Microsoft's strategy of releasing major games directly to Xbox Game Pass caused significant internal disagreements within the company. This was reported by Bloomberg, citing former corporate employees.
According to the publication, several employees opposed the model where new AAA games become available to subscribers on the day of their release. Sources believe that such an approach could reduce sales of games at full price, as it was more profitable for users to subscribe than to buy new releases separately.
As Bloomberg notes, five former Microsoft employees stated that the Game Pass strategy was repeatedly subjected to internal criticism. Previously, a similar position was expressed by former Bethesda VP of Communications Pete Hines and former Xbox Game Studios VP Shannon Loftis. According to Loftis, the subscription model created "strange internal tension" because it effectively replaced traditional game sales.
Despite this, Microsoft has claimed for many years that Xbox Game Pass remains a profitable service. The company previously stated that the annual subscription revenue was approaching $5 billion.
The publication also states that the service went through a difficult period after a more than 50% increase in subscription costs. According to Bloomberg, the number of subscribers decreased from approximately 35 million to 30 million users. The situation later stabilized after the subscription price was lowered to $22.99 per month, but this was reportedly accompanied by a refusal to add new Call of Duty series games to the catalog on day one.