Game Pass To Achieve $5.5 Billion Revenue By 2025, Says Analyst

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Bawal Zehri

At HI Digital I test and write about different hardware configurations to show other PC users what they can expect from their build. My end goal is to educate the masses to make the right decision when they are looking for new PC parts to buy

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Xbox is doing its best to make Game Pass a sustainable source of revenue for the future. While the service has no shortage of AAA titles, it hasn’t been able to avoid the plateau that such subscriptions eventually run into.

Following these problems and the Activision merger, Xbox raised Game Pass prices last week. According to analysts, this won’t be the last price hike, but these measures will lead to the service generating $5.5 billion next year.

Why it matters: Microsoft no longer relies on console sales alone to generate revenue. As such, Game Pass has become even more important for the gaming giant.

Following the recent price hike, Ampere Analysis’ head of research, Piers Harding-Rolls, gave an interesting prediction regarding Microsoft’s revenue forecasts. According to his analysis, Game Pass revenue is expected to rise to a whopping 5.1 billion by 2025.

To put things into perspective, the service made up to 1.7 billion in 2022. This figure comes from Phil Spencer, who stated that Game Pass accounts for about 10-15% of Xbox’s annual revenue.

According to the analyst, Game Pass Ultimate’s price hike will be the catalyst for this growth. In total, Microsoft would see its revenue going by more than 200% compared to 2022.

Following the changes, Game Pass Ultimate is the undisputed best deal on consoles. Whether it be for day-one games or online access, this tier offers the best bang for your buck.

Meanwhile, Game Pass on PC remains the best deal overall. However, this tier has seen a price hike of its own.

As per the analyst, consumer spending on the service will grow by up to 15.3% in 2025. A smaller increase of 5.4% is expected this year.

Nonetheless, Game Pass seems to be heading toward a major turning point. The library in 2025 seems like Xbox’s best first-party output in years, so the service should be able to reap the benefits of several years of planning soon.

Bawal Zehri

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Laiba, our tech guru at HI Digital, simplifies and crafts How-To Guides with a Google IT Support Certificate. Beyond tech, she captures the city’s aesthetics through her lens. Join her journey where tech meets creativity!

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