Bloomberg recently interviewed seven former and current Activision employees. These employees hinted that frequent price increases and constant revisions of Game Pass indicate that Game Pass, which is heavily promoted by Xbox, still has not achieved expected revenue eight years after its launch.Microsoft is bringing some popular games to the Game Pass streaming service, but it will also affect the sales of these high-margin games, such as Activision's "Call of Duty" series.
An anonymous employee broke the news that Xbox lost more than $300 million in "Call of Duty" sales on console and PC platforms last year, and this was one of the main reasons for the Game Pass price increase. Microsoft Chief Financial Officer Amy Hood has asked Xbox to find other ways to increase profits.
Joost Van Dreunen, founder of game analytics company Aldora, said: "Game Pass has not brought the explosive growth that Microsoft expected after acquiring Activision Blizzard. They have realized that their infrastructure costs do not match the pricing model."
Putting "Call of Duty" on Game Pass is good news for subscribers, but it also means losing sales on the Xbox platform.Former employees familiar with the matter said that although "Call of Duty: Black Ops 6" was a best-seller in the United States, Sony's PS platform contributed 82% of sales.
Some Game Pass users may have only paid for a month or two before canceling their subscription, rather than spending $70 on a game like the old business model of the past.
Additionally, many of the people interviewed by Bloomberg said Game Pass was a disservice to Microsoft and cost it dearly.