Eye-watering Xbox Game Pass per-game cost leaks: Microsoft reportedly spends more than $50 million for some games

[Redaktion]

Xbox Game Pass apparently requires tremendous capital to run. According to new information that has surfaced online, it costs Microsoft more than $50 million to put some games on Game Pass. While we don't know what games cost this much, such titles are bound to be big AAA blockbusters.

https://www.notebookcheck.net/Eye-watering-Xbox-Game-Pass-per-game-cost-leaks-Microsoft-reportedly-spends-more-than-50-million-for-some-games.1056152.0.html

[GeorgeS]

Forgive me but lets 'scale' game purchases that cost the consumer/gamer $20 & $40 a title. Without going into retail/distro shares of the take we get:

Game A @ $20 a user x 500K sales = $10M, x 1M sales = $20M
Game B @ $40 a user x 500K sales = $20M, x 1M sales = $40M

Assuming the 'Game Pass' will cut into if not eliminate most/all Xbox & PC game sales, ether multiplatform releases (Playstation & Nintendo) that compliment the assumed single lump sum from Microsoft or very low production costs to offset the lost income from single game purchases might be in order.

One might assume that if a game cost "X" to develop and Microsoft offered you "X+%yy" (some fixed percentage profit on your development investment) that some might go for the locked in profit/ROI vs taking their chances on the open market.