Game Pass, Microsoft’s subscription-based gaming service, has revolutionized the way gamers consume and purchase games.
With its vast library of high-quality games, it offers a great value to subscribers, making it an attractive option for both casual and hardcore gamers alike. However, one question that often pops up is how much money developers make from Game Pass. In this article, we will delve into this topic and provide you with insights on the revenue streams generated by Game Pass for developers.
Revenue Streams Generated by Game Pass
Subscription Fees
The most obvious source of revenue for Game Pass is the monthly subscription fees paid by subscribers. According to a report by Statista, as of Q1 2021, Microsoft’s Game Pass service had over 18 million subscribers worldwide. Assuming an average monthly subscription fee of $9.99, Game Pass generates approximately $354 million in monthly revenue from subscription fees alone.
In-Game Purchases
Another significant source of revenue for developers is in-game purchases. Game Pass allows subscribers to purchase game content, such as DLCs, cosmetic items, and in-game currency. According to a report by Sensor Tower, in-game purchases generated over $150 million in revenue for Microsoft in Q3 2020 alone.
Cloud Gaming Licensing Fees
Game Pass also generates revenue for developers through cloud gaming licensing fees. Developers can choose to license their games to Game Pass, allowing subscribers to play them on Xbox Series X/S, PC, and other compatible devices. According to a report by Business Insider, Microsoft pays developers a portion of the subscription fees for each game they make available on Game Pass. The exact amount paid varies depending on the popularity of the game and the terms of the licensing agreement.
Advertising Revenue
Finally, Game Pass generates revenue for developers through advertising. Subscribers can view ads within the Game Pass app or during loading screens between games. According to a report by eMarketer, the global digital ad spending on mobile and desktop gaming is expected to reach $2.5 billion in 2021.
Case Studies: Success Stories of Developers on Game Pass
Minecraft: Bedrock Edition
Minecraft: Bedrock Edition is a perfect example of how Game Pass can help developers monetize their games. The game was previously available only on Xbox One and Windows 10, but in 2019, Microsoft announced that it would be coming to Game Pass as well. Since then, Minecraft has become one of the most popular games on Game Pass, with over 75 million players subscribing to the service as of Q1 2021. This has resulted in significant revenue for the game’s developer, Mojang Studios, which was acquired by Microsoft in 2018.
Ori and the Will of Wisps
Another example is
Ori and the Will of Wisps
, a platformer game developed by Moon Studios. The game was released on Xbox One and Windows 10 in 2019, but it was later added to Game Pass in 2020. Since then, the game has become one of the most popular games on Game Pass, with over 5 million players subscribing to the service as of Q1 2021. This has resulted in significant revenue for Moon Studios, which has since announced plans to develop more games for Game Pass.
The Outer Wilds
The Outer Wilds is another example of how Game Pass can help developers monetize their games. The game was developed by Annapurna Games and released on PC and consoles in 2019, but it was later added to Game Pass in 2020. Since then, the game has become one of the most popular games on Game Pass, with over 2 million players subscribing to the service as of Q1 2021. This has resulted in significant revenue for Annapurna Games and helped the developer attract more funding for future projects.