I have dozens of games in my library. Do you know how many I play? Two: from time to time I play FIFA (I’ll always continue to call it that, I’m afraid), and if I get around to it, I’ll hit the old ‘Battlefield 1’ that still has me conquered.
In recent years, I’ve enjoyed titles like ‘Ghost of Tsushima’, ‘Star Wars Jedi: Survivor’, or ‘Sifu’. However, while I spent hours on these few favorites, many others sat collecting dust in my library.
Surely many of you play many more games and invest much more time. Microsoft was likely thinking of you when it configured its future strategy.
Xbox’s Ambition: Great Until It Wasn’t
Back in 2020, Microsoft’s vision was clear. They stated that there were 2.8 billion gamers worldwide, and they aimed to conquer their attention with two major initiatives:
- Spend billions on acquiring video game development studios to expand the catalog, and
- Create the ‘Netflix of video games’ with Xbox Game Pass.
Both ideas resonated well with gamers, especially those of us loyal to Xbox. The introduction of Xbox Game Pass appeared to be a groundbreaking move—an overwhelming win for gamers and a significant concern for competitors like Sony.
But it turns out, things didn’t go as planned. Reports now suggest that Microsoft has invested around $80 billion in securing franchises like ‘Call of Duty’ and ‘Skyrim’ so that these titles could be available almost immediately on Xbox Game Pass.
Less is More
The strategy has faltered. Microsoft announced layoffs affecting 3,200 employees in its Xbox division, about 20% of its workforce, and has decided to let go of five development studios.
Perhaps having more games was not the answer. Steam illustrated this point early in 2025, noting that their platform had become a graveyard for games: of nearly 19,000 titles available, 80% went unplayed.
This illustrates the long tail theory: success is concentrated in a handful of titles while the vast majority languish unnoticed.
The Reality of Gaming
As it stands, the reality for most gamers is that there are far too many games and simply not enough time to play them. We often find ourselves accumulating digital libraries filled with virtual dust.
As my colleague Jose García pointed out in 2021, we’ve become “digital Diogenes,” hoarding games we’ll likely never try. Balancing gaming with life changes, like parenthood, presents even more challenges.
The Illusion of the Netflix of Video Games
We deluded ourselves by thinking we could replicate a Netflix-like model for gaming. While binge-watching sitcoms is straightforward, gaming demands commitment and often requires dozens—if not hundreds—of hours. We return to our favorite games repeatedly.
Unfortunately, while Xbox Game Pass offers an impressive array of titles, many of us just don’t engage with the new offerings. In my own experience with Game Pass Ultimate over three years, despite trying around twenty titles, I continually returned to my trusty FIFA and ‘Battlefield 1.’
Microsoft itself recognized the issues when they raised the price of Xbox Game Pass—not just once, but multiple times. They were struggling to maintain profitability with a service that had initially seemed too good to be true.
Production Challenges
The “Netflix model” for gaming is also flawed due to the nature of game development, which is longer and far more expensive. The allure of accessing AAA games on day one was once enticing, but it proved detrimental to financial sustainability.
The conclusion here is straightforward. Microsoft’s strategy was ambitious and innovative, providing hundreds of games at a low subscription rate—a dream for gamers. However, the reality was that there were just too many games and not enough time to enjoy them.