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- New findings from a LinkedIn profile of a Microsoft employee reveal that they pay from $50k to $50 million to secure titles on Game Pass.
- Microsoft may not pay $50 million for every other game, but it’s still a hefty amount to secure on their service.
- Game Pass remains profitable per Microsoft, but expect serious changed for the service shortly as the gaming division faces restructuring.
Game Pass has been the elephant in the room for the past few days after Microsoft laid off 9000 employees, which developers and fans blamed on Game Pass as the reason for being an unsustainable subscription service, costing the gaming giant a lump sum of money.
Microsoft has denied those claims, stating that the service is still very much profitable. Many developers also claim that the model isn’t sustainable for them and hurts their sales.
Now, a LinkedIn profile of a Microsoft employee has revealed that they pay $50k to $50 million to secure AAA and indie titles on Game Pass.
Why it matters: 50 million is a considerable amount of money to secure titles for Game Pass. This goes against the claims that Game Pass isn’t sustainable for developers.
This information comes from Microsoft’s Senior Business Development Manager. $50 million is the most money they’d pay for titles on Game Pass, which is enough to compensate the developers.
It’s pretty clear that Microsoft doesn’t pay $50 million for all the titles, and that money is probably reserved for big third-party releases on the service.
Palworld was one notable mention, with even Microsoft claiming it was the biggest third-party launch on the service.
To also make up for the rising costs and inflation, Microsoft will potentially raise Game Pass prices soon. They’ve also moved AAA Day One releases to their highest tier, reserving them only for higher-paying customers.
While Game Pass must be profitable, an educated guess implies that they must not be making enough money to be sustainable. Hence, expect a lot of changes in the service soon, especially after the recent restructuring of Microsoft’s gaming division.
Do you think Game Pass is a sustainable model? Let us know in the comments below, or at the official Tech4Gamers Forums.
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[Staff Writer]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheerzahid03@gmail.com
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