According to Microsoft Gaming CEO Phil Spencer, Microsoft is considering an exit from Xbox and the gaming business if Xbox Game Pass subscribers do not improve.
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Key Facts
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Microsoft’s ongoing court battle with the Federal Trade Commission regarding their acquisition of Activision Blizzard has seen documents leak that reveal Microsoft could leave the gaming business if Xbox Game Pass subscribers do not improve by 2030.
Microsoft Gaming CEO Phil Spencer was recently asked in court if he believed the projection of growth of Xbox and Microsoft gaming, regarding the picture above, was correct.
However, in his response, Spencer said, “I do not believe that that is what the future Xbox business would look like,” and he went on to say, “I can fairly safely say that if we do not make more progress than this off of console, we will exit the gaming business.”
Spencer’s response was clear that Microsoft and Xbox expect their growth projection to happen much earlier, hopefully by FY26 and FY27.
It may sound like doom and gloom if you’re an Xbox or Microsoft fan. It’s important to note that Spencer’s comments come during court proceedings that determine if Microsoft completes the acquisition of Activision Blizzard, a purchase they see as vital to that growth.
Microsoft’s plans to get 100 million users subscribed to the Xbox Game Pass by 2023 seems absurd, particularly when you consider that they recently had to lower their target as growth in 2022 only hit 28% rather than the projected 73%.
What’s important, though, is that Microsoft has made huge strides with the Xbox Game Pass in terms of day one releases, consistent pricing, and the number of games added to it monthly. Games like Starfield.
If the acquisition of Activision Blizzard goes through, they can add games like Call of Duty, Diablo 4, and possibly World of Warcraft to the Xbox Game Pass – which could see millions of more users subscribe.
100 Million users is a huge number. But it’s achievable.
In the modern era of gaming, subscribers are a huge business – it’s why Epic Games continues to offer free games weekly at a considerable loss to themselves because they understand that getting people signed up to your platform means more sales down the line.
The Xbox Game Pass is a great service for gamers that offers hundreds of games at a single low monthly subscription price. The subscription also gets you day one releases, in-game content, and exclusive discounts.
The more users sign up, the more money Microsoft and Xbox get. But they also have more customers willing to spend money on future Microsoft and Xbox products and hardware.
And let’s not forget, the recent Microsoft leaks show that they are planning to release a new hybrid console in 2028 that will make use of cloud gaming and apps – something the Xbox Game Pass pushes.
Phil Spencer may have said that Microsoft could leave the gaming business if things don’t improve quickly for Xbox and Xbox Game Pass, but in reality, there is nothing to worry about if you are an Xbox user or gamer.
In recent years, Microsoft has made huge strides in offering cloud gaming and subscription-based gaming services.
Recent leaks also show that Microsoft is planning a new console in 2028, with a refreshed Xbox Series X|S coming in 2024.
And on top of everything, if the Activision Blizzard acquisition goes through, Microsoft will be a real force in the future as games like Call of Duty get added to the already impressive Xbox Game Pass.
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