There’s no doubt that since its release in June 2017, Xbox Game Pass, Microsoft’s primary gaming subscription, is the ultimate deal for gamers. With a collection of 4000 games, there’s something for everyone, and you’ll never get bored!
At the start of 2024, Microsoft confirmed that Game Pass had reached 34 million active subscribers. Still, many industry experts shared their doubts about whether the subscription service could sustain and grow. However, with the upcoming Call of Duty coming to Game Pass, the subscription service will reach success levels unheard of.
Analysts Predict $5.5 Billion Gross Revenue For Xbox Game Pass Next Year
Recently, Microsoft announced several huge changes to the Xbox Game Pass, including a price hike affecting everyone but members of its Console tiers. The company eliminated the $10-a-month console-only subscription for new members, which will soon be replaced with the Xbox Game Pass Standard, costing $14.99 a month.
Microsoft’s decision to raise prices and push players to higher Xbox Game Pass tiers is linked to the decision to release the upcoming Call of Duty game straightaway on Game Pass. Many thought this decision would be the cause of the subscription service’s downfall.
However, according to Piers Harding-Rolls, the head of research at Ampere Analysis, Microsoft’s recent price hike will lead to a massive spike in earnings. The subscription service is now expected to achieve a massive $5.5 billion in annual earnings in 2025.
Reaching an audience off console and PC does not necessarily deliver profitability because the distribution costs in cloud gaming are significant – far more than just downloading games. As such, Microsoft needs existing subscribers to pay more, while also paying less to license games.
The report suggests that Microsoft is facing major distribution costs in cloud making, which is making profitably challenging despite reaching large audiences.
The need to act has also been driven by the confirmation that new Call of Duty releases will be added to Game Pass Ultimate: Because that is such a significant annual premium release, offsetting some of the costs of that move was necessary.
Call of Duty‘s release to Game Pass Ultimate would be the reason for its predicted growth. The game will definitely attack more subscribers to the Ultimate Tier, which Microsoft desperately seeks, which will further boost revenue.
The expected increase in consumer spending on the subscription service by up to 15.3% in 2025 highlights the importance of Game Pass to transform the company’s gaming revenue landscape. It’s time for Sony to sort out their own subscriptive service because if this trend continues, the future of PlayStation will not be bright.
When is the Next Call of Duty Game Coming?
According to the latest reports, the upcoming Call of Duty game, Black Ops 6, is all set to release on October 25th, 2024. Initially, the title was expected to be released in November, but the final release date was confirmed during the Black Ops 6 Direct in June 2024.
Black Ops 6 will be available on PC, Xbox Series S/X, Xbox One, PlayStation 5, and PlayStation. Even though there’s a deal between Nintendo and Microsoft, the game still doesn’t have a release date for the Switch.
Gamers who pre-order the game will get early access, and this beta will feature a limited version of the game. Even Game Pass subscribers would get the beta access without needing to pre-order!
Do you agree with Microsoft’s decision to raise Game Pass’ price? Let us know in the comments.
