[Once more] Striking Distance (Callisto Protocol) says hard to be profitable making single player games on Gamepass

[MeachTheMonster]

"Our exclusive game content is created through Xbox Game Studios, a collection of first-party studios creating iconic and differentiated gaming experiences. We continue to invest in new gaming studios and content to expand our IP roadmap and leverage new content creators. These unique gaming experiences are the cornerstone of Xbox Game Pass, a subscription service and gaming community with access to a curated library of over 100 first- and third-party console and PC titles."

– Microsoft SEC Filings


Literally saying that these acquisitions are the cornerstone of gamepass.


I'm done arguing with you breh

Let’s put it this way.

If you want to claim the money they spent on Activision should be considered as gamepass expenditure. Should the revenue they make by selling COD on playstation be considered Gamepass revenue??

 

[5n0man]

Let’s put it this way.

If you want to claim the money they spent on Activision should be considered as gamepass expenditure. Should the revenue they make by selling COD on playstation be considered Gamepass revenue??

I never believed them when they said cod wouldn't go exclusive once the contracts were done. That's why they're in court being forced to sign legal documents saying they won't make cod exclusive. Makes you wonder why the EU has to force them to do that.

 

[MeachTheMonster]

I never believed them when they said cod wouldn't go exclusive once the contracts were done. That's why they're in court being forced to sign legal documents saying they won't make cod exclusive. Makes you wonder why the EU has to force them to do that.

So you won’t even answer huh? each post you totally ignore what i say and just jump to some new different shyt

Everything is what you “believe” based on absolutely nothing.

EU isn’t “forcing” them to do anything. It’s normal merger stuff being over scrutinized cause gamers are crazy.

 

[daze23]

it's also hard to be profitable if your game don't sell

 

[CoolinInTheCut]

Yeah this is the most financially sound thing to do, which is what they CEO of Take 2 suggested. Once a single player game hits max sales saturation you put it on a service, thats what Sonys been doing

That's still subjected to the condition that the amount MS pays to have these games on Game Pass exceeds the time value of projected sales of the game from that point in time to the end of the term of the deal MS offered.

Theoretically, this means that MS has to pay a premium above market value every time they cut a deal, which isn't sustainable in the long run if the plan is to grow the library (and this is evident with how few AAA third party games end up on Game Pass until years later and how they cycle out relatively quickly) - unless of course they can finesse some of these developers, which indie developers are obviously vulnerable to. If indie studios already can't afford marketing, they aren't going to have money for FP&A.

 

[Gizmo_Duck]

Dev at Remedy agrees

 

[Fatboi1]

it's also hard to be profitable if your game don't sell

 

[Rekkapryde]

You posted a link of Phil Spencer saying gamepass was sustainable, not profitable. Sustainability is not the same as profitability and there's a reason he's using that word. Amazon's 2 day delivery isn't profitable, but it is sustainable because they can make up the difference in other areas.

Here's a video where they talk about how they make money from gamepass


If you notice, their main point is that gamers are willing to spend more on micro transactions when subscribed to gamepass. That proves my point about the focus being on live service games since that's where they make majority of their money. Theyre encouraging devs to add micro transactions to maximize profits on gamepass, It's literally the mobile game business model.


The dude I quoted asked if devs had the option to opt out of having their games on gamepass until they made enough off traditional sales. I answered that the studios owned by microsoft don't have that option.

you can tell cats who've never been in these kinds of meetings.

Sustainable =/= Profitable. It's a term used in far too many occasions to massage something being in the red often followed up by something else that helps to cover the losses of the unprofitable/sustainable item. GP losing money right now is being covered by the revenue in other sectors/areas to offset it. In this case it doesn't even come from the gaming division more than likely.

shyt is comical.

 

[Rekkapryde]

That's still subjected to the condition that the amount MS pays to have these games on Game Pass exceeds the time value of projected sales of the game from that point in time to the end of the term of the deal MS offered.

Theoretically, this means that MS has to pay a premium above market value every time they cut a deal, which isn't sustainable in the long run if the plan is to grow the library (and this is evident with how few AAA third party games end up on Game Pass until years later and how they cycle out relatively quickly) - unless of course they can finesse some of these developers, which indie developers are obviously vulnerable to. If indie studios already can't afford marketing, they aren't going to have money for FP&A.

Negged for common sense

 

[ColdSlither]

Well I think Top Gun Maverick proved this developer's point. To use that movie as an example, would it have made as much as it did, had it been available for streaming day one? If you really want to make money your title needs to be hard copy or digital only for a bit. Especially if you're a indie studio.

 

[Gizmo_Duck]

Well I think Top Gun Maverick proved this developer's point. To use that movie as an example, would it have made as much as it did, had it been available for streaming day one? If you really want to make money your title needs to be hard copy or digital only for a bit. Especially if you're a indie studio.

This is why im just not interested in xbox or gamepass right now, i just know its not possible to get big single player games like that day one. Theres a big reason why netflix gets the kind of movies it does versus HBO and Disney.

 

[Rekkapryde]

Well I think Top Gun Maverick proved this developer's point. To use that movie as an example, would it have made as much as it did, had it been available for streaming day one? If you really want to make money your title needs to be hard copy or digital only for a bit. Especially if you're a indie studio.

you see Disney releasing their movies on D+ day one? There's a reason for it. And the price of the brick going up on D+ and the Disney Bundle too.

 

[Rekkapryde]

This is why im just not interested in xbox or gamepass right now, i just know its not possible to get big single player games like that day one. Theres a big reason why netflix gets the kind of movies it does versus HBO and Disney.

Whats funny is Netflix distributes movies internationally on their service that are in theaters here in the US.

When I went to Egypt a few years ago, I brought my firestick with me and loaded it up. I see the new Shaft on there and me and the wife start watching it. We didn't finish. I get back home expecting to see it and it's not on the US servers. Apparently some studios cut distribution deals to have Netflix show the movies day 1 in some regions.

 

[ColdSlither]

This is why im just not interested in xbox or gamepass right now, i just know its not possible to get big single player games like that day one. Theres a big reason why netflix gets the kind of movies it does versus HBO and Disney.

Even WB is looking at everything they poured into the Snyder Cut of Justice League, and that it didn't bring in any extra subscribers or profit to the platform. There's also a reason why all of these streaming services are starting to offer ad supported tiers now. But yet video games are supposed to bo so different somehow.

 

[Gizmo_Duck]

Whats funny is Netflix distributes movies internationally on their service that are in theaters here in the US.

When I went to Egypt a few years ago, I brought my firestick with me and loaded it up. I see the new Shaft on there and me and the wife start watching it. We didn't finish. I get back home expecting to see it and it's not on the US servers. Apparently some studios cut distribution deals to have Netflix show the movies day 1 in some regions.

Yeah that happened to me with some movie when i was overseas, i got back and i was like wait…?