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Xbox’s Strategy Is Becoming Actively Repellant To Players
Forbes·2025-10-03 15:13

Core Insights - Microsoft has significantly raised prices for Xbox Game Pass and current-generation hardware, which is seen as incomprehensible given the current economic climate [2][4] - The Xbox Series X now costs $600, which is $100 more than its launch price five years ago, and the Xbox Series X 2TB is priced at $800, making it more expensive than the PS5 Pro [3] - Xbox has been losing the console sales war against Sony, with estimates suggesting a starting ratio of 2:1 against Sony, which has worsened over time [4] Pricing Strategy - The price hike for Xbox Game Pass contradicts Microsoft's claims of profitability, raising questions about the company's motives—whether it is a greedy move or a sign of desperation due to stagnating subscription growth [4][5] - The subscription service's price increase of 50% to $360 per year lacks coherent justification, potentially alienating both existing and new players [5] Market Position - The current strategy appears to repel consumers, as the Xbox ecosystem feels unnecessary with many games available on rival platforms like PlayStation and PC [5] - For Microsoft to become a gaming leader through Game Pass, it would need to focus on high-quality first-party games, partnerships with third-party titles, and a reasonable subscription price [6][7] Future Outlook - Without significant changes, the long-term viability of the Xbox brand is in question, given the current decisions being made by Microsoft [7]