The Xbox Game Pass is a service that has gained popularity among players in the Microsoft console line, mainly for providing several titles in a package that allows the monthly use of several games without the need to pay the full amount of them.
In addition, several promotions are made available regularly, delivering highly popular titles for free, there is still a constant implementation of new games without directly influencing the final price of the plan, which has remained stable since it was launched.
However, this strategy does not seem to be very smart for Microsoft, as the company stated that it is not having the expected profit from the subscription service, since the expenses to keep the library always up to date, as well as the necessary maintenance internally end up affecting the company’s pocket.
The information was given by Aaron Greenberg, general manager of Xbox game marketing in an interview with What’s Good Games, where he said that although it is not profitable, the Game Pass helps the company to have a good customer base, something that can be used in the future for stocks with a higher conversion into profit.
“We always laugh when we hear that. Please don’t worry about us. Microsoft will be fine. We will make it, I think we will be fine. With the Xbox Game Pass, Microsoft focuses on delivering excessive value, even if it carries the cost of profits in the short run. It’s a different mindset. If you optimize profit, you can say ‘How do we get the most profit from each customer?’ or do you articulate that and say, ‘How do we add so much value to our fans?’ “How can we really deliver excess value?” If you do, you build fans for life. When people feel that you are delivering excess value, they want to not only continue to use your service, but also want to tell their customers. “The most powerful marketing is word of mouth marketing. We can’t create as many ads, as many assets as we want, but if you two tell one of your closest friends, ‘You need to get the Game Pass!’ this is much more effective than any marketing I can do. For us, we want to keep adding more and more value to the Xbox Game Pass, so that you feel great about it and want to tell your friends. we think that in the long run it is the right thing for business and will bring long-term benefits to us. In the short term, yes, the Xbox Game Pass is not a profitable game. But we think that in the long run it works well for everyone ” said Aaron.