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Axios: Microsoft misses Xbox Game Pass subscriber target for second year

Pelta88

Member
You need compelling and immersive IP to propel growth in all forms of entertainment. Especially when it comes to gaming.
 
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StreetsofBeige

Gold Member
Too expensive for the number of games I'd play on it. Every year I sign up for the $1 90 day trial and ever end up playing anything. Typical Gamepass games either aren't my type of games or they're so old I already bought them on sale before they were added to the service. The one singular exception is Forza Horizon 5, a game I don't own but would play on Gamepass, but it's not worth $15 a month when it will already be deeply discounted soon.

No idea about the other stuff you mentioned, it's not a noteworthy feature for my personal needs.
Do you do Gold for MP gaming?

If you do, just add on a years worth of GP for one month fee. You cant do the $1 deal anymore since you've already done GP.

I did 3 years of GP the first time for $1 total. Then when I renewed, it's 3 years of GP for one month fee (around $20 in Canada). So in total, I've done 6 years GP for $21 on top of my usual Gold plan. You just got to top up your profile to up to 3 years Gold, then apply the promo.
 
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marjo

Member
73% sounds like what's known as an 'aspirational' goal.
Something that everyone knows isn't going to be achieved but is parroted anyway to try to motivate the organization. My experience is that they often have the inverse affect though.
 

reksveks

Member
Document

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StreetsofBeige

Gold Member
73% sounds like what's known as an 'aspirational' goal.
Something that everyone knows isn't going to be achieved but is parroted anyway to try to motivate the organization. My experience is that they often have the inverse affect though.
They probably over estimated growth plans due to covid zooming up growth for tech stuff thinking it would keep going. And MS never revised the growth targets down.
 
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Thirty7ven

Banned
It’s still growing by 28% YoY, so stuck isn’t a word I’d use.

Yeah I don’t know about that. Do they mean total growth or growth vs previous year growth? Do they mean growth in subscription or growth in revenue? Considering they expected 73% growth that’s weird…

They claimed over 25 million GP subscribers in January regarding previous year. We’re entering November and still at 25? Phil Spencer talking saturation hello? How is there growth?

It has stagnated in terms of subscribers. They can still increase revenue of course, here comes the price hike.
 
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Punished Miku

Human Rights Subscription Service
They probably over estimated growth plans due to covid zooming up growth for tech stuff. And MS never revised the growth targets down.
If they launched Starfield with Keystone then maybe. But all that is next year now. Still remains to be seen how that will play out, but the potential is there for new subs for sure.
 

Jennings

Member
Do you do Gold for MP gaming?

I don't. The types of games I enjoy in multiplayer aren't popular on modern consoles, so I haven't been a gold member for about seven years.


If you do, just add on a years worth of GP for one month fee. You cant do the $1 deal anymore since you've already done GP.

I've considered this and might try it for some unknown quantities, like Avowed and such, further down the line.
 
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feynoob

Banned
Still stuck around 25 million? Did I read that wrong? Thought it was at 25 end of last year.
  • Microsoft wasn't specific about subscriber target counts, but claimed delivery of "over 25 million Game Pass subscriptions."
With last year growth being 7m, which was under their expectations. I expect the current numbers to be between 28m to 30m.
 

StreetsofBeige

Gold Member
I don't. The types of games I enjoy in multiplayer aren't popular on modern consoles, so I haven't been a gold member for about seven years.




I've considered this and might try it for some unknown quantities, like Avowed and such further down the line.
If you arent a console MP gamer, then your costs to do it are the full pop. So yeah, it depends how much worth youll get out of it. But it's still cheaper to load up on Gold and apply a month's worth of GP fees, then doing GP monthly fees straight up.

For many of us, were already committed to Gold every year, so these top up fees to convert to GP is virtually zero.
 

feynoob

Banned
Anyone remember the target last year?
By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

  • In the company's prior fiscal year, which ran from mid-2019 through mid-2020, Game Pass subs were up 86%, exceeding a target of 71%.
 

feynoob

Banned
Yeah I don’t know about that. Do they mean total growth or growth vs previous year growth? Do they mean growth in subscription or growth in revenue? Considering they expected 73% growth that’s weird…

They claimed over 25 million GP subscribers in January regarding previous year. We’re entering November and still at 25? Phil Spencer talking saturation hello? How is there growth?

It has stagnated in terms of subscribers. They can still increase revenue of course, here comes the price hike.
They have a certain target growth, after each year. If the targets they set is something like extra 10m this year. This would make gamepass hit 35m userbase. That 10m is desired goal target.

As for what MS desired goal, we don't know. It could be more than 10m, considering 2021-2022 did bring extra 7m users. From 18m to 25m.
 

Jaybe

Member
Curious how many Gold subs are out there still and perhaps Microsoft expected to covert them to Game Pass by now but hasn’t. I think that was a desired end result of trying to raise Gold prices (and its game quality).
 
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Would subscription based games on the service help? I’d personally love it if elder scrolls online was all for free on game pass but would that draw in a crowd? Or is it more profitable to leave it alone?
 
Yeah I don’t get it either, they were targeting 35M subscribers?

Either that was made before the Starfield delay or someone was feeling really ambitious when this target was set.

I don't even think they were factoring first party at all here

Starfield and Redfall were already announced for Fall and Summer 2022 at E3 last year, so they were never going to be part of this FY report anyway

Maybe they thought Forza was going to release before June 2022 which would be crazy. There's Halo Infinite but In that case multiplayer should have been part of gamepass and not free to play

Anyway no idea. Just odd
 
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feynoob

Banned
these target growths are from July 2021 to June 2022.
What happened to January one?
I guess this makes it more complicated.
If the sub was 25m in January, but the target growth is from July to July.

This is confusing honestly. Why did they bother telling us those numbers in January then?
 

feynoob

Banned
Foot note says dollars though.



Are you a subscriber or a dollar amount?

texas rangers gallo GIF by MLB
Sub = dollar. They see me as $$$.

If they are trying certain $$$, then that introduces problems for the data. Regional price, plus $$$ conversion would make it hard to count the userbase. Especially when they have PC, ultimate, normal gamepass.
 

Topher

Identifies as young
Sub = dollar. They see me as $$$.

If they are trying certain $$$, then that introduces problems for the data. Regional price, plus $$$ conversion would make it hard to count the userbase. Especially when they have PC, ultimate, normal gamepass.

You can stop spinning your wheels. I was wrong. It was number of subs, not dollars.
 

feynoob

Banned
Disagree. Services benefit from being as many places as possible.
It only benefits the console owners, which in this case is Sony and Nintendo.
MS leverage is their 1st party. Take that away, and their console becomes useless.
Gamepass revenue means nothing, when the console isn't growing, and the revenue it brings is slowing down.
 
Damn...going from a 72% prediction to an actual 28% is...something for sure.

I honestly don't get how they expected it to grow so much? For sure at that point they knew their lineup right? Did they expect Starfield to really come out this year and do all the work?

Starfield needed to release before June 2022 to make an impact here, so they definitely shouldn't have been expecting that to help
 
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feynoob

Banned
Damn...going from a 72% prediction to an actual 28% is...something for sure.

I honestly don't get how they expected it to grow so much? For sure at that point they knew their lineup right? Did they expect Starfield to really come out this year and do all the work?
I can think of several stuff.

2022 having a bad year for gaming's. Not enough AAA games for gamepass.
Next gen games means restricted user base.
Sony marketing, which blocks gamepass from getting certain games.

All these make it hard for the service to grow fast.

If cloud gaming was functional, then the growth would have been massive. Just controller and a sub.
 
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yazenov

Gold Member
This is why unit sales matter, MS.

The fire sales of Xbox Series S this November is the "answer" to the lower Gamepass growth I assume. We shall see if it pans out. But the price of the console needs to be complemented with compelling software. Unfortunately for MS, they lack the latter this year.
 
73% is an insane expectation when you aren’t putting out compelling content for a whole year. That’s on them and the management of their teams. 2023 should be better but what did you expect a full year of no first party games?
I have a feeling those targets were made BEFORE their big games were delayed not after. I am positive their plans weren't 'Let's release no games and expect major growth!"

Also they are saying they didn't reach their growth numbers meaning it grew but not at the rate they wanted? Interesting that even with them not growing at the rate they wanted they still made money? That is pretty impressive. Next year will be something to watch for sure.
 
I have a feeling those targets were made BEFORE their big games were delayed not after. I am positive their plans weren't 'Let's release no games and expect major growth!"

Also they are saying they didn't reach their growth numbers meaning it grew but not at the rate they wanted? Interesting that even with them not growing at the rate they wanted they still made money? That is pretty impressive. Next year will be something to watch for sure.

Most of their big games were releasing after June 2022 before they were even delayed
 

SmokedMeat

Gamer™
Game Pass is a great deal…for three months

I really don’t see the point of subbing monthly. It doesn’t help that Microsoft hasn’t released anything big on their end since Forza Horizon 5 last year.
 
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