Is Xbox Game Pass LOSING BILLIONS or MAKING MONEY? Microsoft RESPONDS!

Follow me on social media:

#ps4 #ps5 #Xbox

Right now multiple worldwide regulators are sifting through tons of games industry data. The massive Microsoft-Activision merger is looming and regulators have collected libraries of data, figures, testimonials, and expert opinions as they try to determine if the mega-merger is good for consumers and the $198 billion video games market as a whole.
Microsoft reveals just how much money it makes from Xbox Game Pass on consoles, and it's quite a bit.
Some regulators like Brazil's Administrative Council for Economic Defense (CADE) have already approved the merger. CADE released a public document outlining its thought process on the approval and included a ton of data on Xbox, PlayStation, Nintendo, and others.

[DreamcastGuy]

Thanks for watching and LIKING the video! <3

[cloudstrife]

Activision revenue in 2021 was $8.8 billion.
So... Microsoft bought 5% of the industry. Not 30%.

[markus_scott]

Forget 10 years from now, developers are charging $70 for a half baked game. I rather spend $70 on a service that gives me access to new releases and if it’s a dumpster fire just uninstall and move on to the next game

[Apache]

Love your videos man, but as a chartered accountant listening to this, it's a little painful with you using so many terms incorrectly. Keep fighting the good fight though, my man.

[rexdawn]

The chart says "revenue" not "profit, " so I don't think this is net profits....

[lilboybluenotes]

I can’t imagine that they aren’t losing money with Gamepass. The price of subscriptions can’t make enough to break even on its own. But I would think that market share they are gaining makes the venture profitable.

[KZBKGB]

If a hotdog vendor buys a $2 hotdog (quality) and sells it for 50 cents (volume)
they are gonna sell a shit load of good hotdogs. They are making money, but not generating profit. This is not sustainable indefinitely. What it is, is marketing. Using an amazing deal to pull in customers and then gradually altering the deal and raising prices to generate profit.
restaurants do this all the time.
you get the grand opening specials and deals for x amount of time and then everything is regular price. i see this happening here. and i think those gamepass numbers are a bit fudged to put people at ease. i like gp and its a great value...but for how long?

[manslaughter]

At this point gaming is such as small part of my life due to family work etc., that something like this doesn’t really affect me in the long run. Got all the systems and have hardly any time to play them. I imagine that most gamers only play maybe 9 hours a week if they’re lucky as opposed to people whose lives are consumed by all the gaming brands on a daily basis

[perfectlyslicedegg]

You will own Nothing and you will be happy.

[Mike-sfex]

The gaming market being worth 198 billion means the total annual revenues from every major company combined. ABK makes like 8B and combined, MSFT will have 24B of that 198B market. Playstation in 2021 generated almost 25B alone. So NO this deal won't give MSFT a third of the gaming market. It merely puts them neck to neck with Sony.

[kahnsealable]

Lol. You Sony Fanboys are seriously upset that every narrative you try to argue just keeps getting debunked. Lol

[dougphisig]

Buying activision/blizzard for 70 billion does not mean it's 1/3 of the industry, that's just the price for the acquisition which is comparing apples to oranges that's the idea of having this over years it's going to be a much smaller part of the industry. It is interesting & sounds like it does disprove a lot of the hate that game pass was not sustainable.

[mattmccaughen]

Why does everyone always care about Microsoft's money just play the freaking games JESUS

[shiwankhan]

I don’t like games as a service in general. I prefer to own the game outright, even the digital version. I’m afraid that in the future, if the gaming industry is just like Netflix, a game will be delisted and I just won’t be able to access it. Hopefully discs or digital downloads at least will always be possible.

Btw, I love the Shenmue background!

[arcadius]

"Everyone thought Microsoft was burning money"

And by "everyone" you mean Sony fanboys like you who fancy themselves business experts whenever they try to downplay/demonize anything Xbox/Microsoft related.

[mattj]

Game pass is totally sustainable, I don't understand why people can't understand that. Especially considering they aren't making everything and most things are licensed they can easily adjust their spending to match what's coming in to keep it profitable.

[Notremah]

This is what makes no sense. Why why why do I care how much Microsoft looses on gamepass? I’m a consumer. If they want to give me these games for free I don’t care. In fact, keep it comming. In the same way I don’t care about Sonys finances. Give me a good deal. Trust me, these companies are going to be A Ok. Their CEOs will get their yearly bonus just in case anyone was concerned.

[luisdominguez]

For me is losing money with all the $1 accounts out there. They should remove the trial account or reduce it to 7 days for $1.

[BacklogBrad]

I don't think it is logical to equate the Activision Blizzard acquisition to buying 1/3 of the gaming industry. Does anyone currently think that AB is 1/3 of the industry? That would mean that the other 66% are xbox, playstation, nintendo, embracer, tencent, take two, ubisoft, ea, square, sega, capcom, etc. Activision Blizzard is a huge acquisition but I don't even know if AB would be considered 5% of the whole industry.

[ramiyohay]

Am I blind or the headline of the slide showed - revenue?

Revenue - money comes in
Profit - revenue minus expenses

It is that simple