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According to a new report, Microsoft could have shut Xbox down in 2021 had CEO Satya Nadella not decided to give Game Pass a chance. Nadella is often blamed by the Xbox community for pushing platform exclusives onto rival PlayStation, but if this report is any indication, this is a choice he had to make in order to save Microsoft’s embattled gaming division.
Xbox could have shut down if it didn’t acquire studios
This news is brought to us in a paywalled report by The Information (via ResetEra), which claims that Nadella told at least two people at the time that he could either wind Xbox down or figure out a way to boost Game Pass subscriptions. Nadella chose the latter, and as part of the effort, acquired Bethesda and Activision Blizzard for a staggering $82.4 billion combined.
However, The Information suggests that Game Pass is still falling short of its goals. Microsoft is reportedly targeting 100 million Game Pass subscribers by 2030, which means it has to figure out a way to triple its current subsciption numbers within the next five years.
Analysts have told The Information that Game Pass isn’t enticing as many people and companies as Microsoft hopes. “I just think the majority of the game market doesn’t really want a Game Pass,” according to Macquarie Science and Technology Fund’s Gus Zinn.
That said, Microsoft is now a major game publisher, and with Xbox expanding to more platforms including PlayStation, Game Pass failing to achieve its goals might not spell doom for the business.