According to sources, Microsoft is spending $1 billion to ensure that third-party games are in Xbox Game Pass. Among those with whom we have signed multimillion-dollar contracts are many well-known brands.
According to Bloomberg in a large article about Xbox and the company’s gaming division executives, Microsoft offers small studios a flat fee of many millions upfront to add their titles to the subscription service, and they get a portion of the subscription revenue and access to a larger market.
Companies are extremely reliant on Game Pass, especially given the current state of affairs. Amidst falling sales of Xbox consoles and unsuccessful game releases, Game Pass has become the main «weapon» for Microsoft.
The company has also partnered with some major publishers to add their games to the subscription. Among them are Ubisoft, EA, and Rockstar with the GTA franchise. But despite the efforts and significant costs, growth is slowing down. Stagnation is expected even with games like Call of Duty: Black Ops 6 coming in the future, Indiana Jones and S.T.A.L.K.E.R. 2.
One of the interesting facts also reported by Bloomberg is the percentage distribution of players in the United States According to the publication, half of gamers in the United States are women. Also, despite the significant percentage of African Americans and Latinos in society, 75% of gamers are white. This year Microsoft has already reduced more than 2650 jobs in the gaming industry, about a quarter of these cuts announced in mid-September. According to the sources, its gaming division operates under strict profit margins.
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