Today marks a landmark day for Microsoft’s Xbox, as it tests the impact of its monumental Activision Blizzard purchase. But first, here are this week’s biggest gaming headlines:
Over a year has passed since Microsoft closed its $69 billion acquisition of Activision Blizzard, and today, the tech giant will begin to gauge if that hefty investment will pay off.
Today’s release of Call of Duty: Black Ops 6, the latest in the long-running series, stands out as the first installment to launch directly on Xbox Game Pass, Microsoft’s subscription service often referred to as “Netflix for video games.”
Since 2005, Call of Duty titles have dropped every fall, making it one of the most profitable gaming franchises ever, with over $30 billion in lifetime revenue.
Now, for the first time, players can access Call of Duty: Black Ops 6 on day one through Xbox Game Pass, which costs between $10 and $20 monthly depending on the tier.
Traditionally, Call of Duty games are $70 standalone purchases, but now, players can opt to subscribe to Game Pass for significantly less.
Microsoft is betting that any potential drop in direct sales will be offset by a surge in Game Pass signups, expecting today to be a banner day for the subscription service.
“Call of Duty’s day-one Game Pass launch is the Big Bet that the last few years have all been leading toward,” said Mat Piscatella, an analyst with Circana, in an email earlier this week.
Xbox has centered its strategy around Game Pass for years, motivating its aggressive acquisitions, including Activision Blizzard.
However, Game Pass subscriber growth peaked in 2021 following the Covid-19 surge and has since plateaued.
As of August, 2024, video game subscription spending was up only 1% compared to the previous year, Piscatella added.
“We haven’t seen the subscription growth many anticipated in gaming,” he said.
Today, however, could be Xbox’s opportunity to reverse that trend. Still, it raises some critical questions: Will Game Pass access cut into sales numbers?
Could players sign up for Game Pass just to play the new Call of Duty and cancel when they’re done? Or will the franchise’s enduring multiplayer appeal keep users within Microsoft’s ecosystem long-term?
Some analysts predict this release will bring a substantial increase in Game Pass subscribers, though Piscatella remains cautious, noting too many factors to make definitive forecasts.
“I’m not expecting a seismic shift from Call of Duty’s Game Pass release,” he said. “But if I’m proven completely wrong, that won’t surprise me.”
This Call of Duty release comes during a tumultuous period for Microsoft’s gaming division, which has implemented cost-cutting measures throughout 2024 amid stagnant growth.
Xbox has reduced staff, closed studios, and canceled several projects, partly in response to Microsoft executives’ pressure to offset the $69 billion Activision purchase.
Microsoft has not provided a specific measure for what will constitute success for this release so it may be some time before we know if Activision Blizzard was worth the staggering price tag.
But one thing is clear: this moment has been years in the making for Xbox.
While I’m not much of a Call of Duty player (I’ll be diving into a different game this weekend that I’ll share more about next week), Black Ops 6 is getting solid reviews.
