Earlier this month, we heard about the impending launch of Xbox Game Pass Standard, alongside price increases for the existing tiers of Microsoft's subscription service. In the wake of that news, analytics group Ampere Analysis did a little bit of calculating - figuring out some interesting Xbox Game Pass statistics ahead of these changes happening over at Microsoft HQ.
According to the firm, "global consumer spending on Game Pass as a whole is expected to reach almost $5.5bn in 2025" - an increase of 15.3% on how Game Pass has performed before these new tiers and prices come into effect.
Here's what Ampere had to say about the upcoming changes to Xbox Game Pass:
"The need to act has also been driven by the confirmation that new Call of Duty releases will be added to Game Pass Ultimate: Because that is such a significant annual premium release, offsetting some of the costs of that move was necessary.
Microsoft is mitigating the impact by improving consumer ARPU through price increases, driving users to the Ultimate tier of Game Pass, and limiting the subscription stacking for Game Pass Console to 13 months. Gamers who want to dip into Game Pass to play the new release will have to do it at the Ultimate (or PC) tier."
Now, it's worth noting that this $5.5bn Game Pass figure is based off Microsoft's current subscriber levels staying roughly the same as the service's prices go up. Also, we're talking gross profit - this figure doesn't take into account the amount of money Xbox pumps into the service with game additions, promotions, server upkeep and all the rest of it.
There's also likely a certain degree of guesswork given that Microsoft doesn't provide regular updates for subscriber numbers, or much detail on things like monthly vs. yearly subs and people using trial offers, etc. Still, it's an interesting figure to mull over, and time will tell whether these impending Game Pass changes will be a net positive for Xbox.
What do you think to this analysis and these GP figures? Drop your thoughts on it down below.
[source ampereanalysis.com, via tweaktown.com]
Comments 19
Oh so this is Xbox’s grand plan.
Into "effect", I think.
I guess if the numbers are true Microsoft would see no reason to do this again.
And it probably won’t be enough…
@IOI These are the sort of figures that are hard to comprehend.
For comparison Sony's whole Game & Network Services division bought in around $27.2 billion USD in 2023 (¥4,267.7 bn Yen) yet they only made around 6.8% profit margin ($1.86 bn USD / ¥290.2 bn Yen)
Well we shall in March 2025 when my GPU runs out if they will be getting my money anymore.
So it could be minus £14.99 a month 🤣
They desperately need to deliver on big new quality AAA games for me to stay. Not like last year 2024 which went down the pan a bit.
So I guess Avowed and Indy have a lot hanging on them.
Doom the best looking overall AAA at the Xbox showcase is PS5 as well so no need for me to get Xbox consoles involved at all for that game.
It feels like I’m funding a Microsoft kickstarter sometimes…. More like feeding a hungry money machine that can never stop…
“Also, we're talking gross profit - this figure doesn't take into account the amount of money Xbox pumps into the service with game additions, promotions, server upkeep and all the rest of it.”
Do you mean gross revenue? Profit is the amount after costs have been deducted.
Long may it continue.
But non analysts on the internet insist that it's not sustainable.
@Lup
It most definitely is.
@Sifi oh god the Sony comment when has nothing to do with Sony.
Good job Sony let you buy credit cheaper on these sites. Then often have 50% off sales making it pretty much identical prices.
If you are going to spout rubbish. May as well at least be Informed.
@AlwaysPlaying I've said quite a few times that Xbox is run like it's a Kickstarter. Glad I'm not the only one that sees it!
@PsBoxSwitchOwner Pure Xbox needs to sell "WWSD" bumper stickers.
@Sifi
That’s good to know. Thank you.
Xbox are careful not to announce figures and definitely have never said how these people pay….. how many use rewards, how many use the many work rounds, how many pay full whack, I hope it does well but I don’t see these figures as right at all.
@NEStalgia for fun the next few times I am the first commenter on a post I will start with WWSD….
@PsBoxSwitchOwner yeah I just got College football on ps5 as it worked out way cheaper with cheap credit on websites. I could get cheap Xbox credit too…. Just Sony was cheaper.
If that’s 5.5 billion, I’m sure I read somewhere they spend 1 billion acquiring games per year to put in Game Pass. Even taking overheads and operating costs into account that’s quite the profit margin they are making. Purely down to the ActiBliz and Zenimax purchases so they need to be greedy and increase profits massively to pay off the investment. Which means consumers paying more.
That’s Turnover, not even Gross Profit. And the bottom line is Net Profit, after all costs are deducted - which will be way less than the headline number quoted in this article.
We all want ‘value’ for service but profits are also important (and a good thing contrary to what some think) - without them there would be no point to Microsoft’s investment in Xbox/Gamepass and no prospect of future improvement.
There are many ways to get 'free' months - Microsoft Rewards is one example.
As for the Price Rise, its not as if People will suddenly jump to Playstation because their Sub service is cheaper - just like you didn't jump to Playstation when MS announced their games were now $70
I know its disappointing to see Price increases but I also think that 'Standard' could also become far more appealing to those who just Subscribe to Game Pass Core. Before, they had to add a 2nd Subscription (Game Pass Console) or opt for Ultimate for 'Convenience' of 1 single Subscription. If they 'upgraded' to Console, half the content (inc the games in Game Pass Core) could become unplayable due to requiring Game Pass Core for 'online'.
Some of the 'Ultimate' Subscribers may choose to drop to Standard as they aren't bothered about playing 'Day 1' when the games are generally at their worst - requiring Patches and/or additional content/modes before they will play. After all, history shows us that many games (Redfall, Starfield etc) didn't launch with 60fps modes for example so people 'chose' to wait for patches before playing anyway. A year later, some were still asking if Redfall was worth playing now for example.
No-one likes Price increases, me included, but considering Ubisoft+ is $15pm and requires GPC for 'online' for many games, and Sony's 'Premium' tier with Streaming and 'old' PS1-PS3 (no Day 1 either) is $18pm, Ultimate doesn't seem that bad. However after promising not to raise prices - it does sting!!
Leave A Comment
Hold on there, you need to login to post a comment...