One of the biggest doubts about Xbox GamePass is whether it really is a profitable proposition for Microsoft. In terms of image, we know very well that the subscription is the best positioned in the industry due to its attractive price and, above all, wide catalog of titles. But what about profits? Now, thanks to the regulatory process for the purchase of Activision, we finally have an idea of how much Redmond earns with its popular service.
According to a document presented by Microsoft itself before the Brazilian regulatory body, it was possible to know that, during 2021, the company entered 2,900 million dollars by Xbox Game Pass (via VGC). Although the text does not directly name the platform, it describes it as “game subscription services for consoles”; then it is not necessary to break your head to know that they refer to Xbox Game Pass.
The data is quite revealing, especially since Microsoft does not usually share this type of information during its quarterly financial reports. It is also important to add that the income mentioned does not include Xbox Game Pass for PC, the variant of the subscription for computer players. Therefore, that figure should be higher when adding this segment of the market.
Does it mean that Xbox Game Pass is profitable? Surely it is, but we do not know what percentage. The above is because, although it is now in the public domain how much they entered during 2021, we do not know what was the investment necessary to promote the service catalog. With this data at hand it would be easier to discover what the net profit is.
Xbox Game Pass represents an important part of the total income
What we can calculate is the percentage that Xbox Game Pass represents within the total income of the Xbox division that same year, which was $16.28 billion. Thus, the subscription occupies 18%; and 30% if we segment it specifically to revenue from subscriptions and games ($12,581 million).
At the end of 2021, Phil Spencer, director of Xbox, assured that Xbox Game Pass is a sustainable business. The foregoing as a result of the innumerable questions about the mysterious financial state that surrounds the service. “They could do the math on Game Pass. I guess you don’t know how many subscribers we have or how much each of them are paying. But you can get good information and just do the math on what we think Game Pass could eventually be, and it has fit into one part of the business. But absolutely Game Pass is sustainable,” he told Axios.
Today, Xbox Game Pass is living its best moment. In addition, the outlook for the future looks even better. On the way is a family subscription that can be shared by friends to further reduce the monthly payment. And of course, if everything goes according to plan, Microsoft could definitively close the purchase of Activision Blizzard and add the immense catalog of franchises of this company, including Call of Duty. Of course, it will not be easy to convince the strictest regulators in the world.