Xbox Game Pass Tops 10 Million Subscribers, Xbox Hardware Revenue Drops 20% - Sales
by William D'Angelo , posted on 07 June 2020 / 3,152 Views
Microsoft CEO Satya Nadella in an earnings call with investors today announced there are over 10 million Xbox Game Pass subscribers.
Nadella said there were "record levels of engagement" as the number of monthly active users on Xbox Live nears 90 million. Microsoft's xCloud streaming service has "hundreds of thousands" of active users in the beta.
Microsoft announced Xbox hardware revenue was down 20 percent for the quarter ending March 31, 2020. The lower revenue was due to the price drops and sales on the Xbox One S and Xbox One X.
Overall, gaming revenue decreased one percent year-over-year, while Xbox content and services revenue was up by $33 million or two percent.
Revenue for the entire company increased 15 percent year-over-year to $35 billion. Microsoft reported the ongoing coronavirus (COVID-19) pandemic had a minimal impact on the company.
Thanks GamesIndustry.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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At best I thought Gamepass had a few million users, this is pretty amazing. I love the concept of Gamepass so this is good news. Buying a console is more appealing when you get instant access to much of the exclusives at a low price.
Wish Microsoft could actually give us sales figures
I would like that info but its not the full story. Many of us using Gamepass are unlikely to buy 1st party games as well. Hence, I would want to see both sales and unique users per game.
If MS manages to reach and maintain a 25-30 million GP users next-gen (which I think they can easily manage), they wil be in for a smooth sailing, regardless of how many promotions they make. This is why they regained confidence in the brand it seems. Good job :-)
I find that incredibly unlikely. Frankly, if they could maintain 10 million active subscriptions after promos dry up that would be an incredible revenue stream. That could easily fund several AAA games a year.
10 million I think is easily maintainable with the studios they have under their belt. Add in the fact that the PC version will grow as well, and there is no reason why it could not triple that number in the next 5 years. It's a great subscription deal. It won't do it instantly, that is for sure, but I doubt that people are not OK with what they are getting for their money.
10m GamePass subscibers? Thats $10 a month from 10m people (yes i know some have deals and long term plans) but still to be raking in 10m subs is a massive amount of income ontop of the Live subs.
Yes it is but MS has to pay for those games ,Phil said they have enough general revenue to cover GamePass losses while they grow the business and are confident it won't impact the division
@mjk45 - When it comes to 3rd party content, Sony has significantly more games on PS Now at a lower price. So I suspect licensing the 3rd party content is actually cheaper than some might assume. They only get a few major titles at once.
As far as 1st party content, that content still sells on its own and people subscribe for it primarily. Hence, I'm not sure how this would a be a lost for MS per se. Maybe the financial risk was allowing people to upgrade gold accounts to ultimate, but that's a good way to get people enjoying the service.
I'm only going on what Phil said was they new gamepass would lose money during the growth phase while they built up the subscription base but they have enough revenue to support it and their aim was always customers rather than big profits so they would see break even a success.
@Radek me too, however its not permanent. Even if half paid $1 thats $5m while the other half is $50m a month.
I got Game Pass recently due to the whole Covid-19 and having to stay home. must say that I find it to be a great value. A few triple A titles, a good chunk of solid games and tons of fun family games I can enjpy with my wife. Since my hardcore days are over its the perfect fit. And 10 mill users times an average pay of $10 a month = that's 1.2 billion a year. That's not chump change.
10 M! Woozzzaaahhhz!
Isn't 10m kinda low when you consider it's on pc as well and they're practically giving it (and their exclusives) away for free?
