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Home Market dynamics

The game subscription market is in a growth slump, and Microsoft may need to rethink its Xbox Game Pass service strategy

Author: Mash Yang
2025-01-22
in Market dynamics, observe, Dentou
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There are games in the near futureOpt out of the Xbox Game Psss serviceIn this case, Microsoft may eventually choose to withdraw from the gaming market competition because the growth of its Xbox Game Pass subscription service is lower than expected.

The game subscription market is in a growth slump, and Microsoft may need to rethink its Xbox Game Pass service strategy

Prior to this, Phil Spencer, head of Microsoft's Xbox business, revealed that if the number of Xbox Game Pass subscription service users cannot accumulate more than 2029 million in the fiscal year 2030 to 1, Microsoft willMaybe they will choose to withdraw from the gaming market.

Especially in recent years, PlayStation 5 and Nintendo Switch have almost occupied the majority of the game console market sales, and Nintendo is also planning to launchNintendo Switch 2Even if Microsoft plans to launchNew Xbox game console, will still face a lot of competitive pressure.

Although Microsoft's Xbox Game Pass service allows users to play multiple games released on the Microsoft Xbox platform through a single subscription plan, and even allows users to use PC Game Pass and streaming services with the Ultimate plan, Microsoft also continues to cooperate with more third-party companies and expand the Xbox Game Pass game lineup by acquiring more game companies and publishers, it has obviously not achieved the corresponding results.

The market believes that the current gaming market is mainly dominated by mobile platforms, which have attracted a large number of gamers. At the same time, many players prefer to use games that are basically free to play, such as "Roblox" and "Fortnite". As a result, the number of players willing to pay for games continues to decline. Almost only heavy players and support players are willing to pay for games.

This is an advertisement.

On the other hand, the market isn't heavily reliant on game subscriptions, as most players prefer to pay for games they want to collect rather than maintain a subscription through a fixed monthly payment. Even many subscription services offer games that are more than two years old, making them less appealing to most players. Furthermore, the average player only pays for two to three games per year, leading many players to prefer buying outright for a single game or paying only when they want to play, rather than maintaining a long-term subscription model.

For developers, a subscription model effectively drives down game prices, meaning it takes longer to recoup development costs, or may even be impossible to recover. Furthermore, offering games through a subscription model can limit profit opportunities from selling the game on other platforms. As a result, developers are often reluctant to offer new games as subscriptions, or are only willing to offer subscriptions for games that have been on the market for a certain period of time to increase the chances of additional revenue.

Therefore, from an overall perspective, Microsoft's Xbox Game Pass subscription plan may become difficult to make a profit unless Microsoft comes up with a more appropriate solution.

In previous explanations, Yoshida Shuhei, who led the development of independent games at Sony, mentioned the game subscription system.Possible challenges, and believes that maintaining a normal game pricing strategy is the key to maintaining continued market growth.

Tags: MicrosoftnintendoNintendo Switch 2PlayStationSonyXboxXbox Game PassNintendoMicrosoftSubscription
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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