Wedbush Securities analyst Michael Pachterfamous in the gaming field, shared his point of view on the issue of Xbox and the publication of ex-exclusives on rival consoles, in his latest appearance on the Pachter Factor, stating that Microsoft isn't 'losing the console war'.
He said that the company that makes Windows and Xbox intends conquer the gaming sector rather than the much smaller console sector. He could do this by pursuing a much more aggressive pricing strategy on console hardware according to Pachter, but that's not his plan.
Pachter's words
“I think the whole development and promotion of Game Pass has always been a recognition of the fact that Xbox is a platform and not necessarily a device that you need. I think Microsoft will be perfectly happy in a future where there are no more consoles and everyone has a blank terminal connected to the Internet, to the cloud, and can stream games.”
“Game Pass is their long-term plan and I think Microsoft understood very early in this cycle that the future is the cloud and that if you don't have to sell a console your target market goes from 200, 250, 300 million people who own consoles to 3 or 4 billion people who play. That's their ultimate goal, just like Netflix said “how many people watch TV?” and the answer is 4 or 5 billion, so Netflix has 260 million people now.”
“I think that they, Satya Nadella who is the architect and Phil Spencer who is the field general executing the strategy, are trying to get 250 million Game Pass subscribers without a console.”
“There's something Microsoft can do about it catch up in this generation? Sure, cancel Game Pass and cut the price of Xbox. If they did that, if the Xbox cost $200 and they told all the Game Pass members that we'll give you an Xbox for $20 because you already paid for the Game Pass and, by the way, if you buy the Xbox you'll get all of our releases first -free party, they would beat Sony. They would only lose money, but they would succeed. If Microsoft wanted to win the generation, they would win it.”
“That's not what they're trying to do. They're trying to win the gaming business offering games to 3 billion people, not 300 million. That's their goal, and to be honest, the way Game Pass will work is that the price will drop from $15 a month to $10 and then drop to $5 with ad support. Every time you load a game, you will have to watch an advertisement.”
“People will give up and Microsoft will make a lot of money. More people will play and pay less for the privilege, so I think they win. They just don't win the console generation.”
“Now they have all the other contents. You'll have Hellblade 2, you'll have The Outer Worlds 2, you'll have Elder Scrolls 6 one of these days, you'll have the entire Call of Duty catalog, you'll have World of Warcraft as part of Game Pass. Yes, they're going to hit 200 million subscribers, so I think they're executing absolutely brilliantly.”
“I believe that the players' perception that Microsoft lost to Sony is wrong. They lost in the console war. If that's how you measure your worth, i.e. you have to sell more consoles or you suck, great. If the question is who will be more profitable, Microsoft, by 10 or 100 times.”
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