Why was Xbox Game Pass Created?
Xbox Game Pass launched in 2017 as one of the subscription services that revolutionized the world of gaming. In a recent interview, Sarah Bond, Head of Xbox Gaming, explained why Game Pass was created and why Microsoft radically changed its business model. Apparently, Microsoft aimed to be a pioneer in the industry by launching this innovative system, preferring to disrupt its own gaming business before potential competitors made the move.
The Strategy Behind Xbox Game Pass
In an interview with Bloomberg, Sarah Bond talked about how Game Pass is changing Microsoft’s business model. “If we don’t do it, someone else will,” Bond said, making it clear why Game Pass was launched. With this move, Microsoft aimed to create a platform where games are brought together and offered to subscribers, rather than just increasing the value of a single game. Thus, with the combined value of the games, it believed that it could create a stronger impact over time.
It would not be wrong to say that Game Pass succeeded with this strategy. This system, where users can rent games instead of buying them, has generated billion-dollar revenues for Microsoft. Reaching 34 million subscribers, this service has become a platform that Microsoft aims to generate $8 billion in revenue by 2030. This structure, especially supported by cloud technology, is at the center of the company’s growth plans.
Although Game Pass has had some negative effects – for example, users preferring to subscribe to games instead of buying them – this step is largely considered a success for Microsoft. With investments in cloud technology and a service-oriented strategy, Game Pass has become more than just a subscription service, it has become one of Microsoft’s key growth engines in the gaming industry.
After the $70 billion acquisition of Activision Blizzard King, Microsoft’s CFO Amy Hood and CEO Satya Nadella are reportedly keeping a closer eye on Xbox. Xbox’s growth in this process has an important place among the strategic goals of the trillion-dollar technology giant.
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