The analyst Michael Pachter (67) has been dealing with video games for a long time. He explains Microsoft’s new strategy behind the three new console versions. For him, the goal is clear: Microsoft wants to get people who have been playing PlayStation for ages to buy the first Xbox. For Pachter, the Xbox Game Pass is the business model of the future. This is questioned on a panel.
This strategy is what Pachter sees at Microsoft: In a discussion format, Pachter explained the strategy behind the 3 new Xbox variants presented by Microsoft at the showcase (via gamepro):
- He says Microsoft hasn’t presented the exact specifications yet. But a new Xbox has no drive and is purely digital, with a hard drive of one or two terabytes (Note: Pachter is referring to the Robot White Xbox Series X – It has 1 terabyte of storage and is supposed to cost around €500)
- Pachter says: “This is clearly the console for the Game Pass.”
- What Microsoft is trying to do is clear: They want to get a PlayStation user to buy the first Xbox and sign up for the Game Pass. That’s clever.
Former PlayStation head views Game Pass critically
Are there counterarguments? A journalist from Gamesindustry.biz questioned the subscription model behind the Game Pass. Many gamers would only buy one or two games a year. He asks if they are willing to pay $17 for a subscription model that they hardly use. He remains unconvinced by the business model to this day.
Also on the panel was Shawn Layden, a former head of PlayStation. He points out a flaw in the “Game Pass” model:
Players are only renting access and not purchasing ownership. The question is whether people are willing to pay $17 for something that can be taken away from them at any time:
“When you pay money for the privilege of having access to content. But that access can be revoked at any time. Then you don’t own it, do you?”
Analyst is convinced of Game Pass, sees opportunity for Xbox to dominate
What Pachter counters: Pachter presents possibilities for how the Game Pass could become even more attractive:
- Microsoft could offer every free-to-play game for free access to the Game Pass – without taking platform fees, then all mobile games would come there and potentially bring 3.5 billion players with them
- Microsoft could also include World of Warcraft in the Pass, for which players are already paying a subscription fee
Pachter seems to believe that Microsoft has the upper hand in the battle for players. Especially mobile gamers tend to play more than just one or two games, just not on console, but on their phones.
The possibility of WoW actually coming to the Game Pass and indirectly saving subscription fees or getting much more for your money has been discussed ever since it became clear that Microsoft planned to buy Activision Blizzard: Will WoW come to Xbox: “The dream exists,” say the developers
