A recent filing has revealed the sales figures for Xbox's subscription-based gaming service. These might appear like strong figures, but they aren't nearly strong enough.
Like it or not - subscription services are clearly the future of gaming one way or another. As with film and TV, people love the Netflix model.
One thing that's clearly key, is ensuring your library has a strong enough collection, and Microsoft definitely has. But maybe they need to do more? Because despite their relative success they aimed for higher numbers, and they'll need them if they want to keep battling Sony.
Let's take a look at their recent court filing.
Is Xbox Game Pass Failing?
If you have a keen eye for legal documents then you may enjoy perusing the filing, if not then allow us to explain.
Xbox has provided a full breakdown of its sales figures ahead of a shareholder meeting to be held on November 30, 2021. They mention in the document that: In the 12 month period that ended on June 30, 2021, Xbox Game Pass had experienced subscriber growth of 37%. It sounds like a great figure until you remember that their stated goal was 48% growth.
This becomes even more worrying when you compare the figure to last year's 86% growth rate, and in real terms, it puts the number of subscribers at about 20 million. A figure that needs to be made far larger for them to seriously begin competing with Sony again, who look on course to sell that many PS5 units by the end of 2022.
Xbox Game Pass has become a core part of their brand identity, and it might still be a saving grace for Microsoft if they happen to 'lose' this console war as dramatically as they did the last. But they need to get back into a more dominant position in this market before Sony can unveil its response.
Who knows, they do always have the emergency kill switch of gatekeeping Elder Scrolls VI behind the Game Pass.
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