Gamers really don't understand how the videogame industry work

ColdSlither

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The product is not the individual game it’s the service itself.

Microsoft prints money. They can make games at a loss in perpetuity while their core business eats those losses and still prints money.

Their gamble is eventually either they can divorce the service from the hardware and expand the potential customer base or they can make a service with compelling games that offers customers such a value proposition they subscribe.

Microsoft’s entire business is software as a service. Why wouldn’t they evolve to bring that approach to gaming? Especially when the selling of additional content for games typically produces more revenue that the selling of the actual games?

Mobile gaming is far more valuable than console gaming and the predominant model there is free to play. Other business models besides selling people $70 games can work.

No they can't nor will their shareholders allow them to keep doing so. But like the news that Phil straight up told the truth from a certain point of view, we'll just wait for that news to drop sometime in the future.
 

Gizmo_Duck

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No they can't nor will their shareholders allow them to keep doing so. But like the news that Phil straight up told the truth from a certain point of view, we'll just wait for that news to drop sometime in the future.


Thats all it is at this point, just wait and the truth will eventually come out.


Its so funny hearing people think microsoft can afford to throw away money and warchest talk when they just killed their AR/VR department and laid off 10k workers. Microsoft isn’t wealthy because they are good at losing money.
 

MeachTheMonster

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The bolded is all cap. The reality is that probably outside of Spotify and Apple Music, every subscription service is not making money. They are all looking at ways to actually make a profit down the line.
No. this isn’t true. They are putting the money back into content but they are making a profit.

That's the fact. Microsoft is not immune and it's why Sony and Nintendo don't just give things away. So what if Microsoft is making $3 billion a year when they have to give it away.
Sony doesn’t make much profit off of their first party games. The majority of their money comes from 3rd party software sales and services. The 1st Party games are an investment to bring people into the ecosystem, same as gamepass.

It’s clear from talking to y’all that the thread title is all facts. Console wars is all you goofys understand :smh:
 

ColdSlither

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Thats all it is at this point, just wait and the truth will eventually come out.


Its so funny hearing people think microsoft can afford to throw away money and warchest talk when they just killed their AR/VR department and laid off 10k workers. Microsoft isn’t wealthy because they are good at losing money.

I thought the same thing about Disney+ when it dropped. "Oh if they have X amount of subscribers, they can put their content on the service and skip the theaters because the money will be there." I was wrong as fukk. Iger just came back and said on an investors call, that they focused so much on just making content for the service, that they forgot that they still have to make money. And you know how business works, even when you make $3 billion a year? You also have to pay for all the things that get you to that. Employees pay, benefits, office space, server space, marketing, etc. It's more than just paying developers to put their stuff on Game Pass. And when you're on the Microsoft level of business you're going to pay Microsoft money, and that is not cheap.
 

ColdSlither

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No. this isn’t true. They are putting the money back into content but they are making a profit.


Sony doesn’t make much profit off of their first party games. The majority of their money comes from 3rd party software sales and services. The 1st Party games are an investment to bring people into the ecosystem, same as gamepass.

It’s clear from talking to y’all that the thread title is all facts. Console wars is all you goofys understand :smh:

No Sony doesn't. And their CEO knows that a lot of their value comes in licensing their content out. So what exactly don't I know? Call me when Microsoft makes the Halo show good.
 

ColdSlither

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Yes actual numbers and public statements are “fairy tales”

Random musings from sony stan’s on a hip hop forum are all facts tho.

Crazy:wow:

Public statements? You mean like Phil or whoever at Microsoft saying that Game Pass won't hurt sales, and then have to release info because they want to buy a company that they're mostly going to let IP collect dust on a shelf, and had to reveal that Game Pass does hurt sales. You mean those kind of public statements?
 
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