Xbox Game Pass "Not for Everybody," Says Microsoft Gaming CEO Phil Spencer

Xbox Game Pass isn't meant for all gamers, according to Microsoft Gaming CEO Phil Spencer.

In a recent interview with Variety, Spencer explained that while the subscription service works well for many players, it's just one of several options Microsoft offers for accessing games.

"It's not for everybody," Spencer told Variety. "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."

Rather than pushing the narrative that Game Pass is the only way to play, Spencer emphasized that it's simply an alternative alongside traditional game purchases, free-to-play titles, and discounted games.

Spencer clarified that Microsoft isn't trying to convert every gamer to Game Pass. Instead, the company wants to provide choices that fit different gaming habits and preferences. This strategy appears to be working, as Spencer noted that the total hours people spend playing on Xbox "continues to grow fairly substantially," with Game Pass contributing significantly to this growth.

"I've always thought about Game Pass as just another option for somebody who wants to play," Spencer explained. "We have many business models for people playing from free-to-play, buying games, discounted games—Game Pass is an option."

Interestingly, Spencer mentioned that Microsoft would be equally satisfied if Game Pass subscribers decided to purchase games individually instead. "If everybody who's a Game Pass subscriber instead decided to buy their games, that's good for the business as well," he stated, suggesting that Microsoft prioritizes overall engagement with Xbox games over the specific way players access them.

The interview also touched on the state of the console business, which Spencer described as "good" but "established" and "not really a growing segment in gaming" for Microsoft. This explains the company's increased focus on PC and cloud gaming alongside its traditional console offerings.

Microsoft continues to expand the Game Pass library regularly. Most recently, the service added GTA 5 for Xbox Series X|S and GTA 5 Enhanced for PC, demonstrating Microsoft's commitment to keeping the service attractive for subscribers.