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Xbox Game Pass Faces Price Cuts In Select Regions (Chile, Hong Kong, Israel), North America Not Projected For Same Plans


With Xbox Game Pass in question, the ongoing response to the service is how sustainable the business model is to Microsoft. But according to Phil Spencer, it already is. In a previous interview with Dropped Frames, Spencer told that Xbox Game Pass can maintain the momentum and would not require a price jump to keep sufficient.

Elsewhere, it was discovered that Xbox hardware during the previous Apple v. Epic Games court case did not turn a profit for Microsoft. However, the firm did reiterate that service is the strong suit for Xbox in delivering revenue to Microsoft from the video game division. But, as it is expected that more anticipated properties coming to Xbox Game Pass would increase pricing, Microsoft is reducing cost per month in select regions.

According to a piece from GamesBeat, Xbox Game Pass has shortened the price for Xbox Game Pass in Chile, Hong Kong, and Israel. Through monetary conversion of respected currency per market, it appears that the cost is roughly shifting from $15 to $10. However, Jeff Grubb who composed the piece told the United States is not to find the same results in pricing.

Grubb goes on to explain in the thread that plans on behalf of Microsoft are not concerned in turning a profit = alike how the video game industry is already constructed. “Xbox has literally billions of dollars earmarked for acquiring content for Game Pass. So Game Pass is a long, long way from turning a profit. But as these cuts suggest, turning a profit is not a concern at all right now.

“Also, that is normal. Netflix is spending $17 billion on content acquisition this year, and it only just made its first profitable quarter ever recently. These companies are willing to go years without thinking about how a business actually makes money. And I think it’s almost always concern trolling when people are like, ‘but how long can this last — I’m just worried that Microsoft will…’. 

“Bring that same energy to the existing business model of $300M to make/market a game that also seems unsustainable.” Recently, Microsoft Vice President for Game Creator Experience and Ecosystem Sarah Bond spoke to GQ revealing Xbox Game Pass originally was planned to be a video game rental service before being helmed as the business model we know now. You can read the full report by heading here.

Are you concerned with the direction of Xbox Game Pass or no?

Source: GamesBeat

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