As the industry shines a bigger spotlight onXbox Game Pass, Microsoft is under pressure to deliver revenue through subscriptions to the popular service rather than software sales. It’s a strategy that’s a win for consumers, allowing them access to every first-party Microsoft game on day one rather than spending $70 every time they want to play a new game.
Skeptics, however, have expressed concern about Game Pass' viability. Is Microsoft making money from these subscriptions? Or are they seeing profits being flushed down the drain?
On theirrecent earnings call, they did give some good news.
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Microsoft Expects Continued Growth On The Back of Xbox Game Pass
2025 is a big year for the Xbox brand, with several marquee titles set for release. Last week, the Developer_Direct highlighted the return of theNinja Gaidenfranchise and confirmed release dates forDOOM: The Dark Ages,Clair Obscur: Expedition 33, andSouth of Midnight.Avowed, the anticipated Obsidian RPG is set to release next month as well.
There’s a lot of reason for optimism, and Microsoft CFO Amy Hood agrees.
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On the recent earnings call, Hood says that Microsoft expects “Xbox content and services revenue growth to be in the low to mid-single digits driven by first-party content as well as Xbox Game Pass.” This comes from a 2% increase in revenue for Xbox content and services, which was ahead of expectations. However, this growth was offset by hardware declines, which Hood and Microsoft expect to continue this year.
Xbox Game Pass
