I mean, it could be. But Microsoft does not have a background of operating at a loss.
That said, months ago there was mention that Game Pass revenue was topping $200M/mo ($230M for an example month) and that a majority of Game Pass users were paying for the highest tier. That puts us at $2.7B/yr revenue. I can question whether their CLOUD service is profitable yet, but Microsoft is not going to get $1B in download and bandwidth costs in 2023. That still leaves $700M for employees, incidental servers, and “necessary expenses” to stay profitable.
I am convinced they’re making money off their customers. Which I guess is a good thing because they can’t use “we’re losing money left and right” as an excuse to raise prices. Like they’ve ever needed an excuse, though.
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Declaring Game Pass profitable right after they reclassified every Xbox Live user as a Game Pass user smells like creative accounting to me.
I mean, it could be. But Microsoft does not have a background of operating at a loss.
That said, months ago there was mention that Game Pass revenue was topping $200M/mo ($230M for an example month) and that a majority of Game Pass users were paying for the highest tier. That puts us at $2.7B/yr revenue. I can question whether their CLOUD service is profitable yet, but Microsoft is not going to get $1B in download and bandwidth costs in 2023. That still leaves $700M for employees, incidental servers, and “necessary expenses” to stay profitable.
I am convinced they’re making money off their customers. Which I guess is a good thing because they can’t use “we’re losing money left and right” as an excuse to raise prices. Like they’ve ever needed an excuse, though.