The whistleblower changed his words: Game Pass is actually "profitable"

2025-07-10 20:21:16|Myriagame |source：minecraft skins

This morning, many foreign media quoted Chris Dring, former editor-in-chief of GamesIndustry.biz, saying that if the potential sales losses of first-party games are included, then Game Pass is actually not profitable (loss money), and we also followed up on the report.

At that time, Chris Dring said he had made clear to the source that the other party confirmed that "the cost of the first-party studio was not included."However, Chris Dring clarified the matter on social media soon, and changed his words to say that Game Pass is still profitable even if it counts the potential sales losses of Xbox first-party games.

Dring said: "Okay, I need to clarify or correct something. First, according to people familiar with the matter, the Xbox Game Pass is still profitable even after considering the sales revenue lost by first-party studios due to Game Pass.

I checked with Xbox about 18 months ago what the Game Pass profit and loss statement (P&L) contains.Basically, I want to confirm whether the cost of Game Pass includes its impact on in-house studio game unit sales.I've been told that first-party games have independent profit and loss tables because they make money through other ways.I think this internal accounting treatment might mean that Game Pass itself is profitable, but it does put pressure on the profit margins of the internal games and may even lead to a decrease in profits (or no profit at all) for some studios.

This actually has little impact in actual operation, but seeing the impact of Game Pass on first-party games and Xbox's huge investment in studios, I hope to confirm whether they fully consider the full impact of the service in the statement that "Game Pass is profitable."

(This is before Xbox began to release the game in full swing on PS5. Now studios can get higher margins with high-end sales.)

However, anyway, sources have told me that Game Pass is still profitable even if the loss revenue related to first-party games (not only unit sales, but also microtransactions) is taken into account.So…this is very good!

OK, Tony Hawk's game has been released, let's talk about this!”

Genki, a well-known media person, doesn't seem to buy it for Game Pass to make a profit.He said: "Microsoft claims Game Pass is profitable, but I personally think it's hard to support the development of 3A masterpieces by the Game Pass business model alone. That's why Xbox is currently porting games to PlayStation. I think if 2A or indie games can work with Xbox, then that's a good thing for them."

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