Did Google screw over XCloud pricing?

[Playstation Tablet 1,723]

I think that's why MS cut the details short. They are offering free 1080p streaming for Stadia, even if there is no game pass model.

 

The question MS has is we have game pass for 10 bucks, but we spent billions on cloud infrastructure and people are literally renting XBoxes and shit ton of bandwidth on top of cloud farm maintenance and we are going to get jackshit.

 

Releasing XCloud for free with 10 bucks a month  for game pass is financial suicide, they will literally never even break even on these pennies. Plus people pay no Live fee.

 

While setting a price of say 20 bucks a month is just way too high, and 15 might be razor margins. I think they just played themselves here, and don't know how to price the damn thing without actually losing money, or overpricing and killing all appeal.

 

 

I'm really starting to doubt the profit model here, and the ability to balance price for the so called casuals they want to sell to.

 

 

[Teh_Diplomat 2,054]

For something like this, it's not about instant profitability; it's about marketshare. It's why companies like Amazon will sell Loss-Leaders in order to squeeze a smaller company out of their own market. It's why rideshare companies like Lyft and Uber still lose money, but have a massive warchest in order to gain as much marketshare as possible, so their company gets the largest slice of their market.

 

There's a reason only companies like Google and Microsoft (both valued at over 100 Billion dollars) are the competitor's or market drivers in this venture. If you're looking at them with regards to profitability, then you're not seeing the whole picture.

[jehurey 3,227]

xCloud has to be a separate fee from GamePass.

 

And, I get the impression here that some people thought that they were just combining the two things together, or treat them as one in the same?

 

They almost now have a problem with marketing, because we now have to know what the difference is between "Xbox" "xCloud" and "GamePass." And fuck, "Xbox Live Gold."

 

I have absolutely no idea if there were people on this forum who thought Microsoft was going to be charging you $15/month for STREAMING 100 games that you have access to.  That is just not happening.

[Playstation Tablet 1,723]

I really doubt Phil is getting some massive lose leading

for XCloud, and on top of that blank cheques for 50 million dollar game to throw on there at a consistent rate.

 

 

PSnow has some games, requires no PSN Plus and costs 20 bucks. That's without the heavy hitters day 1. I can't see how MS is planning to go below 20 bucks with all their games day 1 on game pass.

 

I don't see how MS can go lower than 20 bucks without making the whole thing

 

[Playstation Tablet 1,723]

19 minutes ago, jehurey said:

xCloud has to be a separate fee from GamePass.

Phil :

 

We haven't talked about the business model yet. We're here with the public preview to let people try it out, which is cool. It's the first time we've had a hands-on for people who don't work at Microsoft, so we're learning a lot and listening a lot. We announced a date for when it's coming, and we will be talking about a business model before it comes so people know what to do to sign up. As you think about a subscription like Xbox Game Pass, I do think the idea of Xbox Game Pass and an xCloud-like subscription makes a ton of sense. Think about what the convergence of those two things looks like. I think it's smart to think about. We haven't announced anything there, but I'd say that idea makes a ton of sense. How do I build my library? Xbox Game Pass is a great way for you to secure a bunch of content. Then, how do I get access to that library wherever I go? Do I use hardware that's Microsoft's or hardware that's my own in my home?

[Hot Sauce 2,727]

They'll just tack it onto their Game Pass Ultimate subscription.

[Playstation Tablet 1,723]

57 minutes ago, Hot Sauce said:

They'll just tack it onto their Game Pass Ultimate subscription.

I'm not sure 15 bucks will profit them. The margins are going to be so slim on this. And ultimate on PC and XBox AND XCloud for 15 is unrealistic imo.

[Playstation Tablet 1,723]

This XCloud stuff highlights just how much free money they were making with Live Gold. It's honestly a scam like PSN Plus.