Microsoft was unable to reach its internal target number of Xbox Game Pass subscribers for the second consecutive year.
According to a report by Ace during a new financial presentation made by the company, he provides information on an annual goal linked to the compensation of CEO Satya Nadella, as well as that of other key Microsoft executives.
To achieve the goal, Microsoft had to see a 72.88% growth rate in Xbox Game Pass subscribers for the fiscal year ended June 30, 2022.
Instead, despite the number of subscribers continuing to grow, the rate was only 28.07%.
This is the second time that Xbox Game Pass’s growth rate has failed to meet internal goals. In fiscal year 2021, the target was 47.79% growth, but the end result was 37.48% growth.
The previous year the target was met: the target was 71% growth and the result was 85.75% growth.
Xbox Game Pass has stopped growing
Microsoft game chief Phil Spencer explained earlier this week that the growth of Xbox Game Pass on the console is “slowing down”.
“I’ve seen a slowdown in growth, mainly because at some point you’ve reached everyone on the console who wants to subscribe,”
Spencer said while speaking at WSJ Tech Live.
As of January 2022, Game Pass has more than 25 million subscribers, according to Microsoft.
In the same interview, Spencer said Xbox Game Pass is “10-15% of (their) total revenue” and that the service is profitable for the company.
The head of games also hinted that Xbox consoles, games, and subscriptions could go up in price in the future.
