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Phil Spencer Reveals How The Xbox Game Pass Business Model Works

Phil Spencer has revealed a lot more about the inside workings of Xbox Game Pass in a new interview.

Game Pass is the best subscription service for gamers right now. Instant access to a huge library of hundreds of games seems almost too good to be true for such a small fee, yet Xbox delivers and continues to improve the service.

As new AAA games retail for around $70, The real question is, how does Microsoft actually make money from Game Pass?

Luckily, Xbox boss Phil Spencer has revealed some of the secrets behind Game Pass in a new interview with IGN.

Read More: New Mind-Blowing IP Coming to Xbox Game Pass

xbox game pass

How Does Game Pass Make Money?

In the interview, Phil Spencer revealed that the way Game Pass makes money is very simple, from subscriptions. He confirmed that the service is making a profit right now, so the money coming in through subscriptions will be more than what Xbox pays to get games on Game Pass.

While Xbox continues to acquire more game developers, this business model also works well for the third-party developers too, as many studios continue to return to Game Pass to put their new games on it.

Read More: Everything Coming to Xbox Game Pass in 2021 & Beyond


Despite this, money isn’t the main way Xbox measures success. Phil Spencer also said that Microsoft doesn’t look at how much money gamers have saved by being a Game Pass subscriber in comparison to how much they would have spent to buy the game new.

Instead, Xbox primarily measures business growth with player engagement. He said:

“The number 1 metric we can look at to see if our business is growing is ‘are people playing more on the platform?’.”

Phil Spencer

Game Pass has had a huge impact on player engagement on Xbox consoles. Gamers are playing more and also a wider range of games too.

In this in-depth interview Spencer also revealed a load more details about the console shortage and Xbox One support too:

Halo Infinite

In Xbox news other than Game Pass, the future of the Halo franchise has been revealed. Although, players are still busy dissecting the Halo Infinite trailer. This has revealed a huge graphical leap between Halo Infinite in 2020 vs Halo Infinite in 2021.

Finally, Xbox is now an official partner of Battlefield 2042. What will this mean for the highly anticipated game?

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