Xbox Game Pass isn’t growing as fast as Microsoft anticipated

Game Pass subscription goals fell short of Microsoft’s company goals, according to a new financial presentation from the tech giant. According to a report from Axios, Microsoft targeted a 73% gross rate for Game Pass during the last fiscal year, which ended June 30, 2022. Instead, the service grew 28%.

These goals are tied to Microsoft CEO Satya Nadella’s salary. The company also failed to hit a similar marker in fiscal 2021. However, in fiscal 2020, Game Pass subscriptions exceeded expectations. Other targets that would impact CEO salary include Microsoft Cloud revenue, Teams usage, and LinkedIn sessions. Overall, Nadella was paid $55 million in stock and cash.

At the Wall Street Journal Tech Life Event, Microsoft Gaming CEO Phil Spencer said Game Pass is profitable and PC subscriptions are seeing strong growth, though console subscriptions are slowing. He also alluded to possible price increases after the holiday season. Xbox Game Pass is currently $9.99 a month for PC or Console. Game Pass Ultimate, at $14.99 per month, is a bundle that includes the game pass for PC and console, as well as Xbox Live Gold. Microsoft does not publish any sales data related to Game Pass. However, he announced in January 2022 that the service had reached 25 million subscriptions.

The market power of Game Pass has been a key part of Sony’s objections to Microsoft’s ongoing acquisition of Activision Blizzard. The UK Competition and Markets Authority echoed Sony’s concerns, leading to a counter statement from Microsoft. Last week, an anonymous shareholder sold a large amount of Activision Blizzard stock, reflecting a possible lack of confidence that the deal would go through.

See also  Fortnite: EvoChrome Burst Rifle Stats, Tips & Location

The products discussed here were independently chosen by our editors. GameSpot may get a portion of the proceeds if you purchase something featured on our site.

Related Posts

listen: chela shares new cool 2b queer remix

LISTEN: Chela Shares New Cool 2B Queer Remix

Following the release of the popular anthem ‘Cool 2B Queer’ in October, Chela released a remix featuring American pop sensation Shamir. The remix comes just as we…

the timing of james gunn's massive dcu announcement has apparently

The timing of James Gunn’s massive DCU announcement has apparently been revealed

Image via Warner Bros Animation James Gunn and Peter Safran certainly caused quite a stir in late 2022 when they publicly hinted at a full DCU reboot,…

Random: GoldenEye 007 composer thinks the “Old Team” would have done a better job of emulating

Image: Nintendo A gaming miracle was accomplished last week with the release of GoldenEye 007 on Nintendo Switch and Xbox. As awesome as it is to bring…

nintendo switch sales: this nice pack with an excellent free

Nintendo Switch sales: This nice pack with an excellent free game is still available

News good plan Nintendo Switch sales: This nice pack with an excellent free game is still available Published on 01/31/2023 at 08:00 To share : It’s a…

dead space remake collectibles guide: chapter 4 imminent obliteration

Dead Space Remake Collectibles Guide: Chapter 4 Imminent Obliteration

chapter four of dead space remake, Obliteration Imminent, has more collectibles to collect that expand on the lore of the game and the background of the tragedy…

hell yes, dood! disgaea 7 gets a western release for

Hell yes, Dood! Disgaea 7 Gets a Western Release for Switch This Fall

The Japanese version was released last week. Following confirmation of a Japanese release, Nintendo and NIS America have officially announced that Disgaea 7: Vows of the Virtueless…

Leave a Reply

Your email address will not be published. Required fields are marked *