Much has been said about Xbox Game Pass and its profitability. Phil Spencer, CEO of Microsoft Gaming, knows that there are many doubts about it. For such reason, he decided to talk about it in a recent interview and confirmed what everyone knew: Microsoft spends a lot of money to bring games and make its service very attractive.
How much does Microsoft invest in Xbox Game Pass?
Month after month, Microsoft makes agreements with third parties to nurture the game catalog of Xbox Game Pass, a service that is distinguished by its day 1 releases and by the arrival of attractive titles on a continuous basis.
As you can imagine, keeping up this pace isn't cheap. During a talk with Windows Central, Spencer claimed that they have invested a lot of money in the services market with Xbox Game Pass. He claimed that Microsoft spends more than a billion dollars a year on third-party games.
The executive reiterated that the service is viable from a financial perspective, since after all it generates profits. He also commented that his mission is for Xbox Game Pass to offer all types of games, from major productions to indie titles.
"We have a service that is financially viable, meaning it makes money, in Game Pass. We've put a lot of money into the market, over a billion dollars a year supporting third-party games coming into Game Pass. What we see in Game Pass is a service that supports all kinds of games, from the biggest games, to the unknown indie games that you didn't know you would love until you played it," Spencer said.
With this, it is clear that Xbox Game Pass is the strong bet for the future of the brand, especially after the acquisition of Activision Blizzard. Xbox's goal is to have as much content as possible to nurture its service and, in this way, depend less and less on third parties.
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