Xbox Is Making A Huge Mistake Putting Call Of Duty On Game Pass

Summary Adding Call of Duty to Xbox Game Pass could harm Microsoft financially due to potential revenue drops.

A subscription model might not be the best for players who primarily enjoy CoD's campaigns, resulting in losses.

The potential increase in Xbox Game Pass prices post-Call of Duty addition could deter subscribers.

Call of Duty is expected to come to Xbox Game Pass, but this choice might not be the best decision for Xbox. It's not guaranteed that subscriptions to Game Pass will increase, and this move could end up hurting Xbox financially at a time when console exclusives are already struggling with sales. Additionally, studio closures and layoffs are being seen throughout the game industry, meaning that this could be a dangerous time to make this kind of financial move.

Game Pass includes a collection of games that subscribers have unlimited access to as long as those games are part of the service. Until now, Call of Duty games have only been available for purchase independently, meaning that they weren't part of any subscription service, and the most recent titles cost $70 USD. Now, this potential decision to include the games as part of Xbox Game Pass could end up being harmful to the company's finances during a time when the industry as a whole is seeing droves of layoffs and studio closures.

Related Call Of Duty Players Might Want To Keep An Eye On June 9 It's about time to get some news on the next Call of Duty game, and a cryptic tease seems to indicate the date and format of that update.

Call Of Duty Has Provided Steady Income For Microsoft

It Could Be Reduced By Game Pass

Call of Duty has a dedicated fan base that buys each new game when it's released, and a new game is released almost every year. This has made the franchise one of the most financially successful ever, generating over $30 billion in revenue since its beginning.

Because of this, there is speculation that Microsoft will change Xbox Game Pass subscription tier costs as a result of bringing Call of Duty to the service, knowing that it's looking at a potential drop in revenue. While the company is likely looking at ways to make up for this loss in revenue, its plans could end up resulting in a drop in Xbox Game Pass subscriptions if it were to raise prices.

Since each Call of Duty campaign is generally short enough to complete within a month of playing, assuming that there's enough time to play it consistently for at least a few days, those who want to experience the campaign would likely only need to purchase a month's subscription for Xbox Game Pass. That means that Microsoft could take a loss from this portion of the base. However, multiplayer and online modes have more potential when it comes to keeping the subscription active, which could result in profit.

The Risk Of Adding Call Of Duty To Xbox Game Pass

It Could Affect Prices

Close

Although it's not confirmed, it wouldn't be a surprise if Microsoft changed the tier prices for Xbox Game Pass subscriptions in an effort to offset the potential losses in revenue that can come from putting one of its biggest revenue sources on the platform. New prices for Xbox Game Pass after Microsoft studio closures also wouldn't be a surprise, so the company could use both of these reasons to justify an increase in subscription prices, especially with the added value that Xbox Game Pass would have with Call of Duty on the platform and available to play at a lower price than purchasing it independently.

With studio closures and fewer exclusives, Xbox Game Pass isn't the bargain that it used to be. Additionally, some Xbox exclusive games in recent years failed, such as Redfall, a 2023 Xbox console exclusive. Combined with studio closures, such as that of Tango Gameworks, the studio that created Hi-Fi Rush, Xbox doesn't look like it's in a good place right now. As such, Microsoft might be looking at Call of Duty as a way to boost Game Pass revenue, which has barely grown in the last two years, according to Games Radar, and increase subscriptions the way that Starfield resulted in a new milestone for subscriptions (via Game Rant).

Right now, the basic plans for the Xbox and PC versions of Game Pass are $9.99/month USD, with the Xbox Game Pass Console version costing $10.99/month USD. However, the Xbox Game Pass Ultimate – which includes the ability to play online on Xbox, important for Call of Duty – costs $16.99/month USD. These prices are on par with streaming services, but the library of games included in Xbox Game Pass is quite large, and it seems to be helping Microsoft continue to increase its revenue, even though the closures and layoffs can make it seem like the company is operating at a loss, according to GeekWire.

Xbox Game Pass Works To Stay A Bargain

The Promise Of 2024 For Xbox

Custom Image by Glenn Bunn

Microsoft occasionally offers a discount on Xbox Game Pass subscriptions, which can likely draw in subscriptions and convince buyers that the subscription is worth keeping if they find that they enjoy the content that's available. Looking at the upcoming releases for Xbox in 2024, however, paints a promising picture, even with the studio closures eliminating the chance to see a sequel to Hi-Fi Rush or Arkane Austin's return to form. This could raise the bargain that comes with a Game Pass subscription and help increase the number of subscribers.

In 2024, Xbox and Microsoft are looking at boosts from big name games, such as expansions for Diablo 4 and World of Warcraft, as well as another Call of Duty title expected for the holiday season. Additionally, there are some highly anticipated Xbox console exclusives being released this year, such as Hellblade 2. While closing so many studios at once can seem alarming, the games being released in 2024 show a lot of promise for profit. It could also be a good sign that Microsoft is shifting how many studios it has operating at one time, allowing the company to invest in fewer games, but provide the resources needed to make those chosen games impactful.

It seems like Xbox and Microsoft are going for a high-risk, high-reward approach with Xbox Game Pass by putting one of the company's most profitable games on the subscription service, and possibly raising prices because of it. However, with closures and layoffs plaguing the industry, this could be a risky move for the company. But at the same time, Xbox and Microsoft are looking at a potentially profitable line-up for 2024. Since the franchise is expected to arrive on Game Pass ahead of the 2024 entry, it won't be long until the effects of this decision are seen, and the future is decided for Call of Duty.

Sources: Games Radar, Game Rant, GeekWire