A recent revelation in the ongoing FTC lawsuit has shed light on the immense profitability of Microsoft’s Xbox business. In April 2022, Microsoft made a significant amount of revenue, earning around $9.26 per subscription. This translates to approximately $231.5 million in revenue for that month alone.
The success of their Game Pass subscription service plays a crucial role in this impressive revenue figure. Microsoft is estimated to have had 25 million Game Pass subscribers in January 2022, with an additional 3.1 million specifically for the PC Game Pass tier. The $9.26 revenue per subscriber aligns closely with the $9.99 monthly cost of the PC Game Pass tier.
This disclosure unveils the financial strength of Microsoft’s Xbox business, despite being ranked as the third-largest game console company in the industry. The company has traditionally been secretive about their sales and profit numbers, making these figures all the more fascinating.
Although April 2022 may not have been a standout month for Xbox, the previous month saw several major game releases, including titles like Weird West, Tropico 6, Tiny Tina’s Wonderlands, WWE 2K22, and Stranger of Paradise: Final Fantasy Origin. Additionally, Grand Theft Auto V became available on the Xbox Series X|S consoles, further contributing to Xbox’s success.
Interestingly, Game Pass’ achievement cannot be solely attributed to the inclusion of Grand Theft Auto V, as the game was not available on launch day for Xbox Series X|S. Instead, Microsoft’s understanding of consumer behavior seems to have played a significant role in Game Pass’ popularity.
Game Pass offers subscribers access to a vast library of games at a fraction of the cost of purchasing individual titles. With the recent addition of highly anticipated games like Starfield, the service has become even more appealing to gamers.
Source: Tweaktown
Definitions:
FTC – Federal Trade Commission
Game Pass – Microsoft’s subscription service that provides access to a large library of games
