The new Xbox risks "dying" before launch, according to analyst Michael Pachter, due to the Xbox Game Pass strategy. Previously, Pachter was a supporter of the subscription, predicting 100 million subscribers after the integration of Activision Blizzard games and even 200 million in ten years. Today, he has drastically changed his opinion.
In an interview, Pachter stated:
I think the console is dead. I think they've already ruined everything by making Game Pass the central element.
The main criticism concerns the transformation of the service and price increases. In his opinion, the "all or nothing" model ($30 a month for Ultimate) scares away some users. Pachter uses the metaphor: "a $10 dining room is better per month than an expensive buffet for $360, given that one game costs about 70."
The analyst advises Microsoft to use its game library, experience in service games, and cloud technologies to become a flexible distribution platform, similar to Steam, but with a focus on its own games and multiplatform support. Now, in his opinion, the value of the console is falling: if games are available on subscription or on other platforms, the motivation to buy an Xbox decreases.
There are rumors about adding new services to Game Pass Ultimate, but Pachter believes that it may be too late to change the strategy.
