The upcoming Xbox hardware is expected to launch later next year, marking the first major release under new CEO Asha Sharma. This Xbox console is set to open up the ecosystem to third-party storefronts, marking a new beginning for Microsoft’s gaming endeavors.
However, a popular analyst, who previously sang praises of the company’s current strategy, isn’t too hopeful about the console business moving forward. In a new interview, he effectively declared the next Xbox dead.
This statement comes from Michael Pachter, the controversial yet famous games industry analyst. Speaking to Gamesbeat, the analyst discussed how Microsoft’s decision to raise Game Pass prices to $30 was ultimately a misstep.
He pointed out that $360 for a year-long subscription is absurd in an industry where a single game costs around $70 at release. His grievances with the pricing aside, Michael Pachter still believes Game Pass has a lot of potential, but it comes at the expense of the console business.
“I think the all-in on $30 a month subscription was the wrong way to go. The price should be $10 a month.” -Michael Pachter
As he puts it, the service is an all-or-nothing deal, and Microsoft is clearly trying to go all in. According to the analyst, a model where Microsoft leverages its cloud infrastructure to make games playable through subscription to those without consoles would be a smarter strategy moving forward.
Michael Pachter says that Xbox should essentially attempt to become like Steam, but for connectivity. Of course, this would require completely doing away with the company’s hardware component, which is likely where the analyst’s sentiment that this side of the business is dead stems from.
“I think the console is dead. I think already blown it with the console by embracing Game Pass.”
Previously, it was said that Game Pass was hurting sales, which is ultimately a net negative for the Xbox console business. The fact that the service is now central to the platform means that there isn’t much Microsoft can do to mitigate this problem. Moving forward, then, it will be interesting to see how the dynamic between the console and subscription model evolves for Xbox.
