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Microsoft's £1/$1 Xbox Game Pass offer cut from a month to 14 days (www.eurogamer.net)

submitted 1 year ago by [email protected] to c/[email protected]

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Earlier in the year they removed the trial offer. Now it's returned, but worse than before.

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[–] [email protected] 3 points 1 year ago

However, I have a strong suspicion that video game subscription services will end up following a similar trajectory to TV/movie streaming services at some point… Gamepass doesn’t really have any major competitors, and has been priced very aggressively in order to build market share, and it reminds me a lot of Netflix in its early digital stages.

Netflix pricing has always had a lot of pressure on it because the company has no product diversity. All Netflix offers is Netflix, so all of its revenue comes from there. Meanwhile, MS has Office as the world's default productivity suite, and it rakes in billions from corporate Windows licensing and cloud services. As of about a year ago, gaming was actually less than 10% of their annual revenue. So they can support narrow margins on Game Pass pretty much indefinitely. And they are motivated to do so as the heavy underdog to Sony, whose consoles consistently outsell theirs by a ratio of about 2:1.