this post was submitted on 29 Nov 2023
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They need more subscribers. Period. They cannot afford to support all of the AAA studios they have purchased, with the amount of subscribers they have now. Starfield most likely didnt bring in enough new subscribers, and Xbox gamers make it frequently known they will not buy games. Their only chance, is to gain subscribers from other consoles. Its been assumed for a while now, that gamepass is most likely not profitable. If you look at what they spend to bring outside games to the service, theres almost no way it can be. Now add in all of the acti studios they have to pay for.
They don't need it to be profitable. Microsoft makes money hand over fist as a whole company. They are more than capable of taking losses for YEARS in their gaming division without actually hurting. Game pass doesn't need to be profitable, it needs to exist so it can hurt sales enough that Sony and Nintendo are not considered competition anymore. Then they can do what they want. IE jack up prices.
They have shareholders they are responsible to answering to. Yes. It has to be profitable.
Not really true, seeing as the only two profitable things in Microsoft history is Windows software and their servers.
Their phones, ar, kinect, zunes, xbox, gamepass, xcloud, Microsoft glass, mixer, Skype, Internet Explorer, MSN, media player etc etc etc have NEVER made a penny profit combined.
The sales of windows/office and their server hosting is literally the only things that have made a profit.