Xbox Game Pass: Microsoft still misses its objectives

Xbox Game Pass: Microsoft still misses its objectives

Even if the Xbox Game Pass seems today “profitable” according to Phil Spencer, Microsoft does not reach its internal growth objectives for the second consecutive time.

The number of Xbox Game Pass subscribers is not increasing as quickly as Microsoft expects, while the firm is betting heavily on this business model.

Xbox Game Pass under 30 million subscribers

Although it represents a good share of Microsoft’s gaming revenue, the Xbox Game Pass is experiencing a slowdown in its subscriptions, especially on consoles as revealed by Axios.

We’re seeing incredible growth on PC, and on consoles, a slowdown. Mainly because at some point you have reached the number of people who want to subscribe on this medium.

Xbox boss Phil Spencer via WSJTECH (and The Verge).

But more than that, the Redmond firm is missing its growth targets by a long shot. For its last fiscal year, the company hoped for an increase of 72.88% and it was only 28.07%. This is the second year in a row that Microsoft has missed its forecast. The Xbox Game Pass has therefore apparently still not crossed the 30 million subscriber mark, and is between 25 and 30.

In 2021, the objectives were more modest with an estimated growth of 47.79%, to finally reach 37.48%. As noted by Phil Spencer, the service cap on consoles may already be there. We thus understand much better why the manufacturer would like to see the XGP on PS5 and Nintendo Switch so much. The absence of first party games, exclusives, making people want to subscribe is potentially another reason, even if big third party titles like A Plague Tale Requiem have come to reinforce the offer.

According to the Xbox boss, Game Pass should still account for 10-15% of Microsoft’s gaming revenue, which suits the company. Anyway, all is well for the green team which shows very good health in the video game.

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