The next generation of Xbox, including the Xbox Series X and Series S, is going all-in on subscriptions and payment plans, with both Xbox Game Pass Ultimate and Xbox All Access providing customers with over a hundred games, and potentially a whole new console, for a nominal fee each month. Xbox’s revenue is on the rise, and many developers seem very happy with the deals they’ve made with Microsoft, but not everyone is convinced.
Speaking to Barron’s for a piece about Microsoft’s strategy with the next Xbox models, Strauss Zelnick, who is the CEO of Take-Two Interactive Software (the parent company that owns Grand Theft Auto V developer Rockstar Games), has expressed some caution towards this strategy.
“I think it may be somewhat hard to do in the interactive entertainment business,” Zelnick said. He cites the fact that TV and movie subscription services make more sense because, on average, people watch far more content than they play–150 hours a month of TV and film against 45 hours of gameplay. This makes something like Netflix far more attractive than Game Pass, he argues.