It's no secret that Xbox Game Pass is currently the most important pillar of Microsoft and Xbox's strategy. So the companies are betting everything on the growth of their service and its expansion to all possible platforms.
According to Phil Spencer, head of Xbox, Microsoft could pull out of the video game industry if Xbox Game Pass does not meet an important goal by fiscal year 2027. His interesting statements came to light today thanks to documents from the case between Microsoft and the FTC.
It looks like Xbox's future depends on Game Pass
James Weingarten, an attorney for the FTC, presented a slide on the projections Xbox has made about the growth of Game Pass over the next few years. The company is interested in expanding the service primarily on computers and through Xbox Cloud Gaming, its cloud gaming platform.
According to this projection, the service is expected to have more than 100 million users by fiscal year 2029-2030. However, Spencer clarified that this is not an actual estimate, as Microsoft needs more growth in the PC and cloud sector by 2027 or sooner.
Spencer stated that, if this is not achieved, the company could exit the video game business altogether. The executive's main goal is to expand outside of consoles, as this is the only way they can achieve the numbers they are looking for.
"I can fairly safely say that if we do not make more progress than this off of console, we would exit the gaming business. If this were the outcome, we would -- I don't believe we'd still be in the business.
"A majority of our customers are found off of our own hardware, I would hope by earlier than 2030. So, when you asked me if I agreed with this chart that the light green and blue depending on what colors you see there would have to be much larger much earlier. I would say by FY26, '27 that we should be in that position, or we'd have to make a different decision with the business," Spencer responded when questioned by the lawyer about the projections.
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