The latest subscriber count was found buried in a Securities and Exchange Commission deposit marking the end of the fiscal year. According to the 97-page document, Game Pass subscriptions have made their way onto Microsoft’s list of top priorities, joining the ranks of LinkedIn, revenue from Surface sales and revenue generated by Azure, Microsoft’s suite of commercial cloud services. Microsoft.
Game Pass’ impressive number of subscribers might seem like a win, but it was considered a mistake, at least when it comes to its subscription prices. In June 2020, Microsoft set a Game Pass growth target of 48%, hoping a slew of new titles would lure gamers towards its sales targets. (Company executives had only just begun paying close attention to Game Pass numbers in 2019, when they decided the service’s success would impact their stock payout plans.) But in June 2021, his subscriber base had “only” extended 37% year-over-year: a failure, despite what some might otherwise consider a reasonably healthy growth rate. Microsoft had just reached 18 million subscribers a few months earlier.
Microsoft had hoped its acquisition of ZeniMax Media (which itself owned Bethesda Game Studios, Arcane Studios and other game developers) in early 2021 would boost its Game Pass subscriber base. The acquisition allowed Microsoft to add 20 iconic ZeniMax titles to Game Pass, including the Elder Scrolls series, Fallout, and Wolfenstein, among others and in addition to titles developed by Microsoft itself. But the impact of the new additions on the total number of Game Pass subscriptions hasn’t lived up to the hype, and Microsoft has recommitted to growing the service’s customer base this year.
Of course, news of Game Pass’s notable subscription count is easily overshadowed by Microsoft’s. bid for Activision Blizzard just yesterday. However, many believe that Blizzard’s absorption could lead to even greater Game Pass growth, once the disgraced developer’s titles start hitting Xbox’s subscription service. The nearly $70 billion deal could quickly lead to the addition of World of Warcraft, Call of Duty, Overwatch and other long-term hits to Game Pass, further enticing (or retaining) customers who were previously hesitant to pay $10-15 a year. months for the service.
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