Why biggest gaming acquisition in history may have fallen short of Microsoft's Xbox expectations
Xbox's Game Pass price surged 50% to $30 monthly, signaling its streaming strategy is failing revenue expectations. The inclusion of high-margin games like Call of Duty reportedly cost Xbox over $300 million in direct sales, as subscribers chose the service. This approach is cannibalizing traditional game sales without generating sufficient replacement revenue.
Xbox's Game Pass price surged 50% to $30 monthly, signaling its streaming strategy is failing revenue expectations. The inclusion of high-margin games like Call of Duty reportedly cost Xbox over $300 million in direct sales, as subscribers chose the service. This approach is cannibalizing traditional game sales without generating sufficient replacement revenue.
