So, I have been having a good think about this Microsoft going completely 3rd party or staying in the hardware business and competing on all fronts. The issue is Microsoft is trying to do everything all at once which is cannibalizing their own hardware and software in the process. The issue is GamePass. GP is the best deal going around in gaming, and MS is willing to bite the bullet to watch it take off, hence why all 1st party games are day and date on the service, the issue with that is you remove all means on selling physical and digital copies. MS need to change this strategy.
We are all up in the clouds (No pun intended) on what MS is going to say at their business meeting about Xbox. Plenty of speculation across the board. However, what I believe Xbox needs to do to stay competitive while also offering GP and hardware is quite simple.
At MS's business meeting, they need to address the issue that GP is having on their own business model. In my opinion, they should come out and say that moving forward, all 1st Party games are no longer day and date with GP. Yes, I know, GP members won't be happy however, there are ways around this. Firstly, they should make all 1st party games come to GP after let's say a minimal of 6 months. This allows the software at its peak to sell the most amount of units before it becomes part of the service. Xbox can also cover the lost exclusives by filling in gaps with 3rd party games which they are already doing. This should be able to please the corporate suits, as they will see good increases in overall software sales which will bring in more profit. 6months later, a big 1st party game will cross to GP giving the game a second wind while also boosting the service value.
GP is a monster, however if MS continue to do this day and date strategy with the service, they might as well drop the hardware, and go full 3rd party because GP will cannibalize software and hardware sales in exchange for members. Game companies also need the initial sales to gauge their own IPs popularity. Otherwise, if they continue with this structure, and they keep GP active with the best deal, they will need to sell their 1st party games separately on multi-platforms, to gain extra sales these executives want to see from the brand. This will eventually end the hardware business model for them, but in exchange, will work out more profitable.
What are your thoughts and opinions on how MS can compete while pleasing both the company and customers.
