Game Pass Ultimate signups led to Xbox revenue surge

The Ultimate tier of Xbox Game Pass has been a huge driver in the service's worldwide revenue in recent years. A newly revealed document from the European Commission (EU) on the Microsoft-Activision Blizzard deal shows just how vital the highest-price tier has been for Xbox. 

In its findings, the EU noted that Xbox's revenue "constantly increased" between 2019 and 2021 thanks to Game Pass Ultimate. On PC, for example, shares grew from 20-30 percent to 70-80 percent in the two year period. Similarly, console revenue jumped from 5-10 percent to 50-60 percent in the same timeframe. 

Forbes commented that 70 percent of Ultimate subscribers (out of 25 million overall) would lead to $297.5 million in revenue. Combined with the 30 percent from lower tiers, the overall Game Pass service is leading to $4 billion in revenue per year.

Game Pass Ultimate puts the respective console and PC tiers under one bundle, allowing players to play titles on both platforms. Microsoft often pushes the tier's additional benefits, like cross-platform saves and a built-in subscription to Xbox Live Gold as reasons to subscribe.

The tier will look even more enticing in September, when Xbox Live Gold is replaced with Xbox Game Pass Core. Under the new offering, subscribers will have limited access to Game Pass, which feels like a way to lure in more Ultimate subscribers.

How Activision Blizzard may fit into Game Pass' future

Should Microsoft acquire Activision Blizzard, the EU seems to think the latter developer's games will eventually come to Xbox Game Pass...but as exclusives locked to the Ultimate tier. 

Doing so, said the EU, would enhance the importance of Ultimate, and by extension the importance of those hypothetical games. It noted that Microsoft "is securing very popular content...for the Game Pass library, including Game Pass Ultimate’s cloud game streaming feature, with the aim of boosting its growth."

In past months, Microsoft has said it would bring Activision Blizzard titles like Call of Duty to cloud game services should its deal close. Despite its efforts to downplay its interest in that market, Xbox very much has cloud on the brain, and various extensions of Microsoft overall can run Xbox Cloud titles. 

And it's worth pointing out that Game Pass Ultimate has cloud game functionality, and a current agreement between Microsoft and Activision Blizzard means Call of Duty can't come to Game Pass until January 2025. So the EU's statements might carry some merit if both developers are playing the long game.