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

Phil-Spencer

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?


Keep On Reading!

Resident Evil 5 and 6 Remakes Sound Easy – Until You Think About It

Resident Evil 5 and 6 Remakes Sound Easy – Until You Think About It

With Resident Evil’s remakes doing as well as they have alongside a new mainline entry in Requiem, you might...

Call of Duty: Modern Warfare 4 Ad Claims it is “Not on Xbox Game Pass This Year”

Call of Duty: Modern Warfare 4 Ad Claims it is “Not on Xbox Game Pass This Year”

The ad, which has since been removed from Meta's Ad Library, wanted to promote pre-orders by mentioning the la...

GTA 6 Is Turning Basic Game Ownership Into a Big Deal

GTA 6 Is Turning Basic Game Ownership Into a Big Deal

The physical and resale market for games has declined over the years. So why is GTA 6's lack of a disc causing...

Grand Theft Auto 6 Pre-Orders Top PS5 Sales Charts Across All Regions

Grand Theft Auto 6 Pre-Orders Top PS5 Sales Charts Across All Regions

The $100 Ultimate Edition of GTA 6 has proven to be quite popular, with every region opting to buy it over the...

Xbox’s Layoffs And Studio Closures to Begin on July 6th, Might Be Biggest Layoffs in Gaming – Rumor

Xbox’s Layoffs And Studio Closures to Begin on July 6th, Might Be Biggest Layoffs in Gaming – Rumor

According to 3D Realms and Apogee co-founder George Broussard, a large number of Xbox studios are going to be ...

Koei Tecmo is Working on a New Action Game IP Codenamed Fuji – Rumor

Koei Tecmo is Working on a New Action Game IP Codenamed Fuji – Rumor

The project's existence was discovered on the website for Japan's Ministry of Economy, Trade, and Industry's I...