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Microsoft's Xbox is changing the perception of video games, says expert

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Xbox is changing the way the gaming industry thinks about video games by focusing heavily on its Game Pass subscription model, says a video game expert.

Even though Xbox console sales have declined, Microsoft has seen an increase in gaming revenue.

Xbox has prioritized Game Pass, which is available on its consoles, on PC, and even directly through the Xbox app on TVs, Amazon Fire Sticks, and smartphones.

A number of major new titles were announced at the Xbox Showcase in June, including a new Gears of War and one expert says that this is related to the model that Xbox is currently pushing: the subscription service is supposed to become even more attractive and the goal is to maintain that attractiveness so that people stick with the subscription.

George Osborn is the creator of Memo from the video game industryand Managing Director of Half-space consulting with 15 years of industry experience and studies at Cambridge University.

“I think Xbox is becoming less of a console and more of a platform, and for Microsoft the important part of the strategy is to generate consistent subscription revenue through Game Pass,” he said.

“If you can consistently put that much money in the bank every month, you're in a very good position for your gaming business, especially given that the gaming industry has historically been very hit-focused.

“At the first opportunity they had, they created a new Call of Duty title [Black Ops 6] in Game Pass, but I think what's interesting is that this coincides with the recent price increases.

“Microsoft is going to great lengths to get people to sign up for the ultimate subscription because they know that if someone signs up as a Game Pass member and has it on any device they want to access, they can use it to play whatever they want, wherever they want, and in whatever context they want.”

“That's probably what players want today and it's interesting to see the industry catching up.”

Xbox is changing the way the industry thinks about video games / Ina Fassbender, AFP via Getty Images

Osborn says if Xbox is going to prioritize Game Pass, the company needs to provide new top-notch games to keep players engaged and subscribe.

He also believes that the vague release dates given for many upcoming titles are for flexibility, as the new GTA6.

“You have to have a world-class content library to retain subscribers because you have to not only entice people to subscribe, you have to entice them to stick with it and you have to keep their interest,” he said.

“That said, if they get to a point where the release calendar is suddenly empty and there's nothing exciting to look forward to, it's very easy – particularly given the current cost of living crisis – to look at that and say, '£15 a month adds up to nearly £200 over the year, so I might want that money back.'

“The strength of the offer is to keep that loyalty in mind, keep people interested, and tell them that if they stay with Game Pass, they can enjoy all these great games in the future.”

Confessors by Obsidian was supposed to be released towards the end of this year, but was quietly delayed until early next year.

“I think there is a bit of movement in things right now, both in terms of the finished stuff and in terms of continuing to build a nice content library.

“It wouldn’t surprise me if they’re trying to build a very nice lineup that runs on Game Pass all year long, and then if we have a launch date for GTA6I wouldn't be surprised if the calendar was adjusted to leave a gap for this.”

Xbox is present at Gamescom and has announced an extensive program of products and services that will be presented during the event.

Osborn'sMemo from the video game industry is sent out every Thursday and he writes his first non-fiction book entitled Power playa look at how video games are changing the world.

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