Microsoft Spends $1 Billion in Royalties for Xbox Game Pass Annually
Exclusive interview reveals Phil Spencer’s insights on Game Pass and future plans
According to a recent exclusive interview with Xbox’s Phil Spencer, Microsoft (referred to as MS) spends a staggering $1 billion annually in royalties for Xbox Game Pass, equating to approximately 1.3127 trillion won. This news was reported on Windows Central on December 2nd. Spencer emphasized the profitability of Game Pass despite its high expense, stating that it has a significant impact on driving engagement within the platform, regardless of game genre or type.
In the interview, Spencer addressed the possibility of introducing Game Pass to other competing platforms such as PlayStation or Nintendo, which had been previously hinted at by Xbox CFO Tim Stewart. However, Spencer clarified that there are no plans to bring Game Pass to other console devices, emphasizing Microsoft’s focus on expanding the service to a variety of screens including smart TVs and mobile devices.
Regarding the inclusion of Activision Blizzard games in Game Pass, Spencer stated that it is still early days and expressed excitement about the potential addition of back catalog from Bethesda and Activision Blizzard. He mentioned plans to engage with the fully staffed teams working on this integration in the future.
How much does Microsoft (hereinafter referred to as MS) spend in royalties for Xbox Game Pass? According to Xbox’s Phil Spencer, it equates to $1 billion (about 1.3127 trillion won) a year.
This news was revealed through an exclusive interview with Phil Spencer reported on Windows Central on December 2nd. He added this about Game Pass’ influence on Microsoft:
“Xbox has a platform and a subscription service, so our strategy is to drive more engagement within the platform, regardless of the genre or type of game. Despite the expense, Game Pass is a profitable business. “You can invest in different types of content and still achieve meaningful financial results with that content.”
There was also a question in the interview, ‘Is Game Pass being introduced to other competing platforms such as PlayStation or Nintendo?’ Not long ago, Xbox CFO Tim Stewart said, “We want to bring Game Pass to every screen where you can play games. Not just smart TVs and mobile devices, but also PlayStation and Nintendo.” However, Phil Spencer denied this, saying, “We have no intention of bringing Game Pass to other console devices.”
Meanwhile, it seems that it will take more time to know if Activision Blizzard games will be included in Game Pass. Phil Spencer had the following to say about this:
“It’s still very early days so it’s hard to say anything, but we’re very excited to see the back catalog from Bethesda and Activision Blizzard. We look forward to speaking to the fully staffed teams working on it.”
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