As a Forza fan, I’m not surprised to hear Forza Horizon 5 is doing incredibly well! Apparently, according to some research from Alinea Analytics, it’s now sold over 5 million copies on PlayStation 5. That’s amazing!
The 2021 game generated over $300 million in revenue just on PlayStation 5. According to Alinea’s Rhys Elliott, this demonstrates why Microsoft is interested in releasing more of its games on competitor platforms like the PS5. Elliott explained that Microsoft’s push to become a third-party publisher is clearly driven by its need to maintain high profits.
Microsoft doesn’t receive all the money from game sales, as Sony takes a percentage as a platform fee. The typical split is 70% for the game developer and 30% for the platform holder like Sony.
Forza Horizon 5 has been consistently popular on PlayStation, so it’s no surprise that it’s now sold over 5 million copies on PS5. The next game, Forza Horizon 6, will initially launch on Xbox and PC, and will become available on PS5 at a later date.
During the Xbox Developer Direct on January 22nd, attendees will get a first look at Forza Horizon 6, taking place in Japan. The showcase will also feature new details about the upcoming Fable game. Both of these titles are currently being developed by Playground Games.
Elliott is probably talking about reports that Microsoft’s CFO, Amy Hood, demanded a 30% profit margin from the Xbox division. While Microsoft disputed that exact number, they did confirm they have high profit expectations for Xbox.
In 2025, Xbox tried to increase revenue through several changes, like raising the price of Xbox consoles and Game Pass subscriptions, and by releasing some of their games on competing platforms. Unfortunately, this also meant Microsoft had to make difficult decisions, including layoffs, game cancellations, and studio closures. Microsoft Gaming CEO Phil Spencer explained these actions were necessary due to economic realities.
Microsoft had considered raising the price of new games to $80 starting in 2025, but they’ve decided against it. According to Matt Booty, head of Xbox Game Studios, Xbox needs to operate profitably, but that doesn’t automatically mean game prices will go above the current $70.
I’m really looking forward to January 28th! That’s when Microsoft releases its next earnings report, and hopefully we’ll finally get a better look at how Xbox is doing. I’m hoping to see some good numbers and learn more about what Microsoft has planned for gaming.
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2026-01-12 17:39