Analyst Michael Butcher (67) has been involved in video games for a long time. It explains Microsoft's new strategy behind the three new console releases. For him, the goal is clear: Microsoft wants to convince people who have been playing PlayStation for ages to buy their first Xbox. For renters, Xbox Game Pass is the business model of the future. This was questioned on the panel.
Butcher sees this strategy at Microsoft: In the form of a discussion, Butcher explained the strategy behind the three new Xbox versions that Microsoft introduced at the show (via com. gamepro):
- He says that Microsoft has not yet provided the exact specifications. But the new Xbox no longer has a disc drive and is completely digital, with a one- or two-terabyte hard drive (note: Pachter stands for Robot White Xbox Series
- “This is obviously the controller for Game Pass,” says Pachter.
- What Microsoft is trying to do is clear: they want to convince a PlayStation user to buy their first Xbox and sign up for Game Pass. That's smart.
Former PlayStation chief criticizes Game Pass
Are there counter arguments? A journalist from Gamesindustry.biz questioned the subscription model behind Game Pass. Many players will only buy one or two games a year. He wonders if they'd be willing to pay $17 for a subscription model they rarely use. The business model still doesn't convince him.
Sean Layden, former PlayStation president, was also present at the panel. It points to a problem with the Game Pass model:
Players only rented access and did not purchase any property. The question is whether people are willing to pay $17 for something that can be taken from them at any time:
“When you pay money for the privilege of accessing content. But access can be revoked at any time. So you don't own it, right?”
The analyst is convinced by Game Pass, and sees the potential for Xbox dominance
Butcher disputes this: Pachter outlines ways Game Pass could become more attractive:
- Microsoft could offer Free2Play games to everyone to get Game Pass for free – without charging a platform fee, then all the 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 pay a subscription fee anyway
However, Pachter seems to see Microsoft moving forward in the battle for gamers. Mobile gamers in particular can play more than one or two games, not just on a console, but on a cell phone.
The possibility that WoW will actually come to Game Pass and that you will indirectly save on subscription fees or get a lot more for your money has been discussed, as it became clear that Microsoft was planning to buy Activision Blizzard: WoW is coming to Xbox: “The dream is here,” say the developers.
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