Microsoft Gaming CEO Phil Spencer has revealed that the corporate’s Xbox Game Pass subscription service is already worthwhile. Speaking at The Wall Street Journal’s Tech Live conference, Spencer additionally revealed that Xbox Game Pass is round 15 % of Microsoft’s total Xbox content material and providers income.

Spencer says he now expects Xbox Game Pass to remain at round 10–15 % of Microsoft’s Xbox content material and providers income and that “it’s profitable for us.”

“Game Pass as an overall part of our content and services revenue is probably 15 percent,” says Spencer. “I don’t think it gets bigger than that. I think the overall revenue grows so 15 percent of a bigger number, but we don’t have this future where I think 50–70 percent of our revenue comes from subscriptions.”

It’s a uncommon perception into Microsoft’s Xbox console and Game Pass subscription companies, notably as Spencer suggests Xbox Game Pass gained’t dominate Microsoft’s gaming income. There’s a motive for that, as there are solely so many Xbox console house owners that may subscribe to the service.

“We’re seeing incredibly growth on PC … On console, I’ve seen growth slow down, mainly because at some point you’ve reached everybody on console that wants to subscribe,” explains Spencer.

Microsoft is constructing an Xbox cellular gaming retailer to tackle Apple and Google, however it should face challenges in rising Xbox Game Pass on platforms like iOS, the place it’s presently unattainable to supply rival shops and even cloud gaming apps. Spencer acknowledged these challenges, however he thinks Microsoft is enjoying the lengthy recreation on a cellular Xbox retailer.

“If you take a long term bet, which we’re doing, that we will be able to get access to players on the largest platforms that people play on — Android and iOS phones — we want to be in a position with content, players, and storefront capability to take advantage of it,” says Spencer. Microsoft’s Activision Blizzard deal is vital to the corporate’s cellular gaming efforts, and it’s quietly constructing a cellular Xbox retailer that can depend on Activision and King video games.

Pricing was one other sizzling subject throughout Spencer’s look at WSJ Tech Live. While Microsoft hasn’t elevated the worth of Xbox Game Pass or its Xbox consoles, which may not maintain for for much longer, and Spencer has hinted adjustments could possibly be on the way in which sooner or later.

“We’ve held price on our console, we’ve held price on games, and our subscription. I don’t think we’ll be able to do that forever,” admits Spencer. “I do think at some point we’ll have to raise some prices on certain things, but going into this holiday we thought it was really important that we maintain the prices that we have.”