During a talk as part of a larger interview for Xbox Expansion Passwas asked Fries, who was on the original Xbox launch team before leaving in 2004what would you do if you were still on the Microsoft Games team at the time.
Fries did not give a definitive answer, but said he was “afraid” of the impact of Game Pass if it became as mainstream a business model as Spotify in the music industry. He has also made sweeping statements about Spotify’s impact on the music industry, some of which pundits have disputed.
Microsoft and PlayStation say they don’t believe subscriptions are the dominant model in video games. However, the former CEO of Microsoft, Fries encouraged platform owners to be wary of current business models. “When Spotify took off, it destroyed the music business, it literally cut the annual revenue of the music business in half,” the former Microsoft executive said. According to Fries, Spotify is made so that people no longer buy songs.
Former Xbox executive says he’s scared by the potential impact of Game Pass
Microsoft argues that the additional monetization opportunities in video games distinguish it from streaming services for other media, such as streaming video. The company said that unlike video streaming platforms, Game Pass users continue to spend money through in-game transactions, expansion content, and the purchase of additional games.