With Microsoft looking to acquire Activision Blizzard, there has been much discussion surrounding the popularity of Xbox Game Pass and whether or not Microsoft can become dominant in the market using the service. While Xbox Game Pass is currently profitable, Microsoft has observed slowing growth for the console subscription.
Speaking at The Wall Street Journal’s live tech conference, Microsoft Gaming chief Phil Spencer claimed that Xbox Game Pass currently accounts for around 10% to 15% of Xbox’s revenue. While the service is profitable at this stage, slowed down in growth this year.
Spencer isn’t worried about slowing growth for console subscriptions, though, since it’s likely that most Xbox owners who want Game Pass already have it at this point. Microsoft’s recent studio acquisitions, including the pending acquisition of Activision Blizzard, have mainly been an effort to acquire more famous content to put on Game Pass, which in turn should stimulate interest in Xbox consoles and widen the pool of customers to sell Game. Transfer subscriptions to.
While Game Pass for Console is slowing down a bit, Microsoft says it’s seen “incredible growth” on Game Pass for PC. As VGC notes, Microsoft CEO Satya Nadella recently said on an earnings call that PC Game Pass subscriptions are up 159% year over year. Additionally, Xbox Cloud Gaming has been used by 20 million players at this stage, so other areas of the business continue to grow.
KitGuru Says: With so many subscription services competing for our money each month, many people these days only subscribe to different things in small bursts, allowing them to switch between different services as the need arises without adding extra expense. I wouldn’t be surprised if many who subscribed to Halo Infinite are now unsubscribed and waiting for the next major exclusive – which should be Starfield in 2023.
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