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Microsoft Spends $1 Billion on Game Pass Titles Annually

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Microsoft Invests Heavily in Game Pass Titles

A new report has revealed the significant amount of money Microsoft spends each year to bring third-party games to Xbox Game Pass. According to Bloomberg, Microsoft now spends $1 billion a year getting third-party games on the subscription service.

Game Pass Deals

Game Pass deals are varied and can include flat fees of millions of dollars upfront to add titles from smaller publishers to the service. In some cases, Microsoft will completely fund the development costs of a game, allowing the studio to sell their game on rival stores like PlayStation and Steam, or at retail, while Microsoft enjoys the benefit of having another Game Pass game.

In other cases, a game might be finished, and then Microsoft works out a straight cash deal to bring it to Game Pass. Other deals involve usage and how much monetization a game has through in-game sales. Microsoft’s Game Pass deals are “all over the place,” and the company is open to experimenting with different partners.

Not All Publishers Are On Board

While Microsoft can pay smaller publishers big money to bring their titles to Game Pass, larger publishers don’t always take the money or agree to put their titles on Game Pass. Strauss Zelnick, the head of Take-Two, has stated that putting its big games on Game Pass at launch doesn’t make sense. However, Take-Two has brought some of its older titles to Game Pass, including Grand Theft Auto V and Red Dead Redemption II.

Microsoft’s investment in Game Pass titles is a significant one, and the company is committed to making the service a success. With a new Standard tier of the service just launched, Game Pass continues to be a major player in the gaming industry.

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