Microsoft spending over $1 billion annually on third-party Xbox Game Pass titles

gamedeveloper.com:

Xbox boss Phil Spencer says Microsoft spends over $1 billion a year bringing third-party titles to Xbox Game Pass.

Spencer revealed the figure during an interview with Windows Central and stated that Xbox Game Pass is "financially viable, meaning it makes money," despite that outlay.

Elaborating on what Xbox Game Pass adds to Microsoft's repertoire, Spencer added that simply keeping players engaged on Xbox platforms represents a win for Microsoft.

"Because we have a platform, and we have a subscription service, having people play more and stay engaged on the platform, frankly, regardless of the types of games they're playing, is a very viable part of our strategy," he said.

"The diversity of business models allows us to invest in different kinds of content and still have financial success with that content. When we look at the back catalog of games from Bethesda, we get really excited. We look at the back catalog from Activision and Blizzard, we get really excited about the things we can do."

It's a reality that, for Spencer, will enable investments in "different kinds of games [and] different sizes of games," largely because there's an acknowledgement internally that not every Xbox Game Pass title has to be the sort of experience that "takes up all of your time."

"What we see in Game Pass is a service that supports all kinds of games, from the biggest games, to the unknown indie games that you didn't know you would love until you played it," he continued.

During the same interview, Spencer quashed the idea that Microsoft is actively pushing to bring Xbox Game Pass to rival platforms such as the Nintendo and PlayStation.

Those remarks come shortly after Xbox CFO Tim Stuart told Wells Fargo summit attendees the company wanted