Analyst declares new Xbox console dead, slamming Microsoft for Game Pass price increase

Wedbush Securities analyst Michael Pachter once predicted that Microsoft would exceed Xbox Game Pass growth forecasts. Following a steep price hike for the Ultimate tier, he now sees an uncertain future for the subscription service. Vital to the success of the new Xbox console, Pachter doesn’t believe it will drive hardware sales.

A longtime researcher in the gaming industry, Pachter often issues provocative statements on his podcasts. GamesBeat recently asked him about the upheaval at Microsoft Gaming. The commentator questions whether Asha Sharma, the new CEO, is qualified for the position. Still, he also notes how failed efforts to expand subscriber counts prompted the company to take action.

According to the analyst, “The problem with Game Pass was it was all or nothing.” Recommending an “a la carte” alternative, he argues that it doesn’t entice buyers who purchase games separately. The Xbox Game Pass price increase to $30 for the highest tier made the option even less attractive. Some gamers spend only $140 a year on a few titles, rather than the $360 it now costs.

An ultra-premium Game Pass gateway?

The Magnus hybrid PC/console could support Steam, but Microsoft needs subscribers to embrace the system. Without exclusive games, Pachter doubts that these users will make the transition. As a result, he proclaims, “I think the console is dead. I think they’ve already blown it with the console by embracing Game Pass.”

It may be unlikely that Microsoft will halt development of the machine at this stage. In early February, AMD CEO Lisa Su hinted that it was on track for a 2027 release date. After assuming her new role, Asha Sharma also promised that hardware remained a priority. Nevertheless, price is a major concern for the new Xbox console, which Sarah Bond earlier labeled as a “high-end” device.

Rising storage and memory costs could make the system even less affordable. With the Game Pass price increase as another factor, Xbox supporters are being asked for a substantial investment.