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Game Pass failing to meet revenue targets
Subscription services are intended to support bottom lines, but both Xbox and PlayStation are slowly learning this model isn’t sustainable long term. In the capitalist climate of chasing consistent year-on-year growth, should something fail to meet targets then it seems there’s company-wide panic to rectify perceived losses. Game Pass growth in 2022 was 2%, with 2023 less than that, so perhaps this slowing of new subscribers has contributed to Microsoft’s brutal decision to shut numerous studios under its wing.
