Game Pass seems to have missed its sales target for the third year running

Xbox growth continues to disappoint, and interfere with its exec's pay bonuses, as Microsoft's CEO stops counting Game Pass entirely.

[-Foxtrot]

Puts things into perspective when Spiderman 2 managed to sell 2.5 million copies in 24 hours only on the PS5, a single platform.

[Gamingsince1981]

Gamepass will never hit the growth they want, its just not a thing the majority of gamers have interest in, it goes to show a console with good games will sell well, that's all you need.

[Christopher]

I would honestly be careful saying 'never' when Microsoft just spent $80b more on top of their billions from before to make this happen. They'll spend over $100b more if they can control the gaming market and turn it to all digital and relying on their hardware for others to even compete.

[bobtheimpaler]

@Christopher they can't just burn money. Investors have been wanting them to ditch their Xbox division for years for poor performance.

It's the division destroying destroying shareholder value.

[neutralgamer1992]

Chris

MS have Better odds of winning the powerball than go buy another big publisher. This boat has sailed and they will buy smaller independent studios but that’s it for them publishers wise

They will literally do the complete opposite of what they were telling the regulators before the acquisition

On topic:

Gamepass isn’t sustainable no matter what the cult of Xbox fanboys will say. It will never reach 100 million and by 2030 MS will be a 3rd party publisher in gaming. They have put their eggs in the wrong basket just like when they backed HD DVD

Ms investors have been wanting them to sell Xbox brand for a while and if spending almost 100 billion won’t resolve anything than this is IT for Xbox. It is kind of funny and sad that the so called savior of Xbox Phil himself would have saved the Xbox brand (according to Xbox fans) and killed it after spending 100 billion

[blitz0623]

It sounds like MS set unrealistic expectations which lines up with how out of touch they are with gaming. I wonder what their targets will now be after the Activision acquisition

[Godmars290]

@neutralgamer1992:
"This boat has sailed and they will buy smaller independent studios but that’s it for them publishers wise"

MS doesn't do that. They tend to buy troubled studios with well known IPs, which should be the biggest red flag that their approach is all wrong.

For instance, their involvement with HD-DVD was more about preventing BR from continuing the dominance of physical media, to allow streaming to take over, and yet for such destructive and disruptive effort, they gained little to nothing of direct value or investment.

Well, aside from licensing fees from menu formats for BR. But again that's nothing "direct".

@blitz0623:
"It sounds like MS set unrealistic expectations which lines up with how out of touch they are with gaming."

They seem to be out of touch with reality in general.

[MrBaskerville]

I do think there's interest. But 100 million subscribers is a very optimistic target.

[Ninver]

Without review manipulation tactics either.

[The3faces]

That 2.5 million copies includes early pre orders and console bundles. Out of 45 million PS5 users 2.5 really isn't impressive. As you said just putting things in perspective.

[mkis007]

While games dont sell their whole load on day 1. It would be remarkable for any game to get a 50% or more attach rate. Heck a 30 percent attach rate is crazy. Its potential is high regardless, the spiderman series on playstation alone sold 33 million before the windows release.

[Chevalier]

Which Xbox 1st party in the last 15 years has matched Playstations records sales?! Oh right NONE. if it's so easy than how come Xbox can't even pull it off in the last 15 years or so?

Plus the first game started slower and has sold over 30 million copies. Again NO Xbox game has even come close to those numbers

[MrDead]

...so does this mean MS will punish gamers even more now by taking away even more multiplatform publishers to try and make this turd a viable service model? They have proven over the last two and a half generations to be totally creatively bankrupt to bring anything new to gaming and all they do now is take.

[Rude-ro]

Microsoft will flood gamepass with the ips from their acquisitions to see if there is growth due to their investment first.
They will also want to see how foolish said players will be with seasons and micro transactions in games inside said subscription service.
This will take a solid year to incorporate and digest the info.

[darthv72]

Missed the goal but still showed growth.
Dom: It dont matter if you grow by a point or a percent... growing is growing.

[Jin_Sakai]

Except revenue was down from last year.

[gold_drake]

so by your analogy, less loss, is a plus lol

[Hofstaderman]

Imagine theres still miniscule growth after call of duty is on gamepass? That would be hilarious.

[Terry_B]

No wonder.

[ModsDoBetter]

As much as I absolutely hate the way things are going with subscription models. The only way I see Microsoft getting the numbers they want is by pulling out of the console market and making a universal GamePass app with some sort of deal with Sony - similar to Ubisoft+, where Xbox studios games can be played.

As much as that probably won't happen, it seems like the only way they'll reach the numbers they want because let's be honest, there's at least one game every PS fan would like to try on Xbox, but don't want to fork out the money for the console.

[Mr_cheese]

Personally don't want tontry a single game, but 100% will when Elder Scrolls drops.

Bethesda was the biggest dagger acquisition for me

[FinalFantasyFanatic]

I actually can't think of an Xbox game tbh, unless we're counting previous generations, then I'd like Lost Odyssey or Blue Dragon, everything else is pretty much on PC.

[Kuklygamer]

Its is incredible value for the money, no denying that. Microsoft points can further reduce/neglate the cost. For PC gamepass+EAPlayPro combo is superb. Play every EA related game premium version early. All the sport/driving games, Jedi survivor, dead space remake, immortal of aveum, crysis remasters etc. For gamepass this year have been epic game/cost ratio. So many triple A games even hard to remember them all. Atomic heart,Lies of PI ghostwire, deathloop, like a dragon games, cities skyline, starfield, forza horizon and motorsport games, all halo and gears games, hifi rush, hitman remaster collections, newest amnesia games,plague tales, valheim,flight simulator and so many more top indie and triple A games. For sure the gamepass is money well spent.

I dont understand all the hate/envy for GP it have amazing value for PC and Xbox gamers. And with new mega studios is only get better and better. Im a fan of subscription and digital sales services as g2a.com for pc. Money much better spent than buying 79e single games. Red dead 2 was like 16€ in g2a.com. cyberpunk with phantom liberty 60€ vs steep ps store prices. Gamepass is one excellent tool for aquiring games. Starfield alone im 60hours in and barely started the game just finnished building my first own custom ship and its epic. Then theres classics like red alert 2 remaster, age of empires remasters etc.

[CantThinkOfAUsername]

G2A is a money laundering platform that sells keys as a front. Not something to brag about.

[Hoaxone845]

Put big games only on gamepass and you might hit those goals but fall short in others. Or add incentives in game for playing the gamepass version.

[Futureshark]

"Although Microsoft only rarely reveals subscription numbers for Game Pass, for the past two years it’s missed growth targets by a considerable margin, causing Xbox boss Phil Spencer to miss out on his company bonus.

Nadella’s bonuses were also tied into it, as an indication of general Xbox growth, but this year the KPI (key performance indicator) has been removed, implying that the targets have been missed again."

SN - "What you mean we missed the Game Pass KPI again??!!?? But what about my private yacht I'm about to buy? You promised me Spencer, we'd spend $69 billion and then all would be good.
Stuff it, I'm not losing my bonus again because of your empty promises, yachts don't buy themselves you know.
Remove the Gamepass KPI from the report, I'm having that yacht this time whatever."

[Crows90]

It's simply fascinating to see so many IP now belong to a company that had nothing to do with them.

Geez...they're really throwing money at their problem and seeing what sticks.

[ChasterMies]

Good. I look at streaming services like Netflix and and the ever upward movement in pricing and relentless addition of ads and it looks like we are reverting the same shitshow we had with cable TV. I really don’t want that kind of monopoly over game. The way to prevent that future is simple: don’t subscribe.

[Barlos]

Roll on 2027. Bye Xbox. DO let the door hit you on the way out.

[Soulsborne]

Clowns in green.

[anast]

Xbox is the generic console brand.

[jznrpg]

Shocker

[gold_drake]

regardless of the numbers ..

how does Phil still have a job? this is the third year they underperformed. and hes still on the top lol.
does he frequently do "favors" to the MS top men? lool.

[UltimateOwnage]

This is good news for the industry. Not such good news for MS who has bet the farm and said $70Bn acquisitions to juice subs to this throwaway service.

[glennhkboy]

Because XBox needs to book the extra expense relating to ABK deal: extra legal expense, extra PR expense, lobbying expense. Next year will show the true profit of XBox division without all those extra expense.