It is difficult to understand the decisions made at the highest level in Microsoft and Xbox. The layoff of 1,900 Activision Blizzard employees earlier this year, followed this week by the closure of four studios, and now also in the process of downsizing Zenimax (and probably more closures). A disheartening situation that all gamers know is not good for either the Xbox platform or the industry in general.
And if Tom Warren’s new report in The Verge is confirmed, popular support for the Xbox will suffer even more. Xbox is reportedly considering to increase the price of Game Pass Ultimate membership again. Warren emphasizes that these are only considerations for now, but the decision may be made depending on the plans for the launch of the next Call of Duty, which is rumored to be the dedicated event that will take place in June after the Xbox Games Showcase.
Apparently, the internal debate about Call of Duty – a series with multi-million dollar production costs – is viable as a business to launch on Game Pass. “I understand this is a debate that has been going on internally for quite some time, with some concerned that the revenue Call of Duty typically generates for Activision Blizzard will be eroded by Game Pass.”
It appears that Game Pass is currently not generating enough profit to balance the cost of Call of Duty, and that Xbox is in a difficult position of its own making. We may know more next month when the events kick off in Los Angeles, but one thing is clear: Something needs to change on Xbox.
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