Pachter - Xbox Game Pass Benefits Won't Improve XB1 or Xbox One X Sales
Back in June 2017, Microsoft released the Xbox Game Pass, and the response was very positive from the consumer side, therefore with Xbox's latest move, they planned that Xbox Game Pass subscribers will be receiving the latest games of Microsoft Studios, the same day as of its launch. That is, if a game is being released on 25th May then, the game will be available for the Game pass holders as well as general Xbox users on the same day.
Gamingbolt conducted a Q/A session with Michael Patcher, Wedbush Securities analyst, regarding this move by Xbox, the details are as follows:
Q: What are the implications for Microsoft though, especially when it comes to first-party titles and the Xbox One/Xbox One X as a whole?
Patcher: I don't think it means anything for console sales. It's a clever way to give consumers access to a lot of content for a reasonable price, and nothing more than that. For the price of two new games per year ($120), a Game Pass subscriber can play all Microsoft first-party content (at least two AAA titles) plus 100 more games.
It's a good deal if somebody intends to buy at least one Microsoft release per year, and with so many Halo, Forza and Gears fans, they should see a lift in subscriptions. I don't see any correlation to console sales, but maybe this program will benefit them over the long run.
Q: Given how the typical Xbox One title costs $60, will Microsoft be incurring any losses since Xbox Game Pass is available for $9.99 per month? What will the impact be on game development costs and launch sales?
Patcher: I don't think so. Theoretically, someone could sign up for a month and quit, but the majority of people sign up and remain members for at least a year.
Only time will tell if this was a smart move or not.