Revenue is not profit though. People need to stop being conned by corpo speak.
I could sit here and say that GamePass is actually a loss making business.
I dont expect you to take my word for it but you can work it out yourself:
How many studios does Microsoft run? If each AAA game costs aprox $100 million to create (that's a low ball figure!); then studios x game cost = Development costs
Then divide that figure by 6 because each game takes aprox 6 years to make and this gives us our yearly "T cost" figure.
Then Google: "how much does microsoft pay 3rd partys for games on game pass" and you'll see the answer to this question is a bliion dollars.
"T costs" + $1 billion = Total game pass costs
Then see if that figure is more or less than the $5 billion revenue figure.
Exclusive games are no longer exclusive, the hardware is selling the worst it ever has and the future for the entire platform looks in doubt.
How on earth is this the strongest ever?
Do you understand that the entire platform business is centred of that 30% cut Xbox gets from each game sale right? Sure they get some money from subscriptions but their goal was 100 million by 2030 and there is no way of reaching that now.
Once the 30% cut is gone then entire platform is dead and Xbox becomes a 3rd party publisher like Sega or EA.
Comments 17
Re: Sarah Bond Insists Hardware Is 'Absolutely Core' To Xbox, Teases Powerful Next-Gen Console
@Tasuki Microsoft managment only want corporate puppets.
Re: Xbox Partner Preview November 2025 Showcase Confirmed For This Week
Can't wait for this new State of Play!
Re: Talking Point: Xbox Is 24 Years Old Today, What Do You Expect From Next Year's 25th Birthday?
@Fiendish-Beaver Thats not a prediction, thats a spolier.
Re: Ex-Nintendo Boss: Xbox Isn't 'Directly' Competing Anymore, But There'll Always Be A War
@swedetrap Roblox is top boy now, but a few years ago it was Fortnite, and Minecraft before that.
The top platform is getting a hell of a lot of micro transaction cuts.
Re: Ex-Nintendo Boss: Xbox Isn't 'Directly' Competing Anymore, But There'll Always Be A War
@BAMozzy Whats the difference between Xbox game studios and Ubisoft or EA?
Re: Talking Point: Has This Week's ROG Xbox Ally News Sold You On The New Handheld?
This needed to be £350 to stand any sort of real commerical chance.
This will sell less than a quarter of the PS Portal.
Re: Xbox Game Pass Annual Revenue Nears $5 Billion For First Time, Says Microsoft CEO
@GamerScore200K
Revenue is not profit though. People need to stop being conned by corpo speak.
I could sit here and say that GamePass is actually a loss making business.
I dont expect you to take my word for it but you can work it out yourself:
How many studios does Microsoft run? If each AAA game costs aprox $100 million to create (that's a low ball figure!); then studios x game cost = Development costs
Then divide that figure by 6 because each game takes aprox 6 years to make and this gives us our yearly "T cost" figure.
Then Google:
"how much does microsoft pay 3rd partys for games on game pass"
and you'll see the answer to this question is a bliion dollars.
"T costs" + $1 billion = Total game pass costs
Then see if that figure is more or less than the $5 billion revenue figure.
I already ran the numbers so I know the answer.
Re: Rumour: Xbox Is Working On Next-Gen Cloud Gaming, Including PC-Based Streaming
@trev666 Indeed.
GeForce now is already the service the Microsoft is claiming this will be.
And guess what, very few people actually use it!
Re: Xbox Takes Action After WipeOut For PS1 Gets Ported To Series X|S
@RZ-Atom
You utter plonker!
Of course Digital Foundry only cares about graphics, THAT'S WHAT THEY DO!
What you are doing is the equivilent to crying that PureXbox doesn't cover Sega Master System games!
Digital Foundry entire reason for being is to chart grahpics tech!
You utter and complete clown!
Re: Xbox Layoffs Begin As Phil Spencer Shares Internal Microsoft Gaming Update
@PsBoxSwitchOwner Is the line going up though?
I think that's the problem.
Re: Imminent Xbox Layoffs Could Include Entire Studios, Warns Industry Veteran
@Nic-Noc20th-C
Tango Gameworks were a talented team that won a ton of awards.
They still go the chop, so I don't think anyone is safe.
Re: Talking Point: Would You Still Buy An Xbox At Microsoft's 2025 Prices?
@GoldenPants
PC gaming has cheaper games sure, but hardware is far more expensive and the need to upgrade is far more frequent.
Plus you have to deal with Windows 11, which is the worst thing in the world
Re: Talking Point: What Should Microsoft Call The '2027' Xbox Console & Handheld?
Pretty sure it's already called PlayStation 5
Re: How Microsoft Managed Xbox Brand 'Is Not My F**king Fault', Says OG Xbox Creator
@SMJ You've missed the point completely.
Of course their figures are the best ever, they pumped $80 billion in. That's how value is worked out!
The actual test of sucess is if the same level of growth is seen in the next set of figures.
Because if not, then clearly "The best ever year" was actually articfially inflated by a cash infection and not because of business growth.
Re: How Microsoft Managed Xbox Brand 'Is Not My F**king Fault', Says OG Xbox Creator
@TheEstablishment
" Xbox made more money in 2024 than they ever did in any year prior,"
Yeah, acquiring a $80 Billion company in the form of Activision will do that funny enough.
Now look at the break down of those same figures and remove activision out of the sums and Xbox is down bad.
Re: How Microsoft Managed Xbox Brand 'Is Not My F**king Fault', Says OG Xbox Creator
@Kaloudz
"Do you mean to tell me that as a consumer, you don't feel that Xbox is better now than ever before?"
No.
As an owner of digital Xbox games, the platform looks like its going to fold.
So there goes thoses digital games. As a consumer, that's crap.
Re: How Microsoft Managed Xbox Brand 'Is Not My F**king Fault', Says OG Xbox Creator
@Kaloudz Xbox is the strongest it's ever been?
Exclusive games are no longer exclusive, the hardware is selling the worst it ever has and the future for the entire platform looks in doubt.
How on earth is this the strongest ever?
Do you understand that the entire platform business is centred of that 30% cut Xbox gets from each game sale right? Sure they get some money from subscriptions but their goal was 100 million by 2030 and there is no way of reaching that now.
Once the 30% cut is gone then entire platform is dead and Xbox becomes a 3rd party publisher like Sega or EA.