Number of Xbox Game Pass subscribers worldwide 2020-2024

First launched in June 2017 on the Xbox One, Xbox Game Pass is Microsoft's cross-platform gaming subscription service, which allows users to play online multiplayer, access a rotating library of games, and other services, depending on the subscription tier. Xbox Game Pass reported 34 million subscribers in February 2024. The overall reach of the Microsoft Xbox Network was an estimated 120 million monthly active users.

A constantly evolving product

With the multiplayer subscription service Xbox Live Gold already being a part of the online gaming experience on the Xbox One console, Microsoft introduced a separate on-demand subscription service for gaming content, known as Xbox Game Pass, in the second half of the console’s lifecycle. In April 2019, Microsoft also introduced Xbox Game Pass Ultimate, which bundles Game Pass with an Xbox Live Gold subscription. This higher-priced tier also includes EA Play, a subscription service for video games published by Electronic Arts. EA Play has been live in several iterations, known as Origin Access on PC and EA Access on consoles. In November 2020, EA Play was integrated into the XBox Game Pass Ultimate and instantly doubled its user reach.

Expanding the content library via strategic acquisitions

At launch, the Xbox One platform, and subsequently the Xbox Game Pass, have frequently been criticized for the lack of platform-exclusive releases. Compared to the PlayStation or Nintendo Switch, there were fewer major first- or third-party exclusives, and several flagship Microsoft exclusives also underperformed or were delayed or cancelled.

To remedy this, Microsoft began to realign its first party studios first into unified Microsoft Studios (2017) and then rebranded this collection of gaming studios into Xbox Game Studios (2019). Since 2019, Microsoft has made several key acquisitions (Double Fine, InXile Entertainment, Ninja Theory, Obsidian Entertainment, Playground Games) before making a big splash with their 7.5 billion U.S. dollar purchase of holding company ZeniMax Media in March 2021. ZeniMax’s portfolio of gaming studios includes Bethesda Game Studios (maker of Fallout, The Elder Scolls, and the upcoming Starfield), id Software (developer of Doom, Quake, and the Rage series), Arkane Studios, MachineGames, and Tango Gameworks. It was Microsoft’s most high-profile gaming acquisition until the announcement of its intended purchase of Call of Duty maker Activision Blizzard for an eye-watering 69 billion U.S. dollars in January 2022. As of June 2023, the blockbuster deal is still up for regulatory approval due to concerns about industry consolidation and its impact on consumer choice.