Xbox is changing how video games are thought about says expert

Xbox is changing how the gaming industry is thinking about video games through its huge focus on its subscription model Game Pass, says a video games expert.

Although Xbox console sales have declined, Microsoft has seen a rise in revenue generated from gaming.

Xbox has been prioritising Game Pass which is available on its consoles, on PC and even directly through the Xbox app on TVs, Amazon Fire Sticks and smartphones.

A number of new, huge titles were announced in June's Xbox Showcase, including a new Gears of War entry, and one expert says this ties into the model that Xbox is pushing now with its subscription service being even more appealing and aiming to keep that appeal so people stay subscribed.

George Osborn is the creator of Video Games Industry Memoand the managing director of Half-Space Consulting with 15 years' experience in the industry having also studied at the University of Cambridge.

"I think Xbox is becoming less of a console and more of a platform and for Microsoft, the important part of their strategy is getting that consistent subscription revenue coming in via Game Pass," he said.

"If you can continually bank that kind of money every month, you're going to be in a very healthy place for a games business, especially when the games industry has historically been very hit driven.

"Pretty much the first opportunity they've had to do this, they've put a new Call of Duty title [Black Ops 6] into Game Pass but I think what's interesting as well is that's aligned with the recent price increases.

"Microsoft is very much making the move to push people to get the ultimate tier subscription because as they recognise, if someone is a signed up Game Pass member and they've got it on every single device they want to access, it allows them to play what they want, where they want in whatever context they want.

"That's what players probably want today and it's been interesting seeing the industry catch up to it."

Xbox is changing how the industry is thinking about video games / Ina Fassbender, AFP via Getty Images

Osborn thinks if Xbox is prioritising Game Pass, it needs to deliver new top-tier games to keep players engaged so they stay subscribed.

He also thinks the vague release dates a lot of upcoming titles have been given is for flexibility with the Autumn 2025 release of GTA 6.

"You need to have a world-class content library to keep people subscribed because you're not just encouraging people to subscribe, you're also encouraging them to stay and you've got to keep their interest," he said.

"That means if they get to a point where suddenly the release calendar dries up and there's not anything exciting to look forward to, especially in the current cost of living crisis, it becomes very easy to look at and go '£15 a month adds up over the year to the best part of £200 so maybe I want to get that money back'.

"The strength of the lineup is about having that retention in mind, it's about keeping people interested and saying if people stay with Game Pass, they're going to have all of these great games coming up.

"Avowed by Obsidian was meant to come out towards the end of this year but has quietly been shifted to early next year.

"I think what's happening is there's a bit of shuffling around, both in terms of what's ready and building a nice library of content constantly.

"I wouldn't be massively surprised if part of what they're trying to do is build a very nice lineup that goes throughout the year on Game Pass and then when we know a launch date for GTA 6, I wouldn't be surprised to see that calendar flex to leave a gap for it."

Xbox is appearing at Gamescom and has revealed a bumper lineup of what it will showcase throughout the event.

Osborn'sVideo Games Industry Memo is sent out every Thursday and he's writing his debut non-fiction book called Power Play, a look at how video games are changing the world.

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