Phil Spencer Says Game Pass Is A Sustainable Business Model For Microsoft

The head of Xbox says the service isn’t just a money pit.

Posted By | On 07th, Jan. 2020 Under News


One of the biggest things that Microsoft has done this generation of consoles is launch the Game Pass service. For only $9.99 per month (though there’s been tons of $1 for three months giveaways and similar promotions), you can get access to a vast catalog of games, including all of Microsoft’s first party titles, all of which launch on the service day and date. The service will also continue on into the next generation of consoles that’s coming up upon us, and all other devices Microsoft will produce in the future. But how sustainable is the service on such a small price tag? Well, Phil Spencer, had of Xbox, seems to think it’s very sustainable.

Speaking to Stevivor, Spencer addressed concerns that some have that Microsoft’s plan is to bolster as much subscriptions as possible and then jack up the price. He dismissed that concern, saying that Game Pass is sustainable, and as of right now there’s no plans for a drastic price hike, nor is the service the money pit many assume it is.

“I know some people — I’ve seen it — some people say, ‘Oh, they’re just kind of burning money left and right in order to gain customers so they can trick you into raising the price later,'” he said. “There’s no model like that, for us. We feel good in the business that we’re running now. We’re definitely investing in it, but not investing in a way that’s unsustainable. We’ll do promotional deals and stuff — any service will, but it’s a business and it’s a business that does well.”

While it’s a comforting thought, of course, it stands to reason that eventually the price of the service will have to go up, and you can’t help but wonder about some of this, considering how Microsoft still is cagey about how many subscribers the service has. So, it’s hard to gauge just how true this will be. For now, though, the price is pretty great- so enjoy it, I guess?

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