Since the Xbox Game Pass service appeared for the first time in 2017 many doubted if the service could work, mainly many argued over whether the subscription service makes money or not and after five years of existence, the subscription has proved its popularity with millions of users.
Surprisingly even though it has already been revealed that it generates millions of dollars for Microsoft, some users still have doubts about whether or not it is a profitable service. Fortunately, Phil Spencer, head of Xbox, made a statement that puts this debate to rest or maybe just makes the debate bigger.
Recently, Spencer was a guest on a live presentation for The Wall Street Journal. There he talked about Xbox Game Pass and the monetary impact its subscription service represents for Microsoft.
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While Spencer did not reveal the exact amount of money they receive month-to-month for Xbox Game Pass, let alone say how much the service's operating costs, he did confirm that it is profitable. In fact, he made it clear that the service is responsible for generating a significant percentage of Microsoft's revenue.
"I think it will stay between 10 and 15% of our overall revenue and it's profitable for us.”
I don't think the debate ends here…
Many seem to think that with this, Phil Spencer puts an end to a debate that has been raging on the Internet for years, however, we are pretty sure that internet people are still going to have endless debates about it. What is a reality is that the service is here to stay and will be part of the Xbox ecosystem for many years to come.
Actually, in case you didn’t know, originally the Game Pass was not created in order to be profitable for Microsoft, in fact, it was designed to draw more players to the console through word-of-mouth by offering a large set of features as a seemingly underpriced value.
Do you think Xbox Game Pass will continue to be profitable for Microsoft? Let us know in the comments below.
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