Recent Interview Reveals Xbox Game Pass Is A Sustainable Business Model, “Not Burning Cash” Phil Spencer Explains

Over at Xbox Game Pass, the service in recent weeks have found new heights thanks to the intuitive nature of the subscription. With the recent release of Forza Horizon 5, the service broke a previous record with the most concurrent players logged-in with 4.5 million in the first 24 hours; outperforming Gears 5 back in September 2019. By the end of the first week, roughly 10 million players launched the title then.

In terms of other details for Xbox Game Pass, it was reported that the service was almost launched to be a separate ambition altogether. Initially when still codenamed Arches, Microsoft was investigating how to launch the subscription as a rental service. However, it later evolved into what we know today. Additionally, Xbox Game Pass previously repriced its monthly options to $10 in select regions. But, it is indicated that is not likely to hit North America anytime soon.

Recently, Xbox boss Phil Spencer when speaking to Axios explained that the service remains to be sustainable. In the past, Spencer has urged this when clarifying that more quality titles will not increase the price and we see now that the opposite for its pricing is acting out. Now, he iterates the service remains sustainable and Microsoft is not “burning cash”.

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. 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.

“I love to see it growing, because I see what it does to the diversity of games that people play and games that we can fund to go create. And I think that’s a very magical mix. But it’s growth is a part of Xbox.” Adding, “It’s not the only thing growing in Xbox. It’s not the only focus of the organization, and it, as a standalone thing, is very sustainable as we sits today, like just today. Its sustainable.

“I know there’s 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.” Most notably, Sony Interactive Entertainment President & CEO Jim Ryan even made this comment referring to “throwing money” for first-party success in a previous interview. You can read the full report by heading here.

What are your thoughts on the statement from Phil Spencer?

Source: Axios Gaming