Microsoft Invests $1B Annually in Third-Party Xbox Game Pass Titles

Phil Spencer sees their service as a place supporting "all kinds of games, from the biggest games to the unknown indie games".

Image credit: Rare, Sea of Thieves 2023 Edition

During a recent interview, Xbox's boss Phil Spencer shared that Microsoft invests more than $1 billion annually to bring third-party games to Xbox Game Pass. Despite the substantial cost, Xbox Game Pass is "financially viable" and profitable. According to Spencer, keeping players engaged on Xbox platforms is a significant victory for Microsoft.

"Because we have a platform, and we have a subscription service, having people play more and stay engaged on the platform, frankly, regardless of the types of games they're playing, is a very viable part of our strategy," said Spencer.

Spencer also stated that diverse business models allow them to invest in various types of content while still achieving financial success. "When we look at the back catalog of games from Bethesda, we get really excited. We look at the back catalog from Activision and Blizzard, we get really excited about the things we can do," he said, adding that the company is enthusiastic about the possibilities and opportunities that lie ahead.

According to Spencer, this reality will allow for investments in various types of games and game sizes. There is an internal understanding that not every Xbox Game Pass title has to be a time-consuming experience.

"What we see in Game Pass is a service that supports all kinds of games, from the biggest games, to the unknown indie games that you didn't know you would love until you played it," added Spencer.

Image credit: Bethesda, Starfield

Earlier, Spencer also shared that Starfield passed a new milestone of reaching 12 million people playing the game. He called the game "a tremendous hit".

You can find the original interview on Windows Central and join our 80 Level Talent platform and our Telegram channel, follow us on InstagramTwitter, and LinkedIn, where we share breakdowns, the latest news, awesome artworks, and more.

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