Edition editor The verge Tom Warren indicated that the service Game pass corporations Microsoft still exists at a loss – it does not bring any money to the American giant now. The journalist shared the relevant information in his personal blog, answering a question from one of the users, who asked about the current situation. Game pass…
As Warren noted, in favor of unprofitability Game pass says a simple fact – on the success of the service top Microsoft it is in no hurry to tell its shareholders, and therefore the site is still in the mode of initial growth and development…
if Game Pass was a profitable service for Microsoft it would declare that profit and revenue to shareholders. It’s not, as it’s growth mode so it costs more in terms of investment, acquiring games etc, than the revenue returned from subs alone right now. But hey, I know nothing.
– Tom Warren (@tomwarren) May 6, 2023
One of the players tried to object to the journalist, to which he replied:
“If Game Pass brought in money, Microsoft would definitely tell shareholders about its profitability. But this is not happening. The service is still in the process of its growth. At the moment, the profit from subscriptions does not cover the amount of funds that are invested in the site, for example, to buy new games. But who am I to understand something about this. “
The journalist added that the loss of Game Pass at this stage is a normal and expected situation.
https://www.youtube.com/watch?v=Z41PFI6KVKk
Formerly general manager Xbox Aaron Greenberg asked users not to worry about financial issues, assuring that everything will be fine with the corporation. Then he said that now “there is no talk of big money from Xbox Game Pass subscriptions.”
According to him, Microsoft invests a lot and works for the future, initially understanding that this is a long-term history. In a similar way, video services began at one time by the type Netflix – they generally remained completely unprofitable for many years.
“We always laugh when we hear this. Don’t worry about us. Microsoft will be fine. We will succeed. I believe we can handle it,” Greenberg said of his long-term plans for Xbox Game Pass.
Microsoft is guided by this rule: satisfied and grateful users can become loyal fans of the brand for life and attract more people from among their friends and acquaintances to it.
“This is a different mindset. We want to give users the most for this price. [на подписку]”- explained Greenberg.
“When people feel that they are being given a lot for a small price, they not only continue to use the service, but also tell their friends about it. The most powerful marketing is word of mouth. We cannot place as many ads as it gives. Word of mouth We want to add more value to Xbox Game Pass, and you will definitely share it. Finally, we think it’s the right business to build for the long term. Xbox Game Pass is not a story about quick profits. But in the end I think , it will be good for everyone. “
As of spring, Xbox Game Pass has at least 23 million users.
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