Recent Document Reveals Xbox Game Pass Ultimate Makes Up For 80% Of Its Subscribers

Posted on July 31, 2023 by Nick Moreno

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In terms of subscription models, platforms holders are continuing to capitalize on users as the headcount continues to grow respectively. From PlayStation, this was already known since its transition to the new tiered model last summer and new milestones were recorded recently. Additionally, it was revealed that about 6 million are subscribed to PlayStation Plus Extra whilst 8 million pay more for PlayStation Plus Premium.

Elsewhere, Xbox Game Pass has also shown to be offering its own serving of tiered subscriptions too. Of course, the most obvious being Console, PC, and Ultimate variants. In a recent announcement, this hierarchy will be readjusted as a new ‘Core’ model is to be implemented in September. This option will replace base Xbox Live Gold as the subscription alongside Xbox Games with Gold program is being closed. Over two dozen games is promised at launch.

Recently from a new document published by the European Commission as Microsoft is still battling to proceed the Activision Blizzard deal in the U.K., it is revealed about 80 percent of Xbox Game Pass Ultimate subscribers was recorded back in 2021.

As submitted by the Notifying Party, the share of revenue generated by Game Pass Ultimate (i.e. the offering including cloud game streaming) out of the total revenue it generated with multi-game subscription services constantly increased between 2019 and 2021, and represented […] of this revenue in 2021, both for PC563, and for console564. For PC, Game Pass Ultimate’s share of Microsoft’s worldwide revenues from multi-game subscription services grew from [20-30]% in 2019 to [70-80]% in 2021.

The document continues sharing In particular with regard to Game Pass, the Commission notes that USD […] or […]% of the estimated value of the Transaction to Microsoft comes from the acceleration of Game Pass subscriptions.” It then revealed the “For console, the corresponding share grew from [5-10]% in 2019 to [50-60]% in 2021.” Officially, this brings the scale of the subscription into perspective which Microsoft has not directly disclosed.

At the beginning of the acquisition, the Xbox firm only shared 25 million users were subscribed to Xbox Game Pass. Earlier this summer, Microsoft & the U.K. Competition and Markets Authority (CMA) were granted extensions for the decision on the Activision deal. The arrangement was also extended as well between the Xbox firm and the publisher. You can read the full report by heading here.

What surprises you most from the document?

Source: European Commission

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