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[Banjo64]

As of April 2022:

11.7m Gold subscribers.

Game Pass average revenue of $9.26 per user. x 25m = $231m per month.

Xbox Game Pass made $230 million revenue in one month, most users pay for full subscriptions

Microsoft reveals a rare look at concrete Xbox Game Pass earnings, with the subscription breaking $230 million in subscriber revenues in a month's time.

www.tweaktown.com

 

[Chukhopops]

Interesting especially since it excludes PC only subs.

MS mentioned that sub revenue would get close to 1B per quarter so it gives an idea on the increase from last year.

 

[Salty Popsicle]

Nearly $3 billion in revenue per year only on Xbox GP subs. I don't know their overhead, but those are still some crazy numbers.

 

[Bernoulli]

Finally real numbers

 

[octiny]

So they only had 3.1 million PC subscribers as of April 2022. Probably closer to 5, if they are at 30+ million subbies now.

Ridiculous number of paid GP subbies on console. Much higher than I was expecting.

 

[vaibhavpisal]

So they only had 3.1 million PC subscribers as of April 2022. Probably closer to 5, if they are at 30+ million subbies now.

Ridiculous number of paid GP subbies on console. Much higher than I was expecting.

As assuming PC subscribers do a lot of in and out depending on game releasing. Consoles are useless without gamepass so they are steady users.

On pc I hear you get less performance compared to steam version so a big reason to stick to steam as much as possible.

 

[Banjo64]

So they only had 3.1 million PC subscribers as of April 2022. Probably closer to 5, if they are at 30+ million subbies now.

Ridiculous number of paid GP subbies on console. Much higher than I was expecting.

I think the interesting takeaway for me is that Gold has had 30m+ users in the past, so if we assume they’ve moved over to Game Pass it really does highlight the ceiling of these subscriptions.

 

[Heisenberg007]

Finally real numbers! cc: thicc_girls_are_teh_best

 

[Mr Reasonable]

Nearly $3 billion in revenue per year only on Xbox GP subs. I don't know their overhead, but those are still some crazy numbers.

Yeah, I expect there'll be lots of amateur accountants scrambling for their abacuses to say why this is/isn't enough, but that seems like a lot to me too, especially when you add in that they have game sales to add in.

 

[Heisenberg007]

Since this data is until April 2022.

From FTC.

 

[Alan Wake]

A ceiling is a good thing. I love Game Pass and have been a subscriber since it launched but I don't want it to replace the traditional way of consuming games. The netflixification of gaming is not a threat as long as it's a complement only.

 

[SirKicksalot]

So they only had 3.1 million PC subscribers as of April 2022. Probably closer to 5, if they are at 30+ million subbies now.

Ridiculous number of paid GP subbies on console. Much higher than I was expecting.

It was limited to 40 countries until April 2023. Eastern Europe is PC territory but had no access.

 

[twilo99]

How did this leak happen? They are not doing got be happy lol

 

[octiny]

As assuming PC subscribers do a lot of in and out depending on game releasing. Consoles are useless without gamepass so they are steady users.

On pc I hear you get less performance compared to steam version so a big reason to stick to steam as much as possible.

This simply takes away the narrative when comparing Extra+Premium vs GP subbies.

Essentially saying it's not fair to compare since GP was also on PC. PC isn't doing much for them, yet.

I think the interesting takeaway for me is that Gold has had 30m+ users in the past, so if we assume they’ve moved over to Game Pass it really does highlight the ceiling of these subscriptions.

Correct, although PC will continue to slowly grow regardless due to how much untapped potential there is.

 

[3liteDragon]

How did this leak happen? They are not doing got be happy lol

FTC forgot to redact all this from the ABK case.

 

[Godot25]

It's pretty hilarious since plenty people tried to convince me that majority is just paying 1$ and then unsubscribing or they are all using "conversion trick"



Since Gold had 11,7 million subs I expect Microsoft to claim 40 million subs at their next quarterly report since they merged Gold into Game Pass.
Not bad considering PlayStation has around 45 million PS Plus subscribers.

 

[Salty Popsicle]

How did this leak happen? They are not doing got be happy lol

Meh, none is this is really news if you have two brain cells to rub together.

All we learned is that a revised console is releasing next year (duh), A next gen console is coming many years from now (mega duh), and that a few remasters and sequels from established Bethesda/Zeninax titles are slated for the next couple of years (derp).

 

[DenchDeckard]

That's a lot of spondoola

 

[ByWatterson]

Nearly $3 billion in revenue per year only on Xbox GP subs. I don't know their overhead, but those are still some crazy numbers.

Are they?

They have 23 studios. At an average of 100 per studio (probably low-balling it), and 100K per employee per month (ish), that's $230,000,000 per year just in studio costs. Throw in game license fees and...yeah man. There's like literally zero chance this is turning a profit right now.

EDIT: "Literally zero chance" was based on a very bad miscalculation! Still don't see evidence of profitability, but it's not QUITE as crazy as I first thought. Me and my abacus!

 

[twilo99]

Meh, none is this is really news if you have two brain cells to rub together.

All we learned is that a revised console is releasing next year (duh), A next gen console is coming many years from now (mega duh), and that a few remasters and sequels from established Bethesda/Zeninax titles are slated for the next couple of years (derp).

I meant the gamepass numbers..

 

[DenchDeckard]

Are they?

They have 23 studios. At an average of 100 per studio (probably low-balling it), and 100K per employee per month (ish), that's $230,000,000 per MONTH just in studio costs. Throw in game license fees and...yeah man. There's like literally zero chance this is turning a profit right now.

You think that gamepass has to pay for every single bit of their studio overheads?

 

[Salty Popsicle]

Is it?

They have 23 studios. At an average of 100 per studio (probably low-balling it), and 100K per employee per month (ish), that's $230,000,000 per MONTH just in studio costs. Throw in game license fees and...yeah man. There's like literally zero chance this is turning a profit right now.

Why would GamePass revenue have to offset the development cost of every single one of their studios? You do realize these games do also retail at full price right?

 

[Killjoy-NL]

I think the interesting takeaway for me is that Gold has had 30m+ users in the past, so if we assume they’ve moved over to Game Pass it really does highlight the ceiling of these subscriptions.

It was to be expected.

The market of 2 Billion that MS was talking about is an illusion.

While some might be impressed, even if it might be rightfully so, MS is in a difficult spot where GamePass subs will become stagnant and their consoles don't sell particularly well.

 

[Robb]

Game Pass average revenue of $9.26 per user

How is this possible when every single subscriber is only paying $1 dollar?

 

[Salty Popsicle]

I meant the gamepass numbers..

Lol, I done goofed

 

[Godot25]

Are they?

They have 23 studios. At an average of 100 per studio (probably low-balling it), and 100K per employee per month (ish), that's $230,000,000 per MONTH just in studio costs. Throw in game license fees and...yeah man. There's like literally zero chance this is turning a profit right now.

So there are still people who thinks that if you release a game into subscription, you are not selling copies of it?

Good

 

[ByWatterson]

You think that gamepass has to pay for every single bit of their studio overheads?

The vast majority, for sure. Most console owners are in Gamepass, and their titles are too. Who is the great mass of console owners who are buying first party games?

Maybe they're still buying third party, but I really don't know why any subscribers would buy games. Certainly Microsoft doesn't brag about it.

 

[Schmick]

Are they?

They have 23 studios. At an average of 100 per studio (probably low-balling it), and 100K per employee per month (ish), that's $230,000,000 per MONTH just in studio costs. Throw in game license fees and...yeah man. There's like literally zero chance this is turning a profit right now.

Gamepass isn't the only revenue stream.

 

[ByWatterson]

Gamepass isn't the only revenue stream.

Do we have first party sales data on any titles since Series X's launch?

A PC-centric game like Starfield might sell big, but what else has moved lots of units? When was the last time Microsoft told us about units sold?

Plus the sheer lack of titles since 2020 means that for at least three years, those 23 studios are nothing but costs. I count maybe three major sales hits in three years: Halo, Forza Horizon 5, and Starfield.

I refuse to believe Gamepass is earning enough to make up for 23 studios just not dropping games for three years.

 

[Gaelyon]

How much Gamepass cost ? Revenue is nice but if MS pay more it's still a loss. Every single game on Gamepass cost MS an unknow amount of $, depending of the game's budget/attractiveness etc. plus first party games day one... That's a huge cost overall. So Gamepass generate a nice stream of revenue but at what cost ?

 

[Schmick]

Do we have first party sales data on any titles since Series X's launch?

A PC-centric game like Starfield might sell big, but what else has moved lots of units? When was the last time Microsoft told us about units sold?

Gamepass accounts for around 15% of Xbox's overall revenue.

Microsoft says Xbox Game Pass is profitable as it sees subscription growth slow

Microsoft Gaming CEO Phil Spencer provides rare Xbox insights.

www.theverge.com

 

[ByWatterson]

Gamepass accounts for around 15% of Xbox's overall revenue.

Microsoft says Xbox Game Pass is profitable as it sees subscription growth slow

Microsoft Gaming CEO Phil Spencer provides rare Xbox insights.

www.theverge.com

Yeah, dude, Xbox is profitable. Obviously.

But I have never seen evidence that Gamepass is.

 

[Schmick]

Why does Gamepass have to be profitable on its own?

 

[ByWatterson]

Why does Gamepass have to be profitable on his own?

Because that's typically how businesses operate. They maximize things that turn profits and cut things that don't.

Microsoft won't subsidize it forever, and if other subscription service woes are any indication, the subscription future in media, generally, is very much uncertain.

 

[Robb]

That's a huge cost overall.

I believe it’s a lot lower than people might think. We’ve had leaks previously of the cost of high profile titles on GamePass and something like Guardians of the Galaxy was only around $5-10M, for example.

Edit:
We also know numbers from the Apple/Epic lawsuit, all of which are fairly low relative to what something like GamePass generates.

 

[FireFly]

Do we have first party sales data on any titles since Series X's launch?

A PC-centric game like Starfield might sell big, but what else has moved lots of units? When was the last time Microsoft told us about units sold?

Horizon 5 and Infinite both hit no.1 on Steam. The point is you can't just assume revenue from sales is zero! You also can't ignore revenue from DLC and microtransactions, which Game Pass helps boost.

 

[Schmick]

Because that's typically how businesses operate. They maximize things that turn profits and cut things that don't.

Microsoft won't subsidize it forever, and if other subscription service woes are any indication, the subscription future in media, generally, is very much uncertain.

Yea but how do you assess whether a something like Gamepass is profitable enough. Phil Spencer has already said that Gamepass is sustainable. Perhaps thats because Xbox does not see Gamepass as the sole provider for all those 23 studios. The better question would be, what state would Xbox be in if Gamepass never existed.

 

[Godot25]

Because that's typically how businesses operate. They maximize things that turn profits and cut things that don't.

Microsoft won't subsidize it forever, and if other subscription service woes are any indication, the subscription future in media, generally, is very much uncertain.

What?

GamePass as a service doesn't need to be profitable ( although it would be nice) . It's just one part of ecosystem.

If Game Pass draws more people into ecosystem and those people are spending money inside that ecosystem on other stuff (other games, MTX, hardware purchases etc) then it is more than fine.

It's like if you said that consoles can't be sold at a loss. Which is just plain stupid.

 

[ByWatterson]

What?

GamePass as a service doesn't need to be profitable. It's just one part of ecosystem.

If Game Pass draws more people into ecosystem and those people are spending money inside that ecosystem on other stuff (other games, MTX, hardware purchases etc) then it is more than fine.

Is it doing that? Because it really looks like it isn't.

 

[Godot25]

Is it doing that? Because it really looks like it isn't.

I mea, just look at the ecosystem. Xbox sold less then 80 million consoles in two gens and they are raking 16+ billion in revenue per year

PlayStation sold 160 million consoles in two gens and they are at 25+ billion per year.

I guess they are able to extract more money per customer which is pretty funny since they have "no games."

 

[FireFly]

Is it doing that? Because it really looks like it isn't.

Xbox Game Pass data reveals gamers are playing and spending more

During its Game Developers Conference 2022 keynote, Microsoft detailed how the Xbox Game Pass business model is benefiting studios.

en.as.com

 

[ProtoByte]

Yea but how do you assess whether a something like Gamepass is profitable enough. Phil Spencer has already said that Gamepass is sustainable. Perhaps thats because Xbox does not see Gamepass as the sole provider for all those 23 studios. The better question would be, what state would Xbox be in if Gamepass never existed.

Phil is going to say that because if he doesn't he's basically admitting that his pitch to Nadella is failed, when thay was the whole reason Xbox is still around/under Microsoft at all. It's also on yiu to realize that if Gamepass was sustainable as is now, even in MS' view, they wouldn't be trying to buy up half the industry.

People will get dazzled by this number without asking themselves how much money is being spent on acquiring game licenses, and how much money is lost when Gamepass is a substitute for actual game sales. If profitability for Xbox was low/non-existsent before gamepass (and it was) I fail to see how Gamepass does anything but worsen the issue.

Lest we forget that Jim Ryan said his impression/information says they're losing money on it under oath, and Microsoft didn't make any moves to correct him.

 

[VolticArchangel]

Are they?

They have 23 studios. At an average of 100 per studio (probably low-balling it), and 100K per employee per month (ish), that's $230,000,000 per MONTH just in studio costs. Throw in game license fees and...yeah man. There's like literally zero chance this is turning a profit right now.

My guy, on planet do you live on where gamedev pays you $100K per month for an employee? Please let me know, I wanna move there. Lmao, cut that by x10, and even that is pushing it, and reserved for states like Cali, NY, WA and WADC. The avg median gamedev salary is $115K in the US.

By your "low-balling it" corrected (it's not) estimates, that $1 million per month per studio with 100 devs, $23 million per month for 23 studios (spread worldwide, without counting in different economies, inflation, avg median income and other factors), and $276 million a year on dev salary costs alone of all their first party.

That rough estimate (not even close to accurate) is very possible for Microsoft, for decades even.

 

[ProtoByte]

Xbox Game Pass data reveals gamers are playing and spending more

During its Game Developers Conference 2022 keynote, Microsoft detailed how the Xbox Game Pass business model is benefiting studios.

en.as.com

How about you try some more recent sources:

Weaker subscription deals have hit indie publishers, says analyst

Sign up for the GI Daily here to get the biggest news straight to your inbox Smaller subscription deals and the underpe…

www.gamesindustry.biz

Circana: Growth of US video game subscription spending stalled as acquiring new users gets harder | Game World Observer

The US video game subscription market is likely approaching a plateau in terms of player spending. This is according to new data from analytics firm Circana.

gameworldobserver.com

https://videogames.si.com/news/xbox-game-pass-lowers-sales

Bobby Kotick Says He Wouldn’t Put ‘Call Of Duty’ On Xbox Game Pass Or Other Services

One interesting exchange was when Kotick was questioned about Call of Duty and subscription services. Early on, Sony alleged that publishers “hated Game Pass,” but it appears leaning into that idea, true or not, may be part of a play to get this deal approved.

www.forbes.com

 

[Mephisto40]

All that money and they still can't support their Dev's properly

Congratulations Microsoft

 

[THE DUCK]

Because that's typically how businesses operate. They maximize things that turn profits and cut things that don't.

Microsoft won't subsidize it forever, and if other subscription service woes are any indication, the subscription future in media, generally, is very much uncertain.

Ms already made it clear they see gamepass is breaking even, and that was years ago. And like others said, there is no universe where any of these studios have to pay all the bills by gamepass alone. Even the ones on gamepass generate additional revenue with expansions, skins, etc. Ms has even said gamepass subs buy more things from other 3rd party games (additional revenue) too as they are more active on the system.

 

[FireFly]

How about you try some more recent sources:

Weaker subscription deals have hit indie publishers, says analyst

Sign up for the GI Daily here to get the biggest news straight to your inbox Smaller subscription deals and the underpe…

www.gamesindustry.biz

Circana: Growth of US video game subscription spending stalled as acquiring new users gets harder | Game World Observer

The US video game subscription market is likely approaching a plateau in terms of player spending. This is according to new data from analytics firm Circana.

gameworldobserver.com

https://videogames.si.com/news/xbox-game-pass-lowers-sales

Bobby Kotick Says He Wouldn’t Put ‘Call Of Duty’ On Xbox Game Pass Or Other Services

One interesting exchange was when Kotick was questioned about Call of Duty and subscription services. Early on, Sony alleged that publishers “hated Game Pass,” but it appears leaning into that idea, true or not, may be part of a play to get this deal approved.

www.forbes.com

The claim I was responding to is that Game Pass does not grow add-in revenue. It's entirely possible that Game Pass both grows add-in review and costs retail sales.

 

[ChuckeRearmed]

Pretty impressive numbers considering the amount of consoles sold.

 

[Portugeezer]

You think that gamepass has to pay for every single bit of their studio overheads?

That is the ultimate goal, is it not? And then some; they also have to pay other publishers for the right to have their games on gamepass.

 

[Jibran#one]

Mark my words this netflixication of games 1 day would fuck us all in the ass.
Sony just gave us a hint of this by increasing prices by 20 dollars.