Will Call Of Duty Join Xbox Game Pass? 'Internal Debates' At Microsoft, Potential Price Hike: Report
Portfolio Pulse from Franca Quarneti
Microsoft Corp (NASDAQ:MSFT) is internally debating adding new Call of Duty titles to Xbox Game Pass following its acquisition of Activision Blizzard. Concerns include potential revenue loss for the franchise and a price hike for the Game Pass Ultimate tier. Microsoft faces challenges with declining Game Pass subscriptions, slow console sales, and game release delays. Despite these issues, the Call of Duty franchise remains highly profitable, with significant sales on both Xbox and PlayStation platforms. Microsoft also recently closed four Bethesda Studios, indicating possible future cutbacks in its gaming division.
May 09, 2024 | 6:22 pm
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Microsoft is considering adding Call of Duty to Xbox Game Pass, facing internal debates over potential revenue impacts and contemplating a price hike for the service.
The internal debate at Microsoft regarding the addition of Call of Duty to Game Pass and the potential price hike for the service could have mixed impacts on MSFT's stock. On one hand, adding a popular title like Call of Duty could attract more subscribers to Game Pass, potentially offsetting concerns over declining subscriptions and slow console sales. On the other hand, the concerns over franchise revenue loss and the negative reception to a price hike could temper investor enthusiasm. The overall impact on MSFT's stock is uncertain, reflecting the balance between potential subscriber growth and the risks of revenue loss and customer dissatisfaction.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90