The Brazilian government agency made it possible to find out how much money Microsoft made from Xbox Game Pass in 2021.
One of the most important questions about Xbox Game Pass is whether or not it really makes money for Microsoft. We know that the subscription has the best image in the industry because of its low price and, more than anything else, its large number of titles. But what about making money? Now, thanks to the approval process for buying Activision, we know how much money Redmond makes from its popular service.
According to a document that Microsoft gave to the Brazilian regulatory body, the company will spend $2,900,000,000 on Xbox Game Pass in 2021 (via VGC ). Even though the text doesn’t name the platform by name, it talks about “game subscription services for consoles,” so it’s not hard to figure out that they’re talking about Xbox Game Pass.
The information is very revealing, especially since Microsoft doesn’t usually talk about this kind of thing in its quarterly financial reports. Also, it’s important to note that the above income does not include Xbox Game Pass for PC, which is the subscription version for PC players. So, when this part of the market is added, that number should be higher.
We know it is, but we don’t know how much. This is because, even though everyone knows how much they put in during 2021, we don’t know how much they had to spend to promote the service catalog. Having this information would make it easier to figure out what the net profit is.
Xbox Game Pass brings in a big chunk of the total Microsoft revenue
What we can figure out is how much of the Xbox division’s total income, which was $16.28 billion that same year, Xbox Game Pass makes up. So, subscriptions make up 18%, and games and subscriptions make up 30% ($12,581 million) if we break it down specifically.
Phil Spencer, who is in charge of Xbox, has promised that Xbox Game Pass will still be in business at the end of 2021. All of this is because there are a lot of questions about the service’s mysterious financial situation.
“On Game Pass, they could do the math. I guess you don’t know how many people subscribe to us or how much each one pays. But you can get good information and do the math to figure out what we think Game Pass could be in the long run, and it fits into one part of the business. But Game Pass will definitely last, ”He said so to Axios.
Today is the best time for Xbox Game Pass. Also, things are looking even better for the future. There will soon be a family plan that friends can share to cut the monthly cost even more. And, of course, if everything goes as planned, Microsoft could finish buying Activision Blizzard and add its huge library of franchises, including Call of Duty. Of course, convincing the most strict regulators in the world won’t be easy.