Xbox confirming that its Game Pass Ultimate Subscription will get you the following from September:

100+ Games to play on Xbox / PC
Xbox Live Gold features
xCloud support to play those titles on any device

For just $15 per month.

It's a great move. My thoughts below 1/ https://twitter.com/Xbox/status/1283755906535051264

In 2020, Xbox is more than the box.

The goal is to provide a seamless and frictionless experience to existing gamers and new players, with multiple entry points into the Xbox ecosystem.

Content + Services is the product, not the hardware.

Reach beyond existing console base.

The aim is to remove barriers to entry, provide a compelling reason for anyone to jump in to this ecosystem w/ affordable price. Appeal to both existing console gamers, gamers on other platforms, lapsed gamers and non gamers.

An extension of the Xbox 'Play Anywhere' philosophy.

Focus on console limits audience (Xbox One - 50m units)

Extending games and services to PC is the first step (Now nearly 100m Xbox Live users across Console/PC).

Expanding via cloud gaming reaches anyone on any device, ability to reach 2bn+ people today.

With Game Pass and xCloud integration there is no need to

- Purchase high end hardware (Xbox or PC)
- Spend $60 on new FP game releases (and other select content).

You now have one offering that anyone can buy in to and benefit from.

It compares well with competitors, goes above and beyond:

- Download or Stream all titles (Choice)
- Existing BC library + new FP games (Content)
- Play Anywhere feature (Connection)
- All services in one affordable price (Completion)

Has Stadia and PS Now beat on all 4.

Integrating xCloud into an existing service like Game Pass is a good way to get people onboard with cloud gaming, test at scale, roll out standalone launch later.

Goal is to offer a single game SKU that offers download or cloud ver. and can be played or streamed on any device.

This will drive adoption of Game Pass Ultimate, solidify the service as best value for money. Could lead to more services being wrapped up into this sub. E.g. cut Xbox Live Gold as a standalone sub.

Game Pass already has 10m subs and is growing, can convert existing XBLG users.

Game Pass does not cannibalize spend in other areas. Subscribers are more likely to:

- Purchase sequels to games they played in GP
- Spend more on DLC / MTX
- Play longer

Xbox subsidising FP content to provide additional value to the subscription.

Future opportunity revolves around:

- xCloud built in to all purchase options
- Instant gaming trials / previews
- Game Pass replaces XBL Gold
- Facebook Gaming / Streamer integration
- Extension to Smart TV's, iOS and other devices.
- Reach 2bn+ with AAA content

In summary:

Game Pass is the entry point to the Xbox ecosystem. Not the console. The content and service is the product.

Xbox doesn't care where you play, but they care about positioning Game Pass + xCloud as the best entry point into HD gaming on every device.