Modern Warfare III, despite being poorly reviewed, managed to sell well in 2023. The Wall Street Journal reported that the upcoming Call of Duty game will launch on Xbox Game Pass, indicating a significant move by Xbox to determine the future of Microsoft’s gaming division. Activision, now owned by Microsoft, typically releases a new Call of Duty game every year, with strong multiplayer modes driving sales. Microsoft plans to debut the new Call of Duty game at the Xbox Games Showcase and make it available on Game Pass on its launch day, hoping to attract more interest in both the service and the Xbox platform.
Offering Call of Duty on Game Pass could benefit consumers by allowing them to play the new game for a fraction of the cost. However, this move may cannibalize the game’s overall sales, particularly on the Xbox platform. Microsoft aims to position Game Pass as a “discovery engine,” where players can try games before purchasing them, potentially attracting a new wave of players to Call of Duty. By keeping the game cross-platform but using it to drive Game Pass subscriptions, Microsoft is redefining its console strategy and focusing on Game Pass as a key metric of success.
Microsoft’s gaming arm faced controversies recently, despite initial successes like completing the Activision acquisition and surpassing Windows in revenue. Xbox announced bringing first-party games to PlayStation and Switch, which impacted Xbox hardware sales negatively. Additionally, Microsoft shut down several studios, including those under Bethesda Softworks, causing layoffs in the video game industry. The closure of key studios and mismanagement decisions led to a perception that Xbox has lost its way, prompting the need for reorganization.
Xbox chief Phil Spencer has implemented unconventional strategies to grow the gaming division, which has resulted in challenges due to the rapid expansion of the Xbox Game Studios network. The larger scale has made it difficult to manage effectively, leading to concerns from higher-ups at Microsoft. The upcoming Showcase and Call of Duty release on Game Pass will be crucial in determining the success of Xbox’s current operational strategy. The outcome of these initiatives could lead to either a validation or a reevaluation of Spencer’s leadership and the future of Xbox.
The potential launch of Call of Duty on Game Pass represents a pivotal moment for Xbox, with the success of this move influencing future decisions within the gaming division. A failure could result in significant changes, including executive shakeups and new initiatives. The upcoming year will test Spencer’s leadership and determine the impact of Call of Duty on Xbox and the gaming industry as a whole. It will be a defining moment for Xbox’s position in the market and the value of key franchises like Call of Duty in the modern gaming landscape.
