Microsoft is aiming to strengthen its gaming business with the release of the latest Call of Duty installment, Black Ops 6, on Friday, focusing on boosting subscription revenue to counter declining Xbox console sales.
Black Ops 6 marks the first entry in the popular franchise to debut on Microsoft’s Game Pass subscription service, a significant move following the company’s $75 billion acquisition of Activision Blizzard, Call of Duty‘s creator, approved by regulators last year.
Microsoft expects this launch to support its goal of reaching 110 million Game Pass subscribers by 2030, a sharp increase from 34 million in February. The tech giant has gradually pivoted towards its subscription service as hardware sales have slowed, with Xbox revenue down by 13% year-over-year in Microsoft’s fiscal 2024, ending in June.
For the first time, Game Pass subscribers can access the newest Call of Duty game without the typical $70 upfront purchase. Microsoft is also maintaining the game’s availability on PlayStation, easing regulatory concerns that the Activision deal could lead to exclusivity.
The company has strategically adjusted Game Pass pricing and tier options to maximize revenue from Black Ops 6. In July, monthly fees for Game Pass rose 18% in the U.S., 15% in the UK, and 20% in Europe. The company also introduced a more affordable “standard” tier, excluding access to Black Ops 6 and several other titles at launch, and recently removed its $1 trial to curb temporary subscriptions ahead of the game’s release.
The U.S. Federal Trade Commission, which opposed the Activision acquisition, criticized these changes as “product degradation” in a recent filing. Microsoft dismissed this claim as “a misleading, extra-record account of the facts.”
Analyst Piers Harding-Rolls from Ampere Analysis sees Microsoft’s strategy as a “big bet,” estimating that Black Ops 6 could drive an additional 2–2.5 million Game Pass Ultimate subscribers by year’s end, with projections of 23 million Ultimate subscribers by the end of 2024.
Anticipation for Black Ops 6 is high, especially after mixed reviews for Modern Warfare III. The game has led pre-orders on Sony’s PlayStation Store since its June announcement, despite a quieter year for blockbuster releases.
With console sales slowing across the industry, companies are turning to subscription growth. Market research from Newzoo expects the gaming market to grow by around 2% to $187.7 billion in 2024, while console revenues are predicted to fall by 1% to $51.9 billion. Both Nintendo and Sony have reported year-over-year declines in console sales, although Sony’s PlayStation Plus has helped mitigate the drop in hardware and software revenue.