Microsoft has revealed that Xbox Game Pass is a profitable business, reaching record high revenue of 5 billion US Dollars during the company’s previous fiscal year.
During an interview with Game Watch at Tokyo Game Show 2025, Microsoft’s President of Xbox, Sarah Bond,was asked about the sustainability of Xbox Game Pass as a business. In response, she revealed that the subscription service offering hundreds of games for a flat monthly fee is not only sustainable but has reached a new milestone.
Bond shared that Xbox Game Pass reached a record 5 billion US Dollars in revenue during the previous fiscal year. She further said that the subscription service is not only profitable but has also been beneficial for developers. Payments to creators participating in the service have been increasing, making it a sustainable business model that supports both players and the industry.
The announcement underscores Microsoft’s confidence in Game Pass as a central pillar of its gaming strategy. While the interviewer expressed concern that the service may be priced “too low” given the value it offers, Bond reassured that the model works, and that more studios are joining year after year.
Elsewhere during the interview, Bond spoke about Xbox’s commitment to flexibility, highlighting innovations like the upcoming handheld ROG Xbox Ally, a Windows 11 gaming device developed in partnership with ASUS. She explained that Microsoft aims to give players choices, whether through cloud streaming, traditional consoles, or local play on PC and handhelds.
The Xbox president also talked about strengthening ties with Japanese developers. The long-awaited Ninja Gaiden 4 from Koei Tecmo Games was cited as an example of the brand’s growing collaboration with Asian studios.
As for the future of Xbox, Bond wants to continue offering players flexibility and ease of use. Beyond cloud gaming, Microsoft will keep investing in experiences that make playing games even smoother. The company wants these innovations to spread across the entire Windows ecosystem. She also highlighted the partnership with AMD and next-generation console devices.
