As much as Microsoft would like you to believe that the Xbox Game Pass is the best video game subscription service (and, for several reasons, it is), it’s come up short of internal expectations for two years straight. According to Microsoft Gaming CEO, Phil Spencer, the Game Pass has gotten to a point where it has “reached everybody on console that wants to subscribe.” However, the truth is not as straightforward. Axios reports that the Game Pass failed to hit its target growth rate (73%) for the fiscal year that ended on June 30, achieving only a 28% growth. Furthermore, Axios points out that this is the second year in a row that the Game Pass didn’t meet its target after posting excellent numbers two years ago. This revelation is surprising, to say the least. Earlier this month, Microsoft revealed to the Administrative Council for Economic Defense of Brazil that the Game Pass generated $2.9 billion from consoles last year. The Game Pass’ growth, or lack thereof, is easy to explain. The service’s appeal is the day-one access to first-party games, which it hasn’t had in a while. After enjoying Forza Horizon 5 and Halo Infinite last year, Game Pass didn’t have any follow-up. Perhaps this is why Sony isn’t keen on making day-one launches as the selling point for the PS Plus - it’s hard if not impossible to sustain the pace. Microsoft won’t stop trying though. After welcoming ZeniMax Media to its stable, Microsoft set its eyes on Activision Blizzard and the tech giant is still open to more acquisitions. It’s not like Microsoft doesn’t have the cash to spare - it’s worth more than $2 trillion, the last time we checked. But, of course, this new information does paint a rather confusing picture of the importance of Game Pass to Xbox as a business. If you base it on what Xbox is peddling, it’s a killer app that dwarfs its competition, but it’s obviously not growing at the rate that Microsoft is hoping. For what it’s worth, the Game Pass’ first-party library will grow next year. ZeniMax’s first Xbox exclusives, Starfield and Redfall, will finally come out before the next fiscal year ends. If Xbox can add even more to these two, the Game Pass might meet internal expectations for the first time in three years.
