According to Microsoft Gaming CEO Phil Spencer, Xbox Game Pass is profitable already as a business, though the executive did not share any other details about the economics of the service or the accounting for it.
Speaking at The Wall Street Journal’s Tech Live event attended by The Verge, Spencer said Game Pass is “profitable for us,” adding that Game Pass makes up 10-15% of the Xbox content and services revenue. Just how Microsoft did the math to determine that Xbox Game Pass is turning a profit remains to be seen.
“Game Pass as an overall part of our content and services revenue is probably 15 percent,” Spencer said. “I don’t think it gets bigger than that. I think the overall revenue grows so 15 percent of a bigger number, but we don’t have this future where I think 50–70 percent of our revenue comes from subscriptions.”