Microsoft’s Xbox Game Pass accounts for 15 percent of its gaming revenue

During The Wall Street Journal’s Tech Live conference, Phil Spencer, the head of all things Xbox at Microsoft, said that Xbox Game Pass is profitable and that revenue generated from the service accounts for 15 percent of the tech giant’s gaming revenue.

“Game Pass as an overall part of our content and services revenue is probably 15 percent I don’t think it gets bigger than that,” said Spencer “I think the overall revenue grows so 15 percent of a bigger number, but we don’t have this future where I think 50–70 percent of our revenue comes from subscriptions.”

Spencer went on to say that Microsoft is experiencing “incredible” growth with PC Game Pass, but that Xbox Game Pass subscriber numbers have slowed. Microsoft CEO Satya Nadella recently revealed that PC Game pass subscribers have grown 159 percent year-over-year.

“On console I’ve seen growth slow down, mainly because at some point you’ve reached everybody on console that wants to subscribe,” said Spener

In Microsoft’s latest earnings report, the company revealed that Xbox gaming revenue hit $3.61 billion USD (about $4.8 billion CAD) for the year. The tech giant also recently outlined plans to build an Xbox mobile gaming store with the help of Activision Blizzard’s catalogue of mobile titles to compete with Apple’s and Google’s respective app stores.

Finally, during The Wall Street Journal’s Tech Live conference, Spencer said that Microsoft may increase the cost of Xbox Game Pass and its consoles in the future.

Xbox Game Pass is available on Xbox One, Xbox Series X/S, PC and Android and iOS. Game Pass for Console and PC Game Pass each cost $11.99/month. Xbox Game Pass Ultimate costs $16.99/month and is required for Xbox Cloud Gaming to mobile devices and browsers.

Source: The Wall Street Journal Via: The Verge