The Microsoft Exec recently provided an interview where it was shared that the gaming subscription service is doing better than some might think. There has been some doubt about the sustainability, and more importantly, the profitability of Xbox Game Pass. With its day-one promise to bring games to the service on their release day and low-priced options, it would seem as if Microsoft is giving the farm away. While the majority of the interview with Game Watch (via Twisted Voxel) focuses on Microsoft’s collaboration with ASUS for the ROG Xbox Ally gaming handheld, there is a moment where Bond was asked about Xbox Game Pass. It was then that an impressive sales number was revealed.
“Last fiscal year, Xbox Game Pass sales reached a record high of $5 billion.”
-Sarah Bond, Xbox President
Another concern with the Xbox Game Pass business model is whether or not game creators/developers are being properly compensated. After all, if a game is available to play for free (albeit sans subscription fees) on release day, the argument goes that players could decide to forgo buying it. However, the other side of that same argument is that if players enjoy the title, they may choose to purchase it afterward. Meanwhile, there’s a perceived risk to both Microsoft and the game creators regarding whether either is reaping profits from the service.
“It’s a profitable business, and as more creators join Xbox Game Pass, payments to creators increase, so we think it’s a good business for creators.”
-Sarah Bond, Xbox President
Although these statements do not fully clarify the fiscal state of Game Pass, it does seem as if things are moving in the right direction. Bond also emphasizes that Xbox is working to establish more partnerships with developers to bring more titles to Game Pass. The exec provided the interview while in Japan in preparation to attend the Tokyo Game Show, where she also shared that meetings would take place while there.
“We are building relationships with many well-known game creators in Japan and across Asia, and we are thrilled that they are willing to collaborate with us and actively ship their games on our platform.”
-Sarah Bond, Xbox President
It’s clear that, between increasing its partnerships with game creators and expanding its presence in the gaming handheld market, along with improved Windows integration for Game Pass and cloud gaming options, Microsoft has a focus on continued growth and support for Game Pass.