bc23e9b1c9
Member since 2007 • 7339 Posts

Oh noes! Who cares? I'm a consumer and it works for me. 👌

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xantufrog

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#3  Edited By xantufrog  Moderator
Member since 2013 • 17058 Posts

Well, if the pricing goes too high or the offerings get too shitty as a result, I will cancel my subscription. But until then I'm good. It's their job to offer me a product worth my money. If they fail, I leave. If they succeed, I stay.

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Solaryellow

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#4 Solaryellow
Member since 2013 • 6381 Posts

Rather than a 48% growth, new users grew by 37%? The service is doomed I tell ya! I'm sure everything is just fine in Redmond, WA.

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GoldenElementXL

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#5 GoldenElementXL
Member since 2016 • 6508 Posts

@Solaryellow said:

Rather than a 48% growth, new users grew by 37%? The service is doomed I tell ya! I'm sure everything is just fine in Redmond, WA.

All this talk about potential userbase, and we’re seeing this kind of drop off in growth yoy? There‘s a lot of red in Xbox’s financials right now, and these growth numbers aren’t gonna make anyone in Redmond feel warm and fuzzy

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Archangel3371

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#6 Archangel3371
Member since 2004 • 36413 Posts

It’s certainly the best deal in gaming for me, that’s for damn sure. As long as they keep offering stuff that I find compelling then I will continue to subscribe. If it remains economically viable for Microsoft to keep the service going then I’ll be right there to keep on enjoying it. If not the oh well. I’ll just go back to purchasing games like I did before. I’ll enjoy it for as long as it lasts, however long that may be. 🤷‍♂️

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#7 madrocketeer  Online
Member since 2005 • 9465 Posts

Well yeah, this is the one number that Microsoft care the most about. Still, it's only one year, and Game Pass is a multi-year project, and Microsoft's investment in a broad content portfolio (i.e. their recent acquisition spree) required to make this business model work have yet to yield results.

Interesting to be sure, and could be serious if this becomes a trend, but it's way too early to say.

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#8 BassMan
Member since 2002 • 14340 Posts

@xantufrog said:

Well, if the pricing goes too high or the offerings get too shitty as a result, I will cancel my subscription. But until then I'm good. It's their job to offer me a product worth my money. If they fail, I leave. If they succeed, I stay.

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#9  Edited By davillain-  Moderator  Online
Member since 2014 • 48957 Posts

It really falls down to what's there to play on Game Pass. So far, MS has done a pretty decent job but still needs to improve the games quality. As I understand it, they still haven't gotten around putting Tales of Arise on Game Pass, it would have shown they are working hard making Game Pass worth having. And @xantufrog said it best, its MS job offering me what's worth subbing to Game Pass and if they have shitty titles, well I'll come back again later until you do.

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#10 HalcyonScarlet
Member since 2011 • 10808 Posts

Halo Infinite and Forza Horizon will boost it dramatically and upcoming Bethesda content.

This sort of model is a long game plan. Lets be honest, it's impressive that Xbox Series and Gamepass has done as well as it has since last November without a lot of new content from Xbox Studios. So I'm not surprised. Gamepass has been selling on value alone so far.

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GoldenElementXL

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#11 GoldenElementXL
Member since 2016 • 6508 Posts

@madrocketeer said:

Well yeah, this is the one number that Microsoft care the most about. Still, it's only one year, and Game Pass is a multi-year project, and Microsoft's investment in a broad content portfolio (i.e. their recent acquisition spree) required to make this business model work have yet to yield results.

Interesting to be sure, and could be serious if this becomes a trend, but it's way too early to say.

Game Pass launched 4 years ago. And Microsoft hasn‘t given us a new sub count since January…

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Archangel3371

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#12 Archangel3371
Member since 2004 • 36413 Posts

As has already been said this is a long term project and they really only recently made a big time purchase of Zenimax so it’s going to take some time to get a lot of those games developed by those studios and put on the service to bring in consumers.

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#13  Edited By GirlUSoCrazy  Online
Member since 2015 • 15967 Posts

I guess they were probably hoping to sell more consoles and have more hand-me-down scenarios, and bet on more PC engagement. Maybe when new first party content becomes available?

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#14 GirlUSoCrazy  Online
Member since 2015 • 15967 Posts

@xantufrog: Are you still buying recent games, or if you leave do you have nothing recent to play? I guess depending on the situation it might take more/less to leave.

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#15 GoldenElementXL
Member since 2016 • 6508 Posts

@HalcyonScarlet said:

Halo Infinite and Forza Horizon will boost it dramatically and upcoming Bethesda content.

This sort of model is a long game plan. Lets be honest, it's impressive that Xbox Series and Gamepass has done as well as it has since last November without a lot of new content from Xbox Studios. So I'm not surprised. Gamepass has been selling on value alone so far.

Halo multiplayer being f2p will help revenue massively, but won’t help Game Pass at all. Shooter campaigns have completely fallen off, so I’m not sure how much growth the campaign will be responsible for. Especially with no co-op at launch. Forza Horizon 5 looks stunning, and hopefully gets the audience it deserves.

This time of year is always fun for financials

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Pedro

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#16 Pedro
Member since 2002 • 55318 Posts

I am surprised that TC is still trying to push this gloom and doom agenda for Game Pass😂

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GoldenElementXL

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#17 GoldenElementXL
Member since 2016 • 6508 Posts

@Pedro said:

I am surprised that TC is still trying to push this gloom and doom agenda for Game Pass😂

Are you? I‘m persistent af

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#18 Pedro
Member since 2002 • 55318 Posts

@goldenelementxl: I cannot argue that you are not persistent. I thought you would have given up on this agenda

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mowgly1

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#19 mowgly1
Member since 2017 • 2083 Posts
@goldenelementxl said:

Source

Uh oh…

Why it matters: Xbox Game Pass is often touted as the best deal in gaming and its subscriber count is a shorthand measure of Microsoft’s gaming success.

By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

  • In the company's prior fiscal year, which ran from mid-2019 through mid-2020, Game Pass subs were up 86%, exceeding a target of 71%.

Uh oh. Around 20 mil. as of June 2021. But, but smartass Xbox fans claimed that T2 CEO 30 mil. numbers were facts. When i've said numerous times he just guessed from his ass.

Where are the most Xbox smartasses now? @Pedro@kingtito@HalcyonScarlet@dabear@lundy86_4

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#20 Ghost_of_Phobos
Member since 2020 • 2962 Posts

OMG it only grew 37%, that's it preorder cancelled!

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GoldenElementXL

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#21 GoldenElementXL
Member since 2016 • 6508 Posts

@mowgly1: Or 2 million more subs since January. It’s almost like the majority of loyal Xbox gamers subscribed to Game Pass after 4 years, but not many new customers have joined in. That would be a disastrous outcome as far as software revenue is concerned. Imagine taking your loyal, multiple $60 games a year customers and turning them into $10 a month customers. While splitting that $10 a month with all sorts of other studios. Many 3rd party…

FH5 is gonna have a ton of microtransactions, isn’t it???

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deactivated-618bc23e9b1c9

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#22 deactivated-618bc23e9b1c9
Member since 2007 • 7339 Posts

I wonder if tc will make another thread about the boom in subs when Starfield and TES VI arrive?

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#23 mowgly1
Member since 2017 • 2083 Posts

@goldenelementxl said:

@mowgly1: Or 2 million more subs since January. It’s almost like the majority of loyal Xbox gamers subscribed to Game Pass after 4 years, but not many new customers have joined in. That would be a disastrous outcome as far as software revenue is concerned. Imagine taking your loyal, multiple $60 games a year customers and turning them into $10 a month customers. While splitting that $10 a month with all sorts of other studios. Many 3rd party…

FH5 is gonna have a ton of microtransactions, isn’t it???

Surely in the future

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#24 lamprey263  Online
Member since 2006 • 40537 Posts

Considering the who biggest releases for the service this year are coming in the next two months, I think it might see it's biggest growth these next few weeks. Then again, I imagine some part of their projections are based the idea there wouldn't be this continued silicon shortage. Even now the country suffers from issues of the ports being backed up and there is not enough freight transportation to get it out. I think under the circumstances thought the Game Pass service appears to be doing really well.

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#25  Edited By dabear
Member since 2002 • 4676 Posts
@mowgly1 said:
@goldenelementxl said:

Source

Uh oh…

Why it matters: Xbox Game Pass is often touted as the best deal in gaming and its subscriber count is a shorthand measure of Microsoft’s gaming success.

By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

  • In the company's prior fiscal year, which ran from mid-2019 through mid-2020, Game Pass subs were up 86%, exceeding a target of 71%.

Uh oh. Around 20 mil. as of June 2021. But, but smartass Xbox fans claimed that T2 CEO 30 mil. numbers were facts. When i've said numerous times he just guessed from his ass.

Where are the most Xbox smartasses now? @Pedro@kingtito@HalcyonScarlet@dabear@lundy86_4

That twitter guy's math is off.

18 million + (18m * 37.48%) = 24.76 (probably 25 million).

Is it the 30 million mentioned by someone else? No. However, its still between $250 million and $375 million a month in revenue.

So...

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#26  Edited By mowgly1
Member since 2017 • 2083 Posts
@dabear said:
@mowgly1 said:
@goldenelementxl said:

Source

Uh oh…

Why it matters: Xbox Game Pass is often touted as the best deal in gaming and its subscriber count is a shorthand measure of Microsoft’s gaming success.

By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

  • In the company's prior fiscal year, which ran from mid-2019 through mid-2020, Game Pass subs were up 86%, exceeding a target of 71%.

Uh oh. Around 20 mil. as of June 2021. But, but smartass Xbox fans claimed that T2 CEO 30 mil. numbers were facts. When i've said numerous times he just guessed from his ass.

Where are the most Xbox smartasses now? @Pedro@kingtito@HalcyonScarlet@dabear@lundy86_4

That twitter guy's math is off.

18 million + (18m * 3748%) = 24.76 (probably 25 million).

Is it the 30 million mentioned by someone else? No. However, its still between $250 million and $375 million a month in revenue.

So...

Dude, you're of as hell, Xbox fan. Looks like you didn't read the tweet correctly. Year over year - 37% is from July 1, ‘20 to June 3

18 million was in January this year and 25 million would be 37% growth from that. So likely on the low side of 20 million if it's 37% growth from June last year.LOLSo best case scenario they were at 20,5M (15*1,37) in June this year

Is it the 30 million mentioned by someone else? No

Backpedalling now i see, Xbox fan. You know very well that T2 CEO said 30 mil. and you Xbox fans took that number as a fact. Try not to be an Xbox fan, be a smart guy for once.

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dabear

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#27  Edited By dabear
Member since 2002 • 4676 Posts

@mowgly1 said:
@dabear said:
@mowgly1 said:
@goldenelementxl said:

Source

Uh oh…

Why it matters: Xbox Game Pass is often touted as the best deal in gaming and its subscriber count is a shorthand measure of Microsoft’s gaming success.

By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

  • In the company's prior fiscal year, which ran from mid-2019 through mid-2020, Game Pass subs were up 86%, exceeding a target of 71%.

Uh oh. Around 20 mil. as of June 2021. But, but smartass Xbox fans claimed that T2 CEO 30 mil. numbers were facts. When i've said numerous times he just guessed from his ass.

Where are the most Xbox smartasses now? @Pedro@kingtito@HalcyonScarlet@dabear@lundy86_4

That twitter guy's math is off.

18 million + (18m * 3748%) = 24.76 (probably 25 million).

Is it the 30 million mentioned by someone else? No. However, its still between $250 million and $375 million a month in revenue.

So...

Dude, you're of as hell, Xbox fan. Jesus

18 million was in January this year and 25 million would be 37% growth from that. So likely on the low side of 20 million if it's 37% growth from June last year.LOLSo best case scenario they were at 20,5M (15*1,37) in June this year

Is it the 30 million mentioned by someone else? No

Backpedalling now i see, Xbox fan. You know very well that T2 CEO said 30 mil. and you Xbox fans took that number as a fact.

Oh, I misread that. I didn't notice the financial statement was for the whole fiscal year. Still, to say "it's closer to 20 million" is just speculation on your part, since there are no official numbers.

But, taking your figures, subjective as they are, its still between $200 million and $250 million a month in revenue each month - quite the feather in MS's cap.

Backpedaling? No. I took someone speaking at an official event at his word. Was he wrong? Yes. Is that what you were looking for?

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mowgly1

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#28 mowgly1
Member since 2017 • 2083 Posts

@dabear said:
@mowgly1 said:
@dabear said:
@mowgly1 said:
@goldenelementxl said:

Source

Uh oh…

Why it matters: Xbox Game Pass is often touted as the best deal in gaming and its subscriber count is a shorthand measure of Microsoft’s gaming success.

By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

  • In the company's prior fiscal year, which ran from mid-2019 through mid-2020, Game Pass subs were up 86%, exceeding a target of 71%.

Uh oh. Around 20 mil. as of June 2021. But, but smartass Xbox fans claimed that T2 CEO 30 mil. numbers were facts. When i've said numerous times he just guessed from his ass.

Where are the most Xbox smartasses now? @Pedro@kingtito@HalcyonScarlet@dabear@lundy86_4

That twitter guy's math is off.

18 million + (18m * 3748%) = 24.76 (probably 25 million).

Is it the 30 million mentioned by someone else? No. However, its still between $250 million and $375 million a month in revenue.

So...

Dude, you're of as hell, Xbox fan. Jesus

18 million was in January this year and 25 million would be 37% growth from that. So likely on the low side of 20 million if it's 37% growth from June last year.LOLSo best case scenario they were at 20,5M (15*1,37) in June this year

Is it the 30 million mentioned by someone else? No

Backpedalling now i see, Xbox fan. You know very well that T2 CEO said 30 mil. and you Xbox fans took that number as a fact.

Oh, I misread that. I didn't notice the financial statement was for the whole fiscal year. Still, to say "it's closer to 20 million" is just speculation on your part, since there are no official numbers.

But, taking your figures, subjective as they are, its still between $200 million and $250 million a month in revenue each month - quite the feather in MS's cap.

Backpedaling? No. I took someone speaking at an official event at his word. Was he wrong? Yes. Is that what you were looking for?

It is not a speculation closer to 20 mil. Closer to 20 mil can be 20.3 or 20.5. too. You can backpedalling all you want. Xbox fan. 15 mil. was last year ( OFFICIAL numbers ). Now we have growth of 37% ( OFFICIAL number ) since last year which means it is around 20 mil. as of June 2021. I

You took T2 CEO numbers as a fact, not as guessed numbers, Xbox fan.

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GoldenElementXL

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#29 GoldenElementXL
Member since 2016 • 6508 Posts

@dabear: You do know Xbox has to share that revenue with all the devs and pubs involved in the service, right?

Now imagine launching your biggest franchises, I’m talking games that sell millions on launch day. And instead of hundreds of millions of dollars going straight to Xbox, your hoping for increased sub revenue that you share with 2nd and 3rd parties that had nothing to do with these games… That sub count needs to be MUCH bigger for any of this to make sense.

It’s becoming clear why Microsoft was prepping investors for bad numbers this quarter

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#30 madrocketeer  Online
Member since 2005 • 9465 Posts
@goldenelementxl said:

Game Pass launched 4 years ago. And Microsoft hasn‘t given us a new sub count since January…

Again, the Game Pass model relies on scaling and breadth of content. Microsoft have not seriously invested in the latter until more recently. Until that investment starts bearing fruit, we will not know if this dip (if there is one) in subs growth is a trend or a blip.

It's still too early to make any kind of judgement.

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#31 dabear
Member since 2002 • 4676 Posts

@goldenelementxl: So? It's still printing money.

Only a cow would think MS bringing in billions a year in subscription revenue is a "failure".

Sorry, but your argument is kinda pathetic.

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GoldenElementXL

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#32 GoldenElementXL
Member since 2016 • 6508 Posts

@dabear said:

@goldenelementxl: So? It's still printing money.

Only a cow would think MS bringing in billions a year in subscription revenue is a "failure".

Sorry, but your argument is kinda pathetic.

They are 3rd in revenue across the board. And that’s not factoring in what the actual profit margins are… Xbox is clearly spending more than the other two, while making less money…

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#33 dabear
Member since 2002 • 4676 Posts

@goldenelementxl: LOL. MS could buy Sony and Nintendo. They're removing from the shit-show that was the XBox One era. Before you go singing their demise, let's see how this generation pans out, shall we?

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GoldenElementXL

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#34 GoldenElementXL
Member since 2016 • 6508 Posts

@dabear said:

@goldenelementxl: LOL. MS could buy Sony and Nintendo. They're removing from the shit-show that was the XBox One era. Before you go singing their demise, let's see how this generation pans out, shall we?

Lol! Brining daddy Microsoft into the fight, huh? Yes, big Microsoft has tons of cash. I’m talking about the video game divisions and their financials. Bringing in Microsoft as a whole is a cute trump card, but it’s kind of irrelevant.

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#35 dabear
Member since 2002 • 4676 Posts

@goldenelementxl: Yeah, because a company that big, with that much success, is obviously ran by idiots who don't know they should exit the market? They can't build a strategy for successes? Is that what you are saying?

Please.

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GoldenElementXL

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#36 GoldenElementXL
Member since 2016 • 6508 Posts

@dabear said:

@goldenelementxl: Yeah, because a company that big, with that much success, is obviously ran by idiots who don't know they should exit the market? They can't build a strategy for successes? Is that what you are saying?

Please.

Yeah, because the Xbox One was such a smashing success… Do you hear yourself?!?!

Xbox was a side hustle for them that Microsoft just started seriously investing in. Microsoft can more than handle “failure” in this market. They are the only one that could gamble with something like Game Pass. Why do you think PlayStation is so gun shy with their answer to Game Pass? PlayStation needs to make money as soon as possible. They don’t have the time, or pockets to deal with 4 years of software revenue losses while trying to grow and acquire studios. And Nintendo? They’ve been selling us the same games since the Wii. Why? It offers the highest profit margins…

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Sagemode87

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#37 Sagemode87
Member since 2013 • 2531 Posts

@dabear: You still here after being owned? What don't you get about MS money not buying them success? Zune would've worked out if money was all that mattered. MS is giving their games away and still last, not a good look. Their value as a brand is shrinking.

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hardwenzen

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#38 hardwenzen  Online
Member since 2005 • 14540 Posts

This thread is such a bait for antwan. You know he is coming, and there's nothing you can do about it, TC.

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dabear

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#39 dabear
Member since 2002 • 4676 Posts

@Sagemode87: Owned? For what? Believing a false number?

He was wrong, that doesn't mean I got "owned".

Again, let's wait to see how this gen plays out, shall we?

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GoldenElementXL

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#40 GoldenElementXL
Member since 2016 • 6508 Posts

@hardwenzen said:

This thread is such a bait for antwan. You know he is coming, and there's nothing you can do about it, TC.

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hardwenzen

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#41 hardwenzen  Online
Member since 2005 • 14540 Posts

@dabear said:

@Sagemode87: Owned? For what? Believing a false number?

He was wrong, that doesn't mean I got "owned".

Again, let's wait to see how this gen plays out, shall we?

You got owned. Why are you still here? Nobody wants to wait for this gen. You got owned, and you need to do better next time, lem.

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#42 Nonstop-Madness
Member since 2008 • 10970 Posts

The lack of 1st party content is part of the story but, I think another point people miss is the fact that the service is still heavily reliant on having Xbox hardware.

Cloud gaming isn't going to bring in new subs anytime soon and PC isn't going to provide much growth until exclusive Bethesda games launch. And even then, PC is going to be much harder to sell a subscription. It again comes down to Xbox hardware doing the heavy lifting and there's only so many of those in the market.

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GoldenElementXL

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#43 GoldenElementXL
Member since 2016 • 6508 Posts
@Sagemode87 said:

@dabear: You still here after being owned? What don't you get about MS money not buying them success? Zune would've worked out if money was all that mattered. MS is giving their games away and still last, not a good look. Their value as a brand is shrinking.

They‘ve moved the goal post in such a way that things like results no longer matter. I figured Lems would be all over the digital foundry victories. But no. Then they were here pushing install bases and potential as their talking points. Well they’re still 3rd with the highest potential install base, so now the talking point is acquisition wars. That buys them a few years I guess.

This is what 7 years worth of ass whoopins will do to a fan base…

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dabear

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#44 dabear
Member since 2002 • 4676 Posts

@hardwenzen: You can keep saying it, but that doesn't make it true.

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GoldenElementXL

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#45 GoldenElementXL
Member since 2016 • 6508 Posts

@Nonstop-Madness said:

It again comes down to Xbox hardware doing the heavy lifting and there's only so many of those in the market.

I agree. But many here have been on this kick saying selling boxes is no longer the focal point to Xbox’s strategy. PC gamers want nothing to do with that Xbox app and store. And the cloud stuff has proven to be more hype than anything else. I’ve tried it. It’s no better than Stadia… Stadia has superior image quality and it’s quite noticeable. Whoops!

And why is Xbox behind the competition as far as production is concerned? AMD overhyping some of those RDNA2 features. Never trust AMDs graphics department.

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hardwenzen

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#46 hardwenzen  Online
Member since 2005 • 14540 Posts

@dabear said:

@hardwenzen: You can keep saying it, but that doesn't make it true.

Being in denial is not a proper way of living. You got owned, why don't you accept it? You can take me as an example. When i get owned, i accept it.

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xantufrog

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#47 xantufrog  Moderator
Member since 2013 • 17058 Posts

@girlusocrazy: that is how they get ya. But I'd say only a tiny fraction of the games I play are on GP

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Pedro

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#48 Pedro
Member since 2002 • 55318 Posts

@mowgly1 said:

Uh oh. Around 20 mil. as of June 2021. But, but smartass Xbox fans claimed that T2 CEO 30 mil. numbers were facts. When i've said numerous times he just guessed from his ass.

Where are the most Xbox smartasses now? @Pedro@kingtito@HalcyonScarlet@dabear@lundy86_4

You had no proof that the T2 CEO was wrong and you were unable to accept that fact. Since then, we stayed rent free in your head and you still don't have numbers. 😂

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dabear

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#49 dabear
Member since 2002 • 4676 Posts

@hardwenzen: Being "owned" and being "wrong" are two different things.

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BenjaminBanklin

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#50 BenjaminBanklin
Member since 2004 • 8985 Posts

Whaaaa? You say this exercise in burning cash isn't paying off? GASSSSSP!

Why were they so bullish on it? A "Netflix for games" isn't even achievable as games aren't as accessible to the general public as TV shows and movies are. Not to mention. Xbox consoles are soundly in third place... again. And, Some retailers around the world won't carry Xbox BECAUSE of Game Pass. No software profits, no incentive.

They're crazy if they think people are going to go all in on Xcloud to justify shoveling all this capital into it.

I'm sure there's a lot of people like me that don't use the service until there's something worth playing on it for that month. All the supposed bangers are still YEARS away. If GP can't take off due to Xbox being as cursed as it is, it's either going to rocket in price, or scale back hard in AAA content.