Xbox's business update has concluded and in amongst the key information, the leaders of Microsoft's gaming division have also delivered some other interesting details. One update, in particular, was regarding the subscription count for Xbox Game Pass, with the service now at 34 million users.
Xbox president Sarah Bond delivered this update alongside the news Diablo 4 would be the first Activision Blizzard game coming to the Game Pass library. It was further noted how Game Pass would remain a service exclusive to Xbox consoles (and Windows).
Microsoft's previous update on Game Pass was back when it announced the Activision Blizzard acquisition in January 2022, and back then it had 25 million subscribers, so it's jumped up by about 36 percent (via The Verge). The same source also confirms the latest figure (34 million) includes Xbox Game Pass Core (formerly Xbox Live Gold).
Although Microsoft wants growth from Game Pass, in a new interview with The Verge, the company's gaming CEO Phil Spencer has also reiterated how the goal apparently isn't to make "everybody a Game Pass subscriber". Around 10-15 percent of Xbox's "content and service revenue" comes from subscribers, but if players would rather build their library or play free-to-play titles instead, that's fine.
Spencer also goes on to mention how Game Pass is "kind of at a scale" where it's a sustainable and profitable business. He's notably made similar comments before. This follows games like Starfield and Forza Motorsport joining the service in the second half of last year.
Are you still subbed to Game Pass? What do you think of the latest subscriber update? Tell us in the comments.
Comments 40
Kind of , is it or isn't it 🙄
Phil had confirmed previously that they pay $1 billion per year for including games that they don't own and they get around $5 billion per year from Game Pass subscribers. That means $4 billion per year from Game Pass, not including the sale of software, DLC, etc. Around 10-15 percent of Xbox's "content and service revenue" comes from subscribers. Game Pass makes money. Obvious, I know, but some people say it's not sustainable so we have to state the obvious.
Why is it exclusive to Xbox, though? Is it because Microsoft wants to keep it as an Xbox exclusive, because the software is made for Xbox with not many PS, let alone Switch versions (unless it's the Cloud version) or is it because Sony and Nintendo reject Game Pass because they think it might eat part of their sales? In any case, I'm happy that it's successful on console and PC and it seems that Cloud is growing quickly judging by what they said today - and the longer queue times.
As a subscriber i was happy that day 1 will continue and we will start to see some abk content hit the service, even if I am not really that interested in Diablo personally
@Banjo- Console holders said no because it can cut into their sales cut. I believe Microsoft already tried.
Heck, Sony is so guarded against Microsoft, it wouldn't even allow Minecraft Bedrock for a long time because it required that people signed into a Microsoft accounts to connect to servers (despite not caring that other games from other publishers also have account models attached: Ubisoft, Square Enix, etc.).
Microsoft and Sony finally worked it out, but the onus was on Sony for that one.
They a lie! PC is no Xbox! I'm suing ex box for fasle advertisinging!!!!!111
@GamingFan4Lyf Yeah and I can tell you as PS4 and Xbox One owner last gen, that Sony f****d players up on other games such as Fornite, removing purchases from these third-party accounts that have been used on other consoles before. Nintendo is the stubbornest company in the world but I see Game Pass on Switch sooner than on PS. Heck, just look at Jim during the ABK acquisition, arrogant emails to Phil, lies to the regulators... I can't see Sony cooperating with Microsoft at all, not even after Jim left.
A lot of the talk against Xbox over the last few weeks has been how unsustainable Game Pass is and how Microsoft had to abandon Xbox to make it viable.
All the rumours came to nothing except four games are coming to other platforms. It turns out all the other speculation was false.
The main takeaway. Xbox is here to stay. More Xbox consoles are coming this gen and next. Game Pass is still going to get stronger and exclusives will remain a thing.
Even after Doctor Xbox has cured another infamous case of collective hysteria, the patients are still coming here to analyze every single word to convince themselves about how Xbox is wrong and dying.
I bet they're not counting Game Pass Core and are just including Game Pass Ultimate in that number. After the migration of Xbox Live accounts into the Game Pass Core category is imagine the total subscribers between the two services is somewhere between 42-50M.
Before the migration they said they had about 30M via an info leak quite a while back, so add in another 12-15M who migrated over and you'd.be in the mid 40's.
NGL, I like this stance that the goal is to "not make everyone a Gamepass subscriber." That feels like a little bit of a massaging of previous messaging.
I get that there's value in Gamepass. I understand how it's very valuable for some. But it just isn't for me. I tried a year back in the One days and let it lapse. Got three years when I got my Series X, and will let it lapse next month when it's up.
Who knows, maybe I'll resubscribe here and there down the road. But people have gotten overly aggressive with me in the past that I'm daring to play my Xbox with the digital library I own and not Gamepass. I've always felt that Xbox is a valuable console on its own without the near-$200 annual subscription fee on top — it's just another way to play.
@GamingSince84 I was wondering exactly that. 34m sounds like she didn't include Game Pass Core/Gold.
Of course it’s exclusive to Xbox. Sony and Nintendo aren’t going to admire a third party store into their ecosystem. Phil playing mind games again and only his most gullible followers will believe him.
@GamingSince84 The Verge has now confirmed with MS that the 34 million Game Pass subscribers includes Xbox Game Pass Core subs (formerly Xbox Live Gold). I've added this info to the article.
Diablo IV also won't be available to Xbox Game Pass Core subscribers. Update here:
https://www.purexbox.com/news/2024/02/activision-blizzards-first-game-pass-release-has-been-confirmed-by-xbox
@EvenStephen7 I love your post. I'm a big advocate for GP but I really, really get my monies worth out of it. But like you say, it isn't for everyone. One of my friends used to subscribe but as a casual gamer played maybe 1 or 2 games a year from the service so it was costing them a fortune for nothing.
I like that Microsoft have said "we don't want everybody as a subscriber" It still leaves the choice up to the consumer and giving consumers choice is never a bad thing.
Clever marketing as they forced us all to get game pass. I only wanted Xbox live to play online as I don’t care for the subscription model for video games. But I’m forced to buy game pass to play online with my friends. I reckon there are many in my shoes as well. Microsoft can afford to pay off developers for game pass.
Well if that's including what was Gold, then that's a bit rubbish and suggests little growth for Gamepass at all
I’m signed up and fully paid to GPU to May 2025 so that’s me sorted.
Sometimes gaming can be simple and I think GPU along with my series x makes it’s simple in a good way.
I absolutely love the service, and I hopes it's profitable and continues for many years to come.
@EvenStephen7 no point paying for something you don’t use but I guess that’s the beauty of gamepass you can dip ins and out as and when you want.
That’s not a great figure if it includes Core numbers. Not convinced of that.
I'm quite surprised at the numbers, especially because GamePass Core members are also included in the 34 million. I expected the combined numbers to be higher, are Microsoft bleeding GP numbers?
@Sol4ris I think it’s been widely reported (circana in the US as one) that subscription numbers are plateauing across both PS and GP.
And we also know from previously released financial reports that Phil and others missed bonuses related to GP growth - they were silly growth numbers but still.
You are always going to have a % of owners that won’t subscribe.
@Liam_Doolan Sarah Bond did mention that 34m gamepass subscribers are able to enjoy Diablo 4, So if Diablo 4 isn't available to GP Core. That's mean this figure of 34m is actually Gamepass Ultimate subscribers only.
…because Sony and Nintendo didn’t want this competing service on their platforms. I doubt that will ever change.
I could still see GP show up on iOS devices at some point.
So with this including Core too it sounds like PC isn’t providing the growth that they were hoping for. If that gets Microsoft to care more about selling Xbox consoles then that can only be a good thing.
I’m subscribed all the way until March 2026 through the magic of 1:1 Gold conversion. I’ll be honest though, if a one-off discounted annual payment wasn’t possible I wouldn’t subscribe on the monthly full price basis.
@VinC @Sol4ris @electrolite77 @electrolite77 @GamingSince84 Microsoft confirmed this DOES include Game Pass core
Initially I thought 34 million was about what I expected based on earlier estimates (last estimate was over 33 million) and OK. But news that it includes Game Pass Core is worrying and seems to back up reports and leaks that Game Pass growth has stagnated.
@Kaloudz Also worth adding that based on three separate leaks we have a pretty good idea how much money Microsoft makes from this.
A leak from an Xbox slide in 2022 showed the average Game Pass player paid $9.26 to renew. i.e. not including those on cheaper new subscriber deals.
But we also saw around the same time that they made $2.9 billion on Game Pass in 2021 when they grew to 25 million subs when the Brazilian regulators leaked this figure when signing off on ABK dealings which seemed to confirm more people were paying full price then many think.
Since then we have seen prices raise $1 for Standard, $2 for Ultimate (though this is different in other territories) but we also know a lot of the 9 million 'new' subscribers are either on Core or PC which are both cheaper. If we assume these two roughly cancel each other out and the average Game Pass subscriber pays between $9 to $10 then they make around $306 - $340 million per month through Game Pass.
We don't have enough data to know for sure, but based on all the leaked data I know of this is a fair educated guess. If anyone has additional data, methodology or corrections i'd love to see it.
My thoughts: While that is a lot of money, we have to factor in that they support over 40+ studios now bringing games day 1 to Game Pass, that's a giant wage bill, even if there are other revenue streams to bring in even more. Their overall financials (Xbox lost around $440 million last year) and their slight strategy shift seems to suggest that they will need more revenue in future to make this work long term imo
@Liam_Doolan @carlos82 @Cakefish @Sol4ris The Verge says so, but Game Pass Core is not getting Diablo IV and Sarah Bond said, "So now the 34 million Game Pass members can all enjoy the fantastic experience of Diablo IV." Therefore, she didn't include Game Pass Core members in the 34m figure. Not my words but what she said yesterday. Regardless, 34 million is a lot.
@VinC Exactly!
@Kaloudz It IS a lot of money. But the wage bill alone for over 20k devs will be approximately $250m+ per month. Plus support studio costs for their games etc. will increase that. Obviously they get some more income from game sales, MTX etc. But there are many other costs related to running Game Pass and making games including other third party games on Game Pass (over $1bn a year), infrastructure, marketing etc. Plus ongoing Xbox costs you are trying to support like R&D for new consoles. That money will disappear very quickly when you are as big as Xbox is now.
Was the $440m loss expected? Simply put, I don't know, but it's unlikely. While it didn't factor in the $69b cost of ABK (this is factored in differently) it did factor in some administrative costs ($930m) that were associated with integration as well as revenue from ABK games like COD which made the net impact of ABK acquisition $2bn. They gained more than they lost from the ABK deal in net revenue, it seems without ABK the losses would have been bigger.
Bottom line is for a business the size of Xbox you would be expecting a return on all that investment not a loss in a mid-gen year imo.
@Banjo- literally been confirmed by Microsoft that it does
Edit: apparently also confirmed Core users wont get Diablo 4
@themightyant
I agree, it isn’t that impressive a figure if you include Gold conversions. As an aside, they had less Gold subscribers that weren’t taking Game Pass than I thought.
Interesting figures too, thanks for doing the calculations. I think long term the cost saving comes from filling up the GP library with first party content at the expense of big third party deals. Yes games are expensive to make but once made they stay in GP for years, precluding the need for different third party games every few months. They’ve obviously got the ABK library to utilise too.
While we have to keep perspective and remember it’s a really healthy number and a big business they’ve built for themselves you can see why moving some titles onto other platforms while keeping them Day 1 on Xbox/GP and on GP after publication elsewhere makes sense.
@electrolite77 Its a move that brings in additional revenue. If its a worthwile amount and doesnt damage their own brand, then more will follow.
And at the end of the day, if it improves their bottom line enough, its a good move and one i imagine others will follow eventually.
I firmly believe that 34 million is to the total, @Banjo-. It is Ultimate, Core and the caretaker and his missus. I think that Bond misspoke when she said 'all'. As usual, though, Microsoft are unlikely to clarify the situation...
@Fiendish-Beaver Microsoft DID clarify to The Verge that it does include Core, they updated their article to show this. See updated quote above. #26
@Weebleman Completely agree. It's a careful tightrope they have to walk between maximising revenues (which is needed, Xbox just turned a loss) and not cannibalising their own platform. Sony is doing the same with PC too. If they could go fully multiplatform without killing their brand they both would.
@themightyant absolutely and I do imagine at some point we will see games like Helldivers move across initially, then 3rd party exclusives following, much like MS has.
It's not exclusive to xbox. It's on PC, mobile/handheld and some Teles.
I refuse point blank to support Game Pass or PlayStation Premium.
Need to renew mine but need to find the best price.
So roughly a 2.7 million subscription loss since ‘22.
I don't have the game pass for the games, it costs almost nothing and i play Call of Duty, especially so I have the game pass for being online, my children benefit more from the game pass than I do, so I buy games that I want anyway.
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