Xbox’s Latest Move With Game Pass Won’t Impact Sales, Will Benefit In Long Run: Pachter

Wedbush analyst Michael Pachter says it's a "clever way" to provide content for a "reasonable price".

Posted By | On 23rd, Jan. 2018

Xbox One X

Microsoft recently announced that Xbox Game Pass subscribers would be receiving future Microsoft Studios titles on the same day as other outlets. So instead of receiving Rare’s Sea of Thieves at a later date, it’ll be added to the Xbox Game Pass library on the very same day of launch i.e. March 20th. It also confirmed that future titles like Crackdown 3, State of Decay 2 and upcoming games in the Halo, Forza and Gears of War series will follow the same pattern.

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? GamingBolt spoke to Wedbush Securities analyst Michael Pachter about the same.

Pachter said that, “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.”

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?

Regarding Microsoft taking any losses, Pachter replied, “I don’t think so.” He also added that, “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.”

Time will tell how feasible this strategy this is for Xbox One, especially if Microsoft really wants to push Xbox Game Pass as the de facto reason for owning the console. Regardless, what are your thoughts on the same? Let us know in the comments.


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