Brazil’s Administrative Council for Economic Defense (CADE) recently released a long report regarding Microsoft’s proposed acquisition of Activision-Blizzard. In this report, it was revealed that Microsoft made $2.9 billion from Xbox Game Pass subscriptions last year.
According to TweakTown, Game Pass made up about 18% of Microsoft’s total annual Xbox revenues ($16.28 billion) in 2021. Moreover, Game Pass generated almost 30% of the revenue that came from Microsoft’s games and services division.
The report did not reveal the actual profits generated by the company. Also, these figures did not include revenues generated by PC Game Pass.
This information was revealed as part of CADE’s report explaining why it had approved Microsoft’s proposed acquisition of Activision-Blizzard with “no restrictions.” Additionally, CADE stated that Sony should still have the means to remain competitive even if the Call of Duty series becomes an Xbox exclusive.
“With the acquisition of a publisher such as Activision-Blizzard, and considering the (theoretical) risk of the company’s content becoming exclusive to Xbox, it is likely that the eventual conclusion of the transaction will give Microsoft a considerable competitive advantage in the console sector,” the report reads. “Even so, CADE does not see that such an advantage represents a risk of closing this market for current competitors. As is already seen, Nintendo does not currently rely on any content from Activision-Blizzard to compete in the market.
The Profit‘s Take:
$2.9 billion is a HUGE number. It’s clear that Microsoft is leaning into Game Pass. Within five years, Game Pass should be a $10 billion business for Microsoft.
(All information was provided by Video Games Chronicle)
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