Xbox Marketing Boss Aaron Greenberg was asked if Xbox Game Pass is making any profits for the company. Aaron replied, saying we always laugh about it, but on a serious note. He added that it is a long term investment.
“We always kinda laugh, we just [say], ‘Listen, please don’t worry about us. Microsoft is gonna be alright,’” Greenberg laughingly said.
“It’s a different mindset, because if you do optimise for profit… you can either say, “How do we get as much profit out of each customer?’ Or, do you pivot that [to its] opposite and say, ‘How do we add as much value to our fans, how can we actually over-deliver on value?’” he pointed out. “And if you do that, you build fans for life.”
Its highly understandable, why he said Long term because Xbox Game Pass is sorta new and they do not have a huge number of customers. It’ll take the time to let say more than 20 million active users per month, and then they make huge profits. Right now it seems, they are only paying to the developers for the new games.
“Ultimately, we think long term that’s the right thing for the business, and will have long-term benefits for us. But, in the short term, yeah, it’s not a big profit play.”
If you don’t know, Well Xbox Game Pass is a membership offered by Microsoft. The membership comes in three editions, and each of them has equal benefits. What it does is quite simple.
Xbox Game Pass allows you to play games from a library of 100 games. These games can be played until the player’s membership is over. Usually, it is a month for $9.9 on PC and Xbox separately. The Xbox Game Pass is doing quite well, and players on both PC’s and Xbox are quite happy. The most important feature in my opinion is that you can get access to the latest Xbox first-party titles on day 1.