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Microsoft Will Absolutely Make Money On Starfield, Phil Spencer Says

It's a little harder to tell how Microsoft makes money on games with Game Pass in the mix, but the math isn't that different from how things used to be.

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How do you take a massive, expensive game like Starfield, which has been in development with hundreds of developers and artists, release it on a subscription service like Game Pass, and then make it profitable? To explain, Phil Spencer looked back into the history of game development while talking on GameSpot sister site Giant Bomb's at Nite show.

Spencer used Halo 2 as an example here. "Let's say we're going to go ship Halo 2," Spencer said. "And we're not shipping it on Nintendo, we're not shipping it on Sony. Nobody ever asked me, how does the [profit and loss] for this game work when you're not selling it everywhere you can sell it?"

With that in mind, Spencer laid out the basic idea.

"What you did on old school consoles is you said, how many consoles are you going to sell because Halo 2 launches, how long will those players stay on the platform, and how many games will they buy, and does that make it more cost-effective to keep the game exclusive to your platform?" Spencer explained.

"When I look at Game Pass, we are absolutely going to make money on Starfield, touch wood, that's the plan. And we will grow Game Pass, and Xbox will be a better platform both on PC and console," Spencer continued. "For us, it's about expanding our platform reach, and we think important games like Starfield will be catalysts for Game Pass growth on many different platforms."

Starfield, the upcoming game from Skyrim studio Bethesda Studios, was the centerpiece of Microsoft's Xbox Showcase this week. It will run at 30fps on Xbox Series X|S, and if you're playing on PC, you'll need to install the 125GB game to an SSD to play it. Most importantly, though, Microsoft says Starfield will have the fewest bugs of any Bethesda game to date, even if it launched right now. But it isn't launching right now--we'll have to wait until Starfield's release on September 6 (or a few days early if you buy one of the more expensive editions).

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gamer112696

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Since when did people start caring about the viability of other companies’ business models lol? As a consumer, my goal has always been to get the most that I can for as little as I can and that’s what they want for themselves too. Some of the comments almost seem like they’re Microsoft employees hoping their work doesn’t lose money haha. If it’s not your workplace, who cares if they lose a bunch of money or make a bunch of money as long as you get the product you want? Lol

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GamerBum

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Even though I have Xbox Game Pass Ultimate and even though I still think 30FPS on XseX is an L after watching the Direct I’m sold!

As with Zelda TOTK it only takes a half hour or so for me to forget I’m playing at 30FPS. Would I rather it’s 60 of course but the sheer scale of this game is astounding and I CAN NOT WAIT!

My life is going to be consumed with this game.

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Presidential

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Tempted to just buy it. I like gamepass to try games I likely wouldn't otherwise, and I've got enough codes that I'll have it till 2025 BUT one thing that does bug me with it though since I've moved to PC gaming, is not being able to open games with geforce experience!! If anyone has a workaround for this that doesn't involve editing permissions to the folder and getting blocked that'd be great.

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gotgames

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No it won’t. Simple math question: does a game that sells 10 millions at $70 make more money or dose 10 million subscribe that pay $10 a month make more money? Keep in mind most people subscribe for a month or 2 and few just keep it. If more people are like me and subscribe for a month and keep bouncing from subscription to subscription instead of paying for 10 different subscription at once. MS is bleeding money on Gamepass.

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sippio

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Edited By sippio

@gotgames: AGREED!! Most gamers im friends with is also like this.

It expires, auto renew is ALWAYS = off.

and wait to renew when there's a game you want..

~I used to buy these subscriptions by the year on black friday but

Gamepass seems elusive on such deals. like 1/2 price or whatever.

~I liked it better before Subscription nonsense.

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sladakrobot

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@gotgames: said"Keep in mind most people subscribe for a month or 2 and few just keep it"

Where did you got that from?

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sippio

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@sladakrobot: You mean you honestly believe there's people who go month to month & don't ever let it expire? Why??

Why would someone keep gamepass nonstop monthly?

Mind you we are talking about monthly Subscribers not yearly.

~When mine expires it stays off until i have a reason to re sub.

which isn't very often..

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gotgames

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@sladakrobot: I jump from subscription to subscription instead of having 5 subscription at the same time. Same with Gamepass I subscribe for a month play the game i want and unsubscribe after a month or 2. I know a lot of people that do that too. Why buy a game at a full price. That’s why I encourage people not to subscribe to Gamepass or ps+ it’s the downfall of gaming industry

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deactivated-64a3ced8b46b8

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@gotgames: "I jump from subscription to subscription instead of having 5 subscription at the same time."

I've never done that. You doing something =/= everyone doing something.

"I know a lot of people that do that too."

That's anecdotal. I don't know anyone who does that, but that doesn't make it any more/less factual.

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sladakrobot

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@gotgames: I am not questioning what you do or what you tell your friends but you claim that most of ppl sub GP just for one or 2 months.
You must refer to a survey or something if you claim that.

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sippio

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@sladakrobot: Yes he can claim that. Just like you will claim what you and you Local homies do as a normal practice.

~I agreed with him because it's exactly the same way most of my friends who aren't kids anymore use Gamepass.

Im sure once it starts showing up on black friday more people will get the year like w/ Gwg & PS+.

i think i understand the difference here.. Younger gamers will stick w/ a 12 month subscription service where older gamers will

prefer to buy the game(physical at that) for the shelf.

But as far as study or survey goes= he's basing on him,relative & friends tendencies..

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sladakrobot

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Edited By sladakrobot

@sippio: A claim without evidence is an opinion.

An opinion cannot be taken as a fact!

He/she presents his/her opinion as a fact...such behavior disqualifies ones from any discussion on any topic.

I didnt claim anything even if my practices are different from his/hers...i have no indicators, polls or surveys to make me think my practices would equal to most ppl on the world.

I get it that if someone uses 5-6 different services(lets say Disney,Netflix,Hulu,PS plus,Gamepass) it can be pretty expensive to maintain all of them and sub only if something is worth the money for that month or next two months and jump to next service if they have better content offer.
This why Netflix and co. are more interested in making shows than movies.
A show with 12 episodes,1 per month,should keep ppl subscribing the whole year.

But,do most ppl do this?

I for one have no time to use all the content and i dont want to fiddle with subs and unsubs frequently.

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gotgames

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@sladakrobot: I’m not claiming it i know it. Otherwise MS subscribers numbers would be way up in the 50 millions for Gamepass. Subscription services work great for movies but not for games.

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sladakrobot

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@gotgames: If you cant back it up, you cant know it.
All you have is your practices and some of your friends and you are expanding it to "most people".
Do you know most people?



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gotgames

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@sladakrobot: it’s called common sense. You apparently don’t have it.

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sladakrobot

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@gotgames: Common sense is to prove things you claim otherwise you wont be taken for serious.
It baffles me how you can say "most people" and all you have as a proof is you and some of your friends.


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gotgames

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@sladakrobot: let me ask you do you subscribe to all streaming services available or do you subscribe to one at a time use it for a month and move on to a next service

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sladakrobot

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@gotgames: I subscribe to only 2 services and maintain them the whole time

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skritch

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@sladakrobot: so if i'm hearing what your saying, you're saying "most people" subscribe to the services they want and maintain those subs ;o)

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sladakrobot

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@skritch: yes haha

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Edited By tbird7586

The shear growth in gamepass subs just for starfield will be insane, it's absolutely gonna be the biggest game of the year. It's gonna smash sales records on steam I guarantee that

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santinegrete

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Yes please, I need an SP game to be succesful and drive the message "Single Player games are profitable."

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sladakrobot

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Imo Starfield is a reason tons of ppl will subscribe to GP or renew it.
Can i call it a GP seller? ;-)
I watched the deep dive today again with some commentary... dont even remember the last time i was so excited about a game.

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MoogleStar

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Edited By MoogleStar

If they make enough money to satisfy them then cool, but I'm guessing it will pale in comparison to what Nintendo makes with TOTK, and what Sony will make with Spider-Man 2, as they are exclusively $70 a pop. MS doesn't really NEED the money though I guess lol.

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lucidique

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Skyrim had very long legs, in term of sales.

Assuming they can do even half of that with Starfield, they will be fine.

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deactivated-64efdf49333c4

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Well duh.

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hardwenzen

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Yea, they'll make $500🤭

If this was coming out on all platforms and wasn't available on GP, they'd be printing money. Instead, the profit will be pathetic, and all it'll do is inflate GP subs for a few months so they can brag about their 2397854324789523894 subscribers.

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Carpetfluff

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Edited By Carpetfluff

Interesting that he used the word 'absolutely' and followed it up with 'touch wood'. So he used a word that means it's a certainty and immediately followed it up with a phrase that would mean you were hoping for something to come true if you're lucky.

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deactivated-64efdf49333c4

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@Carpetfluff: Those are called "weasel words".

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OddShroom

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@Carpetfluff: no, knocking on wood is for when you say something that might jinx it happening, not that you believe it won't. The way these games sell and eventually on so many platforms it IS prettymuch a guarantee. Barring an aesteroid hitting the dev studio before going gold wiping out everything, or some other wild unforseen sillines that could tank the game into obvlivion(pun intended). But eve. CYBERJUNK somehow survived despite being one of the most broken ganes ever to release.

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deactivated-64efdf49333c4

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@oddshroom: Not "somehow". We KNOW how Cyberpunk did it...by lying their asses off and then having the Polish government force them to keep working on the game.

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OddShroom

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@Barighm: meant that more as a general somehow. It did somehow. A perfect storm of asshattery making the dead rise. Some of that wild unforseen silliness.

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deactivated-64efdf49333c4

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@oddshroom: Otherwise known as hype and brand loyalty.

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yugabe

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Consider like 10 million users paying $15 each month for Game Pass. That's a conservative baseline. Also consider additional revenues from attach rate, DLCs, consumables and additional purchases, users buying other games not on Game Pass -- because they will be kept in the ecosystem... Not counting additional attaches for Azure or M365 because it's even less straightforward, but it's there. Or hardware, like controllers.

That's easily hundreds of millions of revenue a month, extremely conservatively, all because of Game Pass. A month. So Microsoft can go to whoever and pay a few dozen millions for a deal and be unfazed and turn a giant profit still. People will buy Starfield. They'll subscribe to Game Pass, and even if only for a few months, they'll recoup the costs of development and marketing quite fast. And Starfield's going to have a very long tail.

I love how people with brains somehow can't figure this out. It's a business model. This is why engagement matters. And it works very well for them. And for me as well. Win-win-win.

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deactivated-64efdf49333c4

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@yugabe: "I love how people with brains somehow can't figure this out."

Not that I'm questioning the notion, but I can't say I see too many people struggling with this idea.

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EastLand

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@yugabe: Perhaps they'll release actual numbers then? Lol

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deactivated-64efdf49333c4

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@eastland: True.

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Carpetfluff

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@yugabe: Given they can't tell when people will subscribe and what their driving factor to do so is, then there's no way to know how much of that is attributable to a particular game. Many of the people excited to play Starfield on Gamepass probably signed up months and months ago considering it was supposed to arrive sooner than it has.

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