A New Game is launched Microsoft reportedly doesn’t include lost first-party game sales when calculating Xbox Game Pass profits, but the subscription service is apparently earning money regardless is launched.
Microsoft reportedly doesn’t include lost first-party game sales when calculating Xbox Game Pass profits, but the subscription service is apparently earning money regardlessnew features
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No, Xbox apparently isn’t losing money with Game Pass
Microsoft reportedly doesn’t include lost first-party game sales when calculating Xbox Game Pass profits, but the subscription service is apparently earning money regardless new features
For a number of years now, it’s been claimed that Xbox Game Pass is profitable for Microsoft, but it turns out that there’s an interesting caveat to this, as Xbox isn’t counting revenue lost from first-party games. However, even when you do account for this, the Game Pass subscription service is reportedly still earning money.
This first claim on the subject surfaced a couple of days ago, when The Game Business co-founder Christopher Dring took to Twitter explaining that costs for Game Pass include “fees paid to third-parties, marketing, [and] service costs.” However, apparently, “what they don’t count is the lost revenue that Xbox’s first-party studios are seeing as a result of the service.”
Furthermore, he noted: “I asked for clarification on the ‘Game Pass is profitable’ claim, and was told no first-party costs are included.”