![]() Yet despite these successes, Game Pass momentum has been held back by a series of obstacles. Microsoft announced during its financials that half of those who have bought the cheaper Xbox Series S machine are new to the Xbox ecosystem, and it’s easy to imagine that Game Pass played a part in unlocking some of those new players. For the first time since the PS2 with its DVD player, a games console has a killer app that isn’t a specific video game. It may not have the most users, but every other service – from PS Plus to Apple Arcade – gets compared to it.Īnd it’s become somewhat of a system seller, too. The branding work and messaging around the service has made it the industry’s flagship subscription platform. Xbox has done a great job with Game Pass. Phil Spencer estimated that Game Pass will probably only account for around 15% of Xbox’s content and services revenue going forward and stated: “We don’t have this future where I think 50% to 70% of our revenue comes from subscriptions.”ġ5% sounds low when you consider the billions of dollars Microsoft has spent on games and studios to grow Game Passġ5% sounds low when you consider the billions of dollars that Microsoft has spent on games and developers, all in the name of Game Pass. It was inevitable video game targets were going to get missed, and Microsoft isn’t the only one to experience that.īut what was more noticeable were the comments that came alongside the news. Not only has there been a significant lack of major titles, but it also covers the first full post-lockdown summer, when people actually went on holiday. I am reluctant to draw conclusions from results posted during the last six months. ![]() The big takeaway for some is how Microsoft, for the second quarter running, failed to hit its targets around Game Pass subscription growth. Microsoft’s latest financials, and Phil Spencer’s subsequent comments during the Wall Street Journal Live event, felt like a shift in tone. ![]()
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