Game Pass Is "Not For Everybody," says Phil Spencer

Very few people understand what he is trying to say here. Its embarrassing.

But anyways, if he wanted to sunset Gamepass, he would simply increase prices to a point where getting it will make no sense.

Something Sony is already doing with PS+ and Nintendo with their retail games.
Are you saying that Game Pass isn't going to get a price hike? Everyone's doing it, and I don't think the rationale is to "sunset" such services.
 
Very few people understand what he is trying to say here. Its embarrassing.

But anyways, if he wanted to sunset Gamepass, he would simply increase prices to a point where getting it will make no sense.

Something Sony is already doing with PS+ and Nintendo with their retail games.
So if Rockstar increases the price of GTA6 to $80 it's clearly because they are trying to sunset the series and to a point where purchasing it makes no sense, right? 🤔🤨
 


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Just like Phil's bosses are making him release games on PS5, Phil's bosses will eventually start chipping away at Gamepass to make it more profitable.
 
Isn't the problem that people cancel their subs and don't buy their games?
Only occasionally subbing for 1 month or two?
 
If you play one or two games a year, Game Pass probably isn't the right business model for you; you should just buy those two games…

Nah Phil, I'd still use Game Pass. I'd just do the same thing with Microsoft exclusives that I currently do with Ubisoft games: Subscribe for a month, play the game to completion, unsubscribe and wait for the next interesting game to come along. Why would I spend $70 when I could just spend $20 for the same thing?

If I didn't have Game Pass Ultimate stacked through November, that's exactly what I would have done to play Avowed and then Doom.
 
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I dont remember exactly...but Tim Dog has said some things regarding the power dynamic between Nadella and Phill. 🤔 ....as if Phill was trying to please Nadella´s vision or something like that...

Like Nadella saying:
"In order for Xbox to exist, it needs to follow certain criteria."
And Phil had to come up with a strategy to make Xbox fit into that.

I think Phil is seen as Xbox itself. If he leaves or gets fired, there's no one left to champion Xbox inside MS

He is literally the voice of reason in favor of gaming at Microsoft. He is clearly passionate for gaming, and yet bound by Nadella and the rest of the Microsoft board who know one thing and one thing only - the enterprise software business. The big problems are Microsoft's heavy handed directives, the XBone baggage that has weighed the division down for more than a decade, and Matt Booty's complete lack of taste and talent.
 
He is literally the voice of reason in favor of gaming at Microsoft. He is clearly passionate for gaming, and yet bound by Nadella and the rest of the Microsoft board who know one thing and one thing only - the enterprise software business. The big problems are Microsoft's heavy handed directives, the XBone baggage that has weighed the division down for more than a decade, and Matt Booty's complete lack of taste and talent.
Microsoft is a business, it has a fiduciary duty to provide maximum returns to shareholders. I would say this is Microsoft doing what they do best - enterprise software - and sidelining what they have been unable to succeed in for 20 years.

Do people tell Nintendo to develop their own OS, multiple hardware lines and suddenly become Microsoft?
 
Obviously. That's the reason why the Xbox platform is in this predicament.
Not my problem. I don't Gaf if Nintendo, Sony and MS all go bankrupt, all I care about is my own wallet. The entire game industry could go belly up, but I'd still have my collection, that I paid for, to get my by. Those greedy corporations don't give a single shit about you or me, so why should we?
 
I remember people saying Nintendo and particularly Sony needed a Game Pass equivalent because subscription gaming was the future and it was 'adapt or die'. Even back then, it was clear why neither adopted a service like it. And, finally, after throwing everything at it (including billions in acquisitions), Phil has started to make some realistic comments about it.

I bet MS would love it if people bought games over subscribing, prefer it vastly, but that's not the outcome Phil created. Still amazes me he has a job.
 
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We've been telling people that GamePass wasn't profitable or sustainable for years and here is Phil basically coming out and saying it.

He's saying it's not for everybody, but not too long ago they expected to reach 100 million subscribers. Not Microsoft has never sold 100 million Xbox consoles in a generation, so yes plus PC and Cloud they absolutely expected everyone to subscribe to GamePass.

This is Phil subtly saying that GamePass is going to change drastically or go away altogether... It sounds like they're going to entirely divest from the console hardware market and focus on being a 3rd party publisher on PC, PS5, and Switch 2 and focus on expanding as a cloud provider.

He isn't try to solve for GamePass? This is one of the most damning interviews he's ever given... It sounds like he has deep regret for creating the GamePass model and how it has destroyed the value of Microsoft first party and as a result the console. Absolutely devastating interview.

Notice he did not say if people cancel Game Pass they can buy their games on an Xbox console. He's clearly suggesting they know they will make more Revenue releasing their games on the Nintendo switch 2 and ps5.
 
With the price of gaming continuing to rise, Game Pass is one of the things keeping me in the console space instead of just going all in on the PC.
 
Notice he did not say if people cancel Game Pass they can buy their games on an Xbox console. He's clearly suggesting they know they will make more Revenue releasing their games on the Nintendo switch 2 and ps5.

They're going to phase out GP by making it so expensive and undesirable that people just move away from it and then one day it'll probably be gone.

Activision was the largest 3rd party publisher in the business... All their games going to GP day 1 is a massive destruction in value and they're seeing it. People also devalue their game and don't want to buy it as much if it's also on GP because people just assume their games are GP fodder.

They've created a nasty cycle.

Whenever Phil starts doing interviews, bad news comes pretty swiftly. In this case we're going to hear a lot of announcements in June that will upset a lot of Xbox fans include Gears going to PS5 on day 1 and it'll probably be joined with news of the Gears Trilogy coming to PS5 as well. In fact I'm pretty sure all the games they reveal at their showcase are going to be coming to PS5 on day 1.
 
This thread screams we need another "What would YOU do to save Xbox?" thread. This company sure is in a unique position right now, unlike any of its competitors. Lots of risks, but also opportunities. A war chest so big they can try things others couldn't afford. And a couple technological advancements their competitors couldn't hope to match in the foreseeable future. That has been the case for many years now, yet they haven't had their break through moment so far. Also, what the hell is it with the quality of their games? Why can't they seem to be able to successfully establish a method that allows them to curate studios that grow instead of pushing out half baked, ideology infested, uninspired meh-titles one by one?
 
Microsoft's stock is down 11% in the last 6 months. 10% in the last year. They have an earnings call on April 30th and I don't think it's going to be good at least where Xbox is concerned. There's going to be pressure to turn that around, especially if it is seen as contributing to the overall decrease in the value of the stock. If it's really bad, I expect Halo will be announced too. Their sales are anemic...
 
Not my problem. I don't Gaf if Nintendo, Sony and MS all go bankrupt, all I care about is my own wallet. The entire game industry could go belly up, but I'd still have my collection, that I paid for, to get my by. Those greedy corporations don't give a single shit about you or me, so why should we?
Once those servers shutdown.
Lose Willy Wonka GIF
 
A war chest so big they can try things others couldn't afford.
I think this is incorrect. Those days have passed and didn't bare fruit. I actually think its the opposite, their appetite for trying things, or for risk has never been lower. You'll see it in more ports (low cost vs reward), further head count trims along with project 'rationalisation' and of course GP price increases and new hardware landing at higher than historically predicted prices. The days of partying on the olds money are long gone.
 
I don't think this statement means they are changing strategy at the moment, but let's be realistic here, the service also doesn't make sense for their business anymore and surely there is internal pressure to make changes.
 
So if Rockstar increases the price of GTA6 to $80 it's clearly because they are trying to sunset the series and to a point where purchasing it makes no sense, right? 🤔🤨
How is this simple concept hard to grasp? LMAO.

GTA 6 is still ok value at $80.

If they want to pull the plug on gamepass, easy way would be to increase prices to a point where buying games will make more sense.
 
I think this is incorrect. Those days have passed and didn't bare fruit. I actually think its the opposite, their appetite for trying things, or for risk has never been lower. You'll see it in more ports (low cost vs reward), further head count trims along with project 'rationalisation' and of course GP price increases and new hardware landing at higher than historically predicted prices. The days of partying on the olds money are long gone.

Correct.

And I'd go further and see that Microsoft has a really poor market strategy right now because the have an anchor around their leg, which is GamePass.

It hurts them twice. First their AAA games are simply not making up their development costs due to GamePass, but also as I mentioned it cheapens the value of the game for premium sales as well. It's not growing either, which means you have to cut costs, which lowers the quality of the games. Porting them to other systems makes up some of the difference, but devalues their own console in the process.

Microsoft does not have a sustainable retail strategy. I wouldn't be surprised if Microsoft spun up a new publisher to publisher their games simply so they wouldn't have to publish on GamePass, but in lieu of that, yeah the price is going to skyrocket to the breaking point. I wouldn't be surprised if it went up 4-5 dollars a month at the next increase.

They're also going to rake core xbox fans over the coals with new hardware prices. The lower the sales the higher the prices will go.

If they want to pull the plug on gamepass, easy way would be to increase prices to a point where buying games will make more sense.

That's exactly what they're going to do. It's 20 dollars a month right now and I bet that will go up to 25 dollars a month and eventually it'll be 30 a month. At that point it would be the equivalent of you buying a AAA game basically every two months (60 dollar price point).

25-30 dollars per month is probably more sustainable.
 
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He's right. Most people don't finish games. A service that offers more games is inherently at odds with what most people do.

It sounds like an oversimplification but it's just reality. If most people don't finish the food on their plate, offering them more food isn't going to work.

That's why they now have to sell their software on platforms that haven't nuked their sales economy. It's a Scooby Doo mystery how a multi-trillion dollar company, staffed with economists and industry experts, didn't see this exact scenario happening.
 
It's for me! One month at a time. A few times a year!
It's for me too! One cheap 3 year stack deal at a time 😜
$5/month at the moment. Definitely worth it!

For me it works great, makes me play more games and cost me less money. I'm in as long as it's cheaper than purchasing.

Once the sub price has gone up so much that it cost me more, then it's a different story. At that point I have to reevaluate how much it's actually worth to subscribe to a library compared to do individual purchases. Might go back to only playing the 10/10 games.

Biggest upside for me is that I try games in genres I'm not normally interested in. I've now played Call of Duty, Diablo, DOOM. And to not end up in that "Might buy it later when it's cheaper" situation. I can go in day 1 without consequences. It's like having demos, without the playtime restriction.
 
Thing is that the threat was real…
Jimbo really did a number on them when he killed that exclusivity attempt. He earned his yacht on that deal
MS fully intended to scoop up third party publishers and build a moat of exclusivity to "outspend Sony out of business" standard MS business practice wise, so yes… Ryan was more effective than everyone thought he would be.
 
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It's certainly not for those who like to celebrate value by paying $80 per game, or even $100 in the case of GTA6. It's a good complement that serves everyone else with diverse, exciting new content every month, in a cost-effective fashion.
 
So many here are offended by the success of Game Pass, still, after 8 years 🤭
Who's offended?

I think you might be getting success and value confused. Standing on the customer side you can argue it has value, although not universal value because people will get different value from the catalog etc. Then there is the question of ever changing value with titles added, cost increases and the like so that value proposition argument needs to be constantly re-evaluated.

But standing on the company side is an entirely different story, by their own measure its clearly a failure. Have they moved the internal goalposts now so its a success? Quite possibly, but if they did they also shrank the size of the field and moved it from the professional league to college league in US parlance.
 
Microsoft's stock is down 11% in the last 6 months. 10% in the last year. They have an earnings call on April 30th and I don't think it's going to be good at least where Xbox is concerned. There's going to be pressure to turn that around, especially if it is seen as contributing to the overall decrease in the value of the stock. If it's really bad, I expect Halo will be announced too. Their sales are anemic...
They've been piling on the ports in an insane way this year. Clearly trying to juice up the revenue numbers as much as possible.
 
Now he's rolling back his bullishness on Game Pass. How has the board not FIRED THIS INDIVIDUAL ALREADY?!

He works for Microsoft for like 35+ years, he did almost his whole career there, firing him (besides gross misconduct) would cost Microsoft millions.

I think at this point they just wait Xbox division to make some money to use it to fire him.
 
They've been piling on the ports in an insane way this year. Clearly trying to juice up the revenue numbers as much as possible.

Yup, it's too late for Q1, but they're rapidly looking to spin better numbers for Q2, which suggests they might have even more planned for Q3 that we're going to see in the June show, then they rely on GTA6 for Q4. Q1 next year will probably be a bit light, but so was this year, might be some GTA6 carry over, but by Q2-Q3 next year they need to start delivering again... this is where Fable, Gears, need to deliver.

I'm guessing Q3 we'll see Halo and/or Starfield release on PS5.
 
Microsoft's stock is down 11% in the last 6 months. 10% in the last year. They have an earnings call on April 30th and I don't think it's going to be good at least where Xbox is concerned. There's going to be pressure to turn that around, especially if it is seen as contributing to the overall decrease in the value of the stock. If it's really bad, I expect Halo will be announced too. Their sales are anemic...
Lol....

I don't know if you're aware of the global economic and social situation and its impact on the stock market.....
The umpteenth leak trying to create an image of MS is falling, and it's doing so because of Xbox 🤣🤣🤣

#Only on neogaf

Notice he did not say if people cancel Game Pass they can buy their games on an Xbox console. He's clearly suggesting they know they will make more Revenue releasing their games on the Nintendo switch 2 and ps5.

But why would he have to specify "Xbox console" if everyone knows that's where the GamePass subscription is? 😂😂😂

I'm freaking out about people trying to make light of statements that aren't from today. He's been saying that forever in various interviews since 2020.

I don't know, maybe people were expecting him to say "GamePass is what suits every gamer, including those who play two games a year"?

Is GamePass going to go up in price? Of course, since everything in the industry is going up in price (Nintendo chage you for tutorials😅). The funny thing is making people believe it's just a GamePass thing and that the price is going up with the idea of making people stop buying new GP subscriptions.🙇🙇

If that were the goal, I think the best thing would have been to reduce the value of the service by cutting releases and making it less interesting little by little... But here we are in the best 2 years of Gamepass and currently in the best moment by far when here some people told you that the situation would be the opposite 🤷
 
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Phil, the only CEO who would fuck up his answer even if his wife simply asked him what he wanted for breakfast.
I would like eggs please. Eggs are a very sustainable breakfast for us, I like eggs. We will be looking at the different ways eggs can benefit us and our customers. When everyone eats, we all win.
 
Phil broke out of his silent jail.

MS is better when this chop isn't out there saying dumb contradictory shit every week.

Go back to just dropping the odd game here and there and put your corpo muppet muzzles back on.
 
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