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Opinion Business Game Dev Phil Spencer: Xbox Game Pass isn’t “burning money to gain customers”

trikster40

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It's all about customer loyalty. I bought 3 years of game pass ultimate for under 100 bucks. So it's damn sure that the series X will be my main console except the ps5 is significantly stronger. It will pay off for Microsoft.

So basically, they’re buying your loyalty. But when the cheap GamePass ends and they start asking for your real money, what happens then?

Problem with this is that sure, you’ll buy the Series X. Youll have at least 3 years of GamePass left, why not? Console manufacturers always take losses during the first few years of a new console. So now they’ve lost money from you on the console, and they’re not making money from you buying games, and all you did was give them $100 over the course of 3 years, which isn’t even the equivalent of buying 2 new releases.

Again, valid question, where is the sustainability in such a model? Ask MoviePass how their model worked out for them? Cheap as hell, built up their subscribers, couldn’t sustain it.
 
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Gargus

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"Man in charge of a business tells everyone his business is doing great. News at 11"

Man for a short amount of time he spoke he said how good business is quite a few times, and didnt really actually say anything else.
 

Stuart360

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'positive Xbox news'

 
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Though why did Microsoft stop reporting MAU numbers even though Gamepass is extremely cheap? The value proposition should theoretically boost the MAU substantially.
 
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Vawn

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'positive Xbox news'


How is this positive Xbox news? Is Phil Spencer talking in circles without any actual data, positive Xbox news now? If so, there is always non-stop positive Xbox news.

This is just more, "we can't give out real numbers for blah blah blah reasons, so let's just say we're doing good. Please believe us (our business depends on it)."
 
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Mistershine.

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This guy can say anything and a certain group will take it as gospel.
On the flip side, this guy can say anything and a certain group will downplay it as PR and lies.

Netflix has losses because they produce a ton of shit woke content that no one watches and doesn't drive business to them.
Totally different scenarios
Netflix also doesn't have a store that allows you to buy MTX or a discounted version of their shows if you want.
 
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Stuart360

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How is this positive Xbox news? Is Phil Spencer talking in circles without any actual data, positive Xbox news now? If so, there is always non-stop positive Xbox news.

This is just more, "we can't give out real numbers for blah blah blah reasons, so let's just say we're doing good. Please believe us (our business depends on it)."
Or he's telling the truth?, i know that concept is hard for a lot of you to take, especially when it comes to Microsoft.
 

Portugeezer

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Psnow Is like gamepass..but in streaming on PC and download on a console ,(like gamepass) a monthly price for...What..900 games?
Sure, but Xbox release new games on it which is why I didn't want to compare. There is a difference in value between getting a new game and an old game.
 

Stuart360

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I am still hard pressed to believe, that nerds (like me) care about this shit. GamePass is really great value for me, maybe for time being, but that's pretty much all I care for. I am not going to shed a tear about trillion dollar company loosing money...
I know, the concern trolling gets tiresome. If they want to bleed money, let them, i would of thought most of you would be happy about that anyway.
 

M1chl

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I know, the concern trolling gets tiresome. If they want to bleed money, let them, i would of thought most of you would be happy about that anyway.
I would no, because why I would want them to go out of Gaming business, but if they do well it's not like there are no alternatives...
 

Portugeezer

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I am still hard pressed to believe, that nerds (like me) care about this shit. GamePass is really great value for me, maybe for time being, but that's pretty much all I care for. I am not going to shed a tear about trillion dollar company loosing money...
It is not about the "trillion dollar company", it's about whether the business model is sustainable for YOU to continue getting YOUR great value.

YOU should hope it is. So I don't see why YOU wouldn't at least be interested to know that it seemingly seems to be sustainable for MS.
 

M1chl

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It is not about the "trillion dollar company", it's about whether the business model is sustainable for YOU to continue getting YOUR great value.

YOU should hope it is. So I don't see why YOU wouldn't at least be interested to know that it seemingly seems to be sustainable for MS.
Because I would guess that since they ae business, they know what they do and if they are loosing money, as far as I know, they had a growth in services last time, no? Lke in revenue...
 

Stuart360

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I would no, because why I would want them to go out of Gaming business, but if they do well it's not like there are no alternatives...
Even if Gamepass was a spectacular faliure, i doubt they would go out of business lol.
You have to speculate to accumilate with these kind of services. I mean look at Netflix, as far as i know they have never made a profit yet, but are still spending tens of millions on new content.
 

Nikana

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DanielsM incoming with a rant about bill of goods in 3,2...
Daniels was banned.

On topic, the people still crying foul play are getting tiresome. This really isn't that hard to understand and I don't know why people are running around with their fingers in their ears. Its not crazy to see how they are at the very least breaking even at this point.
 
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M1chl

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Even if Gamepass was a spectacular faliure, i doubt they would go out of business lol.
You have to speculate to accumilate with these kind of services. I mean look at Netflix, as far as i know they have never made a profit yet, but are still spending tens of millions on new content.
*gaming business : )

And I meant it more like, that GamePass changed my habit in gaming, since I try way more stuff than I would normally do. Which then let me support way more developers.
 

Stuart360

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*gaming business : )

And I meant it more like, that GamePass changed my habit in gaming, since I try way more stuff than I would normally do. Which then let me support way more developers.
Oh if i could actually get Windows 10 to actually install on one of my drives, i'd get Gamepass 100%, its ridiculous value.
 

Sussoloc

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So basically, they’re buying your loyalty. But when the cheap GamePass ends and they start asking for your real money, what happens then?

Problem with this is that sure, you’ll buy the Series X. Youll have at least 3 years of GamePass left, why not? Console manufacturers always take losses during the first few years of a new console. So now they’ve lost money from you on the console, and they’re not making money from you buying games, and all you did was give them $100 over the course of 3 years, which isn’t even the equivalent of buying 2 new releases.

Again, valid question, where is the sustainability in such a model? Ask MoviePass how their model worked out for them? Cheap as hell, built of their subscribers, couldn’t sustain it.
No Problem at all. I take the Game Pass Ultimate as long as ist lasts and if it gets cancelled i have the same situation as on a playstation. For me the Game Pass Ultimate is worth the full 13 bucks per month and i will use it as long as possible and it doesn't mean that i don't buy other games on their console while using it. I will buy games like Fallen Order, Cyberpunk and all the stuff as usual and that's how it works an the long term for them.
 
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nikolino840

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Sure, but Xbox release new games on it which is why I didn't want to compare. There is a difference in value between getting a new game and an old game.
New? Where? :D the newest games are Just indi games mainly becouse of id@xbox sector

If Sony can invest to have more games and for more long time and several years before Microsoft (some gamepass games are in for 6 months like "the surge") why Xbox can't afford It?

Sony dosen't make investments with devs for joining the psnow?
 

stitch1

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Let's just say that everyone that thinks it's not sustainable is correct and that M$ is just burning money on it... Wouldn't you want to take full advantage while you can? I know I am. Why the heck not? It's the most consumer friendly deal in gaming right now.

On the flip side of this argument does HBO lose money for charging the prices of a movie each month? Is Netflix not sustainable? If not, then why are there so many companies trying to get into that market?
 

wolffy71

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My kid and I both play a lot of games. I stick to more of the AAA titles but he tries sooo many games. Ultimately he costs me more money because he's always wanting some DLC for the games he tries and enjoys. I can see it working for MS if theres enough people like my son.
 

GymWolf

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Are you saying that as a neutral observer or a dipshit Playstation fan boy? That wasn't a question despite the question mark.


Are you telling me this as a phil's dick raider or as a salty xbox fan? Mine is a real question even if there isn't much difference tbh...

I troll everything, both sony, nintendo and microsoft, but you are free to believe what you want my friend.
 
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Neofire

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New? Where? :D the newest games are Just indi games mainly becouse of id@xbox sector

If Sony can invest to have more games and for more long time and several years before Microsoft (some gamepass games are in for 6 months like "the surge") why Xbox can't afford It?

Sony dosen't make investments with devs for joining the psnow?
Your twisting fact, name one new release on psnow that came it day one? 👀 Investing is long term not cannibalizing profit just to pad statistics.

I don't agree with psnow either simply for the future implications of all games on any platform will be a service. I like owning my games, untethered to the internet if I so choose.
 

Knightime_X

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Think of it like this...
If it wasn't for the subscription ms would have recieved literally $0 from me.

It's almost like a rental service.
I'm fine with not owning any of the games for various reasons.

Some of the games I DO like I'll end up buying eventually.

This service seems like it's mostly targeted towards those who wouldn't be paying in the first place.

The deal is better than humble bundle imo.
 

nikolino840

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Your twisting fact, name one new release on psnow that came it day one? 👀 Investing is long term not cannibalizing profit just to pad statistics.

I don't agree with psnow either simply for the future implications of all games on any platform will be a service. I like owning my games, untethered to the internet if I so choose.
I don't get It....mortal Kombat x Is on gamepass and PS now... what's the difference?
Is Nether realm paying Sony to enter in PS now? Or Sony makes investments Just like Xbox are doing with gamepass?
 
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Otterz4Life

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It’s a great value even at $10 per month. I paid that for about 8 months about a year ago. Didn’t mind at all. I’m locked in through April, when I’ll resubscribe or cancel and buy a bunch of games I liked through the service. Win-win.

You guys know you had to buy Gold to get the $1 conversion deal, right? XBL Gold is almost pure profit for MS. I can see how they made money on that deal.

Oh, and it’s a rental service that sells access to games. That access goes away when you unsubscribe. You’ll have to buy the games you want if you want to play the, again. They’re not giving anything away for free.
 

CasperDarling

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As usual GAF doesn’t get the information it wants and just makes up other information to discuss. This place really does exist in a bubble.

Everyone is very interested in MS’s revenue numbers but when you post them everyone gets upset. It’s hilarious.
Yeah I have been away from GAF for awhile just looking at the make fun of resetera thread yet console warring is just as bad here if not worse then it is at era.....I thought those people all left. Disappointed to say the least.
 
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Outrunner

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Let's just say that everyone that thinks it's not sustainable is correct and that M$ is just burning money on it... Wouldn't you want to take full advantage while you can? I know I am. Why the heck not? It's the most consumer friendly deal in gaming right now.

On the flip side of this argument does HBO lose money for charging the prices of a movie each month? Is Netflix not sustainable? If not, then why are there so many companies trying to get into that market?

Netflix has about 160 million subscribers...
 

Vawn

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Here's the real question. Why does it concern anyone? Why are you worried about MS pockets? Take advantage of it while you can and enjoy the games.

Because it's about their end game. Which is getting people to subscribe and continually raise prices to find the point where they won't bother unsubscribing. That's what subscription based services do.
 
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Because it's about their end game. Which is getting people to subscribe and continually raise prices to find the point where they won't bother unsubscribing. That's what subscription based services do.
In this same article it just said they are not trying to raise prices. Also why do care. Enjoy the games. If Sony did the same thing no one would complain or question them. People would be happy to have such a service. Enjoy value while it lasts. Not your job to understand the financial part. Just reap the benefits.
 
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Journey

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Do you expect people clapping at every thing phil has to say??

It's a fucking videogame forum, calm your tits broh :messenger_blowing_kiss:

We shouldn’t be clapping, but we should be shit posting on every Phil thread? Is that what you’re saying? because I haven’t noticed any clapping so far, just immediate shit posting and the old tired Phil meme
 

meirl

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Psnow Is like gamepass..but in streaming on PC and download on a console ,(like gamepass) a monthly price for...What..900 games?

not really. First: with xbox gamepass you can DOWNLOAD every game, PSnow does NOT allow you every game, and even NO ps3 games at all.

secondly, EVERY new microsoft title will be DAY ONE on gamepass. NO sony titles will be day one on PSnow..

PSnow only has PS3 and PS4 titles, xbox gamepass has all xbox generations in there.

so yeah, PSnow is much worse compared to gamepass.
 
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GymWolf

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We shouldn’t be clapping, but we should be shit posting on every Phil thread? Is that what you’re saying? because I haven’t noticed any clapping so far, just immediate shit posting and the old tired Phil meme
Oh cmon it was an innocent meme, don't be so serious.
 

nikolino840

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not really. First: with xbox gamepass you can DOWNLOAD every game, PSnow does NOT allow you every game, and even NO ps3 games at all.

secondly, EVERY new microsoft title will be DAY ONE on gamepass. NO sony titles will be day one on PSnow..

PSnow only has PS3 and PS4 titles, xbox gamepass has all xbox generations in there.

so yeah, PSnow is much worse compared to gamepass.
They have to made contracts with devs and publisher like Sony... And PS now have more games and more years behind...or games on psnow they come in without paying devs and publisher? Streaming or not dosen't mean anything...are all about Money and contracts...like mortal Kombat x
 

TheHTIC

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Seems like it does more to balance out the second hand market where publishers don't see a penny. I honestly hadn't bought a used game since probably mid 2018 simply because if I'm on the fence I'll wait and see if gamepass will get it. At least the publishers see something rather than a place like gamestop selling a used game and the publisher or developer seeing nothing.
 
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SleepDoctor

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Smells of triggered folk in here.

But whatever.

With ever increasing budgets to produce games and the millions more to market them, asking Phil if the Gamepass service (at $1 a pop to access thse big budget titles) is a sustainable model is a more than valid question.

They must be making the money back in a different way. You cant hope that gamers will spend crap tons of money on microtransactions when a game is sat on gamepass for a dollar.


Pretty much my thought. It makes even more sense considering where I work. I work on plane engine components. And I see some shitty contracts we have for some units where we're not making shit on it.... but on another unit for the same customer we're making way more than enough for it.

The question is how or on what exactly are they or can they do this with.
 
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Gamernyc78

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How else would you call a loss leader? You sell something under cost in order to get customers in the store, hoping they spend on other stuff so you end up making money.

It's not a bad strategy, just please don't tell us this is not what you are doing!

Also, like Epic's free games, don't expect that they will keep doing this when they get significant traction compared to Steam or whoever they see as their main competition.

Like Amazon and their cheaper price and the % off of games. Once thy had ppl locked in tht shit went bye bye
 
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Nikana

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not really. First: with xbox gamepass you can DOWNLOAD every game, PSnow does NOT allow you every game, and even NO ps3 games at all.

secondly, EVERY new microsoft title will be DAY ONE on gamepass. NO sony titles will be day one on PSnow..

PSnow only has PS3 and PS4 titles, xbox gamepass has all xbox generations in there.

so yeah, PSnow is much worse compared to gamepass.
I thought it had ps2 games? Bummer!
 
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Lol they gave away Gears 5 for $1 on day 1 and then wants to turn around and say they're not burning money XD. Also the $1 a month deal wasn't enough so they also did $2 for 2 months and 3 months for $1.
 
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nikolino840

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Lol they gave away Gears 5 for $1 on day 1 and then wants to turn around and say they're not burning money XD. Also the $1 a month deal wasn't enough so they also did $2 for 2 months and 3 months for $1.
This mean that without on gamepass they earn billions with gears 5