If you’re concerned that Microsoft must be losing money over the absurd value players get out of the Xbox Game Pass, don’t worry, because a) they’re Microsoft and b) it’s all part of the plan.
In a recent interview, Xbox marketing boss Aaron Greenberg addressed fears that Microsoft may be losing money on the Xbox Game Pass by confirming that they are and that the initial loss will be entirely worth it, if everything goes according to plan. According to Greenberg, Microsoft is working on building “fans for life” by “over-delivering on value” instead of focussing on how to maximise the amount of profit they can make from each player.
When people feel like you’re over-delivering on value, they want to not only continue to use your service but they want to tell their friends about it.
Can confirm – friends do tell me about it. Currently, the Xbox Game Pass gives subscribers access to over 100 PC and console games (including indie titles like Red Dead Redemption 2, the Halo franchise, and Minecraft) for a monthly, or quarterly, fee. It will also add xCloud access for free when the service officially launches in September this year.
How can Microsoft afford to take the financial hit? Well, the company makes about $120 million, in profit, every day, so…
Please don’t worry about us. Microsoft is going to be alright. We’re gonna make it–I think we’re gonna be OK.
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