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[Lunatic_Gamer]

As spotted by Timur222 on X, Richie Choudhary, former Head of Product at Xbox, revealed on their LinkedIn profile that from 2019 until 2021, Xbox Game Pass stood at $2 billion a year in revenue, which is definitely an impressive figure, despite not being telling in regard to the sustainability of the subscription service, as there's no data on the profits.



While Xbox Game Pass delivers quite a bit of value to players, it definitely causes a considerable drop in sales. Earlier this year, it was revealed that any game that is available as part of the subscription service's library can be expected to lose around 80% of its expected premium sales on Xbox, a little less if it is a big mainstream release.

Xbox Game Pass Reportedly Generated $2 Billion in Annual Revenue Between 2019 and 2021

While sustainability remains a mystery, Xbox Game Pass was wholly embraced by the market in years past, as it reportedly generated considerable revenue.

wccftech.com

 

[Mownoc]

But they spent $1 billion a year on third party content for it last I heard...

 

[RagnarokIV]

big boy phil, propa gangster lol. hell of a lad

he's to good at this biz. needs to play it safe or gaystation will get him, greenburger and bobby kotick murdered in a range rover down a farm

 

[ChorizoPicozo]

Genshing Impact made like 2B in 2021

 

[DarkstarRising13]

Further evidence to hammer the lies, fairytales, and fallacies on that disgusting now dead Xbox cult that what they thought was success is actually failure.

 

[HRK69]

Further evidence to hammer the lies, fairytales, and fallacies on that disgusting now dead Xbox cult that what they thought was success is actually failure.

It's real personal for you huh?

 

[Ev1L AuRoN]

I would love to see how much of it is profit.

 

[tTHANOSs]

Okay but whats the profit after everything? Now add in low sales on software. Xbox division is not making a lot of money.

 

[Ritsumei2020]

Is that why they are selling their games on Playstation?

 

[rofif]

nope
not profit
fake anyway

 

[{insert code here}]

What about total software sales/revenue tho?

 

[HRK69]

fake anyway

Let's hear the real numbers then

I'll wait

 

[adamsapple]

Further evidence to hammer the lies, fairytales, and fallacies on that disgusting now dead Xbox cult that what they thought was success is actually failure.

 

[MiguelItUp]

Man, some of y'all aren't even trying to hide it anytime there's a new Xbox/Microsoft thread, lmao.

These numbers are so dated at this point. I'd be more curious about what they've made every year since its existence.

 

[Brucey]

"A new report has revealed the jaw-dropping sum of money that Microsoft reportedly spends each year to encourage third-party developers and publishers to bring their games to Xbox Game Pass.

Bloomberg reported that, "Microsoft now spends $1 billion a year getting third-party games on the subscription service." The site said Microsoft offers "flat fees of millions of dollars upfront" to add titles from smaller publishers to Game Pass.""

Microsoft Spends $1 Billion Annually To Get Third-Party Games On Game Pass - Report

Microsoft spends big money to convince developers to bring their titles to Game Pass, it seems.

www.gamespot.com

Can't be much left over if they are spending a billion a year on third parties.

 

[clappedcheeks]

It’s been said said many times over that revenue only tells us part of the story. Why is there this constant need to talk about gamepass revenue whilst ignoring the profit that never gets reported for obvious reasons? The glazing for Microsoft by the media and the platform fans is quite something.

 

[rofif]

Let's hear the real numbers then

I'll wait

They are loosing side. It's obviously not revenue. It could even be a loss.
All that I hear from microsoft is loosers excuse and talk. Now that they don't sell exclusiveson xbox? nahhh it never mattered.
Nobody buys their games? naaah doesn't matter. gp is what matters.

 

[Little Chicken]

The success of Game Pass still affecting some people's mental health, it seems

 

[mayham2199]

The success of Game Pass still affecting some people's mental health, it seems

Of course it has. That community has been freaking out now that their games are going everywhere to subsidize their sub service. They've become the welfare state of gaming.

 

[HRK69]

They are loosing side. It's obviously not revenue. It could even be a loss.
All that I hear from microsoft is loosers excuse and talk. Now that they don't sell exclusiveson xbox? nahhh it never mattered.
Nobody buys their games? naaah doesn't matter. gp is what matters.

Ah, so you pulled it out of your ass? Because you are just speculating

Why even call it fake when you cannot back it up

 

[onQ123]

Most likely just dirty math $59.99 x 35 million

$2 billion

 

[rofif]

Ah, so you pulled it out of your ass? Because you are just speculating

Why even call it fake when you cannot back it up

because it is clear that xbox lost.
This is their strategy AFTER they lost. salvage.
you don't have to be a genius to see what's happening.

Oh and gamepass is horrible for the industry and I don't support it.
But for xbox is THE EVERYTHING because they lost at selling consoles and exclusives, so they pivot.

 

[Brucey]

Most likely just dirty math $59.99 x 35 million

$2 billion

$60 per year for gamepass?

 

[clappedcheeks]

The success of Game Pass still affecting some people's mental health, it seems

What success? What profit did they make?

 

[Beechos]

Gamepass got ppl spending money not just on subscriptions. Fools like myself buy the expansion passes more often since in my mind the game is free so I'm paying like 20-30 for the expansion getting the full experience of a game.

Also look at some of the success from people buying the expansion passes to play games early.

 

[onQ123]

$60 per year for gamepass?

I said "Dirty Math"

Meaning someone took the 35 million which included Core for $59 year & multiplied them to get $2 billion

 

[PropellerEar]

Accountability Margin™

 

[calico]

People being paid to stay at home with nothing to do probably helped.

 

[SweetTooth]

Show the whole P&L

 

[diffusionx]

Imagine how much money a good game could have brought in.

Halo 3 made $300M in its first week.

 

[Bumblebeetuna]

They are loosing side. It's obviously not revenue. It could even be a loss.
All that I hear from microsoft is loosers excuse and talk. Now that they don't sell exclusiveson xbox? nahhh it never mattered.
Nobody buys their games? naaah doesn't matter. gp is what matters.

No offense but are you drunk.

 

[rm082e]

What's it costing them in lost software sales?

 

[Spitfire098]

Why go 3rd party if it's such a success.

 

[ReBurn]

Microsoft must not be making any money on gamepass if they're still selling gamepass.

 

[clappedcheeks]

Why go 3rd party if it's such a success.

 

[DeltaPolarBear]

I know that PlayStation Plus is not 1-to-1 with Gamepass but Xbox did merge Xbox gold into Gamepass, so now they are almost equivalent.

According to this link, PlayStation Plus had revenue of 2.9 billion for 2022 and 3.5 billion for 2023.
And according to THIS link, PlayStation Plus 2024 made a 20% INCREASE in revenue from the year before. That would mean 4.2 billion.

So, Xbox sacrificed 1st day game sales and making customers refuse to buy games, and they got 2 billion dollar revenue a year on average.
All the while PlayStation barely offer much on P+, raised their prices , and STILL got more revenue year after year, AND even on average they made 3.5 billion revenue a year.

And i am pretty comfortable to guess that Sony spent less each year on PS+ than Xbox on Gamepass.

 

[yogaflame]

For me, thats not that big of an earning for a 3 year period given that xbox lost so much on console sales and players count.

 

[Grizzled Ghost]

Wowee, at that impressive rate they'll break even on the Activision deal in... 2087

 

[mathello]

A lot of that 35million were people using the 1 dollar month trial and making multiple accounts.

 

[SuperC]

I know that PlayStation Plus is not 1-to-1 with Gamepass but Xbox did merge Xbox gold into Gamepass, so now they are almost equivalent.

According to this link, PlayStation Plus had revenue of 2.9 billion for 2022 and 3.5 billion for 2023.
And according to THIS link, PlayStation Plus 2024 made a 20% INCREASE in revenue from the year before. That would mean 4.2 billion.

So, Xbox sacrificed 1st day game sales and making customers refuse to buy games, and they got 2 billion dollar revenue a year on average.
All the while PlayStation barely offer much on P+, raised their prices , and STILL got more revenue year after year, AND even on average they made 3.5 billion revenue a year.

And i am pretty comfortable to guess that Sony spent less each year on PS+ than Xbox on Gamepass.

They still make more revenue if you add everything including mobile games and their games on PS/PC

 

[Topher]

A lot of that 35million were people using the 1 dollar month trial and making multiple accounts.

Never was 35 million. That the number after XLG was renamed Game Pass Core.

 

[Guardian Monkey]

2b /35m= $57.1428571429

Remember gamepass was $1 to upgrade for up to 36 months at that point

 

[Heisenberg007]

If true, those are horrible numbers.

$2 billion in 3 years (or even $2 billion in 2 years) mean nothing when they confirmed spending $1 billion just getting third-party deals. Then there is 1st-party revenue to account for due to dip in game sales. And the xCloud and marketing costs on top of it.

Pretty much confirms that Game Pass is also in the red. No wonder they keep increasing the price while reducing the number of games that join the sub.

 

[demigod]

Of course it has. That community has been freaking out now that their games are going everywhere to subsidize their sub service. They've become the welfare state of gaming.

Lol @ Little Chicken with the fire emoji.

 

[Guardian Monkey]

If true, those are horrible numbers.

$2 billion in 3 years (or even $2 billion in 2 years) mean nothing when they confirmed spending $1 billion just getting third-party deals. Then there is 1st-party revenue to account for due to dip in game sales. And the xCloud and marketing costs on top of it.

Pretty much confirms that Game Pass is also in the red. No wonder they keep increasing the price while reducing the number of games that join the sub.

per year

 

[SuperC]

If true, those are horrible numbers.

$2 billion in 3 years (or even $2 billion in 2 years) mean nothing when they confirmed spending $1 billion just getting third-party deals. Then there is 1st-party revenue to account for due to dip in game sales.

Pretty much confirms that Game Pass is also in the red. No wonder they keep increasing the price while reducing the number of games that join the sub.

Its $2 billion every year

 

[Heisenberg007]

per year

Its $2 billion every year

That's much better then.

 

[pasterpl]

From 2023

Either way, these Game Pass share numbers reveal that if let’s say there’s 70% overall adoption rate for Game Pass Ultimate across all subscriptions to the service, of those 25 million, 17.5 million would have Ultimate, and that’s $297.5 million a month in revenue. It may be less than that through bundle prices, but then add that other 30% from lower price subscriptions, and you’re getting around that $1 billion subscription revenue per quarter number that was recently reported, or $4 billion a year.

In Two Years, Xbox Has Seen A Six-Fold Increase In Game Pass Ultimate Adoption

Buried amidst a giant Commission Decision document relating to the Activision Blizzard case in the EU is a bit of eyebrow-raising information showing off just how much Microsoft has herded people into its highest tier of Game Pass.

www.forbes.com

Forbes commented that 70 percent of Ultimate subscribers (out of 25 million overall) would lead to $297.5 million in revenue. Combined with the 30 percent from lower tiers, the overall Game Pass service is leading to $4 billion in revenue per year

Game Pass Ultimate signups led to Xbox revenue surge

Committing to Game Pass Ultimate as the best deal of the service has been paying off for Microsoft immensely.

www.gamedeveloper.com

It looks like the 2B might be in fact from 2021, now it is probably closer to $5B-$6B per annum.

 

[Topher]

From 2023

In Two Years, Xbox Has Seen A Six-Fold Increase In Game Pass Ultimate Adoption

Buried amidst a giant Commission Decision document relating to the Activision Blizzard case in the EU is a bit of eyebrow-raising information showing off just how much Microsoft has herded people into its highest tier of Game Pass.

www.forbes.com

Game Pass Ultimate signups led to Xbox revenue surge

Committing to Game Pass Ultimate as the best deal of the service has been paying off for Microsoft immensely.

www.gamedeveloper.com

It looks like the 2B might be in fact from 2021, now it is probably closer to $5B-$6B per annum.

Or the numbers could be flat. We have no data.

 

[pasterpl]

Or the numbers could be flat. We have no data.

True. Without official numbers from MS (and we are not getting these) we might as well say it is less than $1B/year or might be as well more than $10B/year. We simply don’t have official, confirmed numbers.