Tech giant Microsoft reportedly spends $1 billion in attracting third-party titles to its Game Pass subscription service.
That’s according to a Bloomberg interview with Xbox president Sarah Bond (pictured), which says that the Big M offers a flat fee of “millions of dollars” to smaller publishers, alongside a portion of subscription revenue. That’s on top of exposure to a new audience.
Bond says that Game Pass is about a steady stream of revenue from different titles rather than focusing on huge hits.
“There’s a difference between managing a network effect and maximizing the value of a single game,” Bond says, adding that this meant risking undermining its business model before Game Pass came about. “[But] if we don’t do it, someone else is going to.”
Game Pass now has over 34 million subscribers since its 2018 debut.
