Xbox Game Pass Is Profitable, But Its Console Growth Is Slowing Down

Head of Xbox Phil Spencer has confirmed today during his WSJ Tech Live 2022 discussion that Xbox Game Pass is proving profitable for Microsoft, although growth of the service on the console side has begun to slow down.

As transcribed by The Verge, Spencer revealed that around 15% of Xbox's content and services revenue comes from Xbox Game Pass, and he thinks it'll remain at the same percentage in the future:

“I don’t think it gets bigger than that. I think the overall revenue grows so 15 percent of a bigger number, but we don’t have this future where I think 50–70 percent of our revenue comes from subscriptions.”

Spencer then went on to explain that despite PC Game Pass currently experiencing "incredible" growth, the same can't be said of its console counterpart, which seems to be reaching a bit of a ceiling right now:

“We’re seeing incredible growth on PC ... On console, I’ve seen growth slow down, mainly because at some point you’ve reached everybody on console that wants to subscribe."

These are some interesting comments given that Microsoft often keeps quiet about Xbox Game Pass statistics, with the last major update arriving back in January when the service was confirmed to boast 25 million subscribers.

It sounds like things are still going well, even despite the slow growth on the console side, and we've already got a fantastic lineup of games set to arrive on Xbox Game Pass next year - from Forza Motorsport to Starfield!

What are your thoughts on Phil Spencer's comments about Xbox Game Pass? Tell us down below.

[source theverge.com]