Microsoft hit a Milestone as they explained on their third-quarter earnings call. Over 10 Million people are now subscribing to their game as a service/Netflix for gaming model. Game Pass. Xbox Game Pass is on both PC and Xbox series of consoles. Offering up a price value in different areas for consumers to choose. You can get the PC version for $4.99 per month or $9.99 on Xbox. With a third-tier called Xbox Ultimate where you get all services across devices for $14.99. What makes this an astounding figure in terms of accomplishment is the fact that the service has been around for 3 years. Launching in 2017. Compared to Sonyś service PSNow which only has 2.2 million subscribers. Microsoft has been able to really make the claim that Netflix like gaming stream service is more than viable. Placeś Microsoft in a strong position when it comes to the launch of their next-generation console Xbox Series X.
Their milestone for Game Pass was not the only success Microsoft is seeing with their gaming efforts. Xbox Live has over 90 million active users, while their cloud service Xcloud is seeing growth in the thousands. The take away from Mircosoftś proclamation of itś numbers is the fact that all their services are launching on the backs of more third party support than first. Which for Microsoft is a good and bad thing. After acquiring, and building 15 studios focused on gaming Microsoft has to deliver the content much like Netflix for Game Pass to continue to be viable. Adding more value to their portfolio of services. ¨Record Engagement” according to Microsoft communications chief Frank Shaw means that there will have to be efforts taken to grow, as well as sustain momentum in the face of competition.
Microsoft may have saved themselves that headache by partnering with Sony, and Nintendo for future streaming services that both can offer their audiences on their respective gaming platforms. The question will be if Microsoft can compete and stay ahead in the space long enough for Xbox to be a stronger brand going up against potential rivals such as Google with Stadia, and whatever game streaming service Amazon may launch with. The pandemic we are currently experiencing has been a strong contributor as hardware gaming sales are also up according to the NPD numbers; which are 160% over year on year at a time when new consoles are on the horizon this year. The question remains is if Microsoft can continue and take advantage of their current upswing in the gaming sector.