Microsoft Shifts Strategy: “Call of Duty” to be Included in Subscription Service
In a surprising move, Microsoft has announced its decision to change its longstanding approach to the release of “Call of Duty” video games. Instead of offering the game as a stand-alone purchase, the next installment of the popular franchise will be made available exclusively through Microsoft’s subscription service.
The tech giant is set to reveal this significant shift in strategy during its annual Xbox showcase on June 9th. This move is part of Microsoft’s larger push towards a subscription-based business model, which aims to meet the evolving needs of the gaming market and provide more flexible and affordable gaming options to consumers.
By including “Call of Duty” in its subscription service, Microsoft hopes to enhance the value proposition for its users and potentially attract a broader customer base. This decision aligns with Microsoft’s acquisition of Activision Blizzard, which was completed late last year for a staggering $69 billion.
“Call of Duty” is a highly popular entertainment property that has generated over $30 billion in revenue since its inception. Activision has been releasing new iterations of the game annually, with a suggested retail price of approximately $70.
Microsoft’s Game Pass subscription program, which provides access to games from Xbox and other creators for a fee, will be the platform for the inclusion of “Call of Duty.” Microsoft has been diligently expanding its gaming subscription services in recent years to compete with Sony’s PlayStation systems.
As of February 2023, Microsoft reported having 34 million Game Pass customers, a significant increase from the 25 million announced in 2022. However, it remains to be seen how the addition of “Call of Duty” to the subscription service will impact the game’s overall sales, as it currently holds the position of the second-best-selling game of the year, surpassed only by “Helldivers II” from Sony, according to industry tracker Circana.
This move by Microsoft marks a notable shift in the gaming industry and sets the stage for a new era of gaming subscriptions and accessibility. Fans of the “Call of Duty” franchise can look forward to enjoying the latest installment through Microsoft’s Game Pass subscription service, while also potentially attracting a wave of new players to the game.
Facts not mentioned in the article:
1. “Call of Duty” is a first-person shooter video game franchise developed by Infinity Ward, Treyarch, and Sledgehammer Games and published by Activision. The franchise first debuted in 2003.
2. The next installment of “Call of Duty” will be released in late 2023, according to industry rumors.
3. Microsoft’s subscription service for gaming, Game Pass, offers access to over 200 games from various developers and publishers, not just Xbox exclusives.
Important Questions and Answers:
1. What is Microsoft’s motivation behind including “Call of Duty” in its subscription service?
– Microsoft aims to enhance the value proposition of its subscription service and potentially attract a broader customer base by including the highly popular “Call of Duty” franchise.
2. How will the inclusion of “Call of Duty” in Game Pass impact the game’s overall sales?
– It remains to be seen how including “Call of Duty” in the subscription service will impact its overall sales. While the subscription service provides access to the game without an additional purchase, it may also attract more players who may have otherwise decided not to buy the game at its retail price.
Key Challenges or Controversies:
1. Resistance from traditional game retailers: The shift towards a subscription-based business model may face resistance from traditional game retailers who rely on the sale of physical copies of games. By offering “Call of Duty” exclusively through its subscription service, Microsoft may face pushback from retailers who fear a decline in sales.
Advantages:
1. Increased value for Game Pass subscribers: Adding a popular and highly anticipated game like “Call of Duty” to the subscription service increases the value for Game Pass subscribers, as they can access the game without an additional purchase.
2. Attracting a broader audience: By including “Call of Duty” in Game Pass, Microsoft may attract new players who are not willing to spend the full retail price of the game but are interested in experiencing it as part of a subscription.
Disadvantages:
1. Potential impact on retail sales: Offering “Call of Duty” exclusively through the subscription service may lead to a decline in physical retail sales of the game, which could affect retailers who rely on these sales for revenue.
2. Dependence on subscription revenue: Microsoft’s shift towards a subscription-based business model relies on the success and growth of its subscription services. If the subscription model doesn’t gain enough traction or faces challenges, it could impact the company’s gaming revenue.
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