He disclosed that Game Pass is in fact profitable and accounts for at most 15% of the Xbox business’ content and services division, which would give Game Pass annual revenue of around $1.9 billion.Speaking to reporter Sarah Needleman, Spencer doled out some key figures and announcements around areas Microsoft is particularly focused on in gaming. Spencer, a master of blending off-the-cuff demeanor with especially astute interview answers, made clear that while regulators are concerned over its nearly $70 billion Activision bid, the company is relentlessly focused on growing its audience beyond the stagnant console market. On Wednesday, Xbox boss Phil Spencer took the stage at the WSJ Tech Live conference where he made news on a series of strategic areas for Microsoft, including Game Pass, cloud streaming, and the company’s approach to pricing. And if the Game Pass platform is the engine to make it happen, the acquisition of Activision Blizzard is a major source of fuel.
Microsoft has an ambitious plan to grow its gaming business from primarily Xbox consoles to cloud services, subscription platforms, and screens of all sizes.
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