Sarah Bond explained in detail why Xbox Game Pass was created and how Microsoft took this strategic step. The future of Game Pass looks bright.
Xbox Game Passwas launched in 2017 as one of the subscription services that revolutionized the gaming world. In a recent interview, Xbox Head of Gaming Sarah Bond explained why Game Pass was created and why Microsoft is radically changing its business model. Apparently, Microsoft aimed to be a pioneer in the industry by launching this innovative system, opting to disrupt its own gaming business before potential rivals could make the move.
The Strategy Behind Xbox Game Pass
In her interview with Bloomberg, Sarah Bond talked about how Game Pass changed Microsoft’s business model. Bond clearly stated why Game Pass was launched, saying, “If we don’t do it, someone else will.” With this move, Microsoft aimed to create a platform where games are brought together and offered to subscribers, instead of increasing the value of just a single game. Thus, he believed that with the combined value of the games, he could create a stronger impact over time.
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It wouldn’t be wrong to say that Game Pass was successful with this strategy. This system, in which users can rent games instead of purchasing them, generated billions of dollars in revenue for Microsoft. This service, which has reached 34 million subscribers, has become a platform on which 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 choosing to subscribe instead of purchasing games – this step is considered largely successful for Microsoft. With investments in cloud technology and a service-focused 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.
It is stated that after the $70 billion acquisition of Activision Blizzard King, Microsoft’s CFO Amy Hood and CEO Satya Nadella are following Xbox more closely. Xbox’s growth in this process has an important place among the strategic goals of the trillion-dollar technology giant.