Phil Spencer reveals Xbox drops a staggering billion bucks annually on Game Pass games from third parties

Xbox Game Pass is proving to be costly for Microsoft, as Xbox head Phil Spencer reveals the platform's expenses for third-party titles exceed a billion dollars annually. The subscription service offers a diverse library of games to players for a monthly fee, saving users from the high cost of purchasing new games. Spencer discussed the financial sustainability of Game Pass and confirmed there are no immediate plans to extend the service to competing consoles like PlayStation or Nintendo. Despite the hefty investment, Spencer acknowledges the importance of meeting the demand for titles across various genres, from blockbuster AAA releases to lesser-known indie projects. This strategy ensures constant updates to the Game Pass lineup, benefiting both subscribers and developers alike, with the latter receiving compensation for potential lost sales. Meanwhile, Spencer is also tuned into fans' requests, particularly the desire for a new installment in the Banjo-Kazooie franchise.

Xbox invests over a billion dollars each year to maintain and expand its Game Pass library with third-party games.