Xbox Game Pass is "not for everybody," says Phil Spencer

Xbox Game Pass is said by many (including me) to be the best value service in gaming. With access to a huge library of titles, even with its price increase in September last year, I still get more than my money's worth from the service.

Yet the debate still rages on about the service and its real benefit to the gaming industry. The wider perception of Xbox gamers is that they 'rent' their games rather than purchase them.

Microsoft Gaming CEO Phil Spencer had something to say about this in a recent interview with Variety, and it's not what you may expect.

Phil Spencer's take on Xbox Game Pass in the wider business

Spencer was asked, "How are you viewing Game Pass’s ongoing role in the larger Xbox business right now?"

"I’ll start with just how many people are playing games. And I’ve always thought about Game Pass as just another option for somebody who wants to play.

We have many business models for people playing from free to play, buying games, discounted games, Game Pass is an option. So when I’m looking at Game Pass, I want to make sure the hours that people are playing continue to go up, that new people see this as a way for them to find and build their library of games, and we remain focused on that.

Our biggest areas of growth right now are PC and Cloud, which makes sense, since consoles, all up, are a good business, they’re an established business, but they’re not really a growing segment in gaming.

So we’ve got good growth on PC, we’ve got growth on Cloud, in terms of users and hours. And console continues to be a really healthy part of Game Pass. But there isn’t a unique need for Game Pass to be the only way for people to play. If everybody who’s a Game Pass subscriber instead decided to buy their games, that’s good for the business as well."

Spencer expanded on this to comment that Xbox Game Pass, while an option, may not be the best choice for everybody.

"For me, I look at Game Pass as a healthy option for certain people. It’s not for everybody. If you play one or two games a year, Game Pass probably isn’t the right business model for you, you should just buy those two games, and that would make total sense. But I want you to have the choice.

So we remain focused on everything that’s on Game Pass is also available to buy. We’re making those games available to buy in more places. And I look at the overall hours of people who are playing on Xbox, playing our games, and that’s a number that continues to grow fairly substantially, and that’s really the metric I think about for success. And Game Pass has been an important part of that, but I don’t try to solve for Game Pass specifically on its own. It’s kind of part of the equation for Xbox finding new players."

Does Xbox Game Pass impact game sales?

Xbox Game Pass is always a hot topic, its incredible value for money, as for $20 a month subscribers gain access to a vast library of content, including major titles that would otherwise cost a small fortune if purchased individually. I made this very point recently following the Xbox Developer Direct that you could purchase the featured titles; Ninja Gaiden 4, South of Midnight, Doom the Dark Ages and Clair Obscur: Expedition 33 for a combined cost of around $210.

For many, this price point would limit you to purchasing only one or two games, Xbox Game Pass however allows you to play all of these titles and more for a more managable monthly price, one that's even cheaper if you grab it at CDKeys for example.

Xbox Game Pass also serves as an excellent platform for discovering new titles you wouldn't have otherwise dipped into. The critically acclaimed Hi-Fi Rush found a huge audience on the service, despite not generally being a fan of rhythm games I tried it and subsequently purchased the upgrade after falling in love with it.

Similarly, smaller indie gems like Bramble: The Mountain King or artistic and narrative heavy titles like Pentiment have made it into my top games of all time, games I would never have risked spending money on without trying first.

Unrealistic expectations and industry strain

Not all feedback about Xbox Game Pass is positive, it would be remiss of me to mention the success of Hi-Fi Rush and not the fact that it's studio, Tango Gameworks was still shut down despite the game being received well on the service. This is a stain on Xbox history that will follow them forever in my eyes, even though the closure was perhaps written on the walls due to other factors, it still comes up when discussing if Xbox Game Pass success equals sustainability for a game or not.

Theres also of course the unrealistic expectations Xbox Game Pass can set amongst some of the Xbox audience. When the multiplayer shooter Hypercharges: Unboxed was announced for Xbox, many speculated that it would need to be on Game Pass to succeed, some going as far to say it would be "dead on arrival" without it. This attitude can pressure developers and risks devaluing games that fall outside the subscription model.

How do you feel about Xbox Game Pass?

For better or worse, Xbox Game Pass represents an evolving approach to how we consume games. It’s a unique service that Xbox is driving forward, even beyond its own hardware. With Game Pass, you can access a library of games from your PC, your Firestick or your gaming handheld. Game Pass is what makes everything an Xbox as they so famously say.

Phil Spencer does seem to occupy a balanced approach to the service following these comments, acknowledging that it's not the ideal model for absolutely everyone and not intending Xbox Game Pass to be the sole method of experiencing video games.

What do you think? Are you solely an Xbox Game Pass player, or do you prefer purchasing games outright? Perhaps you’re a staunch "own everything" kind of gamer. Share your thoughts in the comments, I'd love to hear your take!