Industry analysts had been pointing out for some time that Microsoft's strategy with Xbox Game Pass needed adjustments. The recent price reduction of the service and the removal of Call of Duty as a launch title confirm those predictions. Mat Piscatella, from Circana, indicated that the arrival of the popular shooter did not notably boost console sales or subscriptions. Piers Harding-Rolls, from Ampere Analysis, reinforced the idea: prioritizing subscriptions with major releases has not yielded the expected results.
The cost of maintaining an AAA catalog in subscription 💸
Including high-budget titles like Call of Duty in a subscription service from day one has a considerable financial impact. Microsoft has found that the opportunity cost of not selling full copies at 70 euros is not offset by a massive increase in subscribers. The model requires a very high volume of users to sustain payments to publishers. By not reaching that threshold, the company has opted to reduce the price of the service and eliminate one of its biggest recurring costs, adjusting its strategy to a colder market reality.
Spoiler: paying less for Game Pass does not include Call of Duty 😅
So yes, now you'll pay less for Game Pass, but don't expect to see Call of Duty soldiers on the service's home screen. It's like going to an all-you-can-eat buffet where they lower the price but take away the sirloin. Analysts already anticipated it, but it always hurts more when it's served cold. At least the subscription will be cheaper to console yourself while you watch others play the new Call of Duty at full price. Market ironies: less price, less meat.