How the Xbox Game Pass could be Microsoft's biggest weapon to dominate the video games industry

Ever since the service was introduced to the wider public, a lot has been said about Microsoft's Xbox Game Pass, but nobody could have considered the revolution it would bring to the gaming industry. Recent investigations by regulatory authorities have given the numbers of the model, and it looks to be a staggering one.

There have always been discussions about the success of Xbox's subscription service since its inception. Similar models did exist in the entertainment industry before, but this was the first time in the gaming industry. Instead of spending money on individual titles, players can access a vast library of games for a low monthly fee.

This move has reaped huge success for Microsoft and its gaming ambitions as it has helped Xbox establish its authority. The Xbox Game Pass has steadily expanded since its inception, with new titles constantly being added to it. If financial data is to be believed, the service is doing rather well. More importantly, it may get even bigger in the coming years and could be a dominating presence in the industry.

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The Xbox Game Pass has the potential to be the largest revenue earner for Microsoft and its gaming division

Thanks to ongoing regulatory work, the Brazilian CADE has published reports revealing the revenue that Xbox Game Pass earned in the last fiscal year. The numbers are as per Microsoft itself and currently stand at $2.9 billion.

To put it in perspective, that's 18% of the entire service from Xbox and 30% of the revenue earned from all games and services. This is also significantly higher than that of EA Play and Nintendo Switch Online. The numbers for PlayStation's subscription service aren't provided, so unfortunately, they can't be compared.

The numbers are certainly staggering and clearly depict Xbox's success with this model. More importantly, the service is only growing, and the signs are quite clear. There have never been doubts about the model's success, and many stakeholders have spoken positively about it.

It's only now that the CADE investigation has revealed the service's actual numbers, and it wouldn't be wrong to claim that the Xbox Game Pass could become a dominant force in the years to come. What makes the future even brighter is the very same reason why the investigations are being conducted, the Activision-Blizzard deal.

Once this deal comes to an end, Microsoft will have acquired all the IPs owned by Activision, Blizzard, and King. These franchises include some extremely profitable ones such as Call of Duty, World of Warcraft, and more. Candy Crush (released by King) alone has reported over a billion in annual revenue, despite being a mobile game.

As the trend has been, a stunning number of titles will be added to the Xbox Game Pass. Since its inception, all first-party titles have been added to the Game Pass on their release dates. The same will likely happen with the Activision Blizzard release once the deal is completed.

It's not just new titles that would increase the value of the service and allow Xbox to pull in greater profits. The entire Call of Duty games roster will be added along with other iconic titles. These might be games from the past, but they still add volume and value to the overall roster.

This is even more valuable for Microsoft as these will become first-party games when the deal is complete. While third-party publishers have to be paid to bring their games on the Game Pass, that isn't the case with first-party titles. These titles are also available permanently, which makes them even more enticing for potential subscribers.

As potent as the subscription service is, it will likely go even further. There have been talks about Call of Duty games becoming exclusive after three years. If so, it would allow Xbox to gain massive leverage in the console market.

With various games from different genres available on the Xbox Game Pass, it will allow players to manage their funds better instead of spending big on getting a single game. Additionally, a truly enormous roster of games will be available to all subscribers. This could turn the Game Pass into Xbox's best bet for market domination.