Microsoft Struggled with Valuing Games in Game Pass, Emails Reveal

Internal emails from March 2021 revealed that Microsoft struggled to accurately value games in its subscription service, Game Pass. Phil Spencer, head of Xbox, admitted to Jean-Emile Elien, a software architect at the time, that the company 'doesn't know' how to assess the worth of individual games within the service. The issue arose as Game Pass disrupted the traditional connection between studio success and profits from game sales.

Elien expressed concerns about the long-term risks to the ecosystem and a potential 'bloodbath' among developers if economic conditions changed. Spencer countered by emphasizing player engagement, stating that Microsoft's studio closures were rarely directly related to profit and loss balances in the past.