Microsoft’s gaming division, spearheaded by CEO Phil Spencer, reports significant growth in Game Pass cloud gaming hours, marking a 45% increase compared to last year. This surge in engagement indicates a promising trend for the future of Xbox gaming.
Spencer highlighted Microsoft’s mission to make gaming more accessible than ever before. Engagement metrics are a key measure of their success, and recent growth has been described as “encouraging.” Console cloud streaming hours also saw a 45% rise, with “other devices” experiencing a 24% increase. Progress is driven by providing more choices for players, enabling them to play what they want, where they want. Spencer expressed gratitude to Team Xbox, partners, and players for their contribution to this vision.
Xbox Game Pass Revenue Hits New High
Despite the absence of specific baseline measures, Xbox Game Pass’s impact is notable, achieving nearly $5 billion in revenue this year. This comes after the releases of popular titles like The Elder Scrolls Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle. Microsoft emphasizes that “creator participation” and “player engagement” within Game Pass have reached unprecedented levels, though they have yet to disclose exact figures.
There are rumors circulating about Microsoft’s potential launch of a free version of Xbox Cloud Gaming, supported by ads, for various platforms including PC, Xbox consoles, handheld devices, and the web. This ad-supported version is reportedly in internal testing and would not require a Game Pass subscription, with a public test expected soon.
Challenges and Changes in Pricing
This year has been tumultuous for Microsoft, with layoffs impacting the Xbox division and criticism from industry veterans. Raphael Colantonio, founder of Microsoft-owned Arkane Studios, criticized the Game Pass model as “unsustainable.” On the financial front, the cost of gaming on Xbox has been a hot topic, with game prices initially announced to increase to $80 before reverting to $70. Microsoft’s decision to raise console prices twice in the U.S. also drew attention, citing “changes in the macroeconomic environment.” Furthermore, the company announced a hefty $999.99 price for the ROG Xbox Ally X handheld, and $599.99 for the ROG Xbox Ally.
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