Bloomberg has just published a big report dedicated to Microsoft and Xbox, revealing some very interesting information about the video game company and some of the ecosystems within it, not least Xbox Game Pass. The subscription service is Xbox’s core product, as we all know, and of course supporting it has its own costs.
What’s the figure? The report also talks about this and it is certainly not a small thing.
The amount Microsoft spends on Xbox Game Pass each year
In the report written by Bloomberg, it is stated that Microsoft spends $1 billion a year to bring third-party games into the Game Pass ecosystem. “Game Pass has also been a major adjustment for publishers. To sweeten the deal, Microsoft is now spending $1 billion a year to bring third-party games into the subscription service.”
“The generosity was more than enough to win over small publishers, offering them flat fees of millions of dollars up front to include their titles, along with a share of the subscription revenue and the promise of exposure they couldn’t count on getting otherwise.”
Since we are talking about third-party spending, we also need to consider the first party gaming related expenses that have been coming to Game Pass for years since launch on every level of the subscription (while now they will only be present in Xbox Game Pass Ultimate). It’s also unclear whether this billion also includes the expenses incurred by Microsoft for the inclusion of Ubisoft Connect and EA Play in the service.
Luckily for users, the subscription doesn’t cost a billion a year, especially if they take advantage of the three-month promotion of Xbox Game Pass Ultimate at the lowest price offered by Instant Gaming.
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