Microsoft Gaming CEO Phil Spencer revealed at the Wall Street Journal’s Tech Live conference that the company’s Xbox Game Pass subscription service is profitable and accounts for about 15 percent of the company’s total Xbox content as well as services revenue.
“Game Pass accounts for maybe 15 percent of our overall share of content and services revenue,” says Spencer. “I don’t think it gets bigger than that. I think total revenue grows by 15 percent of such a large number, but we don’t have this future where I think 50-70 percent of our revenue comes from subscriptions .
“I think it’s going to be 10-15 percent of our total revenue, and that’s profitable for us,” Spencer said. Spencer said Microsoft has seen “incredible” growth on PCs recently. “We’re seeing incredible growth on PC … on consoles, I’ve seen growth slow down, mainly because at some point you’ve reached everyone on console who wants to subscribe,” Spencer explains.
Spencer also noted that mobile will play a major role in Game Pass’s future. “If you take a longer bet, which we are doing, we will be able to have access to players on the largest platforms that people play on – Android and iOS phones – we are in a position to be in a position to keep up with the content. Want, players, and storefront to take advantage of the potential,” he said.
Microsoft in its earnings report for the first quarter of the 2023 fiscal year, which ended September 30, 2022, revealed that Xbox gaming revenue reached $3.61 billion. Microsoft CEO Satya Nadella also revealed that the number of PC Game Pass subscribers grew 159 percent year-on-year.
Recently, Xbox Game Pass PC introduced more games that are coming to PC Game Pass. The games for PC were announced during the QuakeCon 2022 event which will run till August 21. Microsoft’s acquisition of Bethesda has sparked a flurry of their classics.
Xbox Game Pass accounts for 15 per cent of Microsoft’s gaming revenues: Top executive First appeared on BGR India.