Phil Spencer Says Game Pass Is Sustainable, Not Burning Cash

"No. Game Pass is very, very sustainable right now."


Xbox boss Phil Spencer has said Xbox Game Pass is not burning cash and is a sustainable business for Microsoft. Speaking to Axios, Spencer said plainly, "Game Pass is doing very well from a business perspective and a creative and engagement perspective."

He said Game Pass is a "real differentiator" for Xbox in the competitive landscape. Still, some people wonder about the economic realities of the service and if it is really a sustainable business and one that is an overall positive for gaming. After all, there have been plenty of high-profile gaming executives who have expressed their worries and concerns about subscription-based models.

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But Spencer doesn't agree. "It's not the only thing that's growing in Xbox. It's not the only focus of the organization, and it, as a standalone thing, is very sustainable as it sits today, just like today. It's sustainable," Spencer said. "I know there are a lot of people that like to write, 'We're burning cash right now for some future pot of gold at the end.' No. Game Pass is very, very sustainable right now as it sits and continues to grow."

"Yeah. I mean, you could do the math on Game Pass. I guess you don't know how many subscribers or how much each subscriber is paying," he added. "But you can make some fairly informed decisions and literally just do the math on what we think Game Pass could eventually be--you could do that on any part of the business. But absolutely, Game Pass is sustainable."

Spencer said Game Pass is great because it has led to a greater diversity of game experiences being available to people.

In other news, Spencer recently discussed how Xbox will continue to make "bold bets" like it did with Game Pass in the next decade because that's what gamers demand.

November 15 was the 20th anniversary of Xbox and Microsoft celebrated by launching Halo Infinite's multiplayer beta early.

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