Microsoft to offer new Call of Duty on Game Pass instead of selling it per copy

Microsoft reportedly plans to release the upcoming Call of Duty title directly on its subscription service, Game Pass, once launched. The franchise is moving away from its traditional model of selling it.

An official announcement is expected at the upcoming Xbox showcase next month. Call of Duty is a commercially successful franchise, historically averaging around 25 million copies sold annually at a premium price point.

A couple of big days for Microsoft-owned Activision. First, they formed an internal studio, Elsewhere Entertainment, for narrative-driven AAA games, announced yesterday, and now this.

All this change can lead to changes in consumer spending. While Game Pass, whose ads are visible on Windows 11, requires a monthly subscription fee ($9.99 to $16.99 in the US), it grants access to a library of games, which will potentially include the new Call of Duty titles. 

Microsoft’s strategy is to attract new users to Game Pass, hoping to retain them for long-term subscription revenue. They saw success with this approach when launching “Starfield” on Game Pass last year, which resulted in surge of new subs.

Microsoft’s commitment to subscriptions also raises regulatory considerations. Regulators previously expressed concerns about Microsoft’s acquisition of Activision, particularly regarding Call of Duty’s dominance in cloud gaming. Microsoft pledged not to withhold the franchise from competitors, as reported by WSJ.

With an official announcement expected next month, Microsoft’s success with Game Pass and convincing other game companies to embrace the subscription model for their latest releases will be closely monitored.