“Not the Only Focus”- Phil Spencer Seemingly Admits Game Pass Is Not Profitable But Neither Is Xbox Console

Published 11/17/2021, 10:39 AM EST

Xbox Game Pass subscription is one of the best gaming services, but it’s not quite profitable, just like the Xbox consoles. Phil Spencer shared that the Game Pass service is very sustainable. However, sustainable doesn’t mean profitable. Phil Spencer is the vice president of the gaming division in Microsoft.

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On 15th Nov 2021, Stephen Totilo, who is a video game journalist for Axios, interviewed Phil Spencer. He asked some questions about the Xbox Game Pass and its sustainability, to which Phil replied that it’s sustainable right now.

Moreover, not always are business ventures like these meant to turn in profits in the short run, but are supposed to offer a huge return in the long run.

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Spencer, when asked about the Game Pass service and the low prices of the games on the platform, he said:

“Yeah. I mean, you could do the math on Game Pass. I guess you don’t know how many subscribers or how much each subscriber is paying, but you can make some fairly informed decisions and literally just do the math on what we think Game Pass could eventually be–you could do that on any part of the business. But absolutely, Game Pass is sustainable.”

He also added that the Game Pass isn’t their sole focus. “It’s not the only thing that’s growing in Xbox. It’s not the only focus of the organization.”

Spencer, throughout the entire interview, repeated the word “sustainable” a lot of times. However, sustainability is not equal to profitability. This means the Game Pass somehow manages to break even. Maybe the company does not earn profits or suffer losses.

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Xbox Consoles not exactly as profitable as people tend to think

Just a few months back, Lori Wright confirmed that Xbox consoles have never offered much in the way of profit to the company. Lori Wright is the vice president of Xbox business development. And to most people, it’s very surprising that the consoles have never produced a profit since the birth of the first Xbox console.

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Lori shared that the company sells these consoles at a loss to gain new customers and then the actual money comes from the video games and the game pass services.

Comment down and let us know what do you think about the game pass service?

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Swetabh Shekhar

606 articles

Swetabh Shekhar is an eSports author at EssentiallySports and holds a Master's degree in Mass Communication. He has been playing video games since his childhood days and has witnessed the evolution of the gaming industry. GTA, Assassins Creed, Call of Duty, and The Walking Dead are some of his all-time favorites.

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