Microsoft has missed its internal Game Pass subscriber growth projections for the second year in a row.
New SEC filings to shareholders reveal key information about Game Pass' performance over the past few years. This particular document outlines important information for investors, including voting matters, and Microsoft CEO Satya Nadella's pay structure. Nestled in this compensation plan are interesting tidbits about Game Pass.
According to the filing, Game Pass missed its internal growth projections by some 44%, representing the second year in a row that it missed growth projections. Microsoft had originally expected to grow Xbox Game Pass subscribers by 72.8% in Fiscal Year 2022, which was a record year for Xbox gaming revenues with a mighty $16.22 billion earned, but only managed to grow subscribers by 28%.
What's interesting is that this doesn't exactly equate to actual subscriber counts before FY22, but dollar value of subscribers themselves.
For example, a new user can subscribe to Game Pass for $1 and technically be counted among the "over 25 million" subscribers the service currently has. But that new subscriber isn't technically worth as much as someone who pays the regular $14.99 monthly fee for Game Pass Ultimate.
Throughout FY22, though, the growth is being charted as a percentage.
This trend echoes statements made by Xbox gaming executive Phil Spencer, who recently said that Xbox Game Pass console subscriptions were seeing sluggish growth.
Game Pass growth on PC is up 159%, though, according to comments made by Microsoft's Satya Nadella.