Xbox Game Pass is profitable, but requires an annual investment of $1 billion
Translated with AI from the Russian original.
Phil Spencer spoke with Windows Central about the future of the subscription following the acquisition of Activision Blizzard.
According to him, Microsoft invests around $1 billion annually to secure third-party studio support for the service. Microsoft believes that this spending is well worth it.
“We have a service, Game Pass, that is financially viable, meaning it makes a profit.”
Recently, Lies of P and Wo Long: Fallen Dynasty became major third-party games on the service. Since Microsoft also offers EA Play as part of the service, the company benefits from EA titles such as Dead Space.
At least 25 million subscribers are known to have become part of the growing ecosystem. Microsoft seems to be pleased with the results. In addition, price increases are expected in the future, and as Game Pass gains popularity, it will become more profitable.
Phil Spencer is confident in the current vision for Xbox, and the model will continue to be refined.
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