Microsoft reported that Game Pass subscriptions slowed in its fiscal 2021 year, with the service reaching nearly 20 million subscribers as of June 30, 2021, according to new documents released by the company.
The subscriber base rose 37.5% in the 12 months ended June 30, 2021, but that increase fell short of Microsoft’s internal target of at least 47.8% growth.
How the result compares with prior year
For comparison, Microsoft exceeded its Game Pass growth target in the prior period. Between 2019 and 2020 the service grew by almost 86%, surpassing a goal of 71% for that year.
Factors behind the slower expansion
Microsoft attributes the more modest growth in 2021 to several factors. One major expectation for Game Pass has been day-and-date availability of first-party release titles on the service, but in 2021 most additions have been remasters rather than brand-new first-party launches. Examples cited among recent additions include remastered or updated releases such as Age of Empires, Microsoft Flight Simulator and Psychonauts 2.
Highly anticipated original releases that Xbox fans expect, including Age of Empires IV and Halo Infinite, remained months away in 2021 and had not yet been delivered to Game Pass at launch.
Strategic importance and executive incentives
Microsoft considers Xbox Game Pass a core focus for its gaming strategy, and expanding the service is a key performance objective for company executives. Meeting the desired growth targets is tied to bonuses for members of Microsoft’s leadership team, according to reporting cited by IGN.
Reporters have also noted that company leaders view subscriber growth as a primary, “pure” audience metric for the business, a characterization referenced by Gamespot.
What’s next for official numbers
Microsoft is scheduled to release a full earnings report for fiscal 2021 on October 26, when the public may receive updated figures for Game Pass subscribers. The most recent official total previously disclosed was 18 million subscribers in January 2021. Microsoft does not regularly publish raw subscriber data with high frequency.
