Microsoft's CFO has said she wants to turn Xbox into a subscription business, and has said she's encouraged by the progress that Xbox Game Pass is showing.
Microsoft just reported its sales data for the final quarter of the current financial year. As reported by GamesIndustry.biz, the figures showed that Microsoft's gaming revenue is up by 44% compared to the same period last year, while revenue from Xbox content and services is up 61% compared to the same financial quarter from the previous financial year.
In an investor's call following the report, Microsoft chief financial officer Amy Hood was asked how investors should think about the growth of Microsoft's gaming business. "I do think the real goal here is to be able to take a broad set of content to more users in more places, and really build what looks like more to us, the software annuity and subscription business," Hood responded.
That's a long way of Hood saying that Microsoft wants Xbox to focus more on the subscription side of the business, like Xbox Game Pass, in order to get its IPs in front of more people. "It can be monetized in multiple ways," Hood said of Xbox's IPs, adding "I think we're really encouraged by some of the progress and how we're making progress with Game Pass."
Again, that's a long way of saying that Microsoft is broadly pleased with how Xbox Game Pass is panning out for its business. It's not really a surprise to hear that Microsoft is betting big with Xbox Game Pass growth after Xbox's decision to launch Call of Duty: Black Ops 6 via the subscription service on day one later this year on October 25.
