To get regulators around the world to give the go-ahead for its $68.7 billion purchase of Activision Blizzard, Microsoft has to disclose inside information that goes beyond what it makes public when it presents its financial results. One of the organizations that has received this documentation is the Administrative Council for Economic Defense (CADE) of Brazil, whose transparency has left us an interesting fact: in 2021, Xbox Game Pass generated revenue of 2.9 billion dollars.
The figure offered by Microsoft only includes Game Pass revenue on console (Xbox) and is not broken down. For example, we don’t know if that $2.9 billion includes in-service game purchases or additional downloadable content customers make while they’re subscribed, or if it just represents Microsoft’s income from Xbox Game Pass and Xbox Game Monthly payments. Pass Ultimate, which cost 9.99 euros and 12.99 euros per month, respectively.
Regardless of the concepts that figure includes, what we can say is that Xbox Game Pass brings Microsoft significant income. Another issue is how much it costs the company to generate that billing. Adding games to the service’s catalog and making titles like Persona 5 Royale, A Plague Tale: Requiem or Slime Rancher 2 available from launch has a cost. In addition, all games from Xbox Game Studios (Forza, Halo…) and Bethesda Softworks (Starfall, Redfall…) directly feed Game Pass.
On the other hand, we can put the figures in context. In 2021, the Xbox division brought in $16.28 billion, so that $2.9 billion raised by Xbox Game Pass represents 17.8% of the total. Regarding revenue from games and services, which during that year were 12,581 million dollars, Xbox Game Pass contributed 23%. Add that as of January 2021 Game Pass had 18 million subscribers, a figure that rose to 25 million a year later. Since then this data has not been updated.
Beyond the Xbox Game Pass numbers we have the words of Phil Spencer, CEO of Microsoft Gaming. In 2020, Spencer said that Game Pass was sustainable and that they were not “burning money to win customers”, an idea that he repeated in 2021. The next news of the service is not only about games, but the arrival of the plan is also expected Friends&Family.
