Microsoft has been an excellent value for money for consumers this generation, bringing a cheaper entry-level console with the Xbox Series S and its Xbox Game Pass service that offers a full catalog of games.
While Xbox Game Pass has held up at the same price point for quite some time, with the acquisition of new studios like Activision Blizzard and the addition of their games at launch on the service, many considered an increase inevitable.
During WSJ Live, a major technology event, Phil Spencer spoke about the future of Xbox Game Studios, including the Xbox Game Pass service. According to him, some price adjustments will be necessary in the future, but at least during this year everything will remain the same.
I think at some point we will have to raise the prices of certain things, but at the end of the year we think it is important to maintain prices.
Contrary to what some believe, Xbox Game Pass has already been bringing in a profit for Microsoft, equivalent to about 15% of the company’s gaming revenue. Still, Phil Spencer says the service has been slowing growth on consoles.
I believe it will remain between 10 and 15% of our overall revenue and that is profitable for us. We’re seeing incredible growth on PC… on console we’ve seen growth slow down, mainly because at some point you reached everyone on console who wanted to sign up.