Microsoft has recorded a significant increase in the number of subscribers for its Xbox Game Pass service. The tech giant revealed in its second-quarter financial results that its subscribers now number 18 million – an increase of 3 million from the previous quarter.
The service which starts at $9.99 competes with other services such as NVIDIA’S GeForce Now and Google’s Stadia. Game Pass has over 100 games that users can download and play on their console for the period their subscription is active. They can also decide to buy the games (at a discount price) if they want and continue to play even if their subscription has expired. Games not bought are no longer playable once the subscription expires.
Microsoft has acquired a number of game studios in a bid to increase its game library. The biggest of them is Zenimax Media, which is the parent company of Bethesda Softworks, the game publisher behind The Elder Scrolls, Doom, and Fallout.
Xbox Game Pass is not the only area where Microsoft has recorded growth. The company said it recorded quarterly revenue of $43.1 billion and a net income of $15.5 billion, an increase of 17 percent and 33 percent respectively.
The new Xbox consoles – the Xbox Series S and Xbox Series X – which launched last quarter and even way into the quarter are said to be the most successful in the company’s history. CEO Satya Nadella is quoted to have said that they sold the most devices ever in a launch month.
According to The Verge, Microsoft’s CFO, Amy Hood, said they expect demand to be significant for the new quarter, however, supply will still be limited. Both consoles are currently listed as out of stock on Microsoft’s own site and at partner stores.
Microsoft’s Surface business has also recorded an increase in revenue of 3% and is now worth $2 billion, a first for it. It is expected to grow as the demand for laptops and PCs increases. Office 365 consumer subscribers have also increased by 28% to 47.5 million and Microsoft’s cloud business, Azure, recorded revenue growth of 50%.
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