Microsoft has been striving hard to enhance the Xbox brand over the past decade. Despite their considerable efforts, the saying 'hard work pays off' seems unfulfilled, as the results still lag behind aspirations.
Massive Financial Commitment
As reported by Bloomberg, on July 9, 2026, the tech giant has poured nearly USD 80 billion, equivalent to approximately Rp 1.442 trillion, into revamping Xbox and realizing their ambitions for Game Pass. Unfortunately, the outcomes have been underwhelming.
Leadership Changes and Strategic Moves
According to Xbox CEO Asha Sharma, the hefty investment was made under previous leadership, which adopted various strategies including studio acquisitions and releasing games on rival platforms. While these moves added some value to the company, they fell short of the targeted growth.
Game Pass Performance
To achieve its goals, Microsoft aimed to have 77 million Game Pass subscribers by the end of fiscal year 2026, a target set for June 30. However, the actual count stands at only 30 million, reflecting a significant shortfall. This figure represents a decline of 4 million subscribers from Microsoft’s last service report.
The situation has raised concerns among Xbox employees. Xbox's chief strategist, Matthew Ball, revealed in June that “millions” had canceled their Game Pass subscriptions following a 50% price increase announced in October 2025.
Challenges with Game Pass Strategy
So, what’s ailing Game Pass? The strategy of allowing subscribers to play a variety of games for a fee has not managed to captivate gamers adequately. Analyst Mat Piscatella from Circana opines that Game Pass is struggling because competing games like Fortnite have successfully engaged players for longer periods, enticing them to spend more on in-game purchases.
“The issue with Game Pass is not the service itself, but rather the goal of selling subscriptions and services, which Microsoft aimed for across its business at that time. The launch of Call of Duty on Game Pass did not significantly boost subscriber numbers and had minimal impact on hardware sales,” he stated.
Investment Breakdown
Bloomberg also highlighted that former Xbox president Sarah Bond led the Game Pass strategy, with Microsoft investing around USD 1 billion annually in third-party game deals to attract more subscribers. Additional efforts to expand Game Pass are aimed at tapping into the large PC user base and the streaming market.
The staggering USD 80 billion expenditure largely stems from Microsoft's massive acquisitions, including Activision Blizzard for USD 75.4 billion and ZeniMax for USD 7.5 billion, along with purchases of developers like Ninja Theory, Obsidian, and Double Fine. This approach was part of former Xbox executive Phil Spencer’s initiative to grow the studio base, enabling more games to be available to Game Pass members as part of their subscription fee.
Source: https://inet.detik.com/games-news/d-8567400/microsoft-habiskan-rp-1-400-triliun-demi-xbox-endingnya-geleng-kepala
