Microsoft admits Xbox Game Pass hasn't made a profit yet

Offering a subscription service with hundreds of games ranging from indie to games from major studios, gamers may wonder if Microsoft is profiting from their Xbox Game Pass service.

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Through a talk on What’s Good Games, Aaron Greenberg, marketing manager for Xbox, admits that their flagship subscription service is currently not making a profit.

“I always laugh at that question. Don’t worry about us. Microsoft will be fine,” said Greenberg. “With Xbox Game Pass, Microsoft is focused on delivering value-added services in excess, even if it will eat into our profits in the short term.”

Xbox Game Pass Screenshot 1496404787309
The initial loss was expected and intentional, according to Greenberg. He explained that they wanted to build customer base first and make sure that Xbox Game Pass is a service that satisfies its customers. If the plan is successful, this service is sure to generate long-term profits.

“We feel that the long term is best for the business and [Xbox Game Pass] will benefit us in the long run. For a while, yes, Xbox Game Pass is not making a profit. But we think the long term will be good for all parties.” Obviously Greenberg.

Xbox Game Pass is arguably a very tempting subscription service. Not infrequently this service from Microsoft offers the latest games for “free” plus all the existing catalogs. Indeed, indirectly you do not own the game and you will lose access to the game if the publisher withdraws the game from the service. Still, having hundreds of games for just $9.99 ($1 for PC users in the first month), is an offer that’s hard to ignore.

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