Xbox Game Pass is profitable, but requires $1 billion in annual investment

by alex

Phil Spencer spoke to Windows Central about the future of subscriptions after taking ownership from Activision Bizzard.

Xbox Game Pass is profitable, but requires $1 billion in annual investment

According to him, Microsoft invests about $1 billion annually to ensure support for the service from third-party studios. Microsoft thinks the expense is worth it.

“We have a Game Pass service 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 games like Dead Space.

It is known that at least 25 million subscribers have become part of the growing ecosystem. Microsoft seems pleased with the results. In addition, prices are expected to increase in the future, and Game Pass, becoming more popular, will become more profitable.

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Phil Spencer is confident in the current vision for Xbox and the model will continue to improve.

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