Xbox Game Pass may get modular options

The Xbox Game Pass, a monthly subscription service offering access to a wide range of Xbox games, might soon be restructured into customizable components. According to insiders, Microsoft is planning a significant update to the service that would allow players to select features individually, such as console-exclusive games, cloud gaming, and multiplayer access.

Changes could affect current subscription models

Details about the potential changes remain unofficial, as Microsoft has not formally announced the overhaul. The plan’s specifics—such as pricing, release date, and whether existing packages would be discontinued—are still unclear. The idea of a modular Game Pass had previously been mentioned by a reliable leaker in mid-September, who suggested that newly released games might not be included in the à la carte options.

Game Pass has boosted sales but hurt in-house game revenue

Despite its success in driving regular revenue, the Game Pass has reportedly impacted the sales of Xbox's own games, particularly during their launch weeks. Subscribers who can access new games through the subscription may be less inclined to purchase them at full price. Internal conflicts also arose, as different teams within Microsoft had competing priorities—some focused on subscription revenue, others on direct game sales.

Xbox’s financial performance lags behind competitors

Xbox is valued at $21 billion, but its profit margin is around 3%, significantly lower than that of its competitors. Internal projects have faced disruptions, such as the abandoned portable console, which was nearly scrapped due to disagreements over software integration. Today, the Xbox team has more control over the console’s operating system, but the subscription service continues to evolve, with recent adjustments like limiting cloud gaming to 15 hours per month on some packages.

Microsoft’s strategy will be tested this month

Microsoft is set to release its quarterly results this month, which Fortune describes as a key moment for evaluating the effectiveness of Asha Sharma’s strategy. The company is also testing reduced prices for the Game Pass Ultimate on certain accounts, signaling ongoing efforts to refine the service and improve its financial performance.