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Subscribe from just £3 Takes you closer to the games, movies and TV you love Try a single issue or save on a subscription Issues delivered straight to your door or device From£9.99View Prime Day Deals Donkey Kong Bananza Switch 2 stock Recommended reading Stealth Games Dishonored and Prey studio founder thinks Xbox Game Pass "is an unsustainable model" that's been "damaging the industry for a decade" PlayStation Sony is prioritizing monthly active users over direct sales now, but the company's live-service games aren't doing too hot "It is very worth having your game on Game Pass": As debut RPG Clair Obscur: Expedition 33 passes 1 million sales, Palworld dev defends the decision to launch on Xbox's subscription service Xbox Series X Fans worry Xbox Game Pass could be due another price increase after evidence seemingly surfaces on the Xbox website, just a month after the latest console price hike PlayStation Former PlayStation boss says subscription services like Xbox Game Pass could become "dangerous" for devs, and that Sony delivers a "healthier" model with PS Plus The best Xbox Game Pass deals in July 2025 GTA 5, Call of Duty, Genshin Impact, and 5 other games alongside 2 subscription services make up 53% of PlayStation Store revenue, more than the other 12,000+ combined Xbox Game Pass Microsoft reportedly doesn't include lost first-party game sales when calculating Xbox Game Pass profits, but the subscription service is apparently earning money regardless Catherine Lewis 8 July 2025 No, Xbox apparently isn't losing money with Game Pass When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. (Image credit: Xbox Game Studios) For a number of years now, it's been claimed that Xbox Game Pass is profitable for Microsoft, but it turns out that there's an interesting caveat to this, as Xbox isn't counting revenue lost from first-party games. However, even when you do account for this, the Game Pass subscription service is reportedly still earning money. This first claim on the subject surfaced a couple of days ago, when The Game Business co-founder Christopher Dring took to Twitter explaining that costs for Game Pass include "fees paid to third-parties, marketing, [and] service costs." However, apparently, "what they don't count is the lost revenue that Xbox's first-party studios are seeing as a result of the service." Furthermore, he noted: "I asked for clarification on the 'Game Pass is profitable' claim, and was told no first-party costs are included." You may like Dishonored and Prey studio founder thinks Xbox Game Pass "is an unsustainable model" that's been "damaging the industry for a decade" Sony is prioritizing monthly active users over direct sales now, but the company's live-service games aren't doing too hot "It is very worth having your game on Game Pass": As debut RPG Clair Obscur: Expedition 33 passes 1 million sales, Palworld dev defends the decision to launch on Xbox's subscription service While this initially appeared to throw into question the idea that Game Pass could still be profitable at all with hefty first-party costs accounted for, Dring now clarifies that, according to his sources, this isn't a concern. "Xbox Game Pass is profitable, even when you factor in the lost sales for its first-party teams, sources who would know have told me," he says. Ok, I need to correct/clarify something. First, Xbox Game Pass is profitable, even when you factor in the lost sales for its first-party teams, sources who would know have told me. Over 18 months ago, I checked with Xbox about what’s included in the Game Pass P&L. Basically, I…July 8, 2025 Furthermore, he explains that "over 18 months ago, I checked with Xbox about what’s included in the Game Pass [profits and losses]. Basically, I was looking to see if Game Pass' costs factor in the impact to unit sales of their internal studios." At this point, Dring says, he was informed that "first-party games have their own [profits and losses] separate to Game Pass as they make money via other means," such as DLC and microtransactions. He points out that this "sure does put pressure on the margins for its internal games," and given this impact, he "wanted to check if the full impact of the service was being considered in their 'Game Pass is profitable' line." However, he claims, he's now been informed by sources that "even when you include lost revenue associated with first-party party games (not just unit sales, but microtransactions), Game Pass is still profitable. So… that's great!" Sign up to the GamesRadar+ Newsletter Weekly digests, tales from the communities you love, and more Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Dring also points out that when he asked Xbox about this, it was before the company began "publishing fully on PS5" – something he argues can help studios out when it comes to premium sales. After all, certain Xbox games might be on PS5, but PS5 users can't subscribe to Game Pass to play them – they have to buy those games individually. Dishonored and Prey studio founder thinks Xbox Game Pass "is an unsustainable model" that's been "damaging the industry for a decade." See more Games News Xbox Game Pass Xbox Series X Catherine Lewis Social Links Navigation Deputy News Editor I'm GamesRadar+'s Deputy News Editor, working alongside the rest of the news team to deliver cool gaming stories that we love. After spending more hours than I can count filling The University of Sheffield's student newspaper with Pokemon and indie game content, and picking up a degree in Journalism Studies, I started my career at GAMINGbible where I worked as a journalist for over a year and a half. I then became TechRadar Gaming's news writer, where I sourced stories and wrote about all sorts of intriguing topics. In my spare time, you're sure to find me on my Nintendo Switch or PS5 playing through story-driven RPGs like Xenoblade Chronicles and Persona 5 Royal, nuzlocking old Pokemon games, or going for a Victory Royale in Fortnite. 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Dishonored and Prey studio founder thinks Xbox Game Pass "is an unsustainable model" that's been "damaging the industry for a decade" Sony is prioritizing monthly active users over direct sales now, but the company's live-service games aren't doing too hot "It is very worth having your game on Game Pass": As debut RPG Clair Obscur: Expedition 33 passes 1 million sales, Palworld dev defends the decision to launch on Xbox's subscription service Fans worry Xbox Game Pass could be due another price increase after evidence seemingly surfaces on the Xbox website, just a month after the latest console price hike Former PlayStation boss says subscription services like Xbox Game Pass could become "dangerous" for devs, and that Sony delivers a "healthier" model with PS Plus The best Xbox Game Pass deals in July 2025 Latest in Games Stardew Valley is now Steam's top-rated game, with the farming sim dethroning Portal 2 after 14 years at the top SpongeBob SquarePants' Sandy is a barbarian in the tabletop-inspired Diablo-like Nickelodeon action RPG Nicktoons & The Dice of Destiny Ghost of Yotei is getting its own dedicated PlayStation State of Play this week, featuring "nearly 20 minutes" of gameplay This is now a Dollman fan account: Death Stranding 2's puppet pal makes for my favorite PlayStation duo since Ratchet & Clank After 3 years of attempts, the Lord of the Rings MMO's "Great Hobbit Run" is finally successful as a band of tutorial-level hobbits make it to Mount Doom, and celebrate by jumping into lava Helldivers 2 devs know fans want tougher content, and Arrowhead is "looking for ways to provide more challenge" for Super Earth's finest Latest in News Superman star Rachel Brosnahan would love to see the "storied history" between Lois Lane and Wonder Woman in the DCU 7 years after its release, Marvel fans are discussing how they feel about Ant-Man and the Wasp after Thunderbolts* reimagined Ghost for the better When is Superman on streaming? 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