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The Cost of Xbox Game Pass: Microsoft’s $1 Billion in Royalties Revealed

Microsoft’s Royalties Spending for Xbox Game Pass

By [Your Name], Staff Writer

Recent revelations from Xbox’s Phil Spencer have shed light on the significant amount of money Microsoft (referred to as MS) invests in royalties for the Xbox Game Pass. According to Spencer, the annual expenditure amounts to a staggering $1 billion (approximately 1.3127 trillion won).

In an exclusive interview reported on Windows Central on December 2nd, Spencer discussed the impact of Game Pass on Microsoft’s overall strategy. He emphasized the platform’s subscription service and the goal to drive higher engagement, irrespective of the type or genre of games available. Despite the substantial cost, Spencer highlighted the profitability of Game Pass, stating, “You can invest in different types of content and still achieve meaningful financial results with that content.”

When asked if Game Pass would expand to other competing platforms such as PlayStation or Nintendo, recent comments from Xbox CFO Tim Stewart suggested an ambitious strategy. Stewart mentioned the intention to bring Game Pass to every conceivable screen for gaming, including smart TVs, mobile devices, and potentially even PlayStation and Nintendo. However, Spencer refuted this, stating that there are currently no plans to introduce Game Pass to other console devices.

As for the inclusion of Activision Blizzard games in Game Pass, Spencer hinted at the possibility, expressing excitement about the potential addition of back catalog titles from both Bethesda and Activision Blizzard. It remains to be seen how discussions with the respective teams will unfold.

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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