Certainly, the Xbox Game Pass is one of the weapons the more aggressive Microsoft in its battle with Sony. The growing catalogue and advantageous as proposed by the american giant will soon be joined by the xCloud in its offer Ultimate as early as September, without extra fees : the firm puts to great lengths to impress the public and to tell the truth, many have questions about the cash flow of the project. The boss of marketing for Xbox, Aaron Greenberg, has rightly expressed about this in the podcast What’s Good Games, stating that this was “not a profitable business for the moment” since the Xbox Game Pass was a recent one… but that the future looked serene.
“We laugh when we hear it. Please, do not worry for us. Microsoft goes well. We’ll get there, I think everything will be as it should be” he said on a note of irony. It seems essential to recall that, indeed, the house of Bill Gates is rather cost-effective and that it has largely means investing heavily in the Xbox Game Pass. This she does, by the way : Greeberg admit that the operation will be costly in the short term… but extremely beneficial over time, related then dividends.
It is a state of mind different. If you optimize your business for profit, you can ask yourself this question : “How can we draw the maximum profit from each client ?” Or, you change your point of view and you ask yourself : “How can we add maximum value to our fans ? How can we really rely heavily on the value ?” If you think so, you build fans for life.
In other words, Microsoft is currently investing heavily in the Xbox Game Pass and, of course, the profitability is not yet at the rendezvous. But by offering aggressive and extremely qualitative, the company built up a strong community and, especially, growing, which should be very challenging and beneficial in a number of years. And if there’s an organization that has the kidneys strong enough to withstand the spending until the impact of money, this is it.