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Xbox Game Pass Business Model Doesn’t Seem to Work While NSO Does, Says DFC Intelligence

According to DFC Intelligence, Microsoft’s Xbox Game Pass doesn’t appear to be a sustainable long-term business model.

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wccftech.com
crazyCoconuts1189d ago

What? You mean you can't keep forking over tens of billions of dollars over to buy more product just to turn around and give it away to your customers without raising prices? Satya, you really should have taken a few finance classes...

S2Killinit1189d ago

Soon they will raise them and raise them good. Although, if you look at first party day one offerings, there really isnt much there for all the years the service has been touting it as the best thing since toast.

DaCajun1189d ago

Everyone uses this model, look at how streaming services like Hulu, Netflix, Disney+, and literally every other streaming service initially introduced their pricing.

They get you with free streaming with commercials or low a very low cost at first then slowly raising the prices over the years until the install base is huge then they start charging ridiculous prices even making us pay with intrusive commercials. Nothing new, it's just how businesses work.

No "For Profit" company is a charity and anyone who believes they care about any of us are idiots or suckers. One is born every minute they say, are you one?

S2Killinit1189d ago (Edited 1189d ago )

Exactly correct.

Not sure why you say it like we disagree. Everything you said is right.

crazyCoconuts1188d ago

To add to the Netflix analogy, there's also this trap with businesses focusing on the increase in revenue as new subs come flooding in as opposed to the profit per sub. Then invariably when the market is saturated the revenue growth stops and investors realize there's still no profit. Im guessing that's the point MS is at right about now. Buying Activision would only make their situation worse

XiNatsuDragnel1189d ago

This is definitely true imo because you buy these 3rd party content then charge a Dollar you know this isn't good business.

bigfish1189d ago

Yes very strange whats going on. Almost like MS have a adopted a charities business model. Procuring content and giving away almost free in gamepass.

Hofstaderman1189d ago

They WANT to collapse the industry and then pick up the pieces to their liking. Classic Microsoft.

Hypertension1401188d ago

I lost count how many times Microsoft has offered me gamepass ultimate for a dollar, they really want to keep me as a customer.

sparky771189d ago

Well it works for me MS is pretty much funding all my gaming which is awesome. I've been playing more games and spending next to nothing to do so.

MS being last and a trillion dollar company is great if you are on Xbox.

Obscure_Observer1189d ago

"Well it works for me MS is pretty much funding all my gaming which is awesome."

Hell yeah!

We been hearing this Gamepass is not viable blah blah blah nonsense since 2017 and here we are. XD

KwietStorm_BLM1189d ago

You say that like 2017 was 60 years ago. Making the statement that something is not sustainable is taking into account all the numbers, including profit margins and returns, on a persistent basis for years into the future. Doesn't matter how much money a company has. Giving product away and/or hemorrhaging money in any one aspect is not good business long-term. It's the reason why companies kill off entire divisions before they start to drag their bottom line. You can hype up all these games you're playing all you want, but the fact is the service in it's current state will not remain the same moving forward.

shinoff21831189d ago (Edited 1189d ago )

Sounds like ms said it themselves obscure. Yall just didn't wanna believe it cause it benefitted you guys. Hell me to

Godmars2901189d ago

"Microsoft´s lawyers"

How doesn't that make it worse?

Are the lawyers *lying* to the court, saying GP is doing poorly when its actually doing great, when such a lie would not only hurt MS's case but ruin the lawyer's careers?

1189d ago
Flawlessmic1189d ago (Edited 1189d ago )

It's great for now.

But you all don't see the big gameplan, Microsoft will buy up whatever they can and keep eating the costs until the value is sooo good that literally everyone will change eco system if Ms keep buying everyone up and then offer gp at this price.

Long term play is put Sony out of business following the above, which they have the pockets to do, once Sonyis crippled or force to exit the scene, this great value and competition we currently enjoy will be dead and gone and Ms will go back to its draconian roots.

Iv always said a Ms that stays in 2nd or 3rd place is fantastic for gaming and gamers as they have the pockets to keep giving value while trying to catch up with no risk of going bust unlike sony or nintendo, if they were to ever become market leader or dominate the scene, bad times are afoot.

Obscure_Observer1189d ago

@Flawlessmic

You showed great insight in your post, man. Congrats.

Sonic18811188d ago (Edited 1188d ago )

You must be uneducated 🤔 you don't know how business works

notachance1188d ago

you XB fanboys didn’t even get angry with 2 straight generations of mediocre offering, of course you’re happy… your standard is so goddamn low and somehow you remain loyal.

If Playstation or Nintendo offered shitty libraries for 2 generations they’d be nearing bankruptcy right now if not straight up closing their business.

+ Show (5) more repliesLast reply 1188d ago
Godmars2901189d ago

And at some point its either going to collapse, or become something both expensive and inconvenient.

@Obscure_Observer:
Only MS has as much as admitted it.

Obscure_Observer1189d ago

"Only MS has as much as admitted it."

Microsoft´s lawyers "admitted it". There, corrected for you.

If you fell for that fabricated bs, then there´s a chance for delusional regulators to let Activision/Blizzard´s deal pass through. XD

FPS_D3TH1189d ago (Edited 1189d ago )

Oof observer thinks the marketing PR team is the one who speaks honestly and not the lawyer trying to tell them the obvious mistake we all saw coming. Talk about copium.

The fact some fanboys here don’t consider the implications this has for any and all the studios under Microsoft’s umbrella truly shows how out of touch and deep microsoft may be up some individuals rear ends.

Obscure_Observer1189d ago

"Are the lawyers *lying* to the court, saying GP is doing poorly when its actually doing great, when such a lie would not only hurt MS's case but ruin the lawyer's careers?"

Apparently they don´t care. CMA´s investigation latest report confirms that Microsoft dominated about 60-70% of Monthly Active Users (MAU) worldwide in 2022.

Snookies121188d ago

I mean sure, it may collapse. I've believed that for quite a while, that the bubble will burst at some point for Game Pass. Right now though. It's an amazing deal. Anyone disagreeing are lying to themselves. I've frequently stated that Xbox typically has an amazing first few years when new consoles launch. Then die off completely in the later years. So, I'm kind of expecting the same thing here with Series S/X. As for this moment in time, it's been one of the best gaming experiences I've had in a long time.

Plus, all you technically need is to pay for one month. Rewards points (if you keep up with them which is pretty easy) make it completely free beyond that. I haven't paid a single dollar in 7-8 months of having Game Pass Ultimate for PC and Xbox.

+ Show (1) more replyLast reply 1188d ago
Lifexline1189d ago

Lol agree only people complaining are PlayStation fans. Xbox owners are content who cares if a trillion dollar company is losing money.

shinoff21831189d ago

You'll care when the games stop coming or ms just calls it a day

Lifexline1189d ago (Edited 1189d ago )

Right shinoff because in the history of gaming multiple studios and publishers have closed and even console makers have failed yet the gaming industry has only grown and flourished it’s the biggest entertainment industry out there.

Yeah… I think they will be fine who cares if they lose money means more money in my pocket. Like I said only PlayStation fans are crying about it. I don’t care about a trillion dollar company just my entertainment. They don’t think for one second of charging you more so why should I care. People have no common sense here at all.

saint_seya1189d ago

I own an Xbox Series X, and i do care. Why? simple, because if something doesnt work, it gets removed, or changed (in this case, price) so, in my case as an Xbox owner i care, and others Xbox owners should too.
Its like expending more money than you make, you may not care at the beggining, but you will care eventually.

EvertonFC1189d ago

You're balls will drop one day and you'll learn something in life.

+ Show (1) more replyLast reply 1188d ago
1189d ago Replies(4)
Petebloodyonion1189d ago

I stop reading when they mentioned that Nintendo Switch online brings good value to consumers.
And I wonder how they feel about Epic Games but hey I guess these ppl must always be right unlike the ppl from Webush
https://www.wedbush.com/ana...
or VGchartz
https://www.vgchartz.com/

giovonni1189d ago (Edited 1189d ago )

I stopped there too. it’s just another opinion piece that’s supported with little to no facts. Wasn’t Netflix apart of the same baseless opinionated speech as well as Apple Music? Whats annoying is everyone seems to be an expert on the subject, and pass along their bias rhetoric you know the vibes “ oooooooo it’s not good for us gamers/consumers/musicians” 🙄

1189d ago
Petebloodyonion1189d ago

sight!
I Remember when Napster/LimeWire was the rage and could hear the same type of ppl saying that it would be idiotic to sale 1$ songs on the Internet because they would lose so much money since they would not buy the complete CD.
Or I remember when Piratebay was around and again Netflix was destined to fail
Heck is it me or Free to play game was destined to fail also...
But I have yet to see a game developer/publisher complains about how they lost so much money with putting games on Epic Games, Gamepass or PS+
Quick question: If it's so bad then why Sony is paying blocking fees? surely you don't need an incentive to make you not drink poison.

giovonni1189d ago

@_steakdeck_ thank you for proving my point

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40°

Games Done Quick is coming to Europe for the first time with 3 days of Gamescom speedruns

The charity event will be streamed live from Gamescom in August.

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videogameschronicle.com
50°

Microsoft Lowers the Price of Xbox Game Pass Ultimate And PC Game Pass, But What’s Next For Xbox?

Xbox Game Pass Ultimate is getting cheaper but Call of Duty is leaving day-one access. Here’s what we think the price drop means for Xbox, PC Game Pass, and the future of the service.

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theouterhaven.net
14d ago
VaNdAl14d ago

Phil Spencer killed the Xbox Let It Go move on to PC

Jingsing14d ago

They would be better breaking up what valued assets they still have and put them out to auction for the competition.
There is no more financial gain for them on any trajectory in the entertainment space.

180°

PlayStation Confirms New DRM, Digital Games Will Vanish If Players Don't Log-In For 30 Days

Tech4Gamers writes: "A PlayStation Support assistant has confirmed that the 30-day timer implemented by the new DRM policy is part of an update and isn’t a bug. While responding to a fan’s query, PS support revealed that all games purchased digitally after March 2026 will be affected by this time limit.

If your PS4 or PS5 does not connect to the internet within 30 days, the game’s license will expire, and it won’t launch on the console unless the connection is restored. Hence, every digital game you purchase from now on will require an online check-in, or else you will lose ownership."

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tech4gamers.com
Goodguy0116d ago

That is wild lol. Steam already does this for some games depending on the developer...but man...all digital games on ps5...

Eonjay16d ago

FYI, it hasn't actually been confirmed. This is just a lot of assumptions. If this is the case i would expect Sony to come out and say so. Chat bot response doesn't count as official confirmation.

People are also saying this is also an inadvertent mistake. If this is the case Sony and its customers would be best served by coming out and saying so.

If this isn't a mistake I think they need to confirm it and Playstation gamers should complain.

darthv7216d ago

Sounds like Sony quietly did what MS openly said they were going to do with the once a month check in... and MS got so much flak they had to change course.

People need to give Sony even more flak if its true.

blacktiger15d ago

If the response is from Sony whether irresponsible employee or chatbot. That's from SONY until Sony reiterate

Dandizzle15d ago

seriously, a large company like sony wouldnt do that without an announcement or else it would result in bombardment of customer service

BlackOni15d ago

Sony's chatbot is notoriously garbage at providing even basic information and functioning properly. I wouldn't take anything it says seriously.

That said, if this is true, this is serious af. Major L for gamers across the board.

1Victor15d ago

It’s no mistake someone got paid to code that in the update and it wasn’t just for the lol

+ Show (2) more repliesLast reply 15d ago
phatak16d ago (Edited 16d ago )

This is beyond nuts, this was pretty much the exact thing that the playstation execs during the ps4 era mocked the xbox one over and xbox never recovered after it, this is why you need stiff competition folks, Sony high on their own supply just like the early ps3 days where we apparently needed 2 jobs to afford one, I was a massive Ps3 fanboy mainly due to the fact that the xbox 360 pushed sony into a corner resulting in them actually trying real hard to get market share back and as a result we got crazy good exclusives, just for old times sakes like I used to do back in 2012 right here on n4g ill relist some of the major exclusives of ps3 again

Demons souls
Metal gear solid 4
uncharted 1,2,3
infamous 1,2, festival of blood
little big planet 1,2 & little big planet karting
gran turismo 5 and 6 & ridge racer 7
killzone 2,3
twisted metal
journey
ratchet and clank tools of destruction, quest for booty, crack in time, all for one, into the nexus
resistance 1,2,3
last of us 1
god of war 3 and ascension
motorstorm collection
ico & shadow of the colossus collection
folklore
modnation racers
warhawk & starhawk
sly collection & jack and daxter collection
Puppeteer & comet crash & tokyo jungle & rain & gravity crash & Echochrome & the last guy
Heavenly Sword
3D Dot Game Heroes
Playstation All-Stars Battle Royale
Mag & Socom 4
Fat Princess
Ni no Kuni, Valkyria Chronicles, Yakuza 3,4,5 (these all came to pc later )

But just think and compare this catalog of games to ps5 ?
Saros, astro bot, demons souls remake, ghost of yotei, I would have included gran turismo 7 but that came on ps4 as well so not really an absolute exclusive that one needs to buy a ps5 to play like the other 4.

We are almost in the 6th year of the ps5, the 6th year of the ps3 was around 2012 and almost all the games from the list above were already released on the ps3, now if they are really pulling this online crap every 30 days non sense its only because of a lack of competition from xbox and so they have console players by the ba**s, now I don't know whether this is confirmed or not but regardless if this is in general where their headspace is at it seems like we should be worried, its the real playstation gamers that will be affected if its true, Im not even a playstation gamer anymore but my recommendation is put your money where you mouth is and really abandon playstation if this ends up being true.

Extermin8or3_15d ago

No it isnt. The xbox one require you to check in online every 24 hours. Also alot has changed in terms of Internet infrastructure and provision globally since 2013.....

hiawa2315d ago

Looking at what consoles cost now, many need 2 jobs.

cytricks15d ago (Edited 15d ago )

Not quiet. Xbox wanted to do DRM for physical games so they would be locked to your account and not sharable

Zerobalance15d ago

Most of those games are trash. Deal bro🤣 Ponies gotta pony up. Muma Sony wants some more cash. PC bro! Good ol' games. Look it up.

Ashunderfire8615d ago

O man you remember that PS3 statement from crazy Ken Kutagri whatever is last name is, was so cringe for saying,”Your gonna want PS3 so bad you need 2 jobs!” That guy overhype the crap out of PS3, that was the most expensive console, an a lot of misinformation about the graphics and performance delta over 360.

Kyizen15d ago

Xbox drm was for physical games also and 24 hours with no sharing

vTuro2415d ago

Yeah stuff like this is why competition is needed. The ps360 era was peak gaming. Microsoft and Sony waging a full on war and Nintendo just kinda doing their own thing. The gamers only benefited from that. Then Microsoft shot themselves in the dick with the Xbone and that gen felt like a step down from the previous (imo), though it wasn't bad still.
Then you have the current gen, which honestly feels like one big nothingburger. Barely anything interesting gets released while prices keep going up which to me is just insane. Astro Bot is basically their only exclusive that I'd be interested in buying, but I'm not buying an console just for that. Especially not one as expensive as the ps5... I would add Demon's Souls to that, but I already played the original. Loved the game, but a remake isn't a system seller for me.

+ Show (4) more repliesLast reply 15d ago
Loktai15d ago

@darthv72 Yeah LIKE 14 years ago. Its like saying "Give sony flak for raising game prices, because it would have made you mad in 2012"

PRIMORDUS15d ago

Pirate on PC what you can, you will own it, nothing will be taken from you. I feel like your just throwing money away and have nothing to show for it, with digital games.

1Victor15d ago

Well all I’m going to say is I’ll vote with my wallet and keep refusing to buy digital and will cancel my ps extra this is bs and you all that still think digital is the future should take note because once the servers goes down so does your digital game library. Good luck and good bye

blacktiger15d ago

what game on steam has that/?

+ Show (3) more repliesLast reply 15d ago
Jin_Sakai16d ago (Edited 16d ago )

This has to be a mistake.

“Received word from an anonymous insider. The Sony DRM issue is unintentional. From what we gathered, Sony accidentally broke something while fixing an exploit. They've known about the confusing UI for a while, but didn't see it as urgent. Hoping for a clarifying statement now.”

Eonjay16d ago

I find their communication to be very poor. If this is an error on their part why let people get worried about it? I understand they don't respond to rumor but sometimes they make it worse by not responding and this is an unforced error on top of and apparent unforced error.

Kribwalker15d ago

There’s people that talked directly to people, not chat bots, that confirmed it’s real 🤷‍♂️
I expect those fans that were so against Xbox doing it to eat a whole lot of crow

Outside_ofthe_Box15d ago (Edited 15d ago )

Damn, we having diehards coming out of the woodworks for this. 😳

But you're right this is literally what led to the demise of the Xbox One and led to some calling it the Xbone.

There is literally no need for this and Sony has been doing just fine without it. If I don't turn on my console for 30 days and want to play offline I should be able to play the game that I paid for, no if and or buts about it.

Jin_Sakai15d ago

If it’s real it won’t last long. Almost every PlayStation YouTube video is full of revolt comments about it.

CrashMania16d ago (Edited 16d ago )

The screenshot from the article is from an AI chat bot, there are plenty of screenshots floating around from actual human chat reps stating the opposite.

SkilledGamer15d ago

It's also worth noting that the text stating a 30 day license seems to only be visible on PS4, PS5 users aren't seeing it at all.

Warrior9416d ago

It this is real then I will never buy digital again and if the PS6 is digital only then it will be the first Playstation Console I wont buy

VersusDMC16d ago

"Games will vanish" is click baity as hell...all you have to do is log in and the license is restored.

phatak15d ago

@ VersusDMC The entire goal for us gamers is to want to avoid that lol, what if sony's servers are down or having some maintenance, many times ive just played my installed games without even signing into psn, from now one it means every 30 days I have to at the very least sign it to psn to even play my installed games, cannot even play single player games without singing in, so for example if sony just decides to ban me from psn, I cannot even play the games locally already installed on my drive that I purchased after march 2026, you don't think thats insane ? you just want to accept that ? abandon playstation right now if this story gets confirmed.
we officially have started renting games from march 2026, it was a good run we had 1994 to 2026.

VersusDMC15d ago

Maintenance doesn't last 30 days

Who doesn't sign in to psn for 30 days? Missing out on game updates, new games, messages, demos, etc...

You already lost all your purchases if you got permanently banned from psn so that's not new.

And if for some reason you don't have internet for 30 days you can use your smartphone as a Hotspot to connect your ps5 to the internet.

phatak15d ago (Edited 15d ago )

@VersusDMC my point isn't not about the 30 days maintenance man, the fact that you are willing to accept this 30 days sign in means they totally OWN you now, what if they change this later to 7 days, im sure you will be making the exact same point right " who doesnt sign into psn every 7 days" ? eventually say it becomes every 24 hours you cool with that too ? by psn banning you I mean to say if I get banned on psn right now for some weird reason that they decide, but I have 20 installed games already downloaded and ready to play just by clicking X, basically all the exclusives from ps4 and ps5, even if my psn is banned I still get to play the games already installed right now same like putting the disc into a banned console, from march 2026 will I be able to play my locally installed games with a banned PSN ? Its not about the length of time, its the fact that the corporation gets total control over how I choose to even play my single player offline games with mandatory sign ins, a simple thing such as forgetting my password would mean I cant even play ghost of yotei offline without signing into psn.

You ever heard the phrase "give someone an inch and they will take a yard", thats what will happen here, it doesn't just end at 30 days sign in, that's just the start

cytricks15d ago (Edited 15d ago )

Is it that difficult to sign in for one second every 30 days? Especially if you are ps plus member who wants to get their free games?

phatak15d ago (Edited 15d ago )

@cytricks You are focusing again on the 30 days too, "oh sony said its only 30 days so we are safe" While its not a probability YET, just know that your playstation turns into a brick if sony decides to turn off those servers.

Sony's lack of communication is telling my conspiracy filled mind lol that they're testing to see if they can get away with this. If it was truly a mistake, they would have acknowledged it, apologised, and stated they're working on a fix.

+ Show (1) more replyLast reply 15d ago
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