The new Xbox is already “dead” because of Game Pass — Analyst’s opinion

Industry analyst Michael Pachter warns that the next-generation Xbox could be “dead on arrival,” citing a flawed Game Pass strategy as the primary culprit. Pachter, once a staunch advocate for the subscription model, previously envisioned a trajectory toward 100 million subscribers following the Activision Blizzard acquisition, potentially reaching 200 million within a decade. However, his outlook has since taken a sharp, pessimistic turn.

During a recent interview, Pachter detailed the reasoning behind his skepticism:

His core critique targets the service’s current transformation and escalating price points. He argues that the “all-or-nothing” mandate—specifically the $30 monthly tier for Ultimate—is alienating a significant segment of the market. Pachter utilizes a striking metaphor to illustrate the disconnect: a $10-a-month cafeteria is a sustainable value proposition, whereas an expensive $360 “buffet” is a hard sell when a single premium game costs $70.

The analyst suggests that Microsoft should pivot by leveraging its massive library, live-service expertise, and cloud infrastructure to evolve into a versatile distribution platform. This “Steam-like” approach would emphasize first-party content and multi-platform reach. Currently, Pachter believes the Xbox hardware is losing its raison d’être; if every title is accessible via subscription or on rival platforms, the consumer incentive to purchase a dedicated console vanishes.

While whispers persist regarding new features being integrated into Game Pass Ultimate, Pachter remains skeptical, suggesting that Microsoft’s window to successfully pivot its strategy may already be closing.

Source: iXBT.games