As noted first Derek Strickland by digging through the latest official Microsoft document submitted to the Securities and Exchange Commission, Xbox Game Pass subscription growth for the fiscal year July 2021 to June 2022 was 28.07%. In itself, this is data that seems positive for the progress of this pillar around which all of Microsoft’s strategy revolves. Only, perhaps galvanized by releases like Halo Infinite, Forza Horizon 5 and Age of Empires 4, Microsoft had set Xbox Game Pass a growth target of 72.88%. The acquisition of new subscribers is therefore clearly not progressing as quickly as Microsoft would like, which was already the case in the previous fiscal year (growth of 37%, against a target of 47%).
In this context, the recent sudden confession of Phil Spencer on the slowdown in the growth of Xbox Game Pass on consoles takes on its full meaning, even if the boss of Microsoft Gaming did not fail to highlight in return the strong annual growth PC subscribers. Remember that Xbox Game Pass had 25 million subscribers in January 2022. In 2021, still according to Phil Spencer, Game Pass subscriptions generated just under $2 billion, or 15% of revenue. content & services Xbox activity, which includes sales of games, additional content and therefore subscriptions.
For context, these growth targets are tied to the compensation of Microsoft CEO Satya Nadella. The more the results are in line with the objectives, the greater the bonuses. Notable detail, the growth of Xbox Game Pass is the only criterion related to video games. The other objectives that can influence the CEO’s compensation relate to Microsoft Cloud revenue, the use of Teams or LinkedIn sessions. And if you ever find it hard to see that Satya Nadella didn’t take full advantage of his Game Pass bonus, note that the leader received $55 million in cash and stock for the fiscal year. ended June 30, 2022. Could have been worse.