Tom Warren: Game Pass is not profitable

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NathanDrakeSwag

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#1 NathanDrakeSwag  Online
Member since 2013 • 16303 Posts

Like many of us have been saying all along, this is not a sustainable business model and is nothing more than desperation from Microsoft to try to compete with the big boys. They're pissed off over in Redmond because they have been Sony's bitch for every console generation they've been a part off and they are willing to bleed money on a failed venture just to stroke their deflated egos.

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jaydan

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#2  Edited By jaydan
Member since 2015 • 4947 Posts

Who is this guy and what makes his opinion important enough to constitute a thread?

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lundy86_4

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#3 lundy86_4  Online
Member since 2003 • 58538 Posts

The dude even says why it isn't producing profit. Money is being spent to grow the service as well as branding, and this is an established step in starting a business and/or service. Hell, Netflix incurred losses in the first few years...

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GoldenElementXL

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#4 GoldenElementXL
Member since 2016 • 5843 Posts

He’s not saying it isn’t sustainable. Game Pass is in “growth mode” so the losses are a given.

Xbox can’t keep running these grocery store promos for much longer. At some point Game Pass needs to switch gears. We’re about to close year 4 of “growth mode” ffs

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lundy86_4

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#5  Edited By lundy86_4  Online
Member since 2003 • 58538 Posts

@jaydan said:

Who is this guy and what makes his opinion important enough to constitute a thread?

Honestly, it was just easier for me to post his bio snippet.

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Juub1990

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#6  Edited By Juub1990
Member since 2013 • 10877 Posts
@NathanDrakeSwag said:

Like many of us have been saying all along, this is not a sustainable business model a

I'm sure a bunch of mouth-breathers on a forum know better how to make money than a multi-billion $ corporation.

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jaydan

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#7 jaydan
Member since 2015 • 4947 Posts

@lundy86_4 said:
@jaydan said:

Who is this guy and what makes his opinion important enough to constitute a thread?

Honestly, it was just easier for me to post his bio snippet.

Ahhh I gotcha. At first I was seeing a Tom Warren as some rugby athlete (unless that is also him), so I was drawing a bit of a dot-dot-dot to what made him relevant to the video games discussion.

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mowgly1

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#8  Edited By mowgly1
Member since 2017 • 1740 Posts

@jaydan said:

Who is this guy and what makes his opinion important enough to constitute a thread?

Some shill paid by MS. Also an MS insider.

@BenjaminBanklin

Well, someone else opened the thread. LOL

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lundy86_4

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#9 lundy86_4  Online
Member since 2003 • 58538 Posts

@jaydan said:

Ahhh I gotcha. At first I was seeing a Tom Warren as some rugby athlete (unless that is also him), so I was drawing a bit of a dot-dot-dot to what made him relevant to the video games discussion.

Yeah, i'd never heard of him before. Just did a search based on your post.

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jaydan

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#10 jaydan
Member since 2015 • 4947 Posts

@lundy86_4 said:
@jaydan said:

Ahhh I gotcha. At first I was seeing a Tom Warren as some rugby athlete (unless that is also him), so I was drawing a bit of a dot-dot-dot to what made him relevant to the video games discussion.

Yeah, i'd never heard of him before. Just did a search based on your post.

We both got different results when searching lol.

Sounds like a nobody to me.

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GoldenElementXL

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#11 GoldenElementXL
Member since 2016 • 5843 Posts

@lundy86_4 said:
@jaydan said:

Who is this guy and what makes his opinion important enough to constitute a thread?

Honestly, it was just easier for me to post his bio snippet.

I bet he doesn’t donate to the RDX Podcast Patreon like that source the Lems were running with about the PS5 and Mass Effect...

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jaydan

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#12 jaydan
Member since 2015 • 4947 Posts

@mowgly1 said:
@jaydan said:

Who is this guy and what makes his opinion important enough to constitute a thread?

Some shill paid by MS. Also an MS insider.

@BenjaminBanklin

Well, someone else opened the thread. LOL

Oooooh, a paid MS insider with his identity attached to it. Sounds like a fireable offense to me.

Nvm, all that Tweet expressed was an opinion.

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uninspiredcup

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#13 uninspiredcup
Member since 2013 • 45703 Posts

Ah.

@lundy86_4 said:

Honestly, it was just easier for me to post his bio snippet.

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jaydan

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#14 jaydan
Member since 2015 • 4947 Posts

I dunno what's more sad: hermits that worshipped a B-rate movie actor (guy that plays Superman) for posting pictures of building a PC, or Paystation fannies clenching to randos that validate their half-baked opinions.

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NathanDrakeSwag

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#15 NathanDrakeSwag  Online
Member since 2013 • 16303 Posts

@lundy86_4 said:

The dude even says why it isn't producing profit. Money is being spent to grow the service as well as branding, and this is an established step in starting a business and/or service. Hell, Netflix incurred losses in the first few years...

@goldenelementxl said:

He’s not saying it isn’t sustainable. Game Pass is in “growth mode” so the losses are a given.

Xbox can’t keep running these grocery store promos for much longer. At some point Game Pass needs to switch gears. We’re about to close year 4 of “growth mode” ffs

You guys are falling for the damage control. This guy is a Microsoft plant and spilled the beans about Game Pass being a big loser. He's forced to attempt to spin it into a positive. When the prices inevitably skyrocket and the $1 trials go away GP will start bleeding even more money than it already is because gamers (especially Xbox users) are cheap asses and won't subscribe when it goes up to $20-30+ a month.

This is why Microsoft tried to sneak in a XBLG price hike to $120. They wanted to force users to sub to GP by making XBLG unreasonably high. They know they can't keep GP at $10 a month forever and know they have a cheap fanbase.

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Random_Matt

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#17 Random_Matt
Member since 2013 • 6184 Posts

It will be profitable, with a future models of micro transactions, micro transactions, micro transactions, micro transactions, it is a shitty service model.

AAA budgets are huge, game pass is as shit as stadia, both can die.

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DaVillain-

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#18 DaVillain-  Moderator
Member since 2014 • 46958 Posts

@goldenelementxl said:

He’s not saying it isn’t sustainable. Game Pass is in “growth mode” so the losses are a given.

Xbox can’t keep running these grocery store promos for much longer. At some point Game Pass needs to switch gears. We’re about to close year 4 of “growth mode” ffs

This is basically the correct answer here, still in the growth progress and let's not forget Game Pass for MS cost lots of money to maintain thus most games won't stay on Game Pass forever. Another problem with Game Pass on PC has less games than Xbox Game Pass, PC doesn't always get the new releases till later and that's holding Game Pass back for being awesome on PC.

I do like Game Pass but I'm starting to lose interest cause I just have all the games on Steam/GoG and other clients but yeah, MS needs to work harder but hey, they are almost trying so credit where it's due.

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shadyacshuns

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#19 shadyacshuns
Member since 2007 • 6301 Posts

lol the only 'damage control' going on is threads like this one. First cows claim there's no good games on GP, so if that were true they wouldn't be sweating it out so poorly. I'll give them credit for one thing: being very afraid of Game Pass. They should be.

hah

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mowgly1

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#20 mowgly1
Member since 2017 • 1740 Posts

@jaydan said:
@mowgly1 said:
@jaydan said:

Who is this guy and what makes his opinion important enough to constitute a thread?

Some shill paid by MS. Also an MS insider.

@BenjaminBanklin

Well, someone else opened the thread. LOL

Oooooh, a paid MS insider with his identity attached to it. Sounds like a fireable offense to me.

Nvm, all that Tweet expressed was an opinion.

Actually it wasn't. He said it yesterday few times

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lundy86_4

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#21 lundy86_4  Online
Member since 2003 • 58538 Posts

@NathanDrakeSwag said:

You guys are falling for the damage control. This guy is a Microsoft plant and spilled the beans about Game Pass being a big loser. He's forced to attempt to spin it into a positive. When the prices inevitably skyrocket and the $1 trials go away GP will start bleeding even more money than it already is because gamers (especially Xbox users) are cheap asses and won't subscribe when it goes up to $20-30+ a month.

This is why Microsoft tried to sneak in a XBLG price hike to $120. They wanted to force users to sub to GP by making XBLG unreasonably high. They know they can't keep GP at $10 a month forever and know they have a cheap fanbase.

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wandering_halls

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#22 wandering_halls
Member since 2021 • 965 Posts

I mean, when you plant tomatoes in a garden, you don't all of a sudden get tomatoes. The cost of the seeds, soil, etc. etc. are going to outweigh the output in the first five minutes lol. You've got to give it time.

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StrongDeadlift

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#23 StrongDeadlift
Member since 2010 • 5915 Posts

@Juub1990 said:
@NathanDrakeSwag said:

Like many of us have been saying all along, this is not a sustainable business model a

I'm sure a bunch of mouth-breathers on a forum know better how to make money than a multi-billion 2 trillion$ corporation, and one of the most solvent, liquid, cash rich institutions that has EVER existed on earth, at any time in human history.

Fixed.

But yea, not sure why Cows are so obsessed with pocketwatching people who absolutely do not need their help making money, lol.

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BlackShirt20

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#24 BlackShirt20
Member since 2005 • 2631 Posts

@NathanDrakeSwag: You are so butthurt over Game Pass. Game Pass lives in your head rent free. Game Pass is cheap and awesome. It’s also growing at a rapid pace and the best thing about Game Pass....... Neither Sony or Nintendo have the support to do the same. It’s impossible. Which is why Sony is scrambling to find answers and a response to compete, but they can’t.

Game Pass is backed by a extremely rich company. Sony can’t even figure out how to run PS4 games on a PS5.

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Pedro

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#25 Pedro
Member since 2002 • 51262 Posts

Damn, the Sony fannies are fishing for anything they can and this time 15 years from now Xbox is still going to be here with GamePass. 😂

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jaydan

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#26 jaydan
Member since 2015 • 4947 Posts

@mowgly1: So this thread is just a big nothingburger, really. Glorified telephone games of "well somebody said something so I will mold it to my narrative."

Telephone game example,

Exhibit A) Tom Warren said: "Game Pass isn't profitable yet."

OP's translation: "Game Pass isn't profitable."

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BenjaminBanklin

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#27 BenjaminBanklin
Member since 2004 • 8338 Posts

@BlackShirt20 said:

@NathanDrakeSwag: You are so butthurt over Game Pass. Game Pass lives in your head rent free. Game Pass is cheap and awesome. It’s also growing at a rapid pace and the best thing about Game Pass....... Neither Sony or Nintendo have the support to do the same. It’s impossible. Which is why Sony is scrambling to find answers and a response to compete, but they can’t.

Game Pass is backed by a extremely rich company. Sony can’t even figure out how to run PS4 games on a PS5.

"Hello? Microsoft? I heard you guys are extremely rich, where the games at? Also, sorry you're in third place again."

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SolidGame_basic

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#28 SolidGame_basic
Member since 2003 • 31858 Posts

The $1 trials can only take them so far.

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Pedro

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#29 Pedro
Member since 2002 • 51262 Posts

@jaydan said:

@mowgly1: So this thread is just a big nothingburger, really. Glorified telephone games of "well somebody said something so I will mold it to my narrative."

Yes! They got to do something while their $70 game is being patched. 😂🤣

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hardwenzen

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#30 hardwenzen  Online
Member since 2005 • 9670 Posts

Well, lets hope that the service doesn't fail so i could play ALL Xbox exclusives for $1 and come here letting them know how worthless the X/S is 🙃

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NathanDrakeSwag

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#31  Edited By NathanDrakeSwag  Online
Member since 2013 • 16303 Posts

@BlackShirt20 said:

@NathanDrakeSwag: You are so butthurt over Game Pass. Game Pass lives in your head rent free. Game Pass is cheap and awesome. It’s also growing at a rapid pace and the best thing about Game Pass....... Neither Sony or Nintendo have the support to do the same. It’s impossible. Which is why Sony is scrambling to find answers and a response to compete, but they can’t.

Game Pass is backed by a extremely rich company. Sony can’t even figure out how to run PS4 games on a PS5.

A rich company because of Windows and Office. Not because of Xbox. They would be bankrupt in a day if they depended on Xbox.

You lemmings should be worried about going yet another year with no first party games. Microsoft isn't paying you to defend their honor on forums.

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TumorStation5

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#32 TumorStation5
Member since 2021 • 187 Posts

Wasn't tom warren not reliable? that he was a Microsoft fanboy ? now ponies agree with him 🤣

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jaydan

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#33 jaydan
Member since 2015 • 4947 Posts

@NathanDrakeSwag said:
@BlackShirt20 said:

@NathanDrakeSwag: You are so butthurt over Game Pass. Game Pass lives in your head rent free. Game Pass is cheap and awesome. It’s also growing at a rapid pace and the best thing about Game Pass....... Neither Sony or Nintendo have the support to do the same. It’s impossible. Which is why Sony is scrambling to find answers and a response to compete, but they can’t.

Game Pass is backed by a extremely rich company. Sony can’t even figure out how to run PS4 games on a PS5.

A rich company because of Windows and Office. Not because of Xbox. They would be bankrupt in a day if they depended on Xbox.

You lemmings should be worried about going yet another year with no first party games. Microsoft isn't paying you to defend their honor on forums.

When we just had a "who's bigger, Sony or Nintendo?" thread and all the Playstation fans started bringing Sony headphones and refrigerators into the conversation to pad out Playstation's relevance, you guys shouldn't be bothered that Windows is a part of the Microsoft conversation.

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madrocketeer

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#34  Edited By madrocketeer
Member since 2005 • 8913 Posts

Let's see some numbers with that.

Not doubting that Game Pass is currently losing money, but let's see something more substantive than some random speculative Tweet before we start throwing words like "unsustainable" and "failure" around.

So much analogue thinking around here. As I explained before, Microsoft are pushing for scaling and breadth of content; i.e. the Netflix model. Sony and Nintendo can't pursue the same scaling because they're multi-billion dollar companies, while Microsoft is a trillion dollar company. Microsoft can eat the losses.

Again, they're pushing for scaling. Check the subscriber numbers; as long as that's growing, they're on their way to that goal.

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BenjaminBanklin

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#35 BenjaminBanklin
Member since 2004 • 8338 Posts

@SolidGame_basic said:

The $1 trials can only take them so far.

They're only trying to boost numbers to make it sound better than it is. Xbums barely bought games last gen, there's no way they'll all keep up a full priced sub once the trials and conversions are over. Game Pass is gonna bleed like a stuck pig for the rest of its run.

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#36 regnaston
Member since 2008 • 2829 Posts

@NathanDrakeSwag said:

Like many of us have been saying all along, this is not a sustainable business model and is nothing more than desperation from Microsoft to try to compete with the big boys. They're pissed off over in Redmond because they have been Sony's bitch for every console generation they've been a part off and they are willing to bleed money on a failed venture just to stroke their deflated egos.

Reading comprehension is not one of your strong points is it??? Read the tweet again and nowhere does he say the model is not sustainable in fact he says "right now"

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Archangel3371

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#37 Archangel3371  Online
Member since 2004 • 35242 Posts

Umm, ok? It certainly seems to be trending towards profitability which is the goal. If it keeps growing at the rate that it currently is then it should get there. Microsoft seems to be doing a pretty good job at doing that.

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NathanDrakeSwag

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#38 NathanDrakeSwag  Online
Member since 2013 • 16303 Posts

@jaydan said:
@NathanDrakeSwag said:
@BlackShirt20 said:

@NathanDrakeSwag: You are so butthurt over Game Pass. Game Pass lives in your head rent free. Game Pass is cheap and awesome. It’s also growing at a rapid pace and the best thing about Game Pass....... Neither Sony or Nintendo have the support to do the same. It’s impossible. Which is why Sony is scrambling to find answers and a response to compete, but they can’t.

Game Pass is backed by a extremely rich company. Sony can’t even figure out how to run PS4 games on a PS5.

A rich company because of Windows and Office. Not because of Xbox. They would be bankrupt in a day if they depended on Xbox.

You lemmings should be worried about going yet another year with no first party games. Microsoft isn't paying you to defend their honor on forums.

When we just had a "who's bigger, Sony or Nintendo?" thread and all the Playstation fans started bringing Sony headphones and refrigerators into the conversation to pad out Playstation's relevance, you guys shouldn't be bothered that Windows is a part of the Microsoft conversation.

Sony is bigger than Nintendo based on gaming alone. They have more top selling consoles and the PS4 sold more software than any other console in history.

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Pedro

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#39 Pedro
Member since 2002 • 51262 Posts

@regnaston said:

Reading comprehension is not one of your strong points is it??? Read the tweet again and nowhere does he say the model is not sustainable in fact he says "right now"

Forgive the lad. They have been on a Xbox high the past few days. Maybe that $70 game isn't engaging enough.

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StrongDeadlift

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#40 StrongDeadlift
Member since 2010 • 5915 Posts

....

Does this trigger you TC?

Does it trigger you even more, that Gamepass will have even more content than it does now?

Does it trigger you to know, that you are on the wrong side of this debate.? And that no matter how hard you fight against it.......Jim Ryan does not agree with you.

In 2 years you are going to be bragging about Playstation's "GamePass" and why its "better" like it was Sony's idea.

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Ghost_of_Phobos

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#41 Ghost_of_Phobos
Member since 2020 • 2197 Posts

Oh noes, no one should care.

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jaydan

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#42 jaydan
Member since 2015 • 4947 Posts

@NathanDrakeSwag: For a brand as big as Playstation, I'm surprised they have still yet to make an IP more recognizable than Mario.

They've had like what? 30 years to make a more recognizable IP than Mario?

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Pedro

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#43 Pedro
Member since 2002 • 51262 Posts

@StrongDeadlift: Yikes! It seems like you are the one that got triggered. 😂

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hardwenzen

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#44 hardwenzen  Online
Member since 2005 • 9670 Posts

@StrongDeadlift after seeing the title of this thread

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jaydan

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#45 jaydan
Member since 2015 • 4947 Posts

@hardwenzen: Do you watch this guy? You seem to know all the best gifs of him.

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StrongDeadlift

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#46 StrongDeadlift
Member since 2010 • 5915 Posts

@BenjaminBanklin said:
@SolidGame_basic said:

The $1 trials can only take them so far.

They're only trying to boost numbers to make it sound better than it is. Xbums barely bought games last gen, there's no way they'll all keep up a full priced sub once the trials and conversions are over. Game Pass is gonna bleed like a stuck pig for the rest of its run.

Thats a nice theory, but Gamepass is consistently growing at a rate of more than 1 million+ per month. It was already on pace to hit 30 million by next January, and its already ahead of schedule.

If your theory was correct, subscribers would be dropping off after the trial prices, but that is not happening. Instead, the number is continuously climbing, and showing literally zero signs of slowing down. On the contrary, even the growth rate is increasing.

5 million users in the span of 3 months? Hell, even YOU have GamePass, and I bet you don't even have PSNow, despite the fact that it was $1 a few weeks ago. So there goes that theory about $1 deals inflating the numbers, for some reason, it doesnt seem to help Sony.

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lundy86_4

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#47 lundy86_4  Online
Member since 2003 • 58538 Posts

@StrongDeadlift: That doesn't even rebut the OP. You could have literally said "No shit" to the TC as these things need to grow, but you posted... That...

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hardwenzen

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#48 hardwenzen  Online
Member since 2005 • 9670 Posts

@jaydan said:

@hardwenzen: Do you watch this guy? You seem to know all the best gifs of him.

Nope, but a few weeks ago i've discovered a gold mine of top quality gif from him.

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Pedro

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#49 Pedro
Member since 2002 • 51262 Posts

@lundy86_4 said:

@StrongDeadlift: That doesn't even rebut the OP. You could have literally said "No shit" to the TC as these things need to grow, but you posted... That...

It is embarrassing. 😂

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jaydan

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#50 jaydan
Member since 2015 • 4947 Posts

@hardwenzen said:
@jaydan said:

@hardwenzen: Do you watch this guy? You seem to know all the best gifs of him.

Nope, but a few weeks ago i've discovered a gold mine of top quality gif from him.