Xbox Game Pass is a pretty sweet deal for gamers, especially if you don’t want to buy a console or gaming PC. The subscription library is basically the easiest way to get access to a huge amount of titles for a fairly low monthly charge, Netflix-style, and streaming options make them accessible on devices from a laptop to a VR headset. But how much is Microsoft spending on those games?
A lot, clearly. The company has spent upwards of one hundred billion dollars over the last few years, gobbling up developers and publishers across the industry, most notably Activision-Blizzard, Bethesda, and Minecraft maker Mojang. All of those purchases bolster the game and streaming catalog of Game Pass. But what about the games that don’t fit under Microsoft’s ever-widening umbrella? Those require content deals with other companies before they appear on Game Pass, again, very much like TV shows or movies that pop up on streaming services.
We’re getting some interesting insight into how those deals go down, from a source that Microsoft might not appreciate. Following a cull of 9000 employees across the company, including deep cuts to the Xbox and gaming divisions, some of those workers are updating their resumes over on LinkedIn (which is also owned by Microsoft). Windows Central spotted former Senior Business Development Manager Ian MacIntyre doing just that.
According to MacIntyre, he “negotiated 500+ deals ranging from $50k to over $50m, securing both indie hits and AAA titles for Game Pass.” Precisely which deals for which games cost how much wasn’t mentioned, of course. But perusing the Game Pass library for titles not directly owned by Microsoft via its developers and publishers, I note Rockstar’s Grand Theft Auto V, Ubisoft’s Rainbow 6 Siege, Dead by Daylight, and recent RPG hit Clair Obscur: Expedition 33. Smaller titles that are nonetheless popular, like fast-paced soccer game Rematch, often get tons of visibility if they launch on Game Pass.
The latest round of layoffs, which closed studios and cancelled long-running game projects like Perfect Dark, was heavily spurred by a reallocation of funds for AI competition. Microsoft has laid off 15,000 people this calendar year. It has made over $100 billion in profit every year since 2021.
Microsoft
Microsoft has struggled to keep its Xbox console hardware relevant, but PC gaming has never been stronger, and its focus on wooing and keeping Game Pass subscribers appears to be paying off. The company claimed 34 million subscribers as of 2024, and it’s making branding partnerships to expand the “Xbox” label to devices like the Asus ROG Ally and the Meta Quest headset. Without deeper insight into Microsoft’s numbers it’s hard to know how Game Pass is affecting the wider industry, including “cannibalization” of direct retail sales for games that appear on Game Pass at launch. Some industry figures have called the model unsustainable, but Microsoft insists that Game Pass is profitable, even accounting for direct sales lost via major titles.