Game Pass Cost Xbox $300 Million in Call of Duty Sales
▼ Summary
– Microsoft increased Xbox Game Pass Ultimate’s price by 50% to $30 per month this week.
– Internal estimates indicate Xbox lost $300 million in Call of Duty sales last year due to the game being available on Game Pass at launch.
– Xbox Game Pass has not achieved the explosive growth Microsoft anticipated post-Activision acquisition, failing to become the “Netflix of gaming.”
– Former FTC Chair Lina Kahn criticized the acquisition, linking it to price hikes and layoffs that harm gamers and developers.
– The last reported subscriber count for Xbox Game Pass was 34 million in February 2024, with the service generating nearly $5 billion in the fiscal year ending June 30, 2025.
Internal estimates from Microsoft reportedly indicate that Xbox lost approximately $300 million in Call of Duty sales across Xbox consoles and PC during the last fiscal year. This significant revenue shortfall is attributed to the blockbuster franchise being available on launch day through Xbox Game Pass Ultimate and PC Game Pass subscriptions. The immediate accessibility on these services appears to have reduced the number of consumers opting to purchase the game outright.
Microsoft recently announced a substantial price adjustment for its subscription service, increasing the cost of Xbox Game Pass Ultimate by fifty percent to $30 per month. This move comes amid reports that the service has not achieved the rapid expansion the company envisioned following its acquisition of Activision Blizzard. An industry expert noted that Game Pass has failed to deliver the explosive growth Microsoft anticipated, adding that the company’s infrastructure expenses do not align with its current pricing structure.
The concept behind Xbox Game Pass was to become the Netflix of the gaming world, a vision that has yet to materialize as projected. Initially launched at $10 per month in 2017, the service began offering new titles at launch a year later. Over time, Microsoft shifted its strategy, reserving day-one releases for the higher-priced Ultimate and PC tiers while gradually increasing subscription costs across the board.
The company’s acquisition of Activision Blizzard faced regulatory scrutiny, with former Federal Trade Commission Chair Lina Kahn attempting to block the deal. After it was ultimately approved, she publicly criticized the outcome, stating on social media that the merger has been followed by notable price increases and workforce reductions. She argued that such market consolidation often leads to higher costs for consumers, with dominant companies facing fewer consequences for decisions that negatively impact their user base.
As of February 2024, Xbox Game Pass reported 34 million subscribers. Microsoft also disclosed that the service generated close to $5 billion in revenue for the fiscal year ending June 30, 2025. Recent changes to the service include rebranding Game Pass Core to Game Pass Essential and Game Pass Standard to Game Pass Premium.
These updated tiers now provide enhanced benefits at their existing price points, incorporating access to PC games, cloud gaming, and exclusive in-game content for titles like those from Riot Games. The selection of available games has also expanded on both tiers. Despite these additions, a primary incentive for subscribers remains the day-one access to major releases, which now comes at a premium cost of $30 monthly for the Ultimate plan or $16.50 for the PC-specific version.
(Source: VGChartz)
