I said it the day Game Pass was announced — it cannot be sustained at the current price point. Charging $20 a month just isn’t enough. For Xbox Game Pass to survive and thrive, it needs to cost between $40 to $45, even if that means the user base drops by 5 million users. That’s fine — it’s about quality over quantity. But there should be no monthly option. Users should be required to sign up for at least six months. That kind of model gives stability, allows developers to get paid fairly, and makes the service viable long term.
Even at $45, Game Pass would offer real value when you consider how many games and IPs Microsoft owns. But at $20 with 35 million users? It has zero chance of long-term success. And for Microsoft to say that Game Pass is profitable excluding first-party games is one of the most ridiculous statements I’ve heard. Those are the blockbuster titles that cost the most — and they’re funded by Microsoft directly. How can you just exclude the biggest cost and call it profit?
Most AAA games today cost $150–200 million. $90 million is considered low-end, and publishers like Sony, Microsoft, Bethesda, EA, Ubisoft, and Take-Two usually spend more.
I said this when Microsoft acquired Activision and Bethesda — Xbox is no longer a side project. Microsoft now expects it to operate like a real business: bring in revenue, grow, and turn a profit. But too many people online defend Xbox and treat Phil Spencer like he can do no wrong. That kind of fanboy energy created a bubble where Xbox leadership stopped facing real accountability.
The last time Xbox truly dominated, it was during the Xbox 360 era — and even then, it took the red ring of death, launching a year ahead of PS3, and lower pricing. Despite that, the PS3 still caught up and eventually passed the 360 in global sales.
So ask yourself: from the original Xbox to now, is the brand stronger? The answer isn’t clear. In fact, I’d argue Xbox is at its lowest point. They have no clear direction, and they’re making baffling decisions that don’t inspire confidence.
I’m not sure if Xbox can compete with PlayStation or Nintendo anymore. But I do know this: if I were given five years to run Xbox, I’d bring stability, rebuild the brand, and take small but meaningful steps to grow the business. The potential is there — they just need a smarter, more focused approach.
