I underestimated the XBLGold membership numbers

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Nomad0404

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#1 Nomad0404
Member since 2004 • 1111 Posts

LINK

So even if the number of gold subs has dropped to 50% since the 56% figure was released that would make 8.5milion gold users.

Annually that would generate cash flow of around (assuming $50 as the cost of the sub) $425million p/a.

Note that's not all profit for MS, however, that is huge amounts of cash flow and something Sony can only dream of from PSN.

When you see these people posting why can't XBL Gold subs be free this is why and then you can start to question Sony's business model, they don't charge for the online aspect of PSN and so are missing out on a valuable revenue stream, I think this is why they put so much into Home because it needs to be money generator for them - remember there's no such thing as a free lunch.

Phil

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Burnsmiesta

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#2 Burnsmiesta
Member since 2004 • 1672 Posts
And for anyone naive enough to think XBL will ever be free there's your answer.

As long as I see continued investment back into XBL I'll continue to pay.
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TheAnnihilation

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#3 TheAnnihilation
Member since 2009 • 430 Posts
56? That's good for Microsoft.
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Poster_11

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#4 Poster_11
Member since 2003 • 438 Posts

LINK

So even if the number of gold subs has dropped to 50% since the 56% figure was released that would make 8.5milion gold users.

Annually that would generate cash flow of around (assuming $50 as the cost of the sub) $425million p/a.

Note that's not all profit for MS, however, that is huge amounts of cash flow and something Sony can only dream of from PSN.

When you see these people posting why can't XBL Gold subs be free this is why and then you can start to question Sony's business model, they don't charge for the online aspect of PSN and so are missing out on a valuable revenue stream, I think this is why they put so much into Home because it needs to be money generator for them - remember there's no such thing as a free lunch.

Phil

Nomad0404
I disagree I want to a Church yesterday that im not a part of and got a free lunch
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SolidTy

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#5 SolidTy
Member since 2005 • 49991 Posts
Xbox Live is free money, yes.
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Legendaryscmt

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#6 Legendaryscmt
Member since 2005 • 12532 Posts
Microsoft should have two different versions of Live, different from what they have now: Basic access, which allows you to play games for free, and then the paid subscription, where you can download movies, demos, etc, etc.
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Floppy_Jim

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#7 Floppy_Jim
Member since 2007 • 25933 Posts

"remember there's no such thing as a free lunch"

Unless you eat from Sony or Nintendo's plate. Good for Microsoft though, I've always thought those guys needed more money.

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dotWithShoes

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#8 dotWithShoes
Member since 2006 • 5596 Posts
Xbox Live is free money, yes.
SolidTy
You're foolish to think that Xbox live costs MS no money to operate.
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SpruceCaboose

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#9 SpruceCaboose
Member since 2005 • 24589 Posts
[QUOTE="Nomad0404"]

LINK

So even if the number of gold subs has dropped to 50% since the 56% figure was released that would make 8.5milion gold users.

Annually that would generate cash flow of around (assuming $50 as the cost of the sub) $425million p/a.

Note that's not all profit for MS, however, that is huge amounts of cash flow and something Sony can only dream of from PSN.

When you see these people posting why can't XBL Gold subs be free this is why and then you can start to question Sony's business model, they don't charge for the online aspect of PSN and so are missing out on a valuable revenue stream, I think this is why they put so much into Home because it needs to be money generator for them - remember there's no such thing as a free lunch.

Phil

Poster_11
I disagree I want to a Church yesterday that im not a part of and got a free lunch

Ah. This is a fallacy that is easy to dispel. It took time and money to get to the church, thus making it not free. Free does not just mean money.
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hip-hop-cola2

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#10 hip-hop-cola2
Member since 2007 • 2454 Posts

[QUOTE="SolidTy"]Xbox Live is free money, yes.
dotWithShoes
You're foolish to think that Xbox live costs MS no money to operate.

And your foolish to think that they need ANYWHERE NEAR the amount they charge now to run servers.

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dotWithShoes

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#11 dotWithShoes
Member since 2006 • 5596 Posts

[QUOTE="dotWithShoes"][QUOTE="SolidTy"]Xbox Live is free money, yes.
hip-hop-cola2

You're foolish to think that Xbox live costs MS no money to operate.

And your foolish to think that they need ANYWHERE NEAR the amount they charge now to run servers.

Sure, sure.. that amount of money doesn't go just towards the servers that operate Xbox Live.. but I do remember PSN not getting some DLC that XBL got.. mmmm.. wonder where those millions of $$ MS paid RockStar came from?
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SpruceCaboose

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#12 SpruceCaboose
Member since 2005 • 24589 Posts
[QUOTE="hip-hop-cola2"]

[QUOTE="dotWithShoes"] You're foolish to think that Xbox live costs MS no money to operate.dotWithShoes

And your foolish to think that they need ANYWHERE NEAR the amount they charge now to run servers.

Sure, sure.. that amount of money doesn't go just towards the servers that operate Xbox Live.. but I do remember PSN not getting some DLC that XBL got.. mmmm.. wonder where those millions of $$ MS paid RockStar came from?

That does not really help your case much. That would have been cool if the DLC was free to gold users, but since we paid for it, I don't see the benefit at all.
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SolidTy

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#13 SolidTy
Member since 2005 • 49991 Posts
[QUOTE="dotWithShoes"][QUOTE="hip-hop-cola2"]

And your foolish to think that they need ANYWHERE NEAR the amount they charge now to run servers.

SpruceCaboose

Sure, sure.. that amount of money doesn't go just towards the servers that operate Xbox Live.. but I do remember PSN not getting some DLC that XBL got.. mmmm.. wonder where those millions of $$ MS paid RockStar came from?

That does not really help your case much. That would have been cool if the DLC was free to gold users, but since we paid for it, I don't see the benefit at all.

Yes, we are buying that content, it isn't free, and furthermore, M$ has closed down a ton of 1st party in houses, that's where a large part of revenue kicks in as well.

For the record, I never said Xbox Live costs NO MONEY to operate (Being someone with two Xboxs and two 360's, Live has cost me so far over $600), what I said was quite evident. So please, Dot, let's not put words in other posters mouths, k?

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dthach614

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#14 dthach614
Member since 2008 • 804 Posts
[QUOTE="hip-hop-cola2"]

[QUOTE="dotWithShoes"] You're foolish to think that Xbox live costs MS no money to operate.dotWithShoes

And your foolish to think that they need ANYWHERE NEAR the amount they charge now to run servers.

Sure, sure.. that amount of money doesn't go just towards the servers that operate Xbox Live.. but I do remember PSN not getting some DLC that XBL got.. mmmm.. wonder where those millions of $$ MS paid RockStar came from?

SMH LMAO

but then we have to make another payment to get those DLC

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SpruceCaboose

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#15 SpruceCaboose
Member since 2005 • 24589 Posts

Yes, we are buying that content, it isn't free, and furthermore, M$ has closed down a ton of 1st party in houses, that's where a large part of revenue kicks in as well.

For the record, I never said Xbox Live costs NO MONEY to operate (Being someone with two Xboxs and two 360's, Live has cost me so far over $600), what I said was quite evident. So please, Dot, let's not put words in other posters mouths, k?

SolidTy
I don't like MS shutting down first party devs, but from a business perspective, they are doing what is best for risk/reward for them. Kinda sucks all these dev houses were shuttered or shipped off, but MS is a shrewd business entity, and I am sure they pay people big money to make those calls.
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LosDaddie

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#16 LosDaddie
Member since 2006 • 10318 Posts

MS will never make XBL free, but I see no reason why they can't reduce the price to $30/yr

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hip-hop-cola2

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#17 hip-hop-cola2
Member since 2007 • 2454 Posts
[QUOTE="hip-hop-cola2"]

[QUOTE="dotWithShoes"] You're foolish to think that Xbox live costs MS no money to operate.dotWithShoes

And your foolish to think that they need ANYWHERE NEAR the amount they charge now to run servers.

Sure, sure.. that amount of money doesn't go just towards the servers that operate Xbox Live.. but I do remember PSN not getting some DLC that XBL got.. mmmm.. wonder where those millions of $$ MS paid RockStar came from?

LOL, ok ok, if you believe that justifies the price. I guess going from 0 to £40 (or so many dollars) a year for some DLC here and there, which YOU PAY FOR ANYWAY make it all worth it.

XBL is a rip-off in my opinion. Considering what you can get for free, it ridiculus. Its a better service here and there but your paying to play online, thats not even where MS will be spending most of the server costs, its P2P. Your paying for everybody else's silver accounts, and increasing MS profits, for barley anything.

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Wasdie

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#18 Wasdie  Moderator
Member since 2003 • 53622 Posts

Its defeantly a powerhouse for money for Microsoft.

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PoppaGamer

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#19 PoppaGamer
Member since 2009 • 1629 Posts
Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?
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fanboy999

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#20 fanboy999
Member since 2003 • 1444 Posts
For those who complain about the price. I usually pick up two 13-month sub cards for $39.99 each on sale. Best Buy puts them on sale every 4 months or so. That equals about $3 a month for a great service packed with paid and free content. I don't know how anyone can complain about spending $3. People spend more on a flippin' cup of coffee! I have my account paid up until 2011 so I'm set. I'm glad PSN and Home are free because there isn't enough content there to make me want to play.
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SpruceCaboose

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#21 SpruceCaboose
Member since 2005 • 24589 Posts
Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?PoppaGamer
Not really, no. I think Live should be free, but life is too short to be that upset about it.
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yoyo462001

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#22 yoyo462001
Member since 2005 • 7535 Posts
Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?PoppaGamer
XBL is a great service, you get what you pay for its like asking me why dont i get the Free bus everyday instead of Driving which costs money..
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SecretPolice

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#23 SecretPolice
Member since 2007 • 45558 Posts
[QUOTE="PoppaGamer"]Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?yoyo462001
XBL is a great service, you get what you pay for its like asking me why dont i get the Free bus everyday instead of Driving which costs money..

LOL, First time I heard that one and IMO, a darn good analogy so .... Agreed.
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LosDaddie

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#24 LosDaddie
Member since 2006 • 10318 Posts

For those who complain about the price. I usually pick up two 13-month sub cards for $39.99 each on sale. Best Buy puts them on sale every 4 months or so. fanboy999

I always wait for the Amazon sale for $30/yr for XBL, which Amazon runs about 2x a year. I've been doing it since 2004

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PoppaGamer

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#25 PoppaGamer
Member since 2009 • 1629 Posts
[QUOTE="PoppaGamer"]Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?yoyo462001
XBL is a great service, you get what you pay for its like asking me why dont i get the Free bus everyday instead of Driving which costs money..

LOL. Nice try. You're driving your car but the rest of the people that were on the bus hopped in your ride and you are taking them to where they need to go. You're a taxi driver who collects no coin from the riders. And its not "you get waht you pay for" with XBL. You pay you get to play online, Great. What everyone talks about with XBL are the features. Most of which ANYONE can use without chipping in one cent. With XBL, you get what OTHERS pay for.
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yoyo462001

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#26 yoyo462001
Member since 2005 • 7535 Posts
[QUOTE="yoyo462001"][QUOTE="PoppaGamer"]Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?PoppaGamer
XBL is a great service, you get what you pay for its like asking me why dont i get the Free bus everyday instead of Driving which costs money..

LOL. Nice try. You're driving your car but the rest of the people that were on the bus hopped in your ride and you are taking them to where they need to go. You're a taxi driver who collects no coin from the riders. And its not "you get waht you pay for" with XBL. You pay you get to play online, Great. What everyone talks about with XBL are the features. Most of which ANYONE can use without chipping in one cent. With XBL, you get what OTHERS pay for.

i am paying for a good service, structure and network, but its all about elasticities of demand i would explain that to you but from your post (which makes no sense and is basic gibberish) i wont.
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PoppaGamer

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#27 PoppaGamer
Member since 2009 • 1629 Posts
[QUOTE="PoppaGamer"][QUOTE="yoyo462001"]XBL is a great service, you get what you pay for its like asking me why dont i get the Free bus everyday instead of Driving which costs money..yoyo462001
LOL. Nice try. You're driving your car but the rest of the people that were on the bus hopped in your ride and you are taking them to where they need to go. You're a taxi driver who collects no coin from the riders. And its not "you get waht you pay for" with XBL. You pay you get to play online, Great. What everyone talks about with XBL are the features. Most of which ANYONE can use without chipping in one cent. With XBL, you get what OTHERS pay for.

i am paying for a good service, structure and network, but its all about elasticities of demand i would explain that to you but from your post (which makes no sense and is basic gibberish) i wont.

Ah. The old "I am too far above you to come down to your level to reply." :lol: My post makes perfect sense, dude. You claiming otherwise only makes you look like you have no good response. And you don't. You can tell me all about how great the service is. It only furthers my point that those who pay for those great features carry the rest. Because as we all know, and as i already stated un-gibberishly, the bulk of those great features are available to NON-PAYING customers as well. Again, you pay, they get a free ride. It makes ZERO sense.
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Dahaka-UK

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#28 Dahaka-UK
Member since 2005 • 6915 Posts
OK it's very clear 50%+ of the XBOX Live community is deluded into thinking XBOX Live is worth it's price seemingly not knowing their just handing over free money to microsoft like it grows trees or something. I myself have paid for 2 years of XBOX Live thus contributing to Microsoft thieving ways but atleast I know what I was paying for is a complete and utter rip-off. I like the XBOX360 an all but there is no excuse for the XBOX Live fees. It's just free money for microsoft who are laughing to the bank. Despicable at best.
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Legzdins

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#29 Legzdins
Member since 2005 • 569 Posts
I dont know but maybe we are paying so MS could have some money to pay developers so they could make downloadable content like GTA IV the lost and Damned which PS3 ain't getting...
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Dahaka-UK

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#30 Dahaka-UK
Member since 2005 • 6915 Posts
I dont know but maybe we are paying so MS could have some money to pay developers so they could make downloadable content like GTA IV the lost and Damned which PS3 ain't getting...Legzdins
Lost and Damned doesn't exist because we pay for XBOX Live. It exists because Microsoft wants to pull the GTA crowd away from the PS3 and get them to buy a XBOX360 instead. Lost and Damned would of existed regardless of XBOX Live being free or not.
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heretrix

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#31 heretrix
Member since 2004 • 37881 Posts

Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?PoppaGamer

Nope. Not in the slightest.

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Nomad0404

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#32 Nomad0404
Member since 2004 • 1111 Posts

MS will never make XBL free, but I see no reason why they can't reduce the price to $30/yr

LosDaddie

What I think they should do is reduce the yearly sub, make it a recurring payment say $5 and give you XBox points as well.

$5 a month feels like nothing, it's $60 a year though and you'll be more inclined to spend your points on stuff online.

Phil

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heretrix

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#33 heretrix
Member since 2004 • 37881 Posts

the bulk of those great features are available to NON-PAYING customers as well. Again, you pay, they get a free ride. It makes ZERO sense.PoppaGamer
I get to play online, they don't.

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PoppaGamer

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#34 PoppaGamer
Member since 2009 • 1629 Posts

[QUOTE="PoppaGamer"] the bulk of those great features are available to NON-PAYING customers as well. Again, you pay, they get a free ride. It makes ZERO sense.heretrix

I get to play online, they don't.

I get to play online for free on the PS3. And PC gamers get to do the same. Its like if a console maker charged a fee for letting you complete a game. And you're there saying, "I get to finish the game, they don't." If its plainly about playing online, I don't see how you can justify that fee. I can see if MS took some of the features that all use now and made them only available to paying accounts, that would make more sense. Still lame, but it makes more sense. There's a very valid reason to charge the fee for some and not others. But they way it is now is crap. You have to see that.
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SmokeyMcMuffin

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#35 SmokeyMcMuffin
Member since 2008 • 106 Posts
to all the whiners, if you dont want to pay it then dont, just stop preaching to people who are ok with paying. your all starting to sound like my mother..
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heretrix

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#36 heretrix
Member since 2004 • 37881 Posts

[QUOTE="heretrix"]

[QUOTE="PoppaGamer"] the bulk of those great features are available to NON-PAYING customers as well. Again, you pay, they get a free ride. It makes ZERO sense.PoppaGamer

I get to play online, they don't.

I get to play online for free on the PS3. And PC gamers get to do the same. Its like if a console maker charged a fee for letting you complete a game. And you're there saying, "I get to finish the game, they don't." If its plainly about playing online, I don't see how you can justify that fee. I can see if MS took some of the features that all use now and made them only available to paying accounts, that would make more sense. Still lame, but it makes more sense. There's a very valid reason to charge the fee for some and not others. But they way it is now is crap. You have to see that.

None of that has anything to do with me as a gold XBL subscriber paying for everybody else. I get cross game voicechat and online multiplayer, they don't. I really don't care about any of that other crap. When I get tired of live I will stop paying for it. If I want to play free online, I have a PS3 and a PC. It really doesn't bother me in the slightest. When it does, I won't pay for live anymore. It's as simple as that.

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too_much_eslim

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#37 too_much_eslim
Member since 2006 • 10727 Posts
Doesn't it piss some of you gold subscribers off that you pay for the features that EVERYONE uses? That you pay for features used by those who don't care enough to "chip in"?PoppaGamer
All I care about in gaming is my enjoyment. It doesn't bother me because MS keeps on making me see value.
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hip-hop-cola2

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#38 hip-hop-cola2
Member since 2007 • 2454 Posts

to all the whiners, if you dont want to pay it then dont, just stop preaching to people who are ok with paying. your all starting to sound like my mother..SmokeyMcMuffin

If you crazy people stopped paying then MS would need to take action. But 50% happily pay a wild fee.

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heretrix

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#39 heretrix
Member since 2004 • 37881 Posts

[QUOTE="SmokeyMcMuffin"]to all the whiners, if you dont want to pay it then dont, just stop preaching to people who are ok with paying. your all starting to sound like my mother..hip-hop-cola2

If you crazy people stopped paying then MS would need to take action. But 50% happily pay a wild fee.

My girlfriend bought an Armani t-shirt for 85 bucks once. She looked great in it and she loves it. who am I to tell her she's wasting her money because I like the 10 dollar specials at the local sports shop? It's the same with XBL. Sure, there are free alternatives, but if there are people out there who find value in it, what's the problem?

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LosDaddie

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#40 LosDaddie
Member since 2006 • 10318 Posts

I posted this in the other XBL-cost thread, but I figured I'd re-post it here since it applies:

Personally if I were a MOD, I'd lock all XBL-cost threads unless something new happens to XBL. Otherwise, XBL-costs threads all end up the same like they have for YEARS now:

  • Cows: XBL is a waste of money. Hope you like throwing money away
  • Lems: XBL is a good service. I wish it were free, but $50 isn't much

I really don't see how these threads add anything to the forum.

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heretrix

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#41 heretrix
Member since 2004 • 37881 Posts

I posted this in the other XBL-cost thread, but I figured I'd re-post it here since it applies:

Personally if I were a MOD, I'd lock all XBL-cost threads unless something new happens to XBL. Otherwise, XBL-costs threads all end up the same like they have for YEARS now:

  • Cows: XBL is a waste of money. Hope you like throwing money away
  • Lems: XBL is a good service. I wish it were free, but $50 isn't much

I really don't see how these threads add anything to the forum.

LosDaddie

I agree.But all of the whining about it is oddly amusing to me.

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hip-hop-cola2

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#42 hip-hop-cola2
Member since 2007 • 2454 Posts

[QUOTE="hip-hop-cola2"]

[QUOTE="SmokeyMcMuffin"]to all the whiners, if you dont want to pay it then dont, just stop preaching to people who are ok with paying. your all starting to sound like my mother..heretrix

If you crazy people stopped paying then MS would need to take action. But 50% happily pay a wild fee.

My girlfriend bought an Armani t-shirt for 85 bucks once. She looked great in it and she loves it. who am I to tell her she's wasting her money because I like the 10 dollar specials at the local sports shop? It's the same with XBL. Sure, there are free alternatives, but if there are people out there who find value in it, what's the problem?

If everybody had to wear her T-shirt you would have a point...

I understand you....may...ok I dont understand where you see value, but I have strong principles. It just annoys me that other people throw there money away thats all. sorry, it's no personal attack, Im just attacking your choices....lol

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heretrix

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#43 heretrix
Member since 2004 • 37881 Posts

If everybody had to wear her T-shirt you would have a point...

I understand you....may...ok I dont understand where you see value, but I have strong principles. It just annoys me that other people throw there money away thats all. sorry, it's no personal attack, Im just attacking your choices....lol

hip-hop-cola2

Everybody doesn't have to subscribe to a gold membership either.

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hip-hop-cola2

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#44 hip-hop-cola2
Member since 2007 • 2454 Posts

[QUOTE="hip-hop-cola2"]

If everybody had to wear her T-shirt you would have a point...

I understand you....may...ok I dont understand where you see value, but I have strong principles. It just annoys me that other people throw there money away thats all. sorry, it's no personal attack, Im just attacking your choices....lol

heretrix

Everybody doesn't have to subscribe to a gold membership either.

But your supporting it. There are some who would like to use the service (like me) but won't out of principle.
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heretrix

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#45 heretrix
Member since 2004 • 37881 Posts

[QUOTE="heretrix"]

[QUOTE="hip-hop-cola2"]

If everybody had to wear her T-shirt you would have a point...

I understand you....may...ok I dont understand where you see value, but I have strong principles. It just annoys me that other people throw there money away thats all. sorry, it's no personal attack, Im just attacking your choices....lol

hip-hop-cola2

Everybody doesn't have to subscribe to a gold membership either.

But your supporting it. There are some who would like to use the service (like me) but won't out of principle.

If you want to use it then you have to pay. It's simple. If not, there's always PSN or the PC.

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joopyme

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#46 joopyme
Member since 2008 • 2598 Posts

Gold subscriber: "Why don't MS make us pay to play online? It should've been free in the first place!"

MS: "Why don't you stop paying us then?"

It's almost like piracy. :(

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hip-hop-cola2

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#47 hip-hop-cola2
Member since 2007 • 2454 Posts
If you want to use it then you have to pay. It's simple. If not, there's always PSN or the PC.

heretrix

I know, and so i went to another service, it doesn't change anything.

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Sonic_on_crack

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#48 Sonic_on_crack
Member since 2007 • 2428 Posts
I need to pay my subscription but I keep buying games instead
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Supafly1

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#49 Supafly1
Member since 2003 • 4441 Posts

LINK

So even if the number of gold subs has dropped to 50% since the 56% figure was released that would make 8.5milion gold users.

Annually that would generate cash flow of around (assuming $50 as the cost of the sub) $425million p/a.

Note that's not all profit for MS, however, that is huge amounts of cash flow and something Sony can only dream of from PSN.

When you see these people posting why can't XBL Gold subs be free this is why and then you can start to question Sony's business model, they don't charge for the online aspect of PSN and so are missing out on a valuable revenue stream, I think this is why they put so much into Home because it needs to be money generator for them - remember there's no such thing as a free lunch.

Phil

Nomad0404
True but to oppose that last statement "there is no such thing as a free lunch", I can only say that there actually is a free lunch, for the PC gamers.
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heretrix

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#50 heretrix
Member since 2004 • 37881 Posts

[QUOTE="heretrix"]If you want to use it then you have to pay. It's simple. If not, there's always PSN or the PC.

hip-hop-cola2

I know, and so i went to another service, it doesn't change anything.

Exactly. You get to play online for free. Problem solved.