Microsoft Almost Shut Down Xbox Before Big Deals
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Microsoft Almost Shut Down Xbox Before Big Deals
Microsoft Almost Shut Down Xbox Before Big Deals
In 2021, Microsoft reportedly considered shutting down Xbox. According to The Information, CEO Satya Nadella faced a choice: wind down Xbox or acquire more studios to boost Game Pass subscriptions. He opted for acquisitions, purchasing ZeniMax for $7 billion in 2021 and Activision Blizzard for $75.4 billion in 2023.
Game Pass Growth Challenges
Game Pass hasn’t met internal growth targets for Microsoft. The company aimed for 100 million subscribers by 2030, but hasn’t reached its goals. Not all big-name studios are enthusiastic about Game Pass, further hindering Microsoft’s progress.
Further Challenges
Post-Activision acquisition, Microsoft hoped developers would use its Azure servers. However, Activision continues to use Google Cloud and Amazon Web Services, along with its own servers.
Since the Xbox Series X|S launch, Microsoft has faced challenges including the closure of four ZeniMax studios and layoffs. Take-Two CEO Strauss Zelnick stated in 2022 that releasing new games on Game Pass launch day is not viable.
