Microsoft
The Xbox One has been playing second fiddle to the PS4 for the entire eight console generation, and Microsoft is understandably keen to close the gap. The issue, though, has been a lack of compelling software to elevate its level of appeal to that of Sony’s hardware, which has been flush with attractive first and third-party exclusives, particular over the past two years. Microsoft’s answer has instead been to create an ecosystem that offers unparalleled value, in addition to making a bunch of quality of life improvements to the Xbox One console. Last year, it announced that Game Pass, a subscription service that offered players unlimited access to a library of games for a monthly fee, would include all first-party games moving forward. The value was astronomical, but it’s just got even better.
Xbox All Access is a starting pack for new consumers that bundles either the Xbox One S console with Game Pass and Xbox Live for $21.99 per month over two years, or the two services with an Xbox One X for $34.99 per month, at which point the console is paid for and owned outright. In the case of the Xbox One S, the entire package is a whopping $130 less than buying all of the products and services together, and obviously with Game Pass’ value of over 100 games factored in, incomparable to the equivalent library on rival hardware.
With All Access, Microsoft has effectively turned the Xbox One into a recurring revenue platform, marketed similarly to how Apple sells its iPhones. You’re essentially leasing the product and have the option to upgrade it any time or cancel your subscription. Quite apart from flattening out the revenue curve for Microsoft moving forward, the strategy mitigates the competition, eliminating some of the risk that they’ll switch allegiances by keeping them within the ecosystem Microsoft has created. It’s clever stuff, and it could well be the future of gaming if it proves successful.
This article was written in collaboration with Tim Stover.
