Xbox President, Sarah Bond, Comments on Game Pass Profitability and Reveals That the Service Hit a Record Sales Figure Last Year

Peter_Brosdahl

Peter_Brosdahl

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The Microsoft Exec recently provided an interview where it was shared that the gaming subscription service is doing better than some might think.

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Doesn't seem to disclose anything. They could take in 5 billion and bleed out 6 or more. Who's to say. Need to look at a Financials report that breaks down earnings and costs per segment.
 
Peter_Brosdahl said:
Meanwhile, back at the ranch . . .

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It's going to be a balancing act for sure.

Increased cost by 10 bucks a sub... looses... 10% of subs... so cost increase or 33% to the remaining 90% of subscribers is still a win for MS.

BUT... if they loose more than roughly 30% of ultimate tier subscribers (lets presume they just swap to a lower tier.) then their value proposition had an inverse affect... but that may be offset that the higher cost Ultimate tier sub offsets a higher payout to partners and publishers to give day 0 access to games... then that's honestly a different story. AND could draw more subscribers to give MS the chance to have day 0 launches on THEIR platform over others.

If that happens then studios and or publishers would need to look at the benefits of going with Microsoft's services as opposed to Sony, Steam, Ubisoft, or whatever... Could create more spin for MS and their subscription platform to garner more money for studio's and more players and payers for the Ultimate tier...

And another interesting twist... I wonder what that does to those that purchased a xbox series x from Walmart on a payment plan that included the Ultimate subscription as part of the package. I looked into it for a friend once and it was like 37 bucks a month for 2 or 3 years. Seems if they are still running that in store it would become even better of a deal because your effective cost for the xbox would be 7 bucks a month for three years. 172 bucks? Again if they are still doing that or haven't adjusted the pricing for those people.
 
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