Former PlayStation executive shares his concerns with the Xbox Game Pass model

Former PlayStation executive shares his concerns with the Xbox Game Pass model

It is no mystery that the Microsoft Xbox Game Pass service has been a success, adding more and more subscribers who are added by the quantity and quality of their titles. On several occasions, senior PlayStation executives have commented on the service, not criticizing it but showing a certain kind of skepticism regarding its business model. Following this, A former PlayStation executive shared his concerns with the Xbox Game Pass model, arguing that it is currently not sustainable over time.

Through some statements with Gamesindustry.biz, Former PlayStation Director Shawn Layden, shared various analyzes on the video game industry, in addition to giving his impressions regarding the Xbox service. He commented within many things, that the Game Pass’s business model is currently not sustainable over time, and that it is difficult for Microsoft to grow a portfolio that has to become something really incredible for the company to start seeing a profit.

Former PlayStation executive shares his concerns with the Xbox Game Pass model

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During the interview, Layden explained that Microsoft would need a long time to recoup the investment in Xbox Game Pass, stating that it is very difficult to launch a $ 120 million game on a subscription service that only charges $ 9.99 per month. He argued (translated): “If you check it, you will have to have 500 million subscribers before you start to recoup your investment. That’s why you need to take a loss leadership position right now to try to grow that base. But still, if you have only 250 million consoles, you’re not going to reach 500 million subscribers. So how do you draw that square? No one has discovered it yet. “

Regarding the Xbox Cloud Gaming service, Layden also commented that Microsoft has not built a business model that works yet, having to see how it will grow and seek to make profits. Without a doubt, Xbox Game Pass is a service that scares many, especially because of the rapid growth it is having. Recall that PlayStation is also working on its subscription service, which will be launched soon according to the words of Jim Ryan himself. It will be interesting to see what Sony’s proposal will be and how both companies will make profitable a model that Microsoft runs at a loss today.

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How do you think Microsoft will make the service profitable?

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