Summary
- Microsoft is fortifying and making Xbox Game Pass better by increasing its value by adding more games & benefits.
- This means that more players will likely subscribe to the game pass because of the benefits and perks.
- Xbox Game Pass has 25 million subscribers. I believe the number to increase after the Activision Blizzard acquisition.
- There's pricing power for Microsoft (they can increase the price in small amounts but create a huge change) once subscribers see more upside to benefits & perks/price.
- Microsoft is using its strong market position as a large Tech Company to expand its gaming business in its more personal computing segment.
For further details see:
Microsoft: Subscription Fortification Strategy