Can someone help me understand something?
Is the goal of Gamepass to make money or blitz the competition? I fail to see how increasing the amount of studios you own, which directly increases the games you must put on the service day 1, makes the service profitable.
Shouldn't the goal of any business be the ability to self-sustain? How is it fair competition subsidizing a business model that no other competitor can ever match because of the sheer cost?
Once COD goes on Gamepass, doesn't it automatically lose money? Buying IP, lowering it's potential to generate revenue, all to feed a service that itself isn't (seemingly) generating revenue doesn't make much sense (to me) when factoring in the enormity of the IP they are attempting to take control of.
What about PSO2?
There are more if you look for them.
Subscription services have a predictable income stream; every month, there's guaranteed income; this is different from pay to own, where there's no guarantee that the next instalment will bring in the same income.
Microsoft can make losses early in the game to gain market share. This is different from a company like Sony, where Sony's dependence on gaming is much higher percentage-wise than MS, and their net income is much lower at less than 10B a year. There's nothing anti-competitive about this, as it's pretty standard in all industries.
Additionally, unlike linear entertainment like TV and movies, there are potential upsell opportunities in games like MTX, Micro-transactions, DLC, ads etc. Microsoft is also expanding their ecosystem beyond the PC and Console to the Cloud, which means there's a much bigger addressable market in the long term.
People moan that the only way to play PS3 games is through streaming, and your answer is to stream games like Starfield? Lmao
People are okay with XCloud because there's evidence that MS is improving the service and expanding it to more markets. Sony doesn't have a track record of improving its service. Heck, they don't support streaming PS5 games and their server capacity is still capped at 5M.