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Xbox will get more expensive, says Phil Spencer

Updated Dec 13th, 2022 4:24PM EST
Image: Microsoft

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Xbox Game Pass is one of the best deals in gaming and, according to Xbox boss Phil Spencer, the service is already profitable despite the recent growth decline on consoles.

As reported by The Verge, Spencer recently sat down with The Wall Street Journal’s Joanna Stern to talk all things Xbox at WSJ Live. During the conversation, the Microsoft executive said that he doesn’t expect Game Pass to make up more than 15% of Xbox’s revenue.

“Game Pass as an overall part of our content and services revenue is probably 15 percent. 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.”

Phil Spencer

Spencer also touched on the breakdown of Game Pass between Xbox and PC, as the company sells both versions of the service for both console and PC players or both for those who subscribe to Xbox Games Pass Ultimate. The Xbox boss said that “we’re seeing incredible growth on PC … On console, I’ve seen growth slow down, mainly because at some point you’ve reached everybody on console that wants to subscribe,”

Xbox could soon follow Sony with price hikes

A little while ago, PlayStation raised the price of PlayStation 5 consoles outside of the United States. While Xbox hasn’t made a similar move yet, Spencer says that the brand won’t be immune forever.

We’ve held price on our console, we’ve held price on games and our subscription. I don’t think we’ll be able to do that forever,” admits Spencer. “I do think at some point we’ll have to raise some prices on certain things, but going into this holiday we thought it was really important that we maintain the prices that we have.”

The news comes in the same week that the company also confirmed that Xbox Cloud Gaming had also passed twenty million users.

More coverage: Phil Spencer says Call of Duty will remain on PlayStation as long as it exists.

Joe Wituschek Tech News Contributor

Joe Wituschek is a Tech News Contributor for BGR.

With expertise in tech that spans over 10 years, Joe covers the technology industry's breaking news, opinion pieces and reviews.