Phil Spencer reveals how much Xbox Game Pass costs to upkeep - and it's staggering

Four video game characters in a row, including Halo's Master Chief and Doom's Doomslayer
(Image credit: Microsoft)

Xbox boss Phil Spencer has revealed how much its Xbox Game Pass subscription service is costing the company, and it's a pretty penny, to say the least.

In an interview with Windows Central, Spencer revealed that while Xbox Game Pass is "financially viable," the company spends "over a billion dollars a year supporting third-party games coming into Game Pass." He then touches on the strategic reasons why Xbox spends so much on its service which is often regarded as one of the best deals in gaming.

"I think a lot of the publishers are naturally drawn to making games that are big hit games, as big as possible," Spencer explains. "We want to do that as well, of course. But because we have a platform, and we have a subscription service, having people play more and stay engaged on the platform, frankly, regardless of the types of games they're playing, is a very viable part of our strategy."

There's certainly some truth to that. Xbox Game Pass is notable for hosting first-party Xbox Game Studios titles like Starfield, Hi-Fi Rush, and Forza Motorsport on day one of release. But each month also brings generous helpings of third-party titles from developers large and small. Recent standout additions have been the shadowdropping of popular soulslike shooters Remnant: From the Ashes and Remnant 2. Last month also saw the addition of games like Spirittea, Thirsty Suitors, and Rollerdrome.

Spencer also commented on the likelihood of Xbox Game Pass making the jump to competing hardware; namely PlayStation 5 and Nintendo Switch. The short answer is no, in spite of the heavy investment Xbox is putting into its service.

"We have no plans to bring Game Pass to PlayStation or Nintendo. It's not in our plans," he said. Owners of those consoles will have to stick with PS Plus and Nintendo Switch Online, respectively, for now then.

Xbox Game Pass is worth checking out if you're a fresh current-gen Xbox console owner. Consider browsing our guide to the very best Xbox Game Pass games to find out which are essential downloads.

Rhys Wood
Hardware Editor

Rhys is TRG's Hardware Editor, and has been part of the TechRadar team for more than two years. Particularly passionate about high-quality third-party controllers and headsets, as well as the latest and greatest in fight sticks and VR, Rhys strives to provide easy-to-read, informative coverage on gaming hardware of all kinds. As for the games themselves, Rhys is especially keen on fighting and racing games, as well as soulslikes and RPGs.

Read more
Xbox Game Pass Ultimate
Get an Xbox Series X or Series S and want to get online recently? Here are your options for entering the world of Xbox Game Pass
Yakuza: Like a Dragon
Netflix for retro games? Sega is considering its own subscription service
Xbox logo on a green background
Xbox year in review 2024: 'Next year, we promise'
Horizon Zero Dawn Remastered
Why are we getting so many PlayStation PC ports? Former president says it's 'like printing money'
Xbox Live Gold price deals
Xbox in 2025: a make-or-break year for Microsoft's console
Where to buy Xbox Series X stock pre-orders
Microsoft says its revenue dropped by 7% in its Q2 2025 earnings while Xbox hardware sales dropped by 29%
Latest in Consoles & PC
Image of Naoe in AC Shadows
Assassin's Creed Shadows is hands-down one of the most beautiful PC ports I've ever seen
Image of AC Shadows cover art & Steam Deck
It's not perfect, but Assassin's Creed Shadows' performance is impressive - it runs smoothly on the Steam Deck and Asus ROG Ally
Steam Deck OLED in limited edition white color
With a single update SteamOS could turbocharge handheld PCs – here's how
Samus Aran leaping through space
Metroid Prime 4 tipped to be at the heart of April's Nintendo Switch 2 deep-dive
Nintendo Switch 2
Nintendo Switch 2 expected to have AI upscaling and I can't wait to finally play Tears of the Kingdom with upgraded graphics
Asus ROG Ally using Steam
I think Asus could be the perfect partner for an Xbox handheld – but I have questions
Latest in News
Ray-Ban Meta Smart Glasses
Samsung's rumored smart specs may be launching before the end of 2025
Apple iPhone 16 Review
The latest iPhone 18 leak hints at a major chipset upgrade for all four models
Quordle on a smartphone held in a hand
Quordle hints and answers for Monday, March 24 (game #1155)
NYT Strands homescreen on a mobile phone screen, on a light blue background
NYT Strands hints and answers for Monday, March 24 (game #386)
NYT Connections homescreen on a phone, on a purple background
NYT Connections hints and answers for Monday, March 24 (game #652)
Quordle on a smartphone held in a hand
Quordle hints and answers for Sunday, March 23 (game #1154)