Microsoft Game Pass Subscriptions Miss Projected Targets

Microsoft's Game Pass subscription service has failed to meet its growth projections for the second consecutive year. According to a recent filing, the company had set a target of 73% growth for the fiscal year 2022, but achieved only 28% growth. This shortfall is notable, as the targets were tied to performance incentives for CEO Satya Nadella and other executives. Although specific Game Pass user numbers are not disclosed, the filing reveals that the Xbox division has surpassed 25 million subscriptions. In the previous year, Microsoft had aimed for 48% growth but achieved 37%. Xbox head Phil Spencer recently stated that Game Pass is profitable and contributes around 15% to Microsoft's gaming revenue. Spencer also noted that while the PC version of Game Pass is experiencing growth, the console service has reached a saturation point, with slower growth due to having already subscribed most interested console users.