Xbox Game Pass growth on console is “slowing down,” according to Microsoft‘s head of gaming Phil Spencer.
Speaking atWSJ Tech Live(transcribed by The Verge journalist Tom Warren), Spencer said that while the company is seeing thePCversion of Game Pass experience “incredible growth,” the console side of the business is starting to slow.
In the same interview, Spencer claimed that Xbox Game Pass is “10-15% of (its) overall revenue” and that the service is profitable for the company.
The head of gaming also suggested thatXbox consoles, games and subscriptions may increase in pricein the future.
BothMicrosoftandPlayStationhave in the past said they don’t believe subscriptions will ever be the dominant model in video games.
While the console portion of Game Pass may be slowing down, Microsoft reported significant momentum for the subscription service on PC this week.
Speaking during a web call on Tuesday (transcribed by VGC)Microsoft CEO Satya Nadellastated that Game Pass usage growth “across all platforms driven by the strength off console.”
He said: “PC Game Pass subscriptions increased 159% year-over-year, and with cloud gaming, we’re transforming how games are distributed, played and viewed. More than 20 million people have used the service to stream games to date.”
It was reported earlier this month that the service generatedaround $2.9 billion in revenue, just on console, in 2021.
As spotted byTweaktown, a lengthy report by Brazil’s Administrative Council for Economic Defense (CADE) on Microsoft’s proposed acquisition ofActivision Blizzardincluded a small table revealing the information.
Further reading
According to the table, of which CADE says the source is Microsoft itself, the Xbox company saw an income of $2.9 billion worldwide from “game subscription services for consoles”, meaning Xbox Game Pass.
In the same talk at WSJ Tech Live, the Xbox boss suggested thatXbox consoles, games and subscriptions may increase in price in the future.
