In a recent memorandum to employees, the new CEO Asha Sharma of the Microsoft game stated that Xbox Game Pass had become too expensive for the player, who wanted to create a “more reasonable value for money” without the player providing more flexibility. The future of Game Pass remains to be seen, but the researcher and educator Jost van Dreunen believes that Microsoft and the whole game industry should be more active in hugging. Meanwhile, former PlayStation executive Sean Leyden stated that Game Pass was currently in a difficult situation.The future of the game market is in advertising.In his blog, Van Drunning argues that a $6-a-month “super-low” Game Pass subscription package may be a way for Microsoft to increase the flexibility of subscription services. He also stressed, however, that prices did not solve the underlying problems of Game Pass. “A study of host-industry subscription services found that while subscriptions change the consumer behaviour of players and the number of games bought by subscribers decreases, this pattern does not significantly expand the overall market. An increase in the number of people in the game libraries does not attract players who would not have played such games. Subscriptions have been successful in retaining users, but have been less effective in driving market growth.”
He went on to point out that other major media forms (including television, radio and the Internet) had not charged consumers for content for many years, but had covered costs through advertising. “The game, more than any other mass media, resists this model, partly because of cultural pride, partly because, for a long time, high-end players were large enough to support the operation of the whole industry”, Van Drunen said, “This is the whole game market, not just the Xbox.” Game Pass Ultimate subscriber groups of $30 per month are “not enough” to maintain operations. In his view, Microsoft should look to over 3 billion “free” game players, a wider market. The growth of Xbox is facilitated by the introduction of advertising fees through the provision of free content. Van de Runen felt that Xbox would be “more dependent on advertising” to drive business growth in the future, while Sharma’s experience in Microsoft Instatart’s outreach might indicate her future direction for Xbox. He noted that the increased use of advertising patterns by Microsoft was a natural change in media patterns. “At the beginning, TV platforms also resisted advertising and were finally forced to compromise. Internet-based car applications have also been advertised. Smart TV also built a full business model around advertising. This universality proves that:Advertising eventually touches all accessible screens.It’s not like it’s the same thing. As early as 2006, Microsoft acquired the game advertising company Massive Inc. and tried to expand its operations to Xbox, but failed to do so, and in 2010 Microsoft completely closed the business. At the same time, Van Drunning stated that the mainstream player group was “strongly hostile to business information”. But by 2026, the game had grown so big that it was no longer a “subculture”, but a “media market”.
Massive’s NERF toy ad for the baby.
Xbox Game Pass perspective
With regard to Game Pass ‘ s low-cost programme, it was reported that Microsoft might in the future introduce a fee-based version based on advertising. In fact, there are reports that players may be able to play Game Pass by watching advertising. Many entertainment services on the market offer advertising packages, which are more favourable than the non-advertising version. Netflix is a typical example of an advertising package at a start-up cost of $9 per month, which is quite cost-effective compared to the $20 per month standard set. Van Drunning indicated that experience could be applied to Xbox in Sharma, where he had been Chief Operator of Instatart for many years and helped Microsoft expand its advertising operations. “Xbox internal memorandum indicates that direct realization alone is not sufficient. Lower subscription-level costs, price quality games at conventional market prices and create advertising ecosystems can allow Xbox to expand players’ groups while improving unit economic efficiency.” Van de Runin indicated that under Sharma’s leadership, he expected that Xbox would become a “stolen model where distribution, realization and audience convergence take precedence over content ownership”. The former PlayStation executive, Sean Leyden, in his address to the United Kingdom, stated that Microsoft was “doing its utmost” to make Xbox a healthy subscription service, “despite unfavourable diagnostic indicators and poor expectations, it is moving forward.A clear autopsy report would benefit the entire industry.It’s not like it’s the same thing. In addition to providing a more price-for-money option, Xbox may consider working with Netflix to introduce some kind of bundling. Netflix Joint CEO Greg Peters indicated that he and Sharma had collaborated to “exchange ideas” on Netflix and Xbox to launch a subscription bundle service. While nothing was confirmed, he said that “no possibility of cooperation is excluded”.
Peters said, “You have to do this in a way that is good for consumers and for both companies, and frankly, I think Microsoft is still trying to figure out how to get Game Pass to tie the package for Microsoft itself. But I appreciate Asha’s thoughts, and she’s concerned, “How can we do more? ‘And progress has been exciting.” Sharma succeeded Phil Spencer as the CEO of the Microsoft game in February this year. In addition to the rumoured change of Game Pass, Sharma has made a major adjustment to Xbox by suspending the advertising campaign “This is An Xbox” because it “does not feel like Xbox”.