The Xbox brand is in a nebulous state right now, branching out to other platforms, but Game Pass remains a stable source of revenue for Microsoft. Despite its great value, Microsoft Gaming CEO Phil Spencer believes it’s designed as an option rather than a necessity for gamers.
In a recent interview with Variety, Spencer stated, “For me, I look at Game Pass as a healthy option for certain people. It’s not for everybody. If you play one or two games a year, Game Pass probably isn’t the right business model for you, you should just buy those two games, and that would make total sense. But I want you to have the choice.”
He emphasized that Game Pass is one of several models available to players, alongside traditional purchases and free-to-play options. “I’ve always thought about Game Pass as just another option for somebody who wants to play. We have many business models for people playing from free to play, buying games, discounted games, Game Pass is an option,” Spencer explained.
Spencer acknowledged that while console sales are stable, they are not a growing segment for Microsoft. This has led the company to invest more in PC and cloud gaming to reach a broader audience.
“Our biggest areas of growth right now are PC and Cloud, which makes sense, since consoles, all up, are a good business. They’re an established business, but they’re not really a growing segment in gaming. So, we’ve got good growth on PC, and we’ve got growth on Cloud, in terms of users and hours.
“And console continues to be a really healthy part of Game Pass. But there isn’t a unique need for Game Pass to be the only way for people to play. If everybody who’s a Game Pass subscriber instead decided to buy their games, that’s good for the business as well,” he added.
In a related report, Spencer has pledged his support for the Switch 2, thereby continuing Microsoft’s strategy of bringing its games to third-party platforms.
