Microsoft’s Earning Calls Highlights the Future of Xbox, and It’s Not Good News for Those That Enjoy Owning Their Games

Microsoft’s strategy is constantly evolving to adapt to the changing times and the challenge of making the brand more popular. In a recent earnings call, the company’s investors discussed Xbox’s future and how its main strategy is to continue adding users to Xbox Game Pass. 

It appears that in the coming years, players will no longer own the games but rather have a temporary license accessible through the subscription. The recent closure of the Xbox 360 game store is proof of this. This could be a possibility for the company to try a different approach.

Xbox’s New Strategy Is Revealed in a New Earnings Call

Despite having a challenging start to the year with many layoffs and several studio closures, it appears that Microsoft aims for Xbox to keep growing in the coming months.

The company’s latest conference to showcase all the upcoming games genuinely excited the audience with the variety of exclusive titles coming in the next few years. In the future, this subscription-based strategy could be the main business.

Investors asked questions during a recent earnings call about the company’s strategy to adapt and attract new users.

it’s very rare to see investors ask about Xbox during Microsoft’s earnings calls, but BMO’s Keith Bachman did last night. The answer is interesting from Microsoft CEO Satya Nadella, as he mentions a bigger focus on PC gaming, as well as excitement around bringing Xbox Cloud… pic.twitter.com/Gu3lP0Jcsp

— Tom Warren (@tomwarren) July 31, 2024

Xbox Game Pass will be the primary focus of this strategy; in the future, players will no longer own the games, but will have a temporary license to use them thanks to this subscription service. Another suggestion from the company is to increase community transactions.

Microsoft Has Chosen a Strategy More Focused on Subscriptions

Having reached a ceiling of 30 million total users, Xbox Game Pass aims to get many more active players by adding games like Call of Duty to its service to attract more potential users.

The company aims for this service to continue growing exponentially, encouraging players to choose the subscription over individual game purchases, thereby justifying the high price of the subscription with its extensive catalog.

On platforms like X, users say that this strategy is not so strange and makes sense, as within two or fewer console generations, Xbox may decide to stop making consoles entirely and focus solely on the subscription model.

One of the strengths of this service is that its game catalog includes newly released titles, and Ultimate subscribers can access and play the full game from day one, something the competition has not yet implemented.

It appears that in the future, players will not own games but will only pay subscriptions to access certain titles. Currently, this is not a prevalent trend in the industry.

While it appears that players are not entirely in agreement, it is likely that this will gradually gain more traction and eventually replace the concept of purchasing digital games and obtaining licenses. This does not ensure that the game cannot disappear from the store without notice.

What are your thoughts on this strategy? Let us know in the comments!