Xbox Game Pass Faces Scrutiny After Reported $300 Million Loss Linked to Call of duty
SEATTLE, WA – Xbox Game Pass is undergoing a “deep rethinking phase” as Microsoft navigates concerns over its financial sustainability, particularly following a reported $300 million loss potentially tied to Call of Duty, according to recent online discussions and industry analysis. The service, onc hailed as a ”video game Netflix,” is facing increasing pressure as production costs rise and user consumption patterns differ from streaming entertainment.
The debate ignited following a recent price increase for Game Pass, prompting users to re-evaluate the value proposition. Many are abandoning the impulse to purchase games “day one,” with one user, wolfbetter, stating, “Fomo no longer makes sense. I buy a few games at D1. Others await me in the backlog.” Others expressed frustration with the increasing prevalence of paid DLC, noting a shift from unlocking characters through gameplay to purchasing them separately, as one user bitterly observed, “Once the characters unlocking playing, today they sell them aside.”
Concerns extend beyond pricing and content strategy, with some predicting a broader shift in Microsoft’s approach to gaming. Dr_lini foresees “Microsoft will make the classic console die and unite everything on the PC and Cloud,” a sentiment echoed by the article’s author, who views physical hardware as “a ball in the foot” for a company prioritizing services.
Several users pointed to the long-term financial implications of the Game Pass model.alexcarchiar stated, “It was obvious that eventually, sooner or later they would raise the prices, the game pass was never sustainable,” while Faratto_ claimed, “MS has made his users play at loss for years, now he wants to return costs.”
Analysts suggest Microsoft is now focused on retaining its most active subscribers, even if it means losing a wider audience. Though, one user warned that Game Pass risks becoming “Game Over.” Potential solutions being discussed include hybrid subscription models with tiered pricing, offering cheaper basic access and premium content as separate purchases.
Launched as a cornerstone of Xbox’s ambition to redefine gaming, Game Pass now faces an uncertain future. Whether Microsoft can transform the subscription model into a viable long-term strategy, or revert to traditional game sales at $70 per title, remains to be seen.
