I’m an old-school gamer; I started with the tried-and-true Atari 2600. Hooked to a television with two stick controllers, it was the life. I graduated from there and went through the Nintendo console generations to the Wii. I went through the Game Boy generations, burning through those AA batteries on family trips. Mario anywhere was a real treat, and if you had a case to travel with, you felt like a member of the elite. From there, I moved on to the tried-and-true Sony PlayStation, which featured games on discs, a larger capacity, better graphics, and a GameStop that opened up 40 minutes away. I traded in a game. Out with the old, in with the new.
Then, this whole journalism thing started. I was privileged to be an early tester of the Xbox. The graphics were fantastic for their time, and Microsoft got their hooks in me, so I drifted away from the Sony camp. I was there for the birth of Xbox Live. Mech Assault was my jam. Basic headset, a lag here, a lag there, trash talk, lightning bolts, and rockets off the shoulders of my mech, this was multiplayer gaming at its finest. Games were usually priced between $39.99 and $ 49.99. We weren’t entirely into the high-definition age yet; you could still hook your console up with the component cables.
Let’s fast-forward a couple of decades. We have 4K gaming, high refresh rates, dedicated internet connections, high-speed wireless connectivity anywhere in the home, and now on the go with 5G networks—the landscape of where we play games and how it began to change. Making a 4K game is more expensive and resource-intensive, so publishers pushed prices to a quick $59.99 and, in some cases, $69.99. Storage on consoles has evolved from gigabytes to terabytes. Publishers were able to release patches and DLC for gamers to add more value and, in many cases, get a few more bucks from gamers.
Fast forward to this decade, and in less than 24 months, we’ve seen our PCs become gaming devices that you can hold in your hand. We’ve seen Microsoft relinquish complete control over gaming hardware, partner with Asus, and introduce the Xbox Ally handhelds. We’ve seen Nintendo introduce the Switch 2 and the first $ 80 video game, Mario Kart. Xbox has announced the Outer Worlds 2 is slated to be $79.99. Will gamers pay $80 for a single title, or will services like Xbox Game Pass become more attractive for both gamers and publishers?
Speaking of Game Pass, if we assume gamers are buying the Game Pass Ultimate subscription, that’s $239.88 per year, assuming no discounts or promotions. If AAA titles are going to be $80.00, then that’s three titles, give or take a few dollars and not including tax. Assuming Game Pass can keep the most in-demand titles, the subscription is a no-brainer, even without considering the other titles and benefits. We don’t know the revenue streams for every Game Pass title; some are flat fees, some are based on license fees, and others may be revenue-sharing models based on usage or even full funding for a title to be included in the service. Therefore, a game could generate more revenue through the Game Pass model compared to direct sales. However, if a game isn’t in the Game Pass library, it may force gamers to pay the full cost. Up until Game Pass, my game purchases were usually the top tier titles, and only on special occasions, getting some titles day one in Game Pass is a treat for many.
Phil Spencer has been emphasizing the Play Anywhere message, which means he wants gamers to play games on any platform they choose and have as many games available on as many platforms as possible. At the halfway point of 2025, Microsoft has gone all in with gaming handhelds, marking a first, as it allows a third-party manufacturer to produce something with an official Xbox button. Microsoft has been on the losing end in terms of hardware sales for a few years compared to Sony. Xbox generates revenue from accessories, games, and subscriptions.
As we make this transition, there has been no mention of the new Xbox console. While I’m sure there will be one, this hard pivot to the Xbox Software model on handhelds also applies to the Amazon Fire Stick and some Televisions, Which have the Xbox app built in.
So, is it time for Xbox to do what it does best: software and game publisher? Xbox should let those who work with gaming hardware day in and day out continue to sprinkle their secret sauce on the Xbox hardware.
