There have been ongoing conversations in the gaming space about whether or not Microsoft’s Game Pass was a mistake. Prominent video game developers have voiced concerns about Game Pass being "unsustainable" and "not profitable." Yet, Microsoft continues to double down on the unique appeal of a subscription-based gaming experience.
Still, the question remains: is Xbox Game Pass a mistake?
This isn’t a simple yes-or-no question. Video game analysts have been examining this subscription model for years, but there’s not enough data to support a clear answer, aside from Xbox’s own numbers, which painted a mostly positive picture after the service hit over 35 million subscribers this year. However, those are just Xbox’s figures, and very little is known about the internal workings of profit margins or how developers are compensated.
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+ 3Granted, Game Pass remains one of the best gaming subscription models available, and there’s really no alternative that lets you play the latest games on day one for such a low monthly fee. You won’t find NVIDIA GeForce NOW or Netflix Games offering the new Halo or Call of Duty at launch.
Whether it’s a mistake or not almost feels irrelevant at this point. Xbox and Microsoft have already faced the consequences of a series of corporate missteps and poor management decisions. After laying off over 9,000 employees for the past few days, public discourse surrounding Xbox and its parent company has taken a more critical tone.
It’s too late to grumble about the existence of Game Pass, and the numbers so far don’t show a clear path toward failure. But the layoffs, studio closures, and canceled projects do raise questions about its sustainability and profitability.
click to enlarge + 3For something so pro-consumer, Xbox Game Pass is a complicated case. It provided players with access to a vast library of games for the price of a single subscription. PlayStation has its own approach with PlayStation Plus, which is arguably more expensive, while Nintendo offers its Expansion Pass, filled with classic titles. However, the key difference is that neither PlayStation nor Nintendo offers their most anticipated titles for free on launch day, something Microsoft has been doing for quite some time; yet, look where that has led.
Of course, we can’t say that the Game Pass model is solely responsible for everything going wrong. Microsoft is a massive billion-dollar corporation with many layers of decision-makers, and what we’re seeing now is the result of long-standing issues that have been building up over time. It seems the House of Cards is starting to falter.
click to enlarge + 3Xbox Game Pass isn’t entirely a mistake. It began with good intentions, offering players a convenient way to access great games at an affordable price. But despite those intentions, it also has the potential to jeopardize Microsoft’s gaming division in the long run. Because, as wild as it may sound, money still has to keep coming in.
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