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gifyku

Member
Aug 17, 2020
2,759
I think Rated 'E' games are absolutely needed for the platform. Kids drive a lot of subscription continuity (Netflix, Disney+ even Spotify)
 

isahn

Member
Nov 15, 2017
990
Roma
I think Steam was managing that quite well without MS putting their first party games on a competing storefront. Still they decided to forfeit a 30% cut to tap into that significant userbase.
I guess they just don't see Valve as the same kind of competition like they see Sony or Nintendo.
yes, they see Steam as a service which is adding value to Windows, no harm to contribute to its success by releasing their game on it even at the expense of the 30% cut.
 

Fabs

Member
Aug 22, 2019
1,848
They also own these studios and IP in perpetuity. Forever. What's the rush to make that money back right away? Bethesda will pay for itself over time. Driving Game Pass subscribers is just the icing on the cake.
 

Bessy67

Member
Oct 29, 2017
11,683
The whole "needing to make $7.5 billion back" reasoning is dumb anyways. It was literally just a mountain of cash sitting there doing nothing and they converted it into an asset. As long as Bethesda doesn't lose money then they're already more valuable than the cash stack was
 

Theorry

Member
Oct 27, 2017
61,177
EwEIafcXMBA14E0

 

gifyku

Member
Aug 17, 2020
2,759
yes, they see Steam as a service which is adding value to Windows, no harm to contribute to its success by releasing their game on it even at the expense of the 30% cut.

i also think Valve itself has cooled down on trying to make Linux gaming a thing, and with Stadia also not exactly setting the world on fire, PC Gaming is Windows gaming for the foreseeable future.

Every PC Gamer is also therefore a Windows 10 user MS can tout and sell other services to
 

Pryme

Member
Aug 23, 2018
8,164
People here don't understand the diff between revenue and net profit.

They do crazy maths with 18 millions subs at full price and we know is not the case and if it was you need to pay to every publisher who puts a game on gamepass and the development costs of your own games.

Revenue is one thing, net revenue is another... With 23 teams producing games and needing to pay for third games on the service or they will need to charge more for gamepass or have a substantial growth north of 50 mi subs at full price.

I think you're the one misguided here. Microsoft would have done a long term forecast for Gamepass, not a 2-3 year forecast. They'll be paying off the $7.5bn over a length of time, while aiming to grow gamepass subs past 50m.

There's a huge potential market in cloud streamed games to non console owners. They're gunning for that market. If they do get the cloud dominance they're pushing for, that's one big gravy train right there.
 
Jul 10, 2020
3,598
Plus I see there's at least more than 60% chance that Xbox Game Pass subscription makes it way to Steam.

EA Origin subscription is already there.
 
Dec 31, 2017
1,430
But it's a sunk cost and ultimately, if a game makes more money by being multiplay vs exclusive, they are leaving money on the table. What is the distinction on a go-forward basis for necessitating multiplat vs exclusive?

It's not a bad faith point -- you failed to explain the difference and it's a pretty obvious objection to your post.
They are not leaving money on the table though if they can turn those lost sales into new customers in their ecosystem. If you don't put any pressure you won't reap the rewards, and having some loss short term is worth the long term investment.
 

VeePs

Prophet of Truth
Member
Oct 25, 2017
17,402
have a substantial growth north of 50 mi subs at full price.

This is exactly what Microsoft wants.

Some of you keep talking about sales sales sales. Microsoft has repeatedly said their number 1 goal is increasing Game Pass subscribers. Last I checked exclusive content helps push subscribers.

I'm not saying every game will be exclusive, but the idea that Microsoft needs to make these games multiplat because they need to make this money back soon & are leaving so much money on the table is a funny one.
 

gifyku

Member
Aug 17, 2020
2,759
I think you're the one misguided here. Microsoft would have done a long term forecast for Gamepass, not a 2-3 year forecast. They'll be paying off the $7.5bn over a length of time, while aiming to grow gamepass subs past 50m.

There's a huge potential market in cloud streamed games to non console owners. They're gunning for that market. If they do get the cloud dominance they're pushing for, that's one big gravy train right there.

And people are still looking at cloud streaming as phones and tablets. There will be Smart TV apps, maybe an Xbox streaming stick, heck even Xcloud streaming to older Xbox Ones.

When electric cars account for the majority of car sales, cloud streaming will not even be a barrier to this market (I cant actually prove this lol but I find it weird multiple people mentioning Internet access as an issue that will persist in the future given where we are with technology and countries like India and South Korea rapidly accelerating the 5G adoption curve)
 

Zyae

Prophet of Truth
Banned
Mar 17, 2020
2,057
Zelda, Halo, TLOU etc will never cost $7.5bn to produce, they would all make more money as multiplat games but they also don't have the associated cost with buying an entire publisher.

For me it's as simple as sequels will be multiplat and new IPs will be exclusive.

I don't think any company would be dumb enough to decide they don't want an extra 10m sales/downloads per game for TES6 & Fallout 5.

It's really, really simple business here. Unless they want to use those flagship IPs as loss leaders?

They have every right to make those games exclusive, I just personally can't see them doing it. And this isn't even from a "oh I'll miss out" point of view - I've got a PC that will run the games and that's what I use for Forza and what I'll use if Microsoft owned Zenimax produce a game that appeals to me at any point in the future.

They'll make more money from gamepass subs than they will from selling Starfield on PlayStation 5
 

Biosnake

Member
Oct 25, 2017
13,294
What exclusive content does to your subscription service

www.theverge.com

Disney Plus surpasses 100 million subscribers

Disney Plus’ success continues to grow.
This is definitely true. But the question here is what drives more subscribers? Having this content on your subscription service and exclusive to you platforms or on your service but also available on other platforms? I think most would agree the former over the latter.

That's why this "some" verbiage is so confusing.
 

Dunlop

Member
Oct 25, 2017
8,496
Adding Bethesda as exclusive and adding them to game pass while still having the 3 year of gold into game pass Ultimate for 1$ is just as smart.
I jumped on the conversion when I only had a PS4 in fear that it would end abruptly lol. Did not get an Xbox until almost 7 months later, I assumed I would need for xCloud before that but the beta already gave you a ton of games
 

Deleted member 23046

Account closed at user request
Banned
Oct 28, 2017
6,876
Okay, but you said they 'need' cash flow, and they really don't.
Yes it's not an individual, despite how it seems written, I didn't wanted to say they were in an urgency.

No, it was a way to artificially increase the value of a GPU sub over a basic Gold sub and incentivise Gold only subs to move over to GP.

If you need cash flow that desperately you don't straight up DOUBLE the cost to the consumer.
They don't "need" it at all, and that certainly wasn't why they wanted to jack that price up anyway. They want to run people over to GPU. The price increase would've made GPU a better deal by default since it includes Gold.
Here we are having the same discussion when it had happened, but the comparative goal doesn't change anything because GPU is more cash over Gold. Again I wasn't talking about raw dollars but a steady flow for the division over years.
 

Joo

Member
May 25, 2018
3,896
The whole "needing to make $7.5 billion back" reasoning is dumb anyways. It was literally just a mountain of cash sitting there doing nothing and they converted it into an asset. As long as Bethesda doesn't lose money then they're already more valuable than the cash stack was
I agree that the reasoning in many ways about making 7.5B back has been quite simplistic on this forum, but in itself it's still very much true. MS or anyone else would never make an acquisition if they didn't think it will turn a profit. Zeni wasn't bought because it's a valuable company to just own. There probably isn't anyone else than MS who would be willing to buy them for 7.5B right now, and who's to say there'll be in the future. Zeni definitely isn't the best asset to just own if it's not making any money. Market value isn't some fixed sum and in no way is only determined by whether Zenimax "loses money", whatever that means.

It was bought to turn an acquisition into a profit. That mountain of cash has hundreds of other uses, whether it's paid as dividends or invested in some other business sector of MS. Saying that there was just a mountain of cash with no other use is just very naive.
 
Dec 31, 2017
1,430
Their investors are not videogames fans who wants to afford losses. They want results.
That's completely false though. MS has long term plans like any company, they don't need to guarantee shareholders a return on their 7.5 billion investment immediately, and that you can think that to push your narrative is beyond me. How would that make sense when they spent over 26 billion for linked in. I somehow doubt they made that money back on their first year.
 

TheRealTalker

Member
Oct 25, 2017
21,582
Indeed exclusive content has intense value for a subscription service so MS no doubt wants to acquire said I.P loaded pubs to expand on that.

Content is indeed key for the subscription wars. It always has been and always will be.
 

Theorry

Member
Oct 27, 2017
61,177
I remember they had the Minecraft money sitting in a offshore account and couldnt "bring it into MS" so they used that to buy Mojang. They really couldnt use it otherwise.
 

Iron Eddie

Banned
Nov 25, 2019
9,812
Yeah the whole company we are talking only about gamepass. They don't disclosure the numbers ou for the service.

They disclose the numbers they feel need disclosing. This is like Costco needing to tell you how many cars use their pumps each day and whether or not they need to raise the prices of fuel for you to be in your safe place that they will be ok.

If you want to know, last April they had 10 million subscribers. In September it grew 50% to 15 million. January that number rose to 18 million and Xbox Live passed the 100 million mark.

This all seems to lead in one direction and that is without many big titles. Wait until the games really start flowing.
 

M4xim1l1ano

Member
Oct 29, 2017
1,094
Santiago, Stockholm, Vienna
Their investors are not videogames fans who wants to afford losses. They want results.

wtf is this? Investors have gotten results since Satya Nadella took over. Why would they doubt Nadella and Xbox management suddenly?

Also, why would MS investors be more different than those investing in like Uber or Spotify? These companies do not really rake in profits but somehow investors keeps giving them time and even through money at them.

But Microsoft investors will suddenly make a big fuss about not generating profit from Bethesda? Btw, which timeframes are Microsoft operating in? Is it short term? Long term? Etc

I think you should just leave the investor/financial comments out of the discussion as you don't seem prepared to engage in them.
 
Nov 8, 2017
13,187
So, following up on my plan

Wow, I can't believe u idiots thought there would be any clarification of games all being exclusive or not exlcusive. Microsoft was so totally unambiguous that they'll be deciding things on a case by case basis.
 

VeePs

Prophet of Truth
Member
Oct 25, 2017
17,402
Their investors are not videogames fans who wants to afford losses. They want results.

Yea, I'm sure they investors want to continue to see an increase in subscriber growth. Making their first-party multiplat and available on platforms that don't support Game Pass would harm potential subscriber count.

Do you think we will ever see a new Fallout game by Obsidian? That would be awesome.

Down the line definitely possible. Obsidian has multiple projects in the works right now though. Maybe after Outer Worlds 2 they can tackle Fallout.
 

12Danny123

Member
Jan 31, 2018
1,722
Their investors are not videogames fans who wants to afford losses. They want results.

Their investors are wanting to look for growth and eventually profitability, if making upfront losses in the short term helps grow Game Pass to eventually make breakeven and gain market share then that's what MS investors will sacrifice. MS has done this with Azure and Office 365, it's not something that investors are taken by surprise by.

Sony investors and MS investors are very different and have different expectations.
 

Jiraiya

Member
Oct 27, 2017
10,317
Snap...investors are back in the Microsoft convo. I remember when they wanted to shut Xbox down for a decade straight.