Microsoft Is More Interested in Lifetime Fans Than Profits
During a recent podcast, Xbox Games Marketing boss Aaron Greenberg claimed that Microsoft isn’t making a big profit from Game Pass and the company is more interested in making lifetime fans than big profits. The Game Pass subscription service is more of a marketing tool and a way for Microsoft to deliver value to earn lifetime fans than it is a cash cow according to Greenberg. Currently the service offers over 300 games and there are a number of promotions that Xbox fans can utilize to subscribe at a reduced rate. At the normal price, Xbox Game Pass Ultimate brings the Game Pass lineup to Xbox One and PC for $15 per month, and Project xCloud is coming to the service in September.
“It’s a different mindset,” said Aaron Greenberg. “You can either say, ‘How we do get as much profit out of each customer?’ Or, do you pivot that opposite and say, ‘How do we add as much value to our fans?’ ‘How can we actually over-deliver on value?’ And if you do that, you build fans for life. And if people feel like you’re over-delivering on value, they want to not only continue to use your service, but they want to tell their friends about it. That is actually the most powerful marketing; it’s word of mouth marketing.”
While it’s surprising to hear that Xbox isn’t making much profit from the Game Pass subscription service, it’s definitely a great way to build lifetime fans. Giving Xbox fans access to 372 games for a low monthly rate is intended to encourage word of mouth marketing according to Aaron Greenberg. Microsoft recently confirmed that Game Pass has over 10 million subscribers and it’s likely that the most recent Xbox game showcase will increase their subscriber count.
Are you a current Game Pass subscriber or are you waiting for a specific game to join the service before subscribing? Let us know in the comments below!