Ever since the inception of Xbox Game Pass, many people have tried to speculate or guess the amount of cash Microsoft spends to keep the service stocked with great games. While all of Microsoft’s first-party catalogue now shows up on Game Pass day one, Microsoft has also been adding third-party heavy hitters like Expedition 33 to Xbox Game Pass at launch.
The addition of hotly anticipated third-party titles to Game Pass is great for the service, as it offers in-demand content to subscribers, but it raises some serious questions regarding the sustainability of the initiative. How much is Microsoft actually paying to secure big game launches for Xbox Game Pass? Is the amount actually sustainable over the long run?
A keen-eyed X user, Timur222, has noticed something interesting related to the Xbox Game Pass game costs in the LinkedIn profile of a recently fired Microsoft's Senior Business Development Manager. The individual, Iain MacIntyre, apparently “negotiated 500+ deals ranging from $50k to over $50m, securing both indie hits and AAA titles for Game Pass.”
So, it appears that Microsoft pays anywhere from $50,000 to an eye-watering $50 million or more to secure titles for Game Pass. However, this doesn’t mean that Game Pass is burning through Redmond’s cash, as the service is reportedly profitable.
What the purported per-title Game Pass cost points to is the difficulty of sustaining the current pace of acquisitions in the future. AAA game development is notoriously expensive and has gotten even more so in recent years. With an average AAA game now taking multiple years to complete and costing tens of millions, if not hundreds of millions, Microsoft will need to spend increasingly more money to get blockbuster games on Game Pass.
To tackle this, the company could increase Game Pass subscription pricing, which is looking likely as Xbox reportedly has to meet harsh financial targets, or prioritize putting indie/AA games on Game Pass over AAA deals. Whatever the case ends up being, one thing is quite clear: Xbox has a tough period to navigate in front of it.
Source(s)
Iain MacIntyre on LinkedIn, Timur222 on X, Windows Central, Teaser image: Xbox/Microsoft, JP Valery on Unsplash, edited