Phil Spencer confirms Game Pass is profitable

[Frieza]

This has been debated a ton on this forum so it's good to have a definitive answer


View: https://twitter.com/tomwarren/status/1585341602012499969?s=46&t=EgylhMxf50sOpJEjYw8Krw

 

[Theorry]

View: https://twitter.com/tomwarren/status/1585341604176736256

 

[Seraphs]

damn, now we need to come with another word to say gamepass is bad!

 

[Lashley]

But, is it legal?

 

[LightKiosk]

damn, now we need to come with another word to say gamepass is bad!

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GamePass is profitable, but it could be more profitable.

 

[Meus Renaissance]

This is why COD being on Game Pass is so important to them: there will be a chunk of people at the turn of the next-gen who will Jump In from other platforms.

 

[Kuga]

damn, now we need to come with another word to say gamepass is bad!

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"devaluing games"

 

[zoggy]

Every gamepass price hike is now profiteering conformed

/s

 

[Lobster Roll]

There was never a doubt.

 

[SunshinePuppies]

what, that's impossible!

 

[canderous]

Wasn't the attach rate for game pass for Series console owners something like 70+ percent? Makes sense they've reach saturation point there and are pushing PC/cloud so much lately.

 

[StephenNotStrange]

Wait, which service that they want to raise the price last year or so, but a lot of people fight back so they decide to walk back?

Genuine question because I thought it was GamePass, or is it the Online one?

 

[Rosebud]

wait, then which service that they want to raise the price last year or so, but a lot of people fight back so they decide to walk back?

Genuine question because I thought it was GamePass, or is it the Online one?

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Live Gold

 

[gothi]

Wait, which service that they want to raise the price last year or so, but a lot of people fight back so they decide to walk back?

Genuine question because I thought it was GamePass, or is it the Online one?

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It was Xbox Live Gold, a move that many understood as an attempt to drive users to Game Pass.

 

[DC5remy]

This can't be.


Now put it on the PS please

 

[StephenNotStrange]

Live Gold

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ok, it make sense then. Cause I was wondering if it is actually GP then why would they raise the price if it profitable (except more profit obviously), seen so much streaming service increase price lately so it must have mess up my memory.

 

[Precious Tritium]

Wasn't expecting them to say it's slowed on console. Are they already at the markets saturation point?

I've always wondered if peak PS+ / Gold is as much as you could hope to reach with Game Pass on console or if it could go further. I guess that's obviously why streaming and mobile / PC have such big focuses. I just don't know who's paying a subscription to play games on mobile.

 

[LilScooby77]

How could this be🫣

 

[Seraphs]

GamePass is profitable, but it could be more profitable.

Click to shrink...

"devaluing games"

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this is why I love the internet hahahaha

 

[msdstc]

But don't can't afford such a service they said!

 

[Ifrit]

Has he confirmed if it's legal?

 

[DrScruffleton]

Doubters:

 

[Beef Supreme]

It will pick back up as soon as you can get it on smart TVs.

 

[oxymoron]

I'm surprised! Good for them.

I wonder if he means profitable in the strict sense of "Game Pass revenue - Game Pass expenses > 0", or the more expansive sense of "Game Pass revenue - Game Pass expenses - foregone revenue from selling $60 games > 0". I suspect it's the first one, but even so, that's pretty impressive!

I also wonder if he's attributing any of the costs of buying third party studios and their games on Game Pass, or just strictly looking at money going out the door to temporarily third party games. I guess there are a *lot* of different ways to count costs here.

 

[Azerth]

Wasn't expecting them to say it's slowed on console. Are they already at the markets saturation point?

I've always wondered if peak PS+ / Gold is as much as you could hope to reach with Game Pass on console or if it could go further. I guess that's obviously why streaming and mobile / PC have such big focuses. I just don't know who's paying a subscription to play games on mobile.

Click to shrink...

I think its more to do with the console version not getting alot of big games till towars the end of the year combined with the horrible 1st party ms had.

Next year it will probably go up

 

[KtotheRoc]

I just renewed my Game Pass subscription. You're welcome, Phil.

 

[SunBroDave]

 

[CRIMSON-XIII]

Now what? We have the information, so now what?

 

[Ricky]

I would like to see how the service does once they prevent users from using the $1/3yr trick. I don't know anybody IRL who pays $10-$15 per month for GP. I also wonder how it'll look when the inevitable price increase comes.

But who knows, maybe they'll just leave the $1 promo trick stick around and just get the guys who don't know any better 😂

 

[Theorry]

Now what? We have the information, so now what?

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he didnt answer if it was legal tho.

 

[Angst]

A little surprised, (and maybe a little thankful?) that gamepass subs seem to be hitting saturation levels.

It's not the way I want to consume content in the future.

 

[Mad_Rhetoric]

 

[Dynamo]

We're seeing incredibly growth on PC... on console I've seen growth slow down, mainly because at some point you've reached everybody on console that wants to subscribe.

Click to shrink...

Or maybe because your first party output is abysmal.

 

[maximumzero]

I didn't know there was any doubt that it wasn't. Microsoft's in the business of profit. I guarantee you that if it wasn't profitable it would have been cut loose a long time ago.

 

[Chaos Legion]

I'm surprised! Good for them.

I wonder if he means profitable in the strict sense of "Game Pass revenue - Game Pass expenses > 0", or the more expansive sense of "Game Pass revenue - Game Pass expenses - foregone revenue from selling $60 games > 0". I suspect it's the first one, but even so, that's pretty impressive!

I also wonder if he's attributing any of the costs of buying third party studios and their games on Game Pass, or just strictly looking at money going out the door to temporarily third party games. I guess there are a *lot* of different ways to count costs here.

Click to shrink...

Not really going to get color unless internal documents leaks, unfortunately

 

[Deleted member 98695]

Wasn't the attach rate for game pass for Series console owners something like 70+ percent? Makes sense they've reach saturation point there and are pushing PC/cloud so much lately.

Click to shrink...

At this point, the only real way of increasing Game Pass console numbers to sell consoles, and they can only do that at a relatively slow rate. There is no real way of beating something like a 70% attach rate. Even Nintendo games do not have that attach rate.

 

[Cels]

i think they'll see a decent jump with their streaming-only box, depending on the price.

 

[Precious Tritium]

I didn't know there was any doubt that it wasn't. Microsoft's in the business of profit. I guarantee you that if it wasn't profitable it would have been cut loose a long time ago.

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I think this is the first time they've ever specifically said it was. Was said to be "sustainable" previously.

 

[Seraphs]

I still think that they could get more pc subscribers if they added more strategy or survival strategy games like farthest frontier, surviving the aftermath, endzone, etc.

 

[m23]

Great, I can now rest easy.

 

[JINX]

Wasn't expecting them to say it's slowed on console. Are they already at the markets saturation point?

I've always wondered if peak PS+ / Gold is as much as you could hope to reach with Game Pass on console or if it could go further. I guess that's obviously why streaming and mobile / PC have such big focuses. I just don't know who's paying a subscription to play games on mobile.

Click to shrink...

Well, Game Pass growth on console is limited by how many consoles they can sell, so as long as that continues to be an issue they can't easily increase growth. Hence the focus on PC and Cloud were such an issue isn't present.

 

[kimbo99]

Goalposts are going to move as if a sunday league keeper is in net. Gamepass is profitable, end of.

 

[2Blackcats]

Probably true but why believe him? How do you untangle money made game pass from the rest of the Xbox stuff?

 

[AHA-Lambda]

 

[Wrench]

 

[Precious Tritium]

I think its more to do with the console version not getting alot of big games till towars the end of the year combined with the horrible 1st party ms had.

Next year it will probably go up

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Yeah there's no way it doesn't go up when Starfield drops.

Just wasn't expecting the idea of pricing going up and the subs slowing now, like in a few years sure but not this early, though it could just be as you say outside market factors and low game output for this year.

 

[HockeyBird]

GamePass is profitable, but it could be more profitable.

Click to shrink...

You joke but that's how share holders think. Wouldn't be surprised if the stock price goes down just based on Phil's just profitable and console sub growth slowing down comments.

 

[808s & Villainy]

At this point, the only real way of increasing Game Pass console numbers to sell consoles, and they can only do that at a relatively slow rate. There is no real way of beating something like a 70% attach rate. Even Nintendo games do not have that attach rate.

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Minus BOTW have a greater than 100% attach rate when the Switch launched lol

 

[Pasha]

But is it though?
What if Phil is lying?
All the Era mathematicians and market experts can't possibly be wrong.

 

[SCUMMbag]

Probably true but why believe him? How do you untangle money made game pass from the rest of the Xbox stuff?

Click to shrink...

It's true. We should call him a liar because it fits our agenda.