
Ongoing changes for Xbox Game Pass and even the greater Microsoft is starting to show some of the major losses that the firm is fostering. Although the subscription has provided the most value for its customers, it was announced recently a price change is underway. As a response, the Xbox firm answered with “It’s something we don’t take lightly, and we’re listening to the feedback of players and the community to try to provide them with more of what they’re asking for,” a statement to The Verge reveals.
Additionally, the investment into the business model comes with its own costs. One report indicated over $1 billion is spent annual on the subscription. Another writing also shared that about 80 percent of first-party revenue is lost to due its day-and-date release for the service. Even from prime leadership like Phil Spencer, his vocabulary towards new users is that “Game Pass probably isn’t the right business model for you,” towards the casual players.
Now as new heights are faced for Xbox with the soon updated pricing for Xbox Game Pass Ultimate – a change that has since overwhelmed the service cancellation page – is also revealing new information regarding the subscription. According to Bloomberg, the addition of Call of Duty: Black Ops 6 has faced a collective loss in roughly $300 million for Microsoft since launching for the subscription.
Originally, Microsoft was likely cashing-in on there being more subscribers heading to Xbox Game Pass with the announcement. However, there has not been a major boost in its subscription audience. Newer information also disclosed that Xbox Series X|S sales did not face a major boost either despite marketing and the acquisition of Activision Blizzard King.
And, this likely will be a developing trend for Microsoft in the near future as well. Come November later this fall, Call of Duty: Black Ops 7 is set to launch. Alike its 2024 predecessor, the new release will also be launching day one on Xbox Game Pass. You can read the full report by heading here.
Are you surprised at all by this new report for Xbox Game Pass?
Source: Bloomberg







