Microsoft’s Xbox Game Pass misses subscriber growth target for second year in a row

IT House October 28 news, according to Axios, a new financial document from Microsoft provides information on annual goals related to CEO Satya Nadella’s compensation, showing that Xbox Game Pass has two consecutive years of growth. The target for the number of subscribers was not met in 2018.

According to reports, in order to achieve the annual goal, Microsoft needs to see a 72.88% increase in Xbox Game Pass users in the fiscal year ending June 30, 2022, but the actual growth rate is only 28.07%.

This is the second time the Xbox Game Pass growth rate has missed its internal target, Microsoft’s fiscal 2021 target of 47.79% growth, but ended up being 37.48%. The target for fiscal 2020 was a 71% growth rate, which ended up being 85.75%.

Phil Spencer, Microsoft’s gaming chief, said earlier this week that Game Pass growth for the Xbox console is “slowing down.”

IT Home has learned that, according to Microsoft data, as of January 2022, Xbox Game Pass has more than 25 million subscribers. The company recently claimed it had an installed base of Xbox Game Pass on 63 million consoles as part of an Activision investigation into its proposed acquisition in the UK.

Spencer also said Microsoft’s Xbox Game Pass accounts for “10-15% of the company’s total revenue” and that the service is profitable.