Xbox Game Pass Revenue Achieves New Quarterly Record and Grows PC Subscribers by 30%

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With increasing attention being paid to Xbox Game Pass by the industry, Microsoft finds itself needing to generate income via subscription to this widely used service instead of relying on software sales. This approach benefits consumers significantly, as it grants them immediate access to all first-party Microsoft games released, rather than having to pay $70 for each new game they wish to play.

Critics, nevertheless, voice doubts over the sustainability of Game Pass. Are Microsoft generating income through these subscriptions or are they losing profits instead?

On their recent earnings call, they did give some good news.

In a remarkable achievement, Xbox Game Pass recorded an unprecedented quarterly income, along with a substantial increase of more than 30% in its PC subscriber base. Proudly announcing this success, Microsoft’s CEO, Satya Nadella, highlighted the impressive performance of “Black Ops 6”, the latest installment in the Call of Duty franchise, and “Indiana Jones and the Great Circle”, a game already enjoyed by over 4 million players worldwide.

Microsoft Expects Continued Growth On The Back of Xbox Game Pass

2025 promises to be a significant year for the Xbox brand, boasting several high-profile games scheduled to drop. Last week at Developer_Direct, we got a glimpse of the return of the Ninja Gaiden series and learned about the launch dates for “DOOM: The Dark Ages”, “Clair Obscur: Expedition 33”, and “South of Midnight”. Adding to the excitement, Avowed, the much-anticipated Obsidian RPG, is slated for release next month.

There’s a lot of reason for optimism, and Microsoft CFO Amy Hood agrees.

During the latest earnings discussion, Hood indicated that Microsoft anticipates a modest increase, around low to mid single digits, in the revenue generated from Xbox content and services. This growth is primarily due to internal game production and Xbox Game Pass subscriptions. Interestingly, this income boost surpassed initial predictions; however, it was partially counterbalanced by a decrease in hardware sales, an issue that Hood and Microsoft predict will persist throughout this year.

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2025-01-30 16:38