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Xbox Game Pass: Microsoft Has Paid "hundreds of millions" To developers

Xbox Game Pass: Microsoft Has Paid "hundreds of millions" To developers

Xbox Game Pass: Microsoft Has Paid "hundreds of millions" To developers

Microsoft shared new data related to the Xbox economy, as well as how developers get paid for publishing games through Game Pass and ID@Xbox. This is notable because Microsoft rarely discloses dollar amounts on specific Xbox units, such as Game Pass and ID@Xbox in this case.

In a blog post, Microsoft’s Chris Charla revealed that Microsoft has paid developers and publishers “hundreds of millions of dollars” in Game Pass licensing fees since launching the subscription service in 2017. ) Without the support of Game Pass members, this would never have existed, which is truly an incredible phenomenon,” Charla said. “Ensuring millions of Game Pass members can experience some of the best ever , which is a game changer for Xbox players and developers. “

Game Pass has more than 25 million subscribers. After the lower introductory rate, the service costs $10 per month or $15 per month for Game Pass Ultimate. Game Pass, with its 25 million subscribers, has undoubtedly brought in big bucks for Microsoft, but the service isn’t without criticism. Some have questioned whether the subscription-based model is actually good for the overall game. For its part, Xbox boss Phil Spencer recently talked about how Game Pass doesn’t try to crowd out other distribution models, such as traditional retail or free-to-play. They can all coexist, Spencer said, although it remains to be seen how it all ends.

Microsoft has historically avoided sharing any specific data on the economics of Xbox Game Pass, so it’s notable to disclose “hundreds of millions of dollars” in licensing fees. Still, it’s vague and doesn’t answer the question of whether Game Pass is monetizing.

Spencer recently said that Game Pass has been “very sustainable.” In his vague statement, Spencer didn’t say how, or for whom, the service is sustainable, but he wanted to dispel claims that Game Pass is now a cash pit. “I know a lot of people who like to write, ‘We’re burning through money right now, and ultimately a pot of gold for the future.’ No. Game Pass is very, very sustainable right now because it exists and continues to grow,” Spencer said.

If Microsoft pays “hundreds of millions of dollars” to developers through Game Pass licensing fees, the cut for Microsoft as a platform holder would also be substantial, although the exact numbers weren’t disclosed.

As for ID@Xbox, Microsoft’s indie game distribution program, Charla announced that it has paid out more than $2.5 billion in royalties to indie developers since the program launched, and that ID@Xbox partners have made “nearly more revenue through Xbox” than last year. doubled.” For the past three years, Charla said.

ID@Xbox was announced in 2013, and Charla said Microsoft “really didn’t know much” about the plan when it was first announced. So the company listened to developers and collected their feedback on their needs, Charla said.

“For example, innovations such as cross-play across other consoles come directly from ID@Xbox partners. Based on their feedback and requests, we’ve made many changes to the backend publishing system and even the application framework,” Charla said. “These changes may It may seem mundane, but it’s important as we seek to make it easy for indie developers to release their games on Xbox and PC.”

The ID@Xbox results “beyond our wildest dreams,” Charla said.

Microsoft also revealed that more than 4,600 developers from 94 countries signed up for the ID@Xbox program, with more than 1,000 developers signing up in the past two years.

The ID@Xbox program currently has more than 3,000 games in the catalog, and Charla says Xbox has a problem with Steam, and that’s “discoverability.”

“Teams at Microsoft work every day to help solve the discovery challenge so players can find the games they love, which in turn ensures developers find audiences for their games.  … We’re always looking to connect creators with new audiences. way to connect,” Charla said.

ID@Xbox has a library of about 3,000 games and pays $2.5 billion to developers, earning about $830,000 per game. There’s no doubt that some games are earning well above average, while others are significantly less, but Microsoft didn’t provide any further context.

The Xbox as a whole is doing well right now, and Microsoft recently reported that the Xbox just had its best year ever.

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Wilbert Wood
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