Xbox Game Pass has been a huge success since its launch in 2017, reportedly hitting 18 million subscribers back in January. But the program seems to also be having a great impact on game developers since its subscribers spend more money on games than non-subscribers.
For those who don’t know, Game Pass is a subscription service similar to Netflix that gives subscribers access to a catalog of over 100 games. Game Pass keeps getting titles every month, and players can play the games for as long as they want, just as if they had bought it normally – as long as they maintain their subscription. With the service being a new step for the industry, many have wondered what impact it would have for developers, but while speaking to Forbes recently, Microsoft’s Vice President of Gaming Sarah Bond shared some impressive statistics that show the service may be as good for developers as it is for gamers.
Bond gives some impressive statistics about the impact Xbox Game Pass has on its subscribers. She states that subscribers play 30% more games across 40% more genres, spend 20% more time playing games, and perhaps most importantly, spend a whopping 20% more on gaming in general. All are impressive statistics and may forecast increased interest in streaming services for the gaming industry, similar to what can be seen in the film and music industries over recent years.
In giving a reason for this increased spending Bond said, “When you subscribe to a channel that enables you to watch a video, like Netflix, that’s kind of the end of the monetization cycle that you have with that piece of content. In gaming it’s the opposite: there are items you can buy in the game, there are extensions you can buy, there’s a next franchise you can purchase, there are other genres you can leap to.”
Bond’s explanation makes a lot of sense, especially with so many games like Gears 5 and Destiny 2 on Game Pass, which offer plenty of optional cosmetics and content for purchase. It also stands to reason that players are more willing to engage with in-game purchases such as those when they didn’t have to foot the $60 bill to play the game. That way players can try games from the catalog and spend as much as they want on their favorite Xbox Game Pass titles.
All of this is great news for gamers and developers alike. It is likely that the increase of game sales and profit among such different titles and genres will attract many more developers to the service, making the modest subscription cost for the service even more of a bargain. It also is great news that the service is encouraging players to branch out and try so many new games and genres, and it seems as though Game Pass helps indie titles stand out from the large crowd of games on the Xbox store.
Source: Forbes
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