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There’s a difference between “profitable” and “how much money Microsoft wants to make after investing billions in something” and I’d wager it’s a big one
I get what you’re saying and I’m sure all the MBAs at Microsoft are shitting bricks, but I never fully understand why a company would be disappointed with a service like this one even doing only slightly better than breaking even.
Not everything needs to have infinite growth and gigantic margins as long as $-in > $-out.
I get what you saying, but I think (when it comes to video games) MS is in not position (and hasn’t been for a while) to spend in something that doesn’t gives them a solid profit. I like Game Pass, but since 2021 I subscribe only any other month or so, the novelty wore off and I have a big enough backlog to keep me occupied. MS needs (hear me out lol) some strong first party AA line up to make GP attractive.
I bet MS agrees with you which is probably why they’ve bought Bethesda and Activision Blizzard.
Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.