Microsoft Doesn't See Game Pass as a Replacement For Game Purchasing

[{"selector":"#anim-58a8ccff-a86c-4336-bfbd-92b477101700","keyframes":[{"transform":"scale(1)","offset":0},{"transform":"scale(1.05)","offset":0.33},{"transform":"scale(0.995)","offset":0.66},{"transform":"scale(1)","offset":1}],"delay":0,"duration":600,"easing":"ease-in-out","fill":"both","iterations":3}]

Microsoft doesn’t see Game pass as a replacement purchasing game.

[{"selector":"#anim-55825248-2d9b-4faf-b713-3a3234b95471","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-abb4f269-6fb3-4bcf-97ad-b295dfce9f96","keyframes":{"transform":["rotate(-360deg) translate3d(-120.40817%, 0px, 0) rotate(360deg)","rotate(-360deg) translate3d(0px, 0px, 0) rotate(360deg)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Phil Spencer emphasized the importance of choice in an interview.

[{"selector":"#anim-e418d74b-77b8-4e1c-a633-843d635da86f","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-19f6a7ec-fd56-4869-aea8-d90e1cefd8dc","keyframes":{"transform":["translate3d(-119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The retail market “continues to be very strong and growing”, said the head of Microsoft's gaming division.

[{"selector":"#anim-997c5caa-cb30-4a34-b088-cfccee0731ef","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-39fcef2d-1c57-4b3b-bcca-a31aeb8f3c7a","keyframes":{"transform":["translate3d(-117.70492%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

He said, So let's make sure we offer our customers a choice between subscriptions and transactions.

[{"selector":"#anim-85d97d8b-9766-4895-be43-59e4056b16c2","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c4962550-4ed1-4368-bf49-6394d2aa1809","keyframes":{"transform":["translate3d(-117.76316%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Regarding Microsoft’s efforts with cloud streaming, Spencer agreed that it’s a bit like Netflix but buying games individually is a “traditional part of gaming.”

[{"selector":"#anim-c3009e79-e57e-4296-b954-d71166718f4a","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f79c9b62-dfd5-4933-a1a7-1288de52dde5","keyframes":{"transform":["translate3d(-120.89042%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

He said, Transaction is bigger than subscriptions.

[{"selector":"#anim-e12bbb44-a8fb-4d0e-bb58-49e765970333","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d2c071d7-1562-43ed-8c01-5a4640bc1e56","keyframes":{"transform":["translate3d(-120.89042%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Cloud streaming is not going to replace downloading games anytime soon, a lot of powerful companies still think it’s the future.

[{"selector":"#anim-611ced2c-0200-437f-9c45-609b41a2d8c9","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-11ab1ce6-9af7-4488-8b45-bc924d101d60","keyframes":{"transform":["translate3d(-120.89042%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

He thinks cloud is critical and netflix clearly has cloud. Amazon has cloud. Google has a real cloud capability.

[{"selector":"#anim-e83895ee-7c39-4c64-a010-c08e88f35f97","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ff6e00c2-f932-45e1-ae99-d9c98bb9c66e","keyframes":{"transform":["translate3d(-120.54795%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

He also thinks that Microsoft has the edge because along with cloud streaming tech, it also knows how to make games.

[{"selector":"#anim-9454d946-c5fe-4f64-97c3-99d9689e5e0f","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a09ad35a-f350-4699-a9e2-05f3fa5e39a6","keyframes":{"transform":["translate3d(-120.54795%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Without content, community and cloud Netflix is getting into gaming right now.

[{"selector":"#anim-d7e86ed3-cc43-446b-8e6a-1fe38da02d1a","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c9e6541a-6380-4a1c-90ab-73c1caf60bda","keyframes":{"transform":["translate3d(-120.89042%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

It’s smart what they are doing, they are learning about the creative process of interactive entertainment and he thinks it’s very smart.

[{"selector":"#anim-b69a9acd-1be3-40c1-86b0-63f7c08b12a1","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a7191fe3-cec8-4939-a453-7720a8674d7f","keyframes":{"transform":["translate3d(-120.89042%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Amazon’s first big sucessful game was New World and it took years of trying. Microsoft, meanwhile, released loads of popular games last year. Bethesda and Arkane are now Microsoft companies.

[{"selector":"#anim-07fd89c1-f98e-43fa-84aa-1a9ec291a978","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-20fab744-fb3d-45f3-a633-a382c662d094","keyframes":{"transform":["translate3d(-120.20548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Microsoft is well-positioned to lead the charge into subscription and cloud game, but the old ways are sticking around for now.

[{"selector":"#anim-d8aa116f-34b6-4b04-95ac-9af8da90213c","keyframes":{"opacity":[0,1]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5cea64ca-4033-4c73-a720-c91eb14295f0","keyframes":{"transform":["translate3d(-120.89042%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]