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“Gaming is a massive business;” Xbox Game Pass a “Real Win-Win” for Publishers and Players


Today, Microsoft Marketing Manager Chris Capossela spoke about the Xbox Game Pass at the Evercore ISI TMT conference.

Today, Microsoft’s Chief Marketing Officer and Executive Vice President of Marketing and Consumer Affairs Chris Capossela spoke about the Xbox Game Pass at the Evercore ISI TMT conference.

“I’m a big gamer fan. I’m a huge player myself. And I absolutely love how committed we are to this business. For those of you who are not familiar with it, gaming is a massive business.

And it used to be the gaming world that was split between PC gamers, who are just hard PC gamers, and console gamers, who love their special console, whether it’s Xbox, or Playstation, or Switch or Wii, or whatever you have.

But what we have seen as technology has gotten better and better, players are actually playing across many platforms.

They do not play only on the console, or only on the PC. So we’ve really tried to change the business model for the way we approach games to put the player more at the center, so our promise is that hey, you can play the games you love with the people you love, because social is a big, big part of games, and society is a big part of it across the devices you love.

So with Game Pass, you basically pay a monthly fee for access to hundreds of games. You do not have to buy the game if you do not want to. You can only play that game, then you can play it on the console that was built for or the PC it was built for, but we are also with our highest level subscription, host consoles on our own data centers and stream the games to a number of endpoints, to and with an Android phone, and soon we’ll be testing on iPhone and iPad through the browser, as well as of course, Windows PCs, so you can think of it as game streaming to many, many endpoints, really billions of different endpoints. So it’s less console-centric or PC-centric. It’s much more game-centric, and the latest number we’ve announced is 18 million game-pass subscribers worldwide.

We have only been involved in it for a relatively short time, so we are excited about that growth. As you saw Kirk our third quarter, our gaming revenue increased by 50%, which is a little crazy. Some of it is powered by the new consoles, Xbox Series X and Series S, but much of it is honestly powered by subscriptions, and content and services on top of these subscriptions.

I just want to share a few crazy statistics: one of the things we have been blown away with is that I can look at someone before they are game pass subscribers and after they are game pass subscribers, and find that once subscribing, user the 20% more time to play games.

So they go even deeper into games. They play 30% more genres, so they explore just as a Netflix person can explore documentaries or comedy, even if they were an action movie. 30% more genres. And they play a total of 40% more games including games that are outside the subscription. And then, for game developers, Game Pass is a great way for them to take their content and get it in front of gamers.

It is not just the consumer who wins and the publishers who lose. This is a real win-win model, and we’m quite concerned about it. ”

Capossela concluded by mentioning again that gaming is a “big business.”

When we talk about the Xbox, we’ll probably hear a lot more about future plans at the Xbox & Bethesda Games Showcase at E3 2021 on June 13th.

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