The subscription service from the Redmond-based tech giant is expensive for Microsoft, and it’s important to know how much it costs the company.

Iain MacIntyre, a former senior business development manager at Microsoft (recently laid off in the company’s 9,000-employee downsizing), provided insight into how much Microsoft spends on getting games onto Xbox Game Pass. On his LinkedIn profile, MacIntyre states that he helped negotiate over 500 deals ranging from $50,000 to over $50 million, securing indie successes and AAA blockbusters for the service.

Very few games would realistically command a $50 million price tag for joining a subscription service. Had Microsoft not acquired Activision Blizzard King, titles like Call of Duty or Diablo would probably have required deals in that range, rather than the $50,000 tier (which is more common for indie games). While these numbers might seem like a drop in the bucket compared to Microsoft’s yearly revenue, tens or hundreds of thousands—or even millions—spent every month to secure smaller games for Game Pass certainly adds up over time.

Beyond layoffs, Microsoft and Xbox have also made headlines amid ongoing debate about whether Game Pass is actually profitable. For now, it appears that Game Pass is profitable even when factoring in the costs of developing and launching Microsoft’s own first-party titles directly into the service.

However, the existence of deals reaching the $50 million mark is likely one reason former Arkane Austin studio head called Game Pass an unsustainable business model. It’s probably also why Microsoft is said to have unrealistic expectations for Xbox revenues—leaving this business on potentially shaky ground.

Source: WCCFTech, Windows Central, LinkedIn