This Xbox Game Surpasses $300 Million in Revenue on PS5

Microsoft’s Forza Horizon 5 is making waves on PlayStation, with recent data from Alinea Analytics indicating that the game has surpassed 5 million copies sold on PS5. This translates to over $300 million in revenue from the PS5 version alone since its 2021 launch. Rhys Elliott from Alinea noted that this trend highlights Microsoft’s strategy to expand its game offerings to rival platforms like Sony’s PS5. He pointed out that Xbox’s shift towards third-party releases aligns with Microsoft’s ambitious profit goals, even though they don’t retain all the revenue due to platform fees, which typically follow a 70/30 split.

Forza Horizon 5 has consistently performed well on PlayStation, so the news of it hitting 5 million sales on PS5 isn’t particularly surprising. The upcoming Forza Horizon 6, set in Japan, will debut on Xbox and PC before making its way to PS5 later. This title will be featured at the Xbox Developer Direct on January 22, alongside updates on the new Fable game, both of which are being developed by Playground Games.

Elliott’s mention of “lofty profitability mandates” likely refers to the 30% profit-margin targets that Microsoft CFO Amy Hood reportedly set for the Xbox division. While Microsoft has denied this specific figure, they have acknowledged that the Xbox team has ambitious profit objectives. In pursuit of these goals, Microsoft has taken steps to boost revenue, including raising Xbox console prices, increasing Game Pass subscription fees, and releasing more titles on competing platforms. The company has also made significant layoffs, canceled projects, and shut down studios. Microsoft Gaming CEO Phil Spencer stated that these measures were necessary due to the realities of capitalism.

Additionally, Microsoft had plans to price new games at $80 starting in 2025, but those plans have since been scrapped. Matt Booty, head of Xbox Game Studios, emphasized the need for the Xbox team to maintain a “healthy business,” though this doesn’t necessarily imply price hikes beyond $70 for new releases. The next quarterly financial report from Microsoft is set for January 28, which may provide further insights into the performance of the Xbox business.