The recent confirmation thatXbox Game Passwill not be available for PlayStation 5 and Nintendo Switch seems to be a step back. For me, it highlights a serious problem that all next-generation consoles are facing. Microsoft executives have made conflicting statements on the subject, suggesting that Game Pass could reach every player before announcing that it would stay exclusive to Xbox not long after, and the scenario reflects a bigger issue.
The console vs. service gap is going to be at the forefront of the competition between Xbox and PlayStation. At this point, instead of choosing a console, we’re going to have tochoose between consoles or services. PlayStation leads in consoles, but now Xbox has a real edge with services, and the future of gaming will be decided by what proves more successful overall.

Xbox’s Matt Booty Confirmed Game Pass Will Stay On Xbox
Game Pass Isn’t Coming To Other Platforms
10 Games That Xbox Game Pass Should Add For Us To Stream On Our Phones & PC
These are all top games on Xbox that would be great for Ultimate Game Pass cloud streaming on PC and mobile, and we’d love to see them soon.
Previously, Xbox’s CFO Tim Stuart talked about bringing Game Pass to “every screen”, as reported byEurogamer, and CEO Phil Spencer had earlier hoped for it to be on “every device,” as reported byGameSpotback in 2018. Booty’s clear focus onkeeping it exclusive to Xbox goes against what felt like the strategyof the company. Booty isn’t likely to make a statement without being fully knowledgeable of the current strategy, so it’s clearly what Xbox wants.

“Not announcing anything broadly here, but our mission is to bring our first-party experiences [and] our subscription services to every screen that can play games. That means smart TVs, that means mobile devices, that means what we would have thought of as competitors in the past like PlayStation and Nintendo.” - Tim Stuart
This decision has several implications. For Microsoft, keeping Game Pass exclusive helps strengthen the Xbox ecosystem. It encourages gamers to buy Xbox consoles since they’ll want access to all the games available through Game Pass, especially big releases likeStarfieldand possiblyCall of Duty. By doing this, Microsoft aims tomake more money from Game Pass subscriptions tied to its own hardwareinstead of sharing those games across other platforms.

The Console Vs. Service Gap Is Clear For PS5 & Series X
Service Or Consoles Is The Main Choice
The Xbox Series X and PlayStation 5 are both competing for popularity in the new gaming console market, but they have different approaches to subscriptions and their gaming ecosystems. This difference affects how users play with the consoles, the value they offer, and their long-term success. At the end of the day, it’s the consoles offer than a brand name.
Xbox ismaking a strong move with Game Pass; it’s got the familiarity and recognition that brands pay millions of dollars to earn. Game Pass is synonymous with Xbox, and it’s one of the first things that comes to mind when I think of service-based subscriptions for video games. Xbox has cornered the market here, and it’s hard for others to break in.

PS Plus Is Finally Countering Xbox Game Pass, But It Needs To Move Faster
Game Pass received an amazing day-one released RPG with Avowed. PlayStation Plus getting Dragon Age 4 next month is a solid counter for RPG fans.
On the other hand, PlayStation Plus offers online multiplayer and a rotating selection of games but is taking a more cautious approach. While it does well, it hasn’t seen the same level of growth or change in how consumers behave as Game Pass has. PlayStation Plus doesn’t seem to give the same appeal to gamers who want immediate access to new major games.PlayStation is sticking to a console-first strategy.

Xbox Game Pass’s Success Is Thanks To One Simple Reason That Amazon Still Doesn’t Understand
A VP of Prime Gaming discussed Amazon’s failures with Luna, and its inability to beat Steam as a storefront, but he missed the real lesson entirely.
I actually wish that theAmazon Stick with Xbox Game Passwas available earlie, as I would have preferred to simply buy a stick and pay for Game Pass Ultimate than purchase an Xbox Series S. I’ve been an avid fan of video games for my whole life, but it’shard to say no to convenienceand savings on that scale.
Next-Gen Consoles Will See That Problem Get Worse
The Console Wars Have Changed
The gaming world is changing quickly, and the new generation of consoles is facing serious challenges that mightreduce their role as the main platform for big-budget games. Subscription services like Xbox Game Pass are becoming much more popular and turning into a primary avenue for people to buy and play games. This shift is clear from the rise in Game Pass subscriptions and the growing revenue from content and services at Microsoft.
Services like Xbox Cloud Gaming are improving, making it easier to stream games on various devices.
This trend suggests that buying individual games might become less common in the future, adding more pressure on console manufacturers to justify the high cost of their hardware compared to the convenience and lower prices of subscription services. Additionally,the competition from PC gaming makes things even harder. PCs are easily upgradeable and flexible, and they offer access to the same subscription services along with various digital marketplaces like Steam and Epic Games Store. This gives them a strong advantage.
If subscription services keep gaining popularity, next-gen consolesmighthave a tough time competing in terms of game variety and accessibility, forcing manufacturers to find new ways to stand out. PCs also offer more input options, modding communities, and large back catalogs of games that traditional consoles find hard to match. Cloud gaming is another big threat on the horizon. Services like Xbox Cloud Gaming are improving, making it easier to stream games on various devices. This could make expensive gaming consoles less necessary, especially for casual gamers.
Avowed Has Reached 5.9 Million Players Since Launch, Outperforming One Of Xbox’s Hit First-Party Titles
Avowed surged past 5.9 million players in its first month, outperforming Indiana Jones while dominating Steam sales despite Game Pass availability.
Next-gen consoles will need tooffer strong reasons for people to buy dedicated hardwareinstead of relying on streaming. This might mean focusing more on unique hardware features, like innovative controllers or powerful local processing, for better gaming experiences. However, if cloud gaming continues to improve rapidly, even these enhanced consoles might not seem worth it.
It’s easy to seeXbox Game Passas a winner in the future, but the division isn’t likely to go away any time soon. While it won’t convert everyone who prefers the traditional console ecosystem, Game Pass is ultimately a more convenient option for a significant subset of users. I’d rather pay the subscription fee than buy games throughout the year, and if Microsoft can offer that, I won’t be the only one going for it.