Microsoft is playing the long game with Xbox Game Pass.
Xbox Game Pass offers one of the best values in gaming, this much is clear. So much so, in fact, that some have this idea that Microsoft is losing money on the service.
Speaking to Xbox marketing GM, Aaron Greenberg, What’s Good Games asked how Microsoft views the service, and how profitable it is to the company. Greenberg started off by dismissing some of these worries.
“We always kinda laugh, we just [say], ‘Listen, please don’t worry about us. Microsoft is gonna be alright,'” Greenberg laughingly said.
On a more serious note, Greenberg explained that the intent of Xbox Game Pass is not to make as much money as possible in the short term, but what the service is building towards in the long term.
Today @andrearene and @BlondeNerd spoke to @Xbox's @aarongreenberg about Xbox Game Pass Ultimate profitability, "You can either say, how do we get as much profit out of each customer, or do you pivot that…how do we add as much value to our fans?" (see full interview tomorrow!) pic.twitter.com/QUl5yNamhq
— What's Good Games (@WhatsGood_Games) July 23, 2020
“It’s a different mindset, because if you do optimise for profit… you can either say, “How do we get as much profit out of each customer?’ Or, do you pivot that [to its] opposite and say, ‘How do we add as much value to our fans, how can we actually over-deliver on value?'” he pointed out. “And if you do that, you build fans for life.”
The veteran executive added that word of mouth is a big reason in Xbox Game Pass’ success, and that’s driven by how existing members feel about the value they’re getting with the service, leading them to organically advocate for it.
“Ultimately, we think long term that’s the right thing for the business, and will have long-term benefits for us. But, in the short term, yeah, it’s not a big profit play.”
Microsoft recently announced it’s bolstering the already compelling line-up of Game Pass Ultimate benefits with the addition of game streaming through xCloud in countries where the service is available. The service joins in September at no extra cost.