Microsoft has invested heavily in the Xbox platform over the past decade, aiming to revitalize its gaming division and enhance its Game Pass subscription service. However, the results have not met expectations, raising concerns within the company.
Massive Investments and Expectations
According to Bloomberg, Microsoft has spent approximately USD 80 billion (around Rp 1.442 trillion) in the last ten years to achieve its gaming goals. This investment was targeted at rejuvenating Xbox and fulfilling the vision surrounding Game Pass. Unfortunately, the anticipated outcomes have been disappointing.
CEO's Insights on Xbox Strategy
Xbox CEO Asha Sharma noted that these significant investments were initiated under previous leadership, which employed various strategies, including acquiring game studios and launching titles on competing gaming platforms. While these efforts have provided some value, they have not sufficiently driven the expected growth.
Game Pass Subscription Numbers
To meet its objectives, Microsoft aimed to have 77 million Game Pass subscribers by the end of the fiscal year 2026, specifically by June 30. However, the current subscriber count stands at only 30 million, falling well short of the target. This figure reflects a concerning decline, with Microsoft reporting a loss of 4 million subscribers since its last update.
Challenges Faced by Game Pass
The situation has sparked unease among Xbox employees. Matthew Ball, Xbox's head of strategy, revealed that a significant number of users canceled their Game Pass subscriptions following a 50% price increase announced in October 2025. Analysts suggest that Game Pass's model of offering a wide array of games hasn't been enough to entice gamers, especially when compared to competitors like Fortnite, which have successfully retained player interest and encouraged in-game purchases.
According to Mat Piscatella, an analyst from Circana, the issue with Game Pass is less about the service itself and more about the approach to selling subscriptions and services. For instance, the release of Call of Duty on Game Pass did not result in a significant uptick in subscribers nor did it greatly impact hardware sales.
Future of Game Pass and Microsoft's Strategy
Bloomberg also reported that former Xbox president Sarah Bond was instrumental in shaping the Game Pass strategy. Microsoft reportedly allocates USD 1 billion annually for third-party game deals to attract new subscribers. Other attempts to broaden Game Pass include targeting the extensive PC user base and exploring streaming opportunities.
The USD 80 billion investment primarily stemmed from major acquisitions, including the USD 75.4 billion purchase of Activision Blizzard and USD 7.5 billion for ZeniMax. Additionally, Microsoft has acquired developers like Ninja Theory, Obsidian, and Double Fine, which aligns with former Xbox executive Phil Spencer's initiative to expand the studio base and create more games for Game Pass members.
As Microsoft navigates these challenges, the future of Xbox and Game Pass remains uncertain, with the company striving to find the right strategies to attract and maintain a loyal gaming audience.
Source: https://inet.detik.com/games-news/d-8567400/microsoft-habiskan-rp-1-400-triliun-demi-xbox-endingnya-geleng-kepala
