Call of Duty’s Arrival on Game Pass Was Expensive

The addition of the Call of Duty franchise to Game Pass was seen as a major move for Xbox. However, new reports reveal that this decision has cost Microsoft far more than anticipated. According to sources contacted by Bloomberg, the company lost approximately $300 million in revenue from Call of Duty sales last year alone.

Call of Duty and Game Pass Decision Puts Microsoft in a Difficult Position

According to Bloomberg, Microsoft’s Game Pass strategy has sparked internal debate. Many employees state that adding a massive franchise like Call of Duty to its subscription service, while appealing to players, has resulted in significant financial losses for the company. The fact that 86 percent of sales were made on the PlayStation platform, in particular, highlights the fact that Xbox has not achieved the expected returns.

The most tangible reflection of this loss was the recently announced Game Pass price hikes. The Ultimate bundle’s price was raised from $19.99 to $29.99. Similar increases were also seen for other bundles, leading to a backlash from numerous players who canceled their subscriptions. The low player numbers experienced during the closed beta of Call of Duty: Black Ops 7 are also considered one of the effects of this shortage.

When Microsoft acquired Activision Blizzard, it believed that including Call of Duty in Game Pass would provide long-term benefits. However, rising costs, coupled with the layoffs the company was already facing and internal unrest, have complicated the situation. With competition intensifying in the gaming industry, it remains to be seen what future outcomes Xbox’s strategy will have.

In short, while Call of Duty’s addition to Game Pass may seem advantageous for players, it has also been quite costly for Microsoft. All eyes are now on upcoming games like Ninja Gaiden 4 and The Outer Worlds 2. Time will tell if Xbox can recoup its losses with these new releases.

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