Xbox boss Phil Spencer stated the subscription service is "financially viable" despite that outlay.
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71Y

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.

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51Y

Opportunity cost. The money they are spending on Gamepass could be spent on something else with a better return.

VCTRN
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11Y

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.

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71Y

I bet MS agrees with you which is probably why they’ve bought Bethesda and Activision Blizzard.

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