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Microsoft President: Xbox Game Pass represents 15% of the company’s game revenue


Microsoft’s Game Pass is profitable and accounts for about 15 percent of the company’s total Xbox content and services revenue. Microsoft Gaming President Phil Spencer shared the information news in an on-stage interview at the Wall Street Journal’s Tech Live conference (via The Verge).

“Game Pass as a total part of our content and services revenue is probably 15 percent,” he told The Journal Sarah Needleman. Where I think 50 to 70 percent of our profits come from subscriptions.”

Spencer added that Microsoft has recently seen “incredible” growth in PCs, with consoles slowing down mainly due to saturation.

“At some point I got to everyone who wanted to sign up on console,” he said. Microsoft announced earlier this week that PC Game Pass subscriptions increased 159% year over year during the first quarter of 2023.

The company has also seen people stream more games through its Xbox Cloud Gaming platform.

Spencer hinted that mobile will play a major role in the future of Game Pass.

“If you make a long-term bet which we do, we’ll be able to reach players on the biggest platforms people play – Android phones and iOS – we want to be in a position with the content, the players and the potential for the storefront to take advantage of it,” he said, referring to the recent revelations of Microsoft’s desire to build an Xbox store that is available on mobile devices.

Spencer was also adamant that the price of Game Pass would go up at some point. “We’ve kept the price on our console, we’ve kept the price of the games and our subscription,” he said. “I don’t think we’ll be able to do that forever.”

Companies like Microsoft often don’t share numbers like the ones Spencer did earlier today. They provide insight into how important services like Game Pass are to the company’s profits and where they see the product evolving in the future.

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