Xbox Game Pass is lucrative, according to Microsoft, despite the modest subscriber growth. Xbox Game Pass accounts for around 15% of the company’s overall income from Xbox content and services, according to Microsoft Gaming CEO Phil Spencer at The Wall Street Journal live tech conference. Because “it’s lucrative for us,” Spencer said he expects Xbox Game Pass to continue to make up about 10 to 15 percent of the company’s income from Xbox content and services. Additionally, PC Game Pass memberships are up 159% from the prior year, according to Microsoft CEO Satya Nadella.
According to Spencer, the entire income from our content and services is made up of around 15% of Game Pass sales.
“I believe total revenue rises by 15% from a higher figure, but I don’t think subscriptions will make up 50% to 70% of our income in the future.”
Spencer claims that Xbox Game Pass won’t make up the majority of Microsoft’s gaming profits since it is exclusively available to users of Xbox systems.
“On PC, there has been phenomenal growth. I’ve seen a slowdown in growth on consoles, mostly because you eventually have every console subscriber “He said.
More than 20 million individuals have streamed games using Xbox Cloud Gaming, which is twice the amount of 10 million from earlier this year, according to Microsoft Chairman and CEO Satya Nadella.
Nadella said that PC Game Pass memberships were up 159 percent from a year ago during the company’s quarterly results call.
Through cloud gaming, the firm is revolutionizing how video games are downloaded, played, and watched. More than 20 million individuals have utilized the service to broadcast games thus far.
The business is also introducing support for fresh gadgets like Meta Quest and handhelds made by Logitech and Razor.
In order to support all enterprises, “we are innovating across the technological stack while also fiercely focused on our operational excellence and execution discipline,” stated Nadella.