Each month, the Xbox Game Pass catalog welcomes a dozen new games, including some big productions. Microsoft obviously keeps the partnerships that are made with publishers and developers secret, but today we have a price range of past agreements.
Deals up to $100 million
To attract even more subscribers, the Xbox Game Pass must offer a varied and quality offer. From independent games to big “AAA” productions, the titles in Xbox Game Pass must appeal to everyone. In the last few months alone, we have been treated to A Plague Tale: Requiem, Norco, Pentiment, Somerville or even Battlefield 2042 for Ultimate subscribers.
One might wonder how the negotiations are going for this or that game to arrive in the service, and although these are obviously covered by confidentiality, today we have an idea of the amounts invested through Ben Favreau, Senior Content Planner for Xbox Game Pass.
The person responsible for planning the arrival of games in the catalog reveals several interesting elements of his work:
- Identify and prioritize key games with the objective of adding more than 15 per month on Console, PC and Cloud.
- Perform content assessments and develop win/win deal structures that maximize partner value and ROI for Microsoft.
- Meet with key partners on a quarterly basis to discuss their Xbox businesses, contextualize their performance in Game Pass, and discuss long-term opportunities in their transactional businesses and subscriptions.
- Head of Game Pass for Xbox Game Studios, Bethesda, and 2P, helping the portfolio of 23 creative teams and XGS publishing partners create Day One content for Game Pass.
Ben Favreau also says he has supported internally developed projects such as Forza Horizon 5, Forza Motorsport, Halo Infinite, Perfect Dark and “many more unannounced. »
But what we also learn is that the contracts between Microsoft and its partners start at less than a million dollars and can exceed 100 million dollars. Of course, no games are mentioned, but it’s easy to imagine that getting a game like Battlefield 2042 in Xbox Game Pass Ultimate cost a bit of money, just like Red Dead Redemption 2 in its day.
The Xbox Game Pass, a profitable subscription for Microsoft
With deals costing millions of dollars to still attract gamers, many are wondering if Xbox Game Pass is profitable for Microsoft. And the question has already been answered as recently as last October.
Phil Spencer, head of gaming at Microsoft, had confirmed that the business was indeed profitable. Without having more details, we imagined then that the price of the subscription was taken into account in the equation, just like the income generated by the sales of cosmetics and other additional content.
As part of the information related to the acquisition of Activision Blizzard by Microsoft, we also learned, via the Brazilian authorities, that the Xbox Game Pass had generated 2.9 billion in revenue in 2021, or 18% of Microsoft gaming. That’s over $240 million in revenue per month.