as mentioned Derek Strickland Submitted by digging to Securities and Exchange Commission, the Xbox Game Pass subscription growth rate for the fiscal year from July 2021 to June 2022 is 28.07%. On their own, the numbers appear to be positive for progress on this pillar around which all of Microsoft’s strategy revolves. However, perhaps spurred by releases such as Halo Infinite, Forza Horizon 5 and Age of Empires 4, Microsoft has set a growth target for Xbox Game Pass of 72.88%. As a result, new user acquisition is clearly not as fast as Microsoft would like, which was already the case last fiscal year (37% growth, 47% target).
Against this backdrop, Phil Spencer’s recent abrupt admission that the slowdown in Xbox Game Pass growth on consoles makes full sense, and even Microsoft’s gaming boss hasn’t failed to emphasize the strong annual growth in PC users in return. Remember, Xbox Game Pass had 25 million subscribers in January 2022. According to Phil Spencer, Game Pass subscriptions will generate just under $2 billion in revenue in 2021, or 15% of revenue. Content and Services Xbox events, including game sales, add-ons, and subscriptions.
For context, these growth targets are tied to Microsoft CEO Satya Nadella’s compensation. The more the result matches the target, the bigger the bonus. The notable detail is that the growth of Xbox Game Pass is the only criterion related to video games. Other goals that may affect CEO compensation relate to Microsoft cloud revenue, use of Teams or LinkedIn sessions. If you’re having a hard time seeing Satya Nadella not making the most of his Game Pass bonus, note that the leader received $55 million in cash and stock for the fiscal year ending June 30, 2022. Could be worse.