Spencer revealed the figure during an interview with Windows Central and stated that Xbox Game Pass is "financially viable, meaning it makes money," despite that outlay.
There's a difference between "profitable" and "how much money Microsoft wants to make after investing billions in something" and I'd wager it's a big one
I get what you're saying and I'm sure all the MBAs at Microsoft are shitting bricks, but I never fully understand why a company would be disappointed with a service like this one even doing only slightly better than breaking even.
Not everything needs to have infinite growth and gigantic margins as long as $-in > $-out.
Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.
Last year they reported 25 million subscribers. Even if every single one of those was the $10 plan, that equates to $3 Billion. Seems like they are doing okay.
Depends on how many used deals to upgrade Gold or whatever.
25 million x 10 = 250 million
250 million - 1 billion = −750 million
I think $10 is per month, so multiply that by 12 to get the $3B
That's interesting because they missed their milestone for 2021 and 2022 then stopped reporting their numbers for 2023. I kind of doubt they're making a real profit from Game Pass, else they'd be boasting about it more.
There's a difference between "profitable" and "how much money Microsoft wants to make after investing billions in something" and I'd wager it's a big one
I get what you're saying and I'm sure all the MBAs at Microsoft are shitting bricks, but I never fully understand why a company would be disappointed with a service like this one even doing only slightly better than breaking even.
Not everything needs to have infinite growth and gigantic margins as long as $-in > $-out.
Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.
Last year they reported 25 million subscribers. Even if every single one of those was the $10 plan, that equates to $3 Billion. Seems like they are doing okay.
Depends on how many used deals to upgrade Gold or whatever.
25 million x 10 = 250 million
250 million - 1 billion = −750 million
I think $10 is per month, so multiply that by 12 to get the $3B
I knew I got something wrong lol