[TaySan]

Xbox Game Pass on Track to Generate $5.5 Billion by 2025

Xbox Game Pass revenue is projected to reach $5.5 billion by 2025, driven by recent price hikes and strategic game additions like Call of Duty.

infinitestart.com

Xbox Game Pass is set for a significant revenue boost, with analysts predicting it will generate up to $5.5 billion by 2025. This comes after Microsoft increased the prices of the subscription service following its merger with Activision. The price hike is expected to drive a substantial rise in revenue, marking a more than 200% increase compared to 2022.

The Game Pass service has become a vital revenue stream for Microsoft, reducing its reliance on console sales. Phil Spencer, Xbox CEO, noted that Game Pass accounts for about 10-15% of Xbox's annual revenue. The service made up to $1.7 billion in 2022, and the forecasted $5.5 billion in 2025 represents a significant leap.

Harding-Rolls also highlighted the importance of Call of Duty's addition to Game Pass Ultimate. This move is expected to attract more subscribers to the Ultimate tier, further boosting revenue. The projected increase in consumer spending on the service by up to 15.3% in 2025 underscores the potential of Game Pass to transform Microsoft's gaming revenue landscape.

 

[Hostile_18]

Turnover is vanity, profit is sanity.

 

[DonDonDonPata]

Now we know what that price hike was about

 

[Grinchy]

The best value deal in pro consumer gaming!

 

[regawdless]

See, that marketing money they saved is being invested to make Gamepass great again.

Phil Spencer saves gaming once again.

 

[Grinchy]

MS is gonna do some retarded shit with COD. I can just feel it. Like I can imagine them trying to go full subscription or something. Imagine a monthly fee to play COD with no upfront cost.

You can use the highest tier of game pass to get access or pay for the monthly COD sub. No purchasing the game outright.

 

[Arkam]

Thats some solid sustained revenue. No clue what the break even/profit number is, but >$5b is nothing to sneeze at.

 

[regawdless]

Thats some solid sustained revenue. No clue what the break even/profit number is, but >$5b is nothing to sneeze at.

I wonder what the actual profit level looks like. For revenue, that's obviously huge. It's a weird business and one that's difficult to sustain.

 

[Spiders]

5.5 B in 2025 — plus all the lunch it ate in retail and digital purchases, minus all the people who will drop after the price raise. Sounds like spin.

According to those numbers 2.75 Billion in 2022 , 3.58 Billion in 2023…
For context, Nintendo's 2023 revenue was 12.04 billion dollars.

 

[Bernd Lauert]

I wonder where all the additional revenue is supposed to come from. PC Gamepass would need to grow on a massive scale. Same for the upcoming stream-only Gamepass.

 

[Grinchy]

I wonder where all the additional revenue is supposed to come from. PC Gamepass would need to grow on a massive scale. Same for the upcoming stream-only Gamepass.

I wonder if owning COD and putting it on gamepass means they can say on paper that microtransactions are part of the gamepass revenue. It's a game that was offered on the sub and it's generating extra income for the sub service? Something like that, I dunno how the money people do it.

 

[Bernd Lauert]

I wonder if owning COD and putting it on gamepass means they can say on paper that microtransactions are part of the gamepass revenue. It's a game that was offered on the sub and it's generating extra income for the sub service? Something like that, I dunno how the money people do it.

If whoever buys the MTX plays the game via Gamepass, I think they could count it as Gamepass revenue. The revenue arguably wouldn't have happened without Gamepass so it kinda counts.

 

[Boss Mog]

Revenue doesn't mean profits.

 

[Hostile_18]

Revenue doesn't mean profits.

Yeah, could still be running at a loss. If it's not profit will be miniscule.

 

[QuantumZebra]

I know its cool to hate on Microsoft, and I do enjoy it... but this is a good thing.

I see the dynamic of gaming turning out:

1. Xbox is for casual CoD/Madden/Forza/Halo types
2. PlayStation is for RPG/Experience-driven gamers (tons of fantastic studios producing mostly single player story focused stuff)
3. Nintendo is Nintendo
4. PC for everyone else

I don't think Xbox will ever be a threat to PlayStation because PS has such a global mindshare. PlayStation is synonymous with what "gaming" is on a global scale. Xbox will still hold its place in America/Britain as a commercial gaming machine for big name titles.

 

[Be-Gone]

Yeah, could still be running at a loss. If it's not profit will be miniscule.

As the tidal wave of unionization spreads across the Xbox studio ecosystem, then, maybe then, Microsoft execs will finally realize the Oh So Sophisticated and Oh So Socially Aware ideas they've been actively supporting have come to roost .

Just not in the way they were anticipating.