The Verge website cites Microsoft’s internal sources regarding the new direction of Xbox. It aims to launch two games, Hi-Fi Rush and Pentiment, on consoles other than its own, including PS5 and Nintendo Switch. Meanwhile, the game Sea of Thieves may also make its way to consoles within this year.
The reason behind Microsoft’s turnaround lies in the underperformance of its Game Pass subscriptions. Initially, Microsoft announced its vision of reaching 100 million Game Pass subscribers by 2030. While the subscription service saw rapid growth in its early stages, it hit a plateau later on due to Microsoft’s own issues with high-profile studio titles facing delayed release dates, such as Starfield, which was pushed from 2022 to 2023.
Microsoft last disclosed its Game Pass subscriber count in January 2022, with a total of 25 million subscribers. However, no further updates regarding this number have been provided since then. Analysts estimate that the current figure may be around 33 million subscribers, when taking into account the other business plans of Microsoft that have encountered similar issues.
For instance, the Xbox Mobile Store faced challenges with Apple’s app restrictions, despite the existence of the EU’s DMA regulations. This forced Microsoft to explore alternative revenue avenues. This is also a contributing factor as to why Microsoft has decided to release its games on rival consoles.
In conclusion, Microsoft’s shift in strategy to release games on competing consoles is a response to the stagnant growth of its Game Pass subscriptions and other business challenges. This move aims to diversify revenue streams and overcome obstacles faced in other areas of their business.
TLDR: The Verge reports that Microsoft plans to release two games, Hi-Fi Rush and Pentiment, on consoles like PS5 and Nintendo Switch. Despite initial growth, Microsoft’s Game Pass subscription numbers have plateaued, and delays in high-profile titles have further contributed to this stagnation. The company’s plans for the Xbox Mobile Store have also encountered obstacles, and releasing games on rival consoles is seen as a way to diversify revenue streams.
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