Phil Spencer gives important information about the Game Pass. The future looks very interesting.
The service Game Pass from Microsoft is profitable and currently accounts for approximately 15% of global Xbox content and services revenue. It was Microsoft Gaming head Phil Spencer who shared the information on the Tech Live conference stage of The Wall Street Journal.
Phil Spencer shares important information about Game Pass
“The Game Pass has an overall revenue share of our content and services probably 15%,” he explained to Sarah Needleman, of The Journal. “I don’t think he takes more. I think 15% worldwide revenue is a big number, but I don’t think we will have a future where subscriptions are 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 on console,” he says. Microsoft announced a few days ago that PC Game Pass subscriptions had jumped 159% compared to last year during the 1st quarter of 2023. The Redmond firm also found that players are enjoying more games on its Xbox platform. Cloud Gaming. Phil Spencer then hinted that mobile would play a major role in the future of Game Pass.
The future looks very interesting
“If you take the bet for the long term, which we are doing, we will be able to have access to players on all the platforms on which people play – Android and iOS phones – we want to be well positioned with content, players and the ability to take full advantage of it,” he explained, indirectly recalling 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 have retained our prices on our consoles, we have retained 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 offers an interesting view of how important services like Game Pass matter to the US giant and how executives envision its evolution.