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It turns out that Xbox’s fate hung in the balance back in 2021, as a fresh report highlights the pivotal decision made by Microsoft’s CEO, Satya Nadella. There was a distinct possibility that Xbox could have been shut down entirely, had Nadella not opted to explore the potential of Game Pass. Though he often faces criticism from the Xbox community for allowing platform exclusives to make their way to rival PlayStation, if this report is accurate, it appears this was a strategic move necessary for the survival of Microsoft’s gaming arm.
An intriguing revelation from a paywalled report on The Information, shared via ResetEra, indicates that Nadella, back in 2021, mentioned to at least two individuals his options were to either close Xbox or find a strategy to spike up Game Pass subscriptions. Choosing the latter path, he embarked on a bold plan that involved acquiring gaming giants Bethesda and Activision Blizzard, resulting in a hefty investment of $82.4 billion.
Yet, despite these ambitious acquisitions, the report notes that Game Pass might not be hitting the marks Microsoft hoped. With eyes set on attracting 100 million subscribers by 2030, Microsoft is striving to find a formula to triple its subscription base over the next half-decade.
Analysts cited by The Information express skepticism about Game Pass’s allure to the wider gaming community. Gus Zinn from Macquarie Science and Technology Fund remarked, “I just think the majority of the game market doesn’t really want a Game Pass.”
Nevertheless, Microsoft’s status as a prominent game publisher and Xbox’s expansion to different platforms, including PlayStation, suggests that even if Game Pass doesn’t reach its ambitious targets, it may not necessarily spell disaster for the company.
