Xbox Game Pass is reportedly profitable even when factoring in loss sales of first-party titles available on the service, according to a known business journalist.
Providing a clarification on yesterday's statement revealing that Xbox Game Pass is profitable, taking fees paid to third parties, marketing, and service costs into account, but not lost sales of first-party titles, The Game Business founder Chris Dring stated today on X that the subscription service is profitable even when factoring these lost sales. 18 months ago, the journalist checked with Xbox what's included in the Game Pass P&L, and was told that first-party games have their own P&L separate to Game Pass as they make money via other means, which may have meant that Xbox Game Pass was profitable but potentially also put pressure on the margins for first-party games, possibly with some studios not making much profit, if any at all. All this, however, was before Xbox games started being released on other consoles, as studios can now make more margins on premium sales. Regardless of all the information above, sources have reached out to Chris Dring to confirm that, even if lost sales of first-party titles and related microtransactions are taken into account, Xbox Game Pass is still profitable.
Xbox Game Pass's profitability and the impact it has been having on the industry as a whole have been a point of discussion since the service's launch a few years back. No matter its profitability, the impact in terms of loss sales seems to be big, it was estimated earlier this year that games available via the subscription service can lose has much as 80% of their expected premium sales on Xbox consoles, as was highlighted by how games like Senua's Saga: Hellblade II, Indiana Jones and the Great Circle and Starfield failed to make a real splash on sales charts. On the other hand, a multiplatform game available on Xbox Game Pass can have a beneficial impact, as it can be accompanied by increased sales on another format.
About the author: Francesco De Meo has been covering video games and technology since 2012, starting his career at small outlets like Gamersyndrome and GeekSnack. After joining Wccftech gaming section in 2015, he quickly expanded his video gaming coverage with in-depth reporting, interviews with iconic industry figures such as Grasshopper Manufacture founder and No More Heroes creator Goichi "Suda51" Suda, Resident Evil series creator Shinji Mikami, Team NINJA's president and Nioh series director Fumihiko Yasuda, and Silent Hill creator Keiichiro Toyama, reviews and on-the-ground coverage of major industry events such as Gamescom and E3. When he's not reporting or reviewing, Francesco can be found playing the genres he loves most, spending time with his six cats, reading, writing music, playing guitar and drumming for his progressive rock band.
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