Xbox Game Pass has grown into a major revenue driver for Microsoft, reaching roughly 40 million subscribers and producing about US$5 billion in the last fiscal year, the company said. The service’s expansion and revenue contribution set the stage for Microsoft’s next step: Project Helix, a hybrid console initiative developed with AMD.
Subscriber and revenue growth
Since launching in 2017, Xbox Game Pass expanded to around 40 million subscribers, a 10% increase from the prior year. The service’s growth is particularly notable compared with January 2022, when Game Pass reported 25 million users.
The subscription model generated approximately US$5 billion in revenue during the most recent fiscal year, accounting for 23% of Microsoft’s gaming division revenue, which totaled US$21.5 billion. Overall, the Xbox brand represents about 40% of Microsoft’s total gaming revenue, underscoring the profitability of the subscription approach.
Position within the console and subscription market
While Game Pass’s metrics are strong, Microsoft competes in a crowded market. Current subscription figures for major rivals include:
- PlayStation Plus: 51.6 million subscribers
- Nintendo Switch Online: 32 million subscribers
- EA Play: 12 million subscribers
To extend its reach, Microsoft is aiming to deepen integration between PC and console platforms—a strategy that began to take shape in 2019 with the introduction of the Ultimate plan.
Project Helix: hybrid architecture and broader platform aims
At the Game Developers Conference (GDC) 2026, Microsoft outlined plans for Project Helix, described as the company’s next console built in partnership with AMD. The device is being developed with a hybrid architecture intended to deliver PC-like flexibility and performance on dedicated gaming hardware.
Project Helix is designed to lower platform barriers and promote crossplay by simplifying the development process for titles that run across both PCs and consoles. Microsoft expects the hybrid approach to make it easier for developers to create games that are simultaneously compatible with multiple device types.
Potential for an open digital ecosystem
Microsoft is also considering opening the platform to additional digital storefronts. In an interview with #L1, the vice president of Epic Games said Epic maintains active talks with Microsoft and expressed strong interest in integrating the Epic Games Store into the new console.
The discussions could eventually extend to compatibility with Steam, potentially converting the Xbox ecosystem into a more open, multiplatform environment where multiple digital stores operate on the same hardware.
