Has Gamepass hit it’s Ceiling?

[Gizmo_Duck]

According to Phil Spencer it looks like the growth of Gamepass is starting to stagnate, especially on console. I was told that gamepass would be the future and thats what Microsoft really cares about but here they are saying they don’t ever expect it to grow beyond 10-15% of their revenue.



I wonder how they will continue to grow revenue?

 

[Deezay]

 

[The Mad Titan]

 

[CoolinInTheCut]

Game Pass subscriber growth rate has pretty much been cut in half every year for the last 3 years.

Phil said himself in that WSJ live that he thinks everyone on console that wants Game Pass probably has it by now.

Thats the whole reason for the keystone, they want to target the super casuals / non-gamers now. But the reality is games are still perceived as nerd shyt to most people, and are not mainstream media like movies and music - especially due to the interactivity required to even enjoy games.

The only way MS is ever going to get that demo to buy into Game Pass is to make extremely casual experiences with well known IPs. Thats why Phil said he wants to bring back Guitar Hero when they first announced plans to acquire Activision.

 

[Animal House]

 

[The Mad Titan]

Game Pass subscriber growth rate has pretty much been cut in half every year for the last 3 years.

Phil said himself in that WSJ live that he thinks everyone on console that wants Game Pass probably has it by now.

Thats the whole reason for the keystone, they want to target the super casuals / non-gamers now. But the reality is games are still perceived as nerd shyt to most people, and are not mainstream media like movies and music - especially due to the interactivity required to even enjoy games.

The only way MS is ever going to get that demo to buy into Game Pass is to make extremely casual experiences with well known IPs. Thats why Phil said he wants to bring back Guitar Hero when they first announced plans to acquire Activision.

 

[MeachTheMonster]

Sony stans

 

[CoolinInTheCut]

This is already on the service. I'm obviously talking about games MS is going to focus on in the future.

But hey we all know how desperate yall are for a win right now

 

[Fatboi1]

Gizmo back.

 

[Methodical]

Youre back @Gizmo_Duck

 

[humminbird]

ip is still king
no ip no engine

 

[MoneyTron]

15% of gaming revenue seems pretty significant to me. If we're taking the estimate of $16billion, that's $2,5billion just from GamePass.

Would need to see revenue breakdown of MSFT Gaming and an analysis of the competition's revenue streams to make any type of call on its relative success.

I'm sure there are opportunities for growth on the product and pricing side...

 

[CoolinInTheCut]

15% of gaming revenue seems pretty significant to me. If we're taking the estimate of $16billion, that's $2,5billion just from GamePass.

Would need to see revenue breakdown of MSFT Gaming and an analysis of the competition's revenue streams to make any type of call on its relative success.

I'm sure there are opportunities for growth on the product and pricing side...

Sure, but you're not giving much faith to investors when you're saying its going to remain around that percentage despite all of the investment towards Game Pass.

 

[Gizmo_Duck]

I'm sure there are opportunities for growth on the product and pricing side...

Yea….but this does Infact prove that Microsoft is still very much in the console hardware business as the gamepass subs are directly tied to the installbase. There’s no such thing as “microsoft doesn’t care about console sales”. Thats why the series s is so important and why they are continually dropping the price. They know in order to increase subs they gotta get more people into the ecosystem which means that have to find way to make the series s even better of a value proposition.

I expect a permanent price drop on it next year with a price increase of gamepass

 

[MoneyTron]

Sure, but you're not giving much faith to investors when you're saying its going to remain around that percentage despite all of the investment towards Game Pass.

Savvy investors are smart enough to know that subscription services don't have an indefinite level of user growth.

MSFT will likely pivot shift resources to better product offerings and/or inorganic growth next. How long that takes is the question. Yall know better than me what's in development.

I know I'm getting in a stan war I have no stake in, but I think GamePass is still a good product in my glancing overview.