Game Pass subscribers spend a LOT more on games, Microsoft says

Microsoft confirms that Game Pass subscribers are not only playing more games, but spending more too--a trend that's been established since the service debuted over 4 years ago.

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The Game Pass subscription has transformed Microsoft's games business. The service is so powerful that it's sent shockwaves through the entire industry, so much that many major publishers like EA and Ubisoft are mimicking it. Since Game Pass has launched in 2017, Microsoft has seen consistent revenue growth and the service has become one of the must-have subscriptions in the world's most lucrative entertainment industry.

How is Game Pass doing today? Better than ever. In a recent earnings call, Microsoft CEO Satya Nadella confirms that Game Pass subscribers are spending more time and money on games versus non-subscribers.

"Game Pass is growing rapidly and is transforming how people discover, connect, and play games. Subscribers play approximately 40% more games and spend 50% more than non members," Nadella said.

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The statement is vague. We don't know if this spending is on full games or microtransactions and DLC, but I expect it's a mixture of both. Game Pass is designed to spark sales and spending in a number of ways. If a game rotates out, Game Pass subscribers are more likely to buy it to continue their experience. There's an extra incentive because the game is discounted to subscribers.

Other subscribers are more likely to spend money on in-game content because their budgets are comparatively more free than they would be if they bought multiple titles at full price.

And finally we have retention, which is continued through massive value propositions with the service's huge 100 game+ library.

Microsoft has yet to deliver updated paid Game Pass subscription revenues, and the last figures were 18 million as of January 2021.