Game Pass Is "Not For Everybody," says Phil Spencer

GHG

GHG

Gold Member
Microsoft Gaming CEO Phil Spencer has further discussed Xbox Game Pass, saying the subscription service is "not for everybody," and that if every Game Pass subscriber canceled their membership and decided to buy games outright instead, that would be good for Microsoft as well.
Click to expand...

Also in the interview, Spencer said the video game console business is "good," but it's an "established" market sector that is "not really a growing segment in gaming," at least not for Microsoft. As such, Spencer said that's why you're seeing Microsoft invest in and support PC and cloud as much as it is.
Click to expand...

"It's not for everybody. If you play one or two games a year, Game Pass probably isn't the right business model for you; you should just buy those two games, and that would make total sense," he said. "But I want you to have the choice. So we remain focused on everything that's on Game Pass is also available to buy."
Click to expand...

Many have wondered about the economic realities of Game Pass, and while Spencer didn't get into that, he said the number of total hours people are playing on Xbox "continues to grow fairly substantially," in part due to Game Pass. "Game Pass has been an important part of that, but I don't try to solve for Game Pass specifically on its own. It's kind of part of the equation for Xbox finding new players," he said.
Click to expand...

"I've always thought about Game Pass as just another option for somebody who wants to play. We have many business models for people playing from free-to-play, buying games, discounted games--Game Pass is an option," he explained. "So when I'm looking at Game Pass, I want to make sure the hours that people are playing continue to go up, that new people see this as a way for them to find and build their library of games, and we remain focused on that," he said.
Click to expand...

"There isn't a unique need for Game Pass to be the only way for people to play. If everybody who's a Game Pass subscriber instead decided to buy their games, that's good for the business as well."
Click to expand...

www.gamespot.com

Xbox Game Pass Is "Not For Everybody," Phil Spencer Says

If every Game Pass subscriber canceled their membership and decided to buy games outright instead, that would be good for Microsoft as well.
www.gamespot.com www.gamespot.com


Glad to see me and Mr Spencer are on the same page for once.
 
It Begins Here We Go GIF by hero0fwar
 
I can say for sure that ANY other execute in ANY other market would be booted many years ago, specially if he/she admitted so clearly that his biggest strategy ever to attact more users... is not for everyone. I can only imagine how many skeletons this MF have to, after so many failures... continue to be in this position.
 
Also in the interview, Spencer said the video game console business is "good," but it's an "established" market sector that is "not really a growing segment in gaming," at least not for Microsoft. As such, Spencer said that's why you're seeing Microsoft invest in and support PC and cloud as much as it is.

It's so fucking over lmao
 
They have slacked off on Game Pass advertising and started promoting everything is an Xbox. They probably have data that shows Game Pass doesn't travel well outside of the console and is starting to shift expectations. It would not surprise me if they are starting to see Game Pass numbers shrink with all of the console doom & gloom and no official reveal on what is next. Plus, they shut down some of the "loopholes" for cheaper subs. I am not saying Game Pass is going away, I am saying it is not going to ever grow into what they wanted it to be.
 
Kacho said:
Confirmed or safe assumption?
Click to expand...

A very safe, about guaranteed, bet.

Including Blops 6 on GP didn't effect it's retail performance much / at all, it was still the top selling game of the year.

No realistic reason for it to not be there, as they keep pledging all first party content on the service day 1.
 
adamsapple said:
A very safe, about guaranteed, bet.

Including Blops 6 on GP didn't effect it's retail performance much / at all, it was still the top selling game of the year.

No realistic reason for it to not be there, as they keep pledging all first party content on the service day 1.
Click to expand...
Well they did raise the price for a premium tier that includes day one games, so I guess that checks out.
 
HeisenbergFX4 said:
For majority of people GP isn't worth it as most buy and play so few games in a years time
Click to expand...

There are also plenty of people who buy and play a ton of games every year, as evidenced by attach rates on Sony and Nintendo's platforms (hard to get solid attach rate data on Steam, but I'm sure it will also be similar).

So it's not even as cut and dry as it seems, it doesn't just depend on how many games a person intends to play.
 
"If every Game Pass subscriber canceled their membership and decided to buy games outright instead, that would be good for Microsoft as well." - Phil Spencer
Click to expand...
As I said in the South of Midnight reviews thread, amidst criticism, they want to gradually move away from Game Pass.
 
adamsapple said:
A very safe, about guaranteed, bet.

Including Blops 6 on GP didn't effect it's retail performance much / at all, it was still the top selling game of the year.

No realistic reason for it to not be there, as they keep pledging all first party content on the service day 1.
Click to expand...
BLOPS 6 sales were down significantly on platforms where Game Pass existed.

Bg1SXIo.jpeg


Source (Physical + Digital): https://www.gamesindustry.biz/call-of-duty-flies-concord-falls-microcast

We also know that from their financial reports in that quarter that their Content & Service revenue grew by roughly only $80 million despite having all these new first- and third-party games, including BLOPS 6.

The cost of having the game on GP vs. the revenue it brought directly from Game Pass is in negative by a huge margin.
 
Last edited:
I remember when he was saying their goal was 100 million Gamepass subs

Now it's not for everybody

MS probably desperately wants to shut down this money losing boondoggle but they have so many people locked in with $1 for the next 5 years long term subs lol
 
Heisenberg007 said:
We also know that from their financial reports in that quarter that their Content & Service revenue grew by roughly only $80 million despite having all these new first- and third-party games, including BLOPS 6.
Click to expand...

Content and Services isn't just game pass, but game pass's growth plays a key part in helping it offset other things.

The latest thing know is the quarter with Black Ops (and Indiana Jones) was record breaking as far as GP induced revenue goes.

 
Last edited:
adamsapple said:
Content and Services isn't just game pass, but game pass's growth plays a key part in helping it offset other things.

The latest thing know is the quarter with Black Ops (and Indiana Jones) was record breaking as far as GP induced revenue goes.

Click to expand...


Any type of subscriber data would interesting, but particularly splits. 30% is a massive number which leads me to believe the PC Game Pass portion of the pie is relatively meager.
 
Eh, maybe people need to hear this. Obviously a lot of people lack critical thinking skills.

Xbox is synonymous with GP so yea there are some that needed to hear it.
 
Aka gamepass isn't making as much money as we'd hope it would and now we're fucked. Please start buying our games and supporting the developers or else they might lose there jobs. Gamepass is one of the biggest failures in gaming history.


real-housewives-of-beverly-hills-its-all-downhill-from-here.gif
 
Last edited:
GamePass is literally only for NeoGAF posters, the type of people who want to play dozens of games a year and aren't particularly discriminating about what they are outside of the top hits.

Unfortunately it's really tough to build a massive, sustainable, growing business on a bunch of nerds who normally spend too much money on videogames - and it's REALLY tough when your business' main selling point is getting them to spend less money.
 
Last edited:
diffusionx said:
GamePass is literally only for NeoGAF posters, the type of people who want to play dozens of games a year and aren't particularly discriminating about what they are outside of the top hits.

Unfortunately it's really tough to build a massive, sustainable, growing business on a bunch of nerds who normally spend too much money on videogames - and it's REALLY tough when your business' main selling point is getting them to spend less money.
Click to expand...

I'd say it's perfect for kids, or rather, kids a few decades ago that endless amounts of time and very little money, but the market is full of free alternatives these days that make the service less appealing.
 
adamsapple said:
Content and Services isn't just game pass, but game pass's growth plays a key part in helping it offset other things.

The latest thing know is the quarter with Black Ops (and Indiana Jones) was record breaking as far as GP induced revenue goes.

Click to expand...



That's corporate spin/corporate speak. They always talk about revenue but never mention the profits from gamepass or how much of a profit they've made from it. I wonder why that is...

2aec5f99-cd7f-41e3-938b-d653ca6cc02c_text.gif
 
bender said:
I'd say it's perfect for kids, or rather, kids a few decades ago that endless amounts of time and very little money, but the market is full of free alternatives these days that make the service less appealing.
Click to expand...
Nah, kids play what their friends play, like Minecraft or Roblox or whatever.
 
bender said:
I'd say it's perfect for kids, or rather, kids a few decades ago that endless amounts of time and very little money, but the market is full of free alternatives these days that make the service less appealing.
Click to expand...
Hey kids, imagine if you had a Blockbuster inside your console. And you can rent everything all at once.

40yr olds: "hell yeah!"

Kids: "….."
 
I mean, he's right...but is that something you actually want to be saying out loud? Weird strategy to downplay your service keeping you afloat.

They must be desperate for actual game sales...🤔
 
You must log in or register to reply here.

Similar threads

Game Pass ‘not for everybody’, says Xbox boss Phil Spencer
News Clickbait 
6
227
Lunarorbit replied
Xbox Series S Parity Clause Is Staying Put, Phil Spencer Says
2 3
135
7K
Codeblew replied
Phil Spencer's Legacy as told by Phil Spencer
2 3
106
6K
Negotiator replied
Microsoft Gaming Boss Phil Spencer Says Xbox Fans Will See More Movie and TV Show Adaptations
News 
1
411
Walter Matthau replied
Xbox will show the PlayStation logo in their showcases from now on, says Phil Spencer
2 3 4 5 6
252
14K
yazenov replied
Top Bottom