Head Of Microsoft Game Calls Xbox Game Pass Growth Slows, But Still Profits

JAKARTA - Microsoft head of game Phil Spencer said in the Tech Live Wall Street Journal (WSJ) that the Xbox Game Pass growth on consoles was slowing.

"I see growth slowing, especially because at some point you've reached everyone on the console who wants to subscribe," he said, quoted by The Verge.

In the interview, Spencer also revealed that the Xbox Game Pass is 10-15 percent of the total service revenue is very profitable for Microsoft.

Phil Spencer also says Xbox Game Pass on console has slowed down."We're seeing incredibly growth on PC... on console I've seen growth slow down, mainly because at some point you've reached everybody on console that wants to subscribe."2/2

— Tom Warren (@tomwarren) October 26, 2022

"I don't think it's bigger than that. I think overall revenue is growing to 15 percent of the larger number, but we don't have this future where I think 50 70 percent of our revenue comes from subscriptions," Spencer said further.

The company has just revealed that it sees PC Game Pass subscriptions increasing 159 percent year-on-year. Earlier this year, the company revealed there were 25 million people having streamed games on Xbox Cloud Gaming, up from 10 million earlier this year.

On the other hand, Microsoft plans to build an online app store similar to Apple and Google. But the difference is that this store will only offer games on mobile devices.

But, the company will face challenges in growing the Xbox Game Pass on platforms like iOS, where it is currently impossible to offer rival stores and even cloud game apps.

Diversion consumers from the Google Play Store and App Store on mobile devices will require major changes in consumer behavior. Microsoft hopes that by offering popular and popular content, gamers will be more interested in trying something new, "said Microsoft.

Spencer also acknowledged the challenge, but according to him, Microsoft played a long game in the mobile Xbox store.

The head of the Microsoft game also suggested that Xbox consoles, games and subscriptions could increase in price in the future.