Xbox Game Pass: Microsoft paid developers “hundreds of millions”

Xbox Game Pass: Microsoft paid developers “hundreds of millions”

Microsoft shared new numbers that talk about the Xbox economy and how much money developers get to release games through Game Pass and stuff [email protected] This is remarkable because Microsoft rarely reveals dollar amounts for specific Xbox units, as in this case Game Pass and [email protected]

In a blog post, Microsoft’s Chris Charla said Microsoft has paid developers and publishers “hundreds of millions of dollars” in Game Pass licensing fees since the subscription service launched in 2017. “There are great games on Xbox (and other platforms) today! ), which would never have existed without the support of Game Pass participants, and this is truly an incredible phenomenon,” said Charla. “Giving millions of Game Pass members access to some of the best independent games ever made has made a huge difference to Xbox players and developers.”

Game Pass has over 25 million subscribers. After a low initial bid, the service will cost $10 per month or $15 per month for Game Pass Ultimate. With 25 million subscribers, Game Pass undoubtedly brings in a lot of money for Microsoft, but the service has not been without its opponents. Some wonder if the subscription-based model is really good for games in general. For his part, Xbox boss Phil Spencer recently spoke about the fact that Game Pass isn’t trying to replace other release models, such as the traditional retail model or free games, among other categories. They could all coexist, Spencer said, but it remains to be seen how it all turns out in the end.

Microsoft has historically avoided sharing specifics about the Xbox Game Pass economy, so the disclosure of “hundreds of millions of dollars” paid in licensing fees is noteworthy. However, this is vague and does not answer the question of whether the Game Pass makes a profit.

Spencer recently said that Game Pass is already “very resilient”. In his vague statement, Spencer didn’t say how durable the service is or who it’s sustainable for, but he wants to debunk the narrative that Game Pass is now a money pit. “I know there are a lot of people who like to write, ‘We are now burning money for a future pot of gold at the end.’ No. Game Pass is very, very resilient right now and continues to grow,” Spencer said.

If Microsoft paid developers “hundreds of millions” for Game Pass license fees, then Microsoft’s share of the platform will also be significant, although the specific amount will not be disclosed.

As regards [email protected]Microsoft’s independent game publishing program, Charla announced that it has paid more than $2.5 billion in royalties to independent developers since the program’s debut, and the total revenue of [email protected] partners through Xbox has “almost doubled” compared to last year. “for the past three years,” Charla said.

[email protected] was announced in 2013, and Charla said that when the program was originally introduced, Microsoft “really didn’t know much”. According to Charla, the company listened to the developers and gathered their feedback about their wants and needs.

“For example, innovations like cross-play on other consoles came directly from [email protected] partner. Based on their feedback and requests, we made many changes to our publishing server systems and even to our application structure,” said Charla. “These changes may seem mundane, but they are very important as we strive to give independent developers the ability to easily release their games for Xbox and PC.”

[email protected]’s results “exceeded our wildest dreams,” Charla said.

Microsoft also reported that more than 4,600 developers from 94 countries have signed up for the [email protected] program and more than 1,000 developers have signed up in the past two years.

The [email protected] program currently has more than 3,000 games in its catalog, and Charla said Xbox has the same problem as Steam, which is “discoverability”.

“Teams at Microsoft work every day to solve search problems so that players can find games they like and in turn help developers find an audience for their games. …We are always looking for ways to connect creators with new audiences,” says Charla.

With a library of about 3,000 games on ID @Xbox and payments to developers in the amount of $2.5 billion, it turns out to be about $830,000 per game. There’s no question that some games have delivered a lot more than this average, and others considerably less, but Microsoft has not provided additional context.

Xbox is doing great right now, Microsoft recently reported that Xbox had the best year of all time in terms of sales.


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