Game Pass subscriber growth fell short of Microsoft’s expectations

It has now been two fiscal years without projected growth

According to Microsoft’s financial report for the fiscal year ending June 30, The growth of Game Pass did not live up to the company’s expectations. Although it has grown 28%Microsoft’s goal was to grow 73% in the number of subscribers.

This is the second fiscal year in a row that Microsoft has not achieved the desired growth from its game subscription service. In fiscal 2021, the company’s growth expectations were more modest – 47%, and growth in this period was 37%.

In fiscal 2020, the number of new Game Pass subscribers exceeded Microsoft’s growth forecast of 71% for the period, reaching 85% growth.

Game Pass growth has slowed on consoles, but has grown on PC

For Phil Spencer, head of the Xbox division, one reason for the slowdown in growth may be that almost every Xbox console owner must already be a Game Pass subscriber.

“We’ve seen incredible growth on PC. On console I’ve seen growth slow, mainly because at some point you’re going to catch everyone on console who wants to sign up,” the Xbox chief said.

Spencer also says that Game Pass accounts for more than 10% of Microsoft’s total revenue. “I think it will be 10-15% of our total revenue, and it’s profitable for us,” says the head of Xbox.

Recently, Phil Spencer commented on price increases for consoles, games and subscription services: “I think at some point we will have to increase prices on certain things, but before Christmas, we thought it was important to hold on. Prices have gone up.”

“We’ve kept the price on our console, we’ve kept the price on our games. And our subscription. I don’t think we’ll be able to do that forever,” adds Phil Spencer.

Microsoft doesn’t disclose the number of subscribers Game Pass has, and the company last disclosed this data in January when it announced its acquisition of Activision Blizzard and said the subscription service had More than 25 million subscribers.

The deal between Sony and Activision prevents Call of Duty for Game Pass

Sony and Activision deal keeps Call of Duty out of Game Pass for ‘several years’
Phil Spencer said he will honor the agreement reached between Sony and Activision Blizzard before the companies merged.


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Via: VGC


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