Xbox Game Pass continues to spark industry discussions, with new revelations about its profitability, even after accounting for potential losses in first-party game sales. Recently, renowned business journalist Chris Dring clarified that Xbox Game Pass remains profitable when considering the loss of sales from first-party titles, alongside fees paid to third parties, marketing, and service costs. 
Despite earlier reports that excluded first-party sales from the profit and loss statements, it turns out that Xbox is indeed factoring these losses in.
Chris Dring had previously confirmed that first-party games operate under their own separate profit and loss statements, as they generate revenue through alternative streams. However, the situation may have evolved since then, especially with more Xbox titles being released on non-Xbox platforms, allowing studios to capitalize on premium sales from other consoles. Even with this shift, sources have reaffirmed that Xbox Game Pass remains in the green, even after factoring in the lost sales of these games.
The question of whether Xbox Game Pass is detrimental to game sales is a common point of contention. Some estimate that games featured on the service lose as much as 80% of their expected sales on Xbox consoles. Notable titles like Senua’s Saga: Hellblade II, Indiana Jones and the Great Circle, and Starfield have struggled to make an impact on sales charts, prompting critics to question whether the subscription model hurts premium game sales.
On the flip side, multiplatform games available on Xbox Game Pass could see a boost in sales on other platforms. As this debate continues, it’s clear that while the subscription service may have some impact on game sales, it’s still a profitable venture for Microsoft. Ultimately, the full scope of its impact on the gaming industry will become clearer over time.