LogFAQs > #978767404

s0nicfan posted...

If someone has an actual link to microsoft saying they're operating at a loss I'm happy to be proven wrong, but it's tough to argue it's a loss, even WITH day 1 releases, when reporting shows it's brought in nearly $3 billion dollars in 2021 alone and has only grown since:
https://www.tweaktown.com/news/93340/xbox-game-pass-made-230-million-revenue-in-one-month-most-users-pay-for-full-subscriptions/index.html

This is misusing financial terminology though, you're looking at revenue, money that came in from the Xbox Game Pass, while not being able to illustrate that that's not profit after expenses. It's not stated as profitable, only how much it's taken in from subscriptions & sales. Taxes, expenses & everything else isn't listed, so you'd just be inferring that it's profitable for them after all that just because the revenue looks decent.
And just like I said before, it's most certainly a sunk cost fallacy for them. This is Xbox marketing boss Aaron Greenberg in 2020 to start:

In terms of the profitability of Xbox Game Pass for Microsoft, Greenberg confirmed it's "not a big profit play" right now. Greenberg said the investments Microsoft is making in Xbox Game Pass might be costly in the short term, but they will ultimately pay dividends down the road if everything goes to plan.

This is 3 years after they started the program mind you, obviously recent numbers say their revenue & membership are good or high, but purchasing rights to the games on the service I don't believe have been recouped yet. They can lose money on game pass for decades straight & still be profitable overall as a company because it's only 30% of their game's & service's revenue, not even a majority impact.

I cannot not find any information to prove absolutely that they aren't profitable, but I am arguing that you can't prove they are either since what I can find only mentions revenue & leaves out costs, while on record a suit says it isn't profitable at the moment.