Financial Dynamics of Xbox Game Pass: A Tale of Two Games

As the dust settles on the recent significant leak from Microsoft amidst its legal tussle with the US Federal Trade Commission, a plethora of intriguing insights have surfaced. Notably, the financial underpinnings behind getting games on Xbox’s Game Pass platform are starting to unravel. One document, dated mid-2022, gives a fascinating glimpse into Microsoft's predictions of what game publishers might demand for their titles to be featured on the Game Pass service from Day 1. This document serves as a window into Microsoft’s strategic planning, revealing the company's estimations of financial incentives that would have been necessary to onboard publishers.

For instance, the document reveals that Microsoft anticipated paying a tidy sum of $300 million to get the game “Star Wars Jedi: Survivor” on the platform, while for “Suicide Squad: Unleashing Justice”, they expected to shell out $250 million. “Assassin’s Creed Mirage”, another highly anticipated title, was anticipated to cost them $100 million. It's important to note that these figures are tentative, representing what Microsoft envisaged publishers might demand, and not the actual deals that took place. In some cases, for instance, Star Wars and Assassin’s Creed, these games did not make their debut on Game Pass on Day 1.

However, the insights from this document don’t just stop at new releases. The document uncovers the potential costs Microsoft was willing to incur to bring high-profile older games to the service. For instance, Microsoft estimated that Take-Two, the parent company of Rockstar Games, would require a hefty $12 to $15 million per month to allow “Grand Theft Auto V” (GTA V) to be featured on Game Pass.

The document also paints a picture of how Microsoft's perceptions of various games have evolved. For instance, in 2022, Microsoft was willing to pay a staggering 50 times more for “Suicide Squad: Unleashing Justice” than for “Baldur’s Gate 3”, which they referred to as a “second-run Stadia PC RPG”. However, Microsoft's current valuation of these games might be drastically different, given the ever-changing dynamics of the gaming industry.

In conclusion, these leaked documents reveal the herculean task that the Xbox team undergoes to keep the Game Pass service brimming with new and exciting games. The insights underscore the financial dynamics involved in acquiring games for the platform, from new releases to older high-profile titles. While these figures represent estimates and not actual costs, they offer an enlightening perspective into the financial planning and strategic decisions involved in Microsoft's attempt to maintain the allure of their Game Pass service.