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Xbox Game Pass subscriptions miss Microsoft’s target

Kagey K

Banned
Sans_titre.png

Jake Gyllenhaal Reaction GIF by MOODMAN
Goddammit Bryank, why you gotta do that to yourself?

sue makes stuff GIF
 

Chukhopops

Member
Does nobody understand basic mathematics anymore?

- mid-2019 is base 100;
- grow by 86% the first year. New value is 186 or +86 absolute gain;
- second year target growth is +48% so the target gain is 186 * 1.48 = 275;
- so the absolute target gain is 275 - 186 = 89. The prediction was that they would gain subs even faster than before;
- actual growth is +37% so the new value is 186 * 1.37 = 255;
- that’s an absolute gain of 255 - 186 = 69. Which is still insane YoY growth.

Basically they expected to have even higher new subs this year (post Covid) and it fell short, but they still gained subscribers (obviously) at 77% of last year’s pace.

If you see it as the service being doomed…
 
Microsoft in FY20 beat their Game Pass target by 14%. They achieved 85.75% growth with a target of 71% growth. For FY21 their target was 47.79% growth, they achieved 37.48% growth. So Game Pass was already running ahead of their projected targets as of 2020, which makes missing this year's target not quite as bad. These numbers, before titles like Forza Horizon 5, Halo Infinite and Starfield, are great.

dXZFyCb.png
 
Microsoft in FY20 beat their Game Pass target by 14%. They achieved 85.75% growth with a target of 71% growth. For FY21 their target was 47.79% growth, they achieved 37.48% growth. So Game Pass was already running ahead of their projected targets as of 2020, which makes missing this year's target not quite as bad. These numbers, before titles like Forza Horizon 5, Halo Infinite and Starfield, are great.

dXZFyCb.png
You’re hired
 

BennyBlanco

aka IMurRIVAL69
I wonder if MS games selling so well on Steam is indicative that the service isn’t popular on the platform. Their client sucks but the value proposition is great. Sea of Thieves and Halo are regulars in the top sellers on steam.
 

GHG

Member
Does nobody understand basic mathematics anymore?

- mid-2019 is base 100;
- grow by 86% the first year. New value is 186 or +86 absolute gain;
- second year target growth is +48% so the target gain is 186 * 1.48 = 275;
- so the absolute target gain is 275 - 186 = 89. The prediction was that they would gain subs even faster than before;
- actual growth is +37% so the new value is 186 * 1.37 = 255;
- that’s an absolute gain of 255 - 186 = 69. Which is still insane YoY growth.

Basically they expected to have even higher new subs this year (post Covid) and it fell short, but they still gained subscribers (obviously) at 77% of last year’s pace.

If you see it as the service being doomed…

It's normal that percentage increases tail off as something gets larger, but the actual headline is the fact that Microsoft themselves weren't expecting it to start tailing off to such a degree this soon. What will be interesting to see is how they adjust the target for next year in light of this.
 
You’re hired

It's in the numbers themselves.

Last year Microsoft projected 71% growth for Game Pass, but beat that with 85.75% growth. This fiscal year they had a target of 47.79% and achieved 37.48%. If you combine last fiscal year and this most recent one, Game Pass is clearly ahead of Microsoft's projected growth targets by 4.44%. And this is all before Microsoft's biggest game releases.
 
To be fair the COVID shutdown ended in the US so the missing 11% growth could be due to that, but also the lack of noteworthy releases, which changes during the holiday.
 
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38% percent growth is now considered failing?
Welcome to the world of crazed fandom and online armchair experts; where success, albeit not as targeted specifically, is failure.

Gamepass keeps growing and big titles are on the way. I'm still laughing at the poster on the other page saying the latest 11 titles releasing were crap. Clearly that poster has no clue how big Age of Empires IV and that RTS franchise actually is. Funny how silly some posts are when it's not about their specific vested gaming interest.
 
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Leyasu

Banned
It's normal that percentage increases tail off as something gets larger, but the actual headline is the fact that Microsoft themselves weren't expecting it to start tailing off to such a degree this soon. What will be interesting to see is how they adjust the target for next year in light of this.
Perhaps they were expecting more series consoles to come off of the production lines.
 

GHG

Member
It's in the numbers themselves.

Last year Microsoft projected 71% growth for Game Pass, but beat that with 85.75% growth. This fiscal year they had a target of 47.79% and achieved 37.48%. If you combine last fiscal year and this most recent one, Game Pass is clearly ahead of Microsoft's projected growth targets by 4.44%. And this is all before Microsoft's biggest game releases.

Targets don't remain static. The target for this year would have taken previous years into account since it would have been set after last year's figures could be analysed.

Perhaps they were expecting more series consoles to come off of the production lines.

Yep, I think that could be a completely reasonable conclusion. Either that or they expected better growth from the PC side of things.
 
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elliot5

Member
The only disappointment here should be for Satya and Phil for their bonuses. It's still growth, and still pretty good. This was made in June 20 before the Halo delay and such bringing the lofty goals probably. Especially after exceeding expectations before

If June 21 ended with around 20.5M and we think around 1M subs a month that brings us to 24-25M. I'm sure Forza b4b aoe4 and Halo will bring it close to 30M to close out the year.

Either way I'm happy with my sub and hope it continues to grow
 
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Probably best to add the context to the OP:

By the numbers: For the 12 months that ended on June 30, Xbox Game Pass subscriber growth was up 37%, but the company had set a 48% growth goal.

Underperforming by 11% I guess.
That isn't how percentages work. They are 23% off target. You don't subtract the raw percentages.
 
Targets don't remain static. The target for this year would have taken previous years into account since it would have been set after last year's figures could be analysed.



Yep, I think that could be a completely reasonable conclusion. Either that or they expected better growth from the PC side of things.

Yes, that's true, and taking FY2019 numbers into account, and after those figures were analyzed, Microsoft set a 71% growth target for Game Pass FY2020, which Game Pass beat 14%. So in the prior year, they overperformed their projection, and in this year they underperformed them. Taken together, this fiscal year and last, Game Pass is beating Microsoft internal projections for subscriber growth, all without Forza Horizon 5, Halo Infinite or Starfield.
 
Going from 20 to 30 million would represent 50% growth in a couple of months. Do you think that's realistic when they couldn't achieve 48% in 12 months?
Given the timeframe already they're likely pushing 23 million. Forza and Halo sales push 7Mil combined easily around launch months, historically I mean. There's a weird transition from hard sales to GP subs but yes I think the line up this XMAS and start of next year will push over 30Mil.
 

elliot5

Member
Given the timeframe already they're likely pushing 23 million. Forza and Halo sales push 7Mil combined easily around launch months, historically I mean. There's a weird transition from hard sales to GP subs but yes I think the line up this XMAS and start of next year will push over 30Mil.
Yeah holiday sales and the expansion of cloud in Brazil, Australia, Japan, etc should help too
 

Chukhopops

Member
And some people believed in 30M.
Well I’m not sure how he calculated that since it would mean the number in June 2020 was 14.5 million and nobody really knows that.

But if that’s correct that’s 5.5 million increase in twelve months or 458,000 new subscribers per month over the period.

If there were 14.5 in June 2020 then there were 7.8M in June 2019. So 2019-2020 had 558,000 new subs per month on average.
 

Hendrick's

If only my penis was as big as my GamerScore!
Noone is calling it a failed platform stop being butthurt, most are having a civil discussion. Some of you guys are hella sensitive.
No one

I mean...as soon as i heard of them giving away Gamepass subscriptions for free in India for like 8 months it was kinda telling.
I wonder how much MS has invested on Gamepass so far.

Strauss said "30 million" and Phil stayed mum. Now we see why. They know it's better to not report the numbers when they're not up to expectations (as they stopped doing for hardware sales years ago), than to put a less than desirable number out there.

I wonder if the "Game Pass has reached XXX subscribers" press releases will meet the same fate as the "Xbox sells XXX units" ones did.

And here's why they stopped releasing numbers...typical Microsoft, if there's not a good story to tell just hide everything.
It will be interesting to see what happens when they release bigger titles like Halo Infinite on it.
It's not like they can act on price as a lever since they have already made tons of deals to push it almost for free.

Fantastic, the game pass model is bad for gamers, third party developers and the Xbox console. It’s only good for Microsoft and its investors.

let it fail.

until now growth was sustained with incredibly discounted subscriptions

if they want more growth they should give free gamepass in more counteries .


Every time I see third party games going day 1 on Gamepass I think "they must have no confidence in that game".

And thats why its cost is way bigger. Execs losing their bonus (it means shareholders want profits fast from it) for this will make them get rid of it soon.

Xbox have a great console and a great subscription service but still no games! They never learn!
 

MikeM

Member
Why would anyone ever subscribe to a gaming service that didn't understand the concept of love?
What?
38% percent growth is now considered failing?
Only for Xbox’s performance review (i.e. execs). 38% growth is still absurd, but future growth is going to be constrained by Xbox Series supply and $1 deals expiring. I’m curious to see the rate of those who actually pay full price once the $1 deal expires. Retention is important.
 

THE DUCK

voted poster of the decade by bots
As someone who is heavily invested in the Xbox ecosystem I still don’t get the appeal of the service. What games have dropped that make me want to sub or lead to significant growth?

Marvel’s Avengers? Nah
Ascent? Nope
The Medium? Hell no
Baldur’s Gate? Lol

Even with Halo and FH5 on horizon it’s like who cares? Just buy the one or two games that interest you and play them. I’m not subbing to Game Pass to play Starfield for example. I’ll just buy it.

I don't get how you can't be. I usually find at least a game a month, easily substantiates the cost. And I don't get your last statement, if there is two full price games it you want it makes even more sense to be on gamepass and then buy them later if you really must own them for $10 each.
 

THE DUCK

voted poster of the decade by bots
Fantastic, the game pass model is bad for gamers, third party developers and the Xbox console. It’s only good for Microsoft and its investors.

let it fail.

until now growth was sustained with incredibly discounted subscriptions

Speak for yourself, I'm a gamer and it's good for me. There appears to be 25 Million other people as well who seem to like it. They didn't get 25 Million sustained subscribers from just the discounted subs, that's getting old.
 
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