Read on Twitter
Here is the most important part of the Xbox Series X|S launch PR:
"70% of Series X|S consoles are attached to new and existing Xbox Game Pass members"
This is Microsoft's goal with Series X|S, to drive Game Pass subscriptions and generate recurring revenue.
Quick thread 1/ https://twitter.com/Xbox/status/1327280675934748673
"70% of Series X|S consoles are attached to new and existing Xbox Game Pass members"
This is Microsoft's goal with Series X|S, to drive Game Pass subscriptions and generate recurring revenue.
Quick thread 1/ https://twitter.com/Xbox/status/1327280675934748673
2/ Gaming subscriptions are driving growth on top of traditional spend, not just on Xbox, but on all console platforms. Increases LTV of a console owner.
With PlayStation, over 50% of PS4 owners had signed up to or already had a PS+ subscription in the first few months.
With PlayStation, over 50% of PS4 owners had signed up to or already had a PS+ subscription in the first few months.
3/ PlayStation has been able to maintain this over 7 years, with 43% of the 107m active PS4 users having a PS+ subscription today.
Nintendo has been able to do the same, releasing Nintendo Online in 2018, which now has ~40% of Switch owners subscribed to the service.
Nintendo has been able to do the same, releasing Nintendo Online in 2018, which now has ~40% of Switch owners subscribed to the service.
4/ While PlayStation and Nintendo offer online play, a few free games and other perks each month, Xbox is going one step further and including all of the above + a larger library of titles + its own first party titles to increase the value of the service.
It's a $180 a year sub
It's a $180 a year sub
5/ Here's are the facts
The average console gamers buys two games per year
That's spend of around $120 a year
Right now, the average PS4 owner has 13 games in their library. @$60 Let's say $780 spent
The average Switch owner has 7 games in their library. Let's say $420 spent
The average console gamers buys two games per year
That's spend of around $120 a year
Right now, the average PS4 owner has 13 games in their library. @$60 Let's say $780 spent
The average Switch owner has 7 games in their library. Let's say $420 spent
6/ Game Pass gives players access to a wider range of games, but it doesn't stop them spending on other games
According to Xbox, Game Pass subscribers generate 20% more in sales from buying non Game Pass games and DLC than non Game Pass subscribers do https://www.bloomberg.com/news/articles/2020-08-27/microsoft-s-game-pass-subscription-is-dramatically-changing-video-games
According to Xbox, Game Pass subscribers generate 20% more in sales from buying non Game Pass games and DLC than non Game Pass subscribers do https://www.bloomberg.com/news/articles/2020-08-27/microsoft-s-game-pass-subscription-is-dramatically-changing-video-games
7/ Game Pass subscribers absolutely get value from first party games and other AAA / back catalog titles in the service, but that doesn't stop them spending on:
- The latest COD / FIFA / AAA release (not in Game Pass)
- Sequels / prequels to games they discover via Game Pass
- The latest COD / FIFA / AAA release (not in Game Pass)
- Sequels / prequels to games they discover via Game Pass
8/ Taking all of this data into account.
Game Pass subscribers are still likely to spend that $120 each year on new games, perhaps 20% more than usual = $144.
They're spending $180 a year on Game Pass.
Over a 6 year period that's $864 on games and $1,080 on Game Pass.
Game Pass subscribers are still likely to spend that $120 each year on new games, perhaps 20% more than usual = $144.
They're spending $180 a year on Game Pass.
Over a 6 year period that's $864 on games and $1,080 on Game Pass.
9/ The lifetime value of that console player increases significantly
That's why Xbox is looking to scale + grow Game Pass across multiple platforms
That's why All Access comes bundled with Game Pass
That's why Game Pass includes Live Gold
That's why 70% attach is notable
That's why Xbox is looking to scale + grow Game Pass across multiple platforms
That's why All Access comes bundled with Game Pass
That's why Game Pass includes Live Gold
That's why 70% attach is notable
10/ Console still plays an important role for Xbox and the above thread should explain why.
But I've also written a thread in the past about why, at least in the short term, console is where MS gets the highest returns. https://twitter.com/ZhugeEX/status/1293655805468856320
But I've also written a thread in the past about why, at least in the short term, console is where MS gets the highest returns. https://twitter.com/ZhugeEX/status/1293655805468856320
Just a quick footnote, because I didn't clarify properly.
The above numbers don't account for spend on DLC and add on content. That is a sizeable portion of the market these days.
Game Pass subscribers would also purchase add on content on games in the service. See tweet 6/
The above numbers don't account for spend on DLC and add on content. That is a sizeable portion of the market these days.
Game Pass subscribers would also purchase add on content on games in the service. See tweet 6/
