Price hike shows Xbox is determined to make Game Pass work | Opinion

gamesindustry.biz:

If there were any doubts about Xbox's commitment to Game Pass (and there was plenty of industry chatter earlier this year that suggests there were), the firm has well and truly silenced them over the past two months.

First came the news that Call of Duty: Black Ops 6 would be included in Game Pass on the same day it launches everywhere else. Then there was the barnstorming Xbox Summer Showcase, where every first-party game was followed by the words: 'Play It Day One On Game Pass'. This included games for 2024, 2025 and even beyond that.

Xbox is clearly determined to make Game Pass work. But there is a challenge. Game Pass numbers haven't grown much over the last 18 months, if at all. Meanwhile, premium sales of Xbox games have been disappointing. Hellblade 2 in May didn't even make the Top 100 in Europe.

Xbox, just like the rest of the industry, has a growth problem. And it's at times like these when games businesses — particularly public Western businesses — become hyperfocused on profitability and margin. That's partly why we've had the layoffs that have blighted the industry since last year. And when you consider that focus on the bottom line, is it financially prudent to put Call of Duty: Black Ops 6, which millions are comfortable spending $70 on, into a service for $11 a month? Xbox would attract new users into Game Pass, certainly, but it'll come at the expense of revenue.

Xbox could have moved away from putting games like that into Game Pass on day one, but instead of going back on its vision, it has opted to raise prices and tweak its offering.

Is it financially prudent to put Call of Duty: Black Ops 6, which millions would spend $70 on, into a service for $11 a month? Xbox would attract new users but at the expense of revenue

There has been some simplification, a removal of a tier, an introduction of a new one, and restrictions on 'stacking' memberships in certain countries. I won't go into all the details, but the bottom line is that Game Pass is becoming more