Game companies are “baffled” by Microsoft’s multiplatform strategy, and they are reluctant to develop games for Xbox consoles, according to a new report.
During the latest episode of The Game Business Show on YouTube, editor-in-chief and co-founder Christopher Dring mentioned that certain publishers and developers he has spoken to are “baffled” by the multiplatform strategy of Xbox. From their point of view, it limits competition within the console space. They are now questioning why they should even bother developing games for Xbox consoles if this is Microsoft’s strategy going forward. According to Dring, that’s a balance that Microsoft’s going to have to strike.
Dring pointed out that Microsoft needs its consoles to remain relevant, as they are they gateway to the companies premium game subscription service, Xbox Game Pass. As per him, a lot of Xbox Series X|S console owners are Game Pass subscribers. He believes the value of the subscription service, from a consumer point of view, is starting to become really appealing, with AAA games now costing as much as $80.
The Game Business co-founder shared his anecdotal experience with Xbox Game Pass. He’s been a subscriber since 2018, and the last Xbox game he purchased was Sea of Thieves. He looked at how many games he would have bought if he wasn’t a Game Pass subscriber, and he realized that Xbox may have made more money off him as a subscriber than they would have if he had bought the games individually. As such, he believes the subscription service is becoming quite appealing.
Last year, Skill Up associate Edmond Tran had the opportunity to interview a series of anonymous game developers, and the overall takeaway regarding Xbox was that Game Pass resulted in a behavioral shift that led to very few sales on the platform. The general sentiment was that the existence of the subscription service has created a vicious cycle. One such developer released an award-winning title on Xbox more than two years ago after initially releasing on other platforms. They mentioned that their game’s sales on Xbox have been the weakest. “It’s a bit like trying to sell a DVD to someone who uses Netflix. Sure, people still do that from time to time but you’re not targeting the right audience”, they said.
