Microsoft has reportedly spent anywhere between $50K and $50M to secure games for its Xbox Game Pass subscription service, according to a LinkedIn post from Iain MacIntyre, a former senior business development manager at Microsoft. MacIntyre, who was recently affected by the company’s massive layoffs, shared that he negotiated over 500 deals, ranging from indie gems to massive AAA titles, for the popular service.
Although the $50M deals are rare, it’s clear that Microsoft is willing to invest substantial amounts of money to keep Game Pass stocked with a variety of games. 
If the company hadn’t acquired Activision Blizzard King, it’s likely that blockbuster franchises like Call of Duty and Diablo would have commanded close to that $50M figure. Even though this kind of spending may seem small compared to Microsoft’s annual revenue, the cost of adding indie and AA games every month quickly adds up.
The news of this spending comes at a time when Microsoft and Xbox have faced questions about whether Game Pass is a profitable service. Despite the high cost of securing new titles, the service is still reportedly turning a profit, even with the costs of developing first-party games and launching them directly onto the platform. However, some critics believe that Game Pass’s business model may not be sustainable in the long run, especially considering the hefty deals that can reach the $50M mark. These huge expectations for revenue might be contributing to Microsoft’s challenges in meeting its goals for Xbox and its gaming services.
While Microsoft has the financial resources to support these investments, it will need to ensure that Game Pass continues to bring in substantial returns to justify the massive outlays. The future of Xbox and its studios may depend on whether these investments can pay off in the form of consistent and growing subscriber numbers.