Retail Is Still An “Important Part” Of Our Business – Says Head of Xbox Phil Spencer

In a recent interview featured in GDC, head of Xbox Phil Spencer talks about how putting games on Xbox Game Pass isn't the only viable way to do business on the platform.

Posted By | On 23rd, Mar. 2022

Phil-Spencer

In a recent interview with Xbox exec Sarah Bond during GDC 2022 (check out full video down below), head of Xbox Phil Spencer talked about one of the most frequently asked questions he receives from developers about putting their games on Xbox Game Pass. During the interview, Spencer also talked about how retail sales remain an important part of the Xbox business.

Spencer clarified that there is no one size fits all needs approach when it comes to business models, so if a developer doesn’t want to put its games on Xbox Game Pass – it doesn’t mean that those games wouldn’t be profitable or viable for business. He backs it up by talking about how retail sales are an important part of the Xbox profit and loss statement.

“I also want to make clear to people that are out there that for us at Xbox, there’s not one business model that we think is going to win,” he said (as transcribed by VGC). “I often get asked by developers, ‘if I’m not in the subscription am I just not viable on Xbox anymore?’ and it’s absolutely not true.”

“Like we look at retail of people selling games, buying games, it’s an important part of our P&L [profit and loss statement], you know that. And it’s something that we invest resources in to enable our developers to do great work there.”

Xbox Game Pass has been a smash hit for Microsoft, so much so that it’s easily the biggest advantage the Redmond-giant has over the immediate competition. The subscription service has amassed over 25 million subscribers, and with an influx of high-profile releases in the coming days – Xbox Game Pass is showing no signs of slowing down.


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