Phil Spencer provides important information about Game Pass. The future looks very interesting.
The service Game Pass from Microsoft is profitable and currently accounts for approx. 15% of global Xbox content and services revenue. It was Microsoft Gaming boss Phil Spencer who shared the information about the Tech Live conference phase The Wall Street Journal.
Phil Spencer shares important information about Game Pass
“The Game Pass has a combined revenue share of our content and services, probably 15%,” he explained to Sarah Needleman, of The journal. “I don’t think he’ll take more. I think 15% revenue worldwide is a big number, but I don’t think we’re going to have a future where subscriptions make up 50-70% of our revenue.”
Phil Spencer added that Microsoft had recently seen “incredible” growth on PC, with a slowdown on consoles mainly due to saturation. “At some point you’ve reached everyone who wants to subscribe to the console,” he says. Microsoft announced a few days ago that PC Game Pass subscriptions had increased 159% compared to last year during Q1 2023. The Redmond company also found that gamers are enjoying more games on their Xbox platform. Cloud Gaming. Phil Spencer then hinted that mobile would play a big role in the future of Game Pass.
The future looks very interesting
“If you take the long-term bet like we do, we’ll be able to have access to players on all the platforms that people play on – Android and iOS phones – we want to be well positioned with content, players and the ability to to take full advantage of it,” he explained, hinting indirectly that Microsoft wants to build an Xbox store that will be available on mobile devices.
Phil Spencer was also adamant that the price of Game Pass will increase at some point: “We’ve kept our prices on our consoles, we’ve kept our prices on games and on our subscription”, he recalled. “I don’t think we can do this all the time.”
It’s pretty rare for companies like Microsoft to share numbers like the ones Phil Spencer shared. It provides an interesting picture of how important services like Game Pass matter to the American giant and how executives envision its development.