PlayStation Plus Strategy - Full Presentation From April 2023

[winb83]

no

Ok let's go with actual numbers. We know how much Microsoft makes on Game Pass via FTC documents. It's approx. $230 million a month. That's $2.7 billion a year.

Xbox Game Pass made $230 million revenue in one month, most users pay for full subscriptions

Microsoft reveals a rare look at concrete Xbox Game Pass earnings, with the subscription breaking $230 million in subscriber revenues in a month's time.

www.tweaktown.com

We also know that they spend at least $1 billion a year on 3rd party content.

Halo 5 in a week generated $400 million in revenue.

Halo 5 Reaches $400 Million in Sales to Become Biggest Halo Launch Ever

The Halo franchise has now generated more than $5 billion.

www.gamespot.com

That's almost 2 months of Game Pass subscriptions in a week just selling that game.

They're leaving money on the table to do this. They're trading the revenue that would be generated in sales for less revenue that is more predictable on a subscription service.

Microsoft mask almost all it's gaming numbers for the most part which is weird for a public traded company. In an interview an executive will say something is sustainable or maybe even suggest it's profitable but on legal documents the SEC regulates you will not get any words like that from this company. In fact they will say next to nothing.

One thing I know about publicly traded companies is when they're in profitable lucrative businesses that sort of stuff gets shouted from the hilltops. There wouldn't be all this obfuscation of numbers.

 

[MeachTheMonster]

Ok let's go with actual numbers. We know how much Microsoft makes on Game Pass via FTC documents. It's approx. $230 million a month. That's $2.7 billion a year.

Xbox Game Pass made $230 million revenue in one month, most users pay for full subscriptions

Microsoft reveals a rare look at concrete Xbox Game Pass earnings, with the subscription breaking $230 million in subscriber revenues in a month's time.

www.tweaktown.com

We also know that they spend at least $1 billion a year on 3rd party content.

Halo 5 in a week generated $400 million in revenue.

Halo 5 Reaches $400 Million in Sales to Become Biggest Halo Launch Ever

The Halo franchise has now generated more than $5 billion.

www.gamespot.com

That's almost 2 months of Game Pass subscriptions in a week just selling that game.

They're leaving money on the table to do this. They're trading the revenue that would be generated in sales for less revenue that is more predictable on a subscription service.

Microsoft mask almost all it's gaming numbers for the most part which is weird for a public traded company. In an interview an executive will say something is sustainable or maybe even suggest it's profitable but on legal documents the SEC regulates you will not get any words like that from this company. In fact they will say next to nothing.

One thing I know about publicly traded companies is when they're in profitable lucrative businesses that sort of stuff gets shouted from the hilltops. There wouldn't be all this obfuscation of numbers.

You said it was a loss leader strategy.

It is not.

 

[winb83]

You said it was a loss leader strategy.

It is not.

I'm open to your evidence. I believe it is a loss leader. You're saying with conviction it isn't. Can you show proof? Not just someone saying something in an interview but something the company has put out that is legally actionable showing their profit margins on software development vs what their subscriptions bring it?

If not I'll continue to believe it is a loss leader and that's why the company won't release any numbers outside of total revenue on SEC regulated documents. They don't want shareholders seeing Xbox profit margins and questioning them when they can hide them inside the company's profit margins and make them look acceptable.

 

[MeachTheMonster]

I'm open to your evidence. I believe it is a loss leader. You're saying with conviction it isn't. Can you show proof? Not just someone saying something in an interview but something the company has put out that is legally actionable showing their profit margins on software development vs what their subscriptions bring it?

If not I'll continue to believe it is a loss leader and that's why the company won't release any numbers outside of total revenue on SEC regulated documents. They don't want shareholders seeing Xbox profit margins and questioning them when they can hide them inside the company's profit margins and make them look acceptable.

So tales from your ass despite all reports saying you are wrong.

Sony stan’s

 

[Instant Classic]

Ok let's go with actual numbers. We know how much Microsoft makes on Game Pass via FTC documents. It's approx. $230 million a month. That's $2.7 billion a year.

Xbox Game Pass made $230 million revenue in one month, most users pay for full subscriptions

Microsoft reveals a rare look at concrete Xbox Game Pass earnings, with the subscription breaking $230 million in subscriber revenues in a month's time.

www.tweaktown.com

We also know that they spend at least $1 billion a year on 3rd party content.

Halo 5 in a week generated $400 million in revenue.

Halo 5 Reaches $400 Million in Sales to Become Biggest Halo Launch Ever

The Halo franchise has now generated more than $5 billion.

www.gamespot.com

That's almost 2 months of Game Pass subscriptions in a week just selling that game.

They're leaving money on the table to do this. They're trading the revenue that would be generated in sales for less revenue that is more predictable on a subscription service.

Microsoft mask almost all it's gaming numbers for the most part which is weird for a public traded company. In an interview an executive will say something is sustainable or maybe even suggest it's profitable but on legal documents the SEC regulates you will not get any words like that from this company. In fact they will say next to nothing.

One thing I know about publicly traded companies is when they're in profitable lucrative businesses that sort of stuff gets shouted from the hilltops. There wouldn't be all this obfuscation of numbers.

The thing is Gamepass is optional and people still purchase games. Also, a game like Halo went F2P and most likely made more long term than it did short-term. Halo can generate money from it's battle pass and other MTX.

 

[MeachTheMonster]

at $230 mill a month.

after 1B is spent on 3rd party content. That’s almost 2b left for 1st party stuff.

They could fund 5 spider-man’s a year with just gamepass revenue.

On top of the fact that gamepass games are still sold elsewhere. Starfield sold 5+mill on steam alone despite being on gamepass.

Gamepass losing money or being a “loss leader” is just sony stan wishful thinking. Cause they gotta run defense for sony not giving them the value found elsewhere

 

[The Mad Titan]

You can only hid from the truth so long

 

[winb83]

at $230 mill a month.

after 1B is spent on 3rd party content. That’s almost 2b left for 1st party stuff.

They could fund 5 spider-man’s a year with just gamepass revenue.

On top of the fact that gamepass games are still sold elsewhere. Starfield sold 5+mill on steam alone despite being on gamepass.

Gamepass losing money or being a “loss leader” is just sony stan wishful thinking. Cause they gotta run defense for sony not giving them the value found elsewhere

I didn’t say Game Pass was a loss leader I said putting huge AAA games on the service day one was.

It’s you that’s suggesting that the apparatus they run with all those studios is making huge AAA games at a profit all the while including them for no additional charge. You’re showing me no hard proof they aren’t loosing money on that offering when I as an Xbox owner don’t have to purchase their $70 games.

I’m looking at the rest of gaming and nobody else has a subscription service that includes AAA level games day 1 and 3rd parties don’t seem to want to go along with it.

I can’t see their numbers on anything because the company deliberately hides them. I’ve also seen evidence when the numbers aren’t flattering they’ll either switch up the metrics like they did with console sales when Sony started outselling them or stop talking about them like they did with Game Pass subscribers when they stagnated after they put out the 20-22 million number and went along time with no update. BTW Netflix publishes their subscribers quarterly rain or shine even giving a breakdown of where.

 

[MeachTheMonster]

I didn’t say Game Pass was a loss leader I said putting huge AAA games on the service day one was.

“They're taking losses on these games being on a subscription service day one and using it as a loss leader”

I hope gamepass isn’t making any money

 

[winb83]

You can only hid from the truth so long

What truth? That as they produce games now Sony can’t sustain itself putting them day and date on a subscription service?

Do you honestly think if they could do that and continue as they are and even grow they wouldn’t?

 

[winb83]

“They're taking losses on these games being on a subscription service day one and using it as a loss leader”

So you’re telling me they make more money giving AAA games like Starfield to subscribers they they would selling those games direct? Millions of people didn’t buy Starfield because they didn’t have to. Hell did you buy it?

Let’s ask another question. Do you think Bethesda would have put Starfield day and date on Game Pass if not owned by Microsoft?

 

[MeachTheMonster]

So you’re telling me they make more money giving AAA games like Starfield to subscribers they they would selling those games direct? Millions of people didn’t buy Starfield because they didn’t have to. Hell did you buy it?

Let’s ask another question. Do you think Bethesda would have put Starfield day and date on Game Pass if not owned by Microsoft?

With each post you move the goalposts to some whole other shyt. I’m not chasing your strawmen around breh.

All i said was that putting games on gamepass isn’t a loss leading strategy. Gamepass as it is, and the games on it are profitable.

 

[Deafheaven]

Microsoft has mastered the concept of the Shrodengiers game. so many and so little games all at the same time

 

[Dorian Breh]

at $230 mill a month.

after 1B is spent on 3rd party content. That’s almost 2b left for 1st party stuff.

They could fund 5 spider-man’s a year with just gamepass revenue.

On top of the fact that gamepass games are still sold elsewhere. Starfield sold 5+mill on steam alone despite being on gamepass.

Gamepass losing money or being a “loss leader” is just sony stan wishful thinking. Cause they gotta run defense for sony not giving them the value found elsewhere

You've resorted to outright lies now? This is pathetic, even for you

 

[BobbyWojak]

They're taking losses on these games being on a subscription service day one and using it as a loss leader since they can afford it but they're not going to want to eat those losses indefinitely so I'd expect price movement and eventually the abolishment of Gold conversion.

But does this matter to the casual gamer? Even if game pass was to double in price, I feel like the casuals would complain but ultimately come around, same as netflix.