Xbox Game Pass is profitable yes, says Christopher Dring

The Xbox Game Pass service has been available on the market for years and stands out for its excellent value for money, offering players hundreds of games for an affordable price. However, does the game pass profit?

In the past, Phil Spencer, head of Microsoft’s Game Division, said the Xbox Game Pass is profitable. On the other hand, journalist Christopher Dring shared information about it.

In this case, Microsoft calculates the profitability of Game Pass considering only Third-Party studio game costs, ignoring their own game.

This revelation eventually circulated around the world and now journalist Christopher Dring has decided to speak again, explaining in detail and noted: The xbox game pass is profitable yes.

Complete comment by Christopher Dring about Xbox Game Pass:

“Ok, I need to correct/clarify something. First: Xbox Game Pass is profitable, even when it takes into account the loss of sales of the First-Party teams, according to sources with knowledge of the subject. ”

“For over 18 months, I contacted Xbox to understand what is included in the Game Pass profits and loss demonstration. Basically, I wanted to know if the costs of Game Pass took into account the impact on the unit sales of internal studios. I was told that the First-Party games have their own P&L separate from game pass, as they have revenue by other means.”

“At the time, I thought this internal accounting detail could mean that the game pass was profitable, but I also realized that this certainly put pressure on the profit margins of the internal games and possibly meant that some studios did not profit so much (or even profited).”

“This, in practice, is not so much difference, but seeing the impact that Game Pass was causing on First-Party games and how much Xbox was spending on studios, I wanted to see if the total impact of the service was being considered when they claimed that” Game Pass is profitable. “

“(And that was before Xbox started publishing totally on PS5. With this movement, studios now get better margins with premium sales.)”

“But, leaving it all aside: Sources searched me to say that even when you include lost recipe with First-Party games (not only in unit sales, but also in microtransações), Game Pass is still profitable. So… this is great! Right. Tony Hawk is there. Let’s go back to it! ”

Profit is driven by subscription recipes, Microsoft First-Party Game sales on PlayStation 5, DLCs and microtransações.