Game Pass Cannibalisation: Microsoft Reportedly Lost £240 Million on Call of Duty Sales

A new report from Bloomberg, based on interviews with former Microsoft employees, has shed light on some of the financial challenges facing Xbox Game Pass, particularly concerning its biggest new release, Call of Duty: Black Ops 6.

The subscription service has long been considered a “black box” when it comes to performance metrics. Unlike platforms such as Steam, which have publicly monitored real-time stats, Game Pass’s health is only revealed through periodic updates from Microsoft or, in this case, a spot of insider info. And the latest whispers from Redmond suggest that putting Call of Duty on the service may have cost the company a rather serious chunk of change.

The £240 Million Hole

According to one former employee who spoke to Bloomberg, the inclusion of Call of Duty: Black Ops 6 on Game Pass resulted in an internal estimated loss of a staggering $300 million in sales revenue across both console and PC. That’s roughly equivalent to £240 million, which is hardly pocket change!

This figure, which was supposedly never meant for public eyes, is a serious indicator of the delicate balance Microsoft is trying to maintain with its flagship subscription service. The internal estimate would have been calculated with the aim of being as accurate as possible, giving this juicy piece of corporate gossip a solid feel.

Kotaku even did some quick maths to put the figure into perspective:

• To make up the lost sales of Black Ops 6 through subscription fees, Game Pass would have needed an influx of 15 million new Ultimate-tier subscribers for one month, or 1.25 million over a full year (based on pre-price hike costs).
• Microsoft last reported the overall Game Pass subscriber count was 34 million in 2024.

Call of Duty: Black Ops 6 Sets Records (Mostly on PlayStation)

Despite the apparent cannibalisation of sales on Microsoft’s own platforms, Call of Duty: Black Ops 6 still managed to be a massive commercial hit. IGN reported at the time of release that the game managed to set a series sales record and also saw a record number of new Game Pass subscriptions on a single launch day.

However, the Bloomberg report points out a key fact that dampens that celebration slightly: 82% of all full-price sales of Black Ops 6 happened on PlayStation 5.

This is a rather awkward detail, considering this was the first Call of Duty title released since Microsoft’s blockbuster acquisition of Activision Blizzard, and it suggests that the majority of players are still buying the game outright on their Sony consoles rather than opting for the Game Pass route on Xbox and PC.

What We Think

The internal estimate is a strong indicator of the “cannibalisation” problem that analysts and fans have debated for years. While Game Pass is absolutely brilliant for us gamers, allowing us to play massive AAA titles like Call of Duty for a monthly fee instead of a hefty launch day price (or at least it was), the service has to somehow generate enough revenue to replace those lost sales.

Microsoft’s recent public actions certainly seem to reflect this strain. We’ve seen a “steady drumbeat” of studio closures and, most recently, a noticeable price hike for Game Pass itself. These moves suggest that the publisher is actively working to shore up its financials, leaving many in the industry, including myself, concerned about the long-term health of the industry as huge amounts of triple-A development become consolidated under major players like Microsoft and Sony.

It appears the rapid expansion and big bets on Game Pass have finally caught up with them, and for now, it’s looking like we will all be paying for Microsoft’s ambitious gamble one way or another.

Tell Me More

For more on this topic, the original report can be found on the Bloomberg website, which further details the current financial pressures within the Xbox division. Sources