Is Xbox Game Pass Making Money A New Report Questions Microsoft's Numbers
Many have talked about whether Xbox Game Pass can keep going, but new doubts say Microsoft's claim of making money might depend on special ways of counting. A piece by Christopher Dring from The Game Business says Microsoft's money counts for the service don't think about the money lost or the costs to make games at its own big game places.
The Problem with Counting Not Adding the Big Game Costs
While Microsoft and its game boss, Phil Spencer, say Game Pass makes money, Dring's piece points out an important fact. He got this info after he asked for more details. He found out the money check includes:
- Money given to other game makers.
- Money spent on ads.
- Costs to run the service.
But, the count seems to miss the big cost and the sales lost from putting its own big games on the service from the start. With buying big names like Bethesda and Activision Blizzard, not adding these costs is a big deal. Those buys bring big games like Call of Duty, Diablo, and DOOM.
The Real Problems Studios Shut and Games Stopped
As people look more at Game Pass money, big problems hit Xbox. A big job cut just happened, leading to game places shut and games stopped, including:
- The Initiative: Said to be closed, with the Perfect Dark remake stopped.
- Turn 10: Lost over 70 people and might now just help with the Forza Horizon games.
- Rare: Had its game, Everwild, that was in the works for a long time, stopped.
- ZeniMax Online: Its next big online game was stopped, even though people inside liked it.
- Romero Games: The game place started by John Romero also said to be closed after its next shooter game was stopped.
Too-High Money Goals and a Huge Buyout's Shadow
The push on Xbox seems to come from up high in Microsoft. According to Windows Central's Jez Corden, Microsoft CFO Amy Hood set a "really high money goal" for the game part. The Verge's Tom Warren said this money push is what's now normal after the huge $68.7 billion buy of Activision Blizzard.
The Game Pass "risk," as Warren calls it, hasn't yet worked out well enough to make up for such a big buy. While more people keep joining, it's not as many as hoped. The service had over 35 million joined by mid-2025, much less than the 100 million wanted by 2030.
What’s Next for Xbox
With a not full clear view of Game Pass money, big money stress from the big Activision Blizzard deal, and slower growth in people joining, big changes have come. Many think these issues led to the recent job cuts and fewer games for players. The road ahead might bring more big changes for Game Pass, like maybe higher costs to join, as Microsoft works through its big bet in the game world.