Microsoft's Xbox Game Pass growth rate has fallen short of its expected goal of a 73% annual increase, reaching only 28% growth at the end of the fiscal year. Although Xbox Game Pass continues to grow as of the June 30 statistics, the staggering difference between the expected gains and the reality may impact the future of the service.
This year isn't the first time that Microsoft has failed to reach annual Xbox Game Pass growth goals as the service fell short last year as well, which may change the company's approach to content, perks, availability, and more. Since Xbox Game Pass arrived on the Xbox One, it quickly launched on PC, carried over to the Xbox Series X/S, and has also reached mobile devices through cloud gaming. Expanding across these platforms over time has resulted in a broader Xbox Game Pass audience which just seemingly hasn't grown at the same rate that Microsoft anticipated in its reports.
The fiscal year in which Xbox Game Pass growth projections didn't match the statistics ended on June 30 and as it follows another year of falling short, the service also saw a lower percentage increase than in 2021. While Microsoft expected a 73% Xbox Game Pass growth rate in 2022 and only achieved 28%, the 2021 forecast was for a 48% jump when it only hit 37%. In both cases, Xbox Game Pass still saw more subscribers throughout the year, but the Microsoft projections have yet to match the influx of players accessing the library on console, PC, or mobile.
Though Xbox Game Pass growth has dwindled on consoles compared to earlier years for the service according to Phil Spencer, PC subscriber gains have been "incredible" based on his feedback. Microsoft hasn't given an official number of Xbox Game Pass subscribers since it confirmed that the service had reached 25 million members, but given that more players flocked to it through 2022, the figure continues to rise. Prior to last year's Xbox Game Pass performance, the service blew Microsoft away between mid-2019 and 2020 by hitting 86% rather than its forecasted 71% which may have caused the company to set the bar higher than it may have without the spike.
While some PC owners continue to grapple with whether they plan to subscribe to Xbox Game Pass or not, Spencer has suggested that everybody that wants a membership on consoles has already been reached. As multiple Xbox fans in other regions of the world have expressed interest in subscribing if Game Pass comes to their area, some just anticipate the next big game like Starfield or Fable coming to the extensive library.
Source: Axios