Microsoft (MSFT.O) plans to release the upcoming installment of the “Call of Duty” video game on its subscription service, marking a significant shift from its traditional practice of selling the title independently. A source familiar with the matter revealed this information on Friday, noting that the company intends to announce the move at its annual Xbox showcase on June 9. The source requested anonymity as the plans are confidential.
The decision represents a major change for Microsoft, which has historically sold new editions of “Call of Duty” annually at around $70 each. The Wall Street Journal first reported the news on Friday, while Microsoft did not immediately respond to a request for comment from Reuters.
Microsoft acquired the rights to “Call of Duty” through its $69 billion acquisition of Activision Blizzard, which was finalized late last year. The first-person shooter game is one of the most successful entertainment franchises, having generated over $30 billion in lifetime revenue.
This development follows recent remarks by Xbox President Sarah Bond, who stated at a conference that Microsoft plans to release all first-party Xbox games on Game Pass on their launch day. Game Pass is a subscription service managed by Microsoft, offering access to a wide range of games from Xbox and other developers for a fee.
The Redmond, Washington-based company has been aggressively expanding its Netflix-style game subscription service in recent years. This strategy is part of its broader effort to challenge the dominance of PlayStation consoles, which are made by Japanese rival Sony Corp (6758.T). Microsoft reported that Game Pass had 34 million subscribers in February, up from 25 million in 2022.
Analysts believe that the inclusion of “Call of Duty” — a franchise with a large and loyal fan base — in Game Pass will attract more subscribers to the service. However, they also caution that this move could potentially impact the overall sales generated by the game.