Xbox Game Pass accounts for 15 percent of Microsoft’s gaming revenue, says Phil Spencer

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

“Game Pass as an overall part of our content and services revenue is probably 15 percent,” he told The Journal’s Sarah Needleman. “I don’t think it gets bigger than that. I think the overall revenue grows so 15 percent of a bigger number, but we don’t have this future where I think 50 to 70 percent of our revenue comes from subscriptions.”

Spencer added that Microsoft has recently seen “incredible” growth on PC, with uptake slowing on consoles primarily due to saturation. “… at some point you’ve reached everybody on console that wants to subscribe,” he said. Microsoft announced earlier this week that PC Game Pass subscriptions increased by 159 percent year over year during Q1 2023. The company has also seen people stream more games over its Xbox Cloud Gaming platform. Spencer hinted that mobile would play a major role in the future of Game Pass.

“If you take a …read more