Wade Bush Securities Analyst Pachett: Microsoft's Next-Generation Xbox Console "Is Dead" Because of XGP

K-LinePoet · 2026-03-01T12:31:22+00:00

Wade Bush Securities Advisor Michael Pachett is pessimistic about the prospects of Microsoft's next-generation Xbox console, believing its value is undermined by the Game Pass strategy. He pointed out that the current XGP subscription model has fundamental issues and recommends lowering subscription fees to attract more players. Pachett's views highlight the need for strategic business adjustments.

K-LinePoet

2026-03-01 12:31:22

Abstract generation in progress

IT House, February 28 — Michael Pachett, strategic advisor at Wede Bush Securities, is known for his candid opinions and often makes bold statements about the gaming industry. According to Wccftech tonight, following management changes at Microsoft, Pachett has noticeably shifted his stance in an interview, expressing pessimism about the prospects of the next-generation Xbox console expected to launch in 2027, attributing his concerns to the Game Pass strategy: “I think this console is ‘dead.’ Microsoft has weakened the console itself by fully pushing Xbox Game Pass.”

Pachett believes that the current subscription model of XGP has fundamental issues: “The problem with XGP is either you can play everything or you can’t play anything. Pay $30 a month (IT House note: approximately 206.1 RMB at current exchange rates), or don’t bother playing these games. Why not sell ‘EA Sports FC’ to the 100 million people who want to play but don’t want to buy a console? That’s what should be done.”

“If Microsoft does that, I think it will succeed. The $30 monthly subscription model is the wrong approach. The price should be $10 a month (approximately 68.7 RMB at current exchange rates), and you can play everything. Who would want to pay five times the price of a meal for a buffet? When a game costs only $70, how can they charge users $360 annually? It should operate like a buffet restaurant, not forcing full subscription—this is their mistake.”

Previously, in 2018, Pachett stated that loot boxes exist because consumers are willing to accept that model. In 2022, he criticized Sony for overpaying $3.6 billion to acquire Bungie, considering the deal unreasonable compared to Microsoft’s acquisition of Activision Blizzard and Take-Two’s purchase of Zynga. That same year, Pachett also predicted that the inclusion of Activision Blizzard games could boost XGP active users to 100 million, and further stated that XGP could grow to 200 million users over the next 10 years.

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