During the 2023 Wells Fargo TMT Summit, Xbox chief financial officer Tim Stuart publicly stated that the company’s ultimate goal is to transform Xbox Game Pass into the leading game streaming service on all platforms, not just limited to Microsoft’s console. According to Stuart, the company intends to make Game Pass accessible “every screen that can play games.” The news initially broke via Gamespot.
In an intriguing “change of strategy,” Stuart acknowledged that Xbox’s focus has shifted from premium consoles to expanding access to Game Pass across multiple devices, including “smart TVs, mobile devices, and even past competitors like PlayStation and Nintendo.” This transition, along with first-party games and advertising, demonstrates Microsoft’s new focus on Game Pass as a crucial revenue source within the gaming industry.
Notably, the statements were made shortly after Microsoft’s $69 billion acquisition of Activision Blizzard. Xbox plans to incorporate major titles from Activision Blizzard into Game Pass, although this process will require time and effort to integrate these franchises into the platform.
Despite initial concerns over monopolization, Xbox maintains its commitment to extending Game Pass accessibility across different platforms. Meanwhile, the closure of the Activision acquisition has accelerated Xbox’s strategy to capitalize on its expanded game library and services.
Comparatively, other gaming giants like Nintendo and Sony are still playing catch-up. Sony recently increased PlayStation Plus prices and expanded its cloud streaming services, while Xbox Game Pass Ultimate offers a compelling library of current titles at a competitive price point.
Acknowledging the potential resistance from competitors, Xbox aims to position itself as the predominant game streaming service, akin to the Netflix of the gaming realm. This approach aligns with Microsoft’s vision to establish a global monopoly in the gaming industry, leveraging strategic corporate acquisitions.
