Xbox Game Pass has achieved a significant milestone, generating nearly $5 billion in revenue over the past year for the first time ever. This achievement was announced during Microsoft's Q4 earnings call, although specific subscriber numbers were not disclosed. Previous estimates indicated that Game Pass subscribers reached 35 million, driven largely by strategic price hikes and the influx of popular first-party titles like The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle. Despite these successes, Xbox faced challenges, including hardware revenue dropping by 22% and the recent layoffs of hundreds of employees across its gaming divisions, alongside cancellations of projects such as Everwild and Perfect Dark.

How has Xbox Game Pass revenue increased over the past year?

Xbox Game Pass revenue increased by nearly $5 billion over the past year, largely due to subscriber growth and the release of new first-party titles, despite facing some operational challenges.

Xbox Game Pass, launched in 2017, is a subscription service that allows gamers to access a rotating library of games for a monthly fee. Its diverse range of titles and the inclusion of new releases on day one have made it a popular choice, contributing significantly to Xbox's gaming revenue. This service reflects a broader shift in the gaming industry toward subscription-based models, echoing trends seen in other media.