Microsoft considered shuttering the Xbox division back in 2021, but went for further investments instead. Read on to find out how they got Xbox to where it is at present.
Xbox Was Nearly Shut Down
Acquired Major Game Studios Instead
As reported by The Information, Microsoft was so close to shutting down its Xbox division back in 2021 but instead opted for acquiring game studios in order to set its position in gaming and cloud services. This decision led to huge studios such as Bethesda (The Elder Scrolls series, Fallout series) and Activision Blizzard (Call of Duty, World of Warcraft) being purchased by the tech giant.
Back in 2021, Game Pass was a mere three years old, and needed something that would make them more competitive in the market. Acquiring major IPs such as The Elder Scrolls and Call of Duty and adding them to their library would surely catch the attention of a large audience. Through this, Microsoft aimed to make the Game Pass "indispensable" to gamers and to encourage more people to subscribe to the service. Based on the details shared to The Information, the company had set a target of over 100 million subscribers by 2030. The last reported publicized subscriber count was at around 34 million subscribers in February of 2024.
However, not a lot of other gaming studios were willing to participate. Despite offering fees to use their games, Xbox found it challenging to convince the developers to showcase their games on the cloud platform. Sharing his thoughts, Macquarie Science and Technology Fund portfolio manager Gus Zinn commented that perhaps the majority of gamers don’t really want or need a Game Pass at all.
While Game Pass at present does offer day one access to a number of popular games upon release as well as having a rather large library of games to choose from, many of these titles are also readily available on other platforms that players may be more familiar with.
Nevertheless, Xbox Game Pass is still a viable option for those who are interested in games included in their catalog, as well as for those who would like to try out several different games for a rather affordable price. It constantly changes up its offerings every once in a while, with the latest additions being EA Sports UFC 5 and the very first Diablo. It will also offer upcoming games on their launch dates, such as Citizen Sleeper 2: Starward Vector, and Avowed.
Source:
Microsoft Considered Shutting Down Xbox In 2021, Opted For Studio Acquisitions To Boost Game Pass
