Microsoft’s Xbox Game Pass subscription service isn’t growing as quickly as the company had hoped, despite amassing more than 25 million members, according to a new financial filing.
As Axios reports, the number of subscribers through the end of June 30 2021 increased by 37% compared to the 18 million collected by Microsoft at the end of June 2020. However, Microsoft has targeted an annual growth of approximately 48%. The filing with the US Securities and Exchange Commission (SEC) identifies a lost target for Microsoft.
There will be mitigating factors, however, such as the ongoing struggle to keep Xbox Series X and (to a lesser extent) Series S models on the shelves since their launch in late 2020. There have also been lengthy delays in first-party exclusives like Halo Infinite, which was Available to Game Pass subscribers on day one.
The drop in growth against expectations is the reverse from 2019 to 2020 where subs increased by 85% based on the 71% target. It is very likely that in the past six months since this data was published, Microsoft has been able to increase Game Pass subscriptions in line with its expectations.
Additionally, given today’s news of the company’s intentions to buy Activision Blizzard, there are $70 billion reasons why this growth shortfall will not continue. Microsoft is currently acquiring ownership of legendary video game franchises such as Call of Duty, Crash Bandicoot, Warcraft, Overwatch, and others.
It’s not clear if these games will become Xbox exclusives, but you can bet your lowest that future installments will be coming to Game Pass. Microsoft says it is planning “as many Activision Blizzard games as possible” for the service once the acquisition is complete.
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