Comment on Shortly After Xbox Game Pass Prices Spiked, the Page to Cancel Game Pass Subscriptions Was Overwhelmed

SnotFlickerman@lemmy.blahaj.zone ⁨14⁩ ⁨hours⁩ ago

The thing about this shit is…

Microsoft, like Google, is now a user-data driven company and they have already made loss/profit ratio analysis on this long before they released the price increase. They’re absolutely banking on people cancelling but making up the difference and then some from the people who stay.

For a thought experiment lets consider how many subscribers they were reported to have in Feburary: 34 million. Let’s assume that everyone is paying for the highest tier to make the math easier. So current income would be 34 million x $20 a month and thats $680 million a month. 34 million x $30 a month is $1.02 billion. The difference is $340 million a month. Let’s divide that by $30 a month. That gets us about 11,333,333. So they can hemorage 11 million users and still break even.

The math doesn’t bode well for us who vote with our wallets.

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