Game Pass Under Scrutiny
The price of Xbox's Game Pass service has doubled since its launch, prompting new CEO Asha Sharma to question its sustainability. In an internal memo, Sharma stated that Game Pass had become too expensive for players and emphasized the need for a better value equation moving forward.
Initially introduced in 2017 for just $10 a month, Game Pass has undergone several changes. The service absorbed Xbox Live Gold, rebranding as Game Pass Ultimate and increasing its price to $15. Recently, it rose to $30 monthly, largely due to the inclusion of new Call of Duty titles following Microsoft's acquisition of Activision Blizzard.
Sharma’s comments come amid speculation about the future of Call of Duty within the Game Pass ecosystem. Industry analysts suggest that if new subscribers don't materialize, Microsoft may miss out on revenue by bundling these popular titles. While Sharma acknowledged these concerns, she assured staff that a more flexible model is in the pipeline.
She mentioned recent discussions with Netflix co-CEO Greg Peters about potential collaborations, including the idea of an ad-supported tier for Game Pass. This approach mirrors strategies employed by many streaming services that have successfully integrated ads to offer lower subscription costs.
Sharma's willingness to re-evaluate Xbox's strategy, a legacy from former head Phil Spencer, indicates a shift in how Microsoft may position Game Pass in the market. However, the exact measures she will be allowed to implement remain uncertain.
As the gaming landscape evolves, Sharma's leadership may bring necessary changes to Game Pass. Finding the right balance between price and value will be crucial for retaining current subscribers and attracting new ones in an increasingly competitive market.