Xbox Game Passhas achieved a major revenue milestone. Launched in 2017, Game Pass has evolved from a repository for Microsoft’s most memorable classics to a powerhouse of video game distribution. Fromunderrated recent releasesto huge, day-one launches, Game Pass really has it all.
What This Means For Xbox
Game Pass' Revenue Milestone Is A Clear Signifier
This milestone means thatMicrosoft’s Game Pass gamble may still be paying off. Although it was initially hailed as one of the best deals in gaming, recent developments have suggested thatGame Pass might not be a sustainable modelfor Microsoft, or the gaming industry at large.
But Game Pass' continued growth suggests that it’s working out, at least for one party. While its long-term effects on the gaming industry have yet to be truly felt,Game Pass continues to make money for Microsoft- although it’s not clear how its revenue is offset by its operating costs.
That said, if nothing else, continued growth meansMicrosoft is likely to maintain the current Game Pass program for the foreseeable future. In other words, if it keeps making money, Game Pass isn’t going anywhere any time soon.
It’s Been An Interesting Year For Xbox
Huge Releases & Large-Scale Layoffs
This has been a complicated year for Xbox as a whole: although it reports record revenue and saw some of the biggest day-one releases of the year,Microsoft also laid off thousands of employees,including many within its gaming division.
This leftabout 4% of Microsoft’s total workforce out of a job. It also led to the cancellation of several games, including Rare’sEverwild, and thePerfect Darkreboot. It also followed the closures of several Microsoft-owned studios last year: Tango Gameworks, Arkane Austin, Alpha Dogs, and Roundhouse Games.
So really, Microsoft Gaming’s growth is complicated: while it led to record revenue, it also came at the cost of many developers' jobs. But that revenue meansGame Passis here to stay, so we’ll see what kind of effect it has on the industry this year.
