Microsoft isn’t very forthcoming when it comes to revealing stats and figures regarding its gaming divisions. The company has yet to reveal its sales for the Xbox Series X/S and even the exact number of Xbox Game Pass subscribers. While many seem to think it isn’t important to know these figures, the knowledge of a company’s growth is quite an important factor when it comes to investment opportunities.
Thankfully, due to all the regulator appeals taking place at Microsoft over the Activision purchase, Xbox was forced to release previously-undisclosed information regarding the company’s Xbox Game Pass service. According to that data, Xbox Game Pass generated $2.9 billion in the fiscal year ending in January 2021. This covers the months of 2020 leading into 2021.
Microsoft’s annual Xbox revenue also reported $16.28 billion which means that Xbox Game Pass only makes up 18% of the company’s revenue stream. The service is also only 30% of the company’s games and services revenue which was $12.581 in 2021.
Keep in mind that this $2.9 billion revenue for Xbox Game Pass only covers console subscriptions and doesn’t include PC. This number could be a bit higher if you include the PC market that subscribes to the service.
The last time we heard, Microsoft has 25 million Xbox Game Pass subscribers. This figure is from this year’s reporting. However, last year this number was sitting at 18 million when the revenue was at $2.9 billion. Given the new jump in subscribers, I would say Xbox Game Pass would now make up at least 25% of Microsoft’s gaming revenue stream.
As mentioned, while this is the first time we have seen the exact number that Xbox Game Pass brings in, the figure doesn’t give us any information as to where it comes from. We don’t know if this $2.9 billion is only from subscribers or if it includes DLC purchases and microtransactions. It would be interesting to see what portion of this figure comes from DLC given that most games on the service don’t include DLC as part of the Xbox Game Pass service.