All the evidence you need for Jez being incentivized to share positive Xbox news is to look at how people react to my posts here. I’ve literally got people reporting my posts as inappropriate because it’s not repeating the false narratives that people on twitter have created out of thin air. It absolutely helps Jez to tell his followers everything is great in Xbox land.
Is he capable of being critical of Xbox? Yes. Is he often critical of Xbox? Absolutely not.
At some point, it gets tiresome. I’m already fragile enough on certain days, egad could you imagine what it would be like if I engage with the bad faith actors and trolls?
Before anyone rushes to slap the taste out of my mouth, I don’t actually care that much & am in no way looking to start an argument.
He does have a point though. When has one of these companies ever been slow to boast about making profits? Maybe Game Pass isn’t really making money right now. Maybe it’s just breaking even. Like he said before though, it doesn’t need to make money. Not right now anyway. That can come later.
All I know is that it’s a great service & is only going from strength to strength, so who cares if it’s making money right now.
Microsoft doesn’t report on the financials of their data center in Ireland. So your conclusion would be it isn’t profitable?
If you want you can break down the More Personal Computing divison in Microsofts financial report with their historic profit margins of Windows, Search and Surface and will get a pretty good view of the profitability for Gaming. Also the profit of More Personal Computing always jumps massive if Xbox revenue jumps by more than double digits. That should tell you enough.
Im one who thinks Jez has some terrible takes even if he is one of the better xbox coverage people out there. His rant over AAA games the other month was terrible and I disagreed entirely.
My suggestion is for gamers to not worry about it unless you really want to delve into business accounting. This comment from Colin suggests he doesn’t understand how that stuff works. How gamers want to define it and how a corporation defines it on their income statements is not the same. For example, despite Bethesda being bought due to Microsofts long term strategic goals with Game Pass, the cost of Bethesda doesn’t sit against the revenue of Game Pass.
It’s also not a 1 to 1. Game Pass has a “halo effect” to drive users to more engagement within the ecosystem which drives other revenue. Bottom line is Game Pass is a long term play. Nadella likely sees this as something with 100 million users eventually. Trying to determine whether Microsoft is going to cancel Game Pass due to lack of profitability in the short term shows a general lack of understanding…which is fine…but at that point I’d say not to worry about it.
Again why dont people do this for Netflix, Prime Video and every other streaming service on earth? Its cause game pass is disruptive to the videogame industry in a good way.
Also the new narrative that xbox owners dont buy games is also nonsense.