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Xbox Game Pass is under the spotlight, and it’s not necessarily positive.
Recently, Microsoft began its correspondence with the UK regulatory body, known as the CMA.
Regardless, that’s not exactly what we’re here to discuss today.
So what did Microsoft say to the CMA?
retail, as opposed to F2P “free to play” games.
For developers, that means creating another option for how they monetize their games."
As a result, the number of developers interested in working with Game Pass continues to grow."
Xbox Game Pass: Does the business work?
When assessing viability, we need to look at a few verticals here.
Rumors suggest this is behind Microsoft’s projections, although Microsoft asserts that their projections are intentionally aggressive.
Clearly, Microsoft is enthusiastic about the service, essentially tying the entire Xbox brand up to it.
Netflix is the obvious comparison to speak of here.
Netflix is a huge success story, with over 32 billion dollars in revenue and billions in net profits.
It could also very much not flip into profitability.
Investors stick with Spotify on the basis of faith in the future of its business model.
Are there really people out there that still don’t know Spotify exists?
In any case, it’s still a clunky comparison to make with regard to Xbox Game Pass.
Xbox Game Passisn’tall about the subscription, despite what you might assume.
users that are “new to Xbox.”
Many of those users come in as a result of seeking the value Xbox Game Pass offers.
The landscape it operates in could look very different in a few years.
Xbox Game Pass: The future
25 million users is tiny, ultimately.
There are other significant barriers, too.
In the case of iOS, Apple simply outright blocks Xbox Game Pass in its entirety.
The good news is that both of these barriers aren’t unbreakable.
There aresome hintsthat the EU could be preparing legislation to break their preventative practices on competing app stores.
The reality is that it’s still very early days.
