Call Of Duty Is Xbox's Biggest Blessing And Its Curse

Key Points:

• Microsoft completed its $70 billion acquisition of Activision Blizzard in late 2023, leading to a shift where some Xbox exclusives, like Sea of Thieves, became multiplatform, including PlayStation 5.
• Despite a strong lineup of new Xbox releases and Game Pass additions in 2025, both software sales and subscription growth declined, with a notable 5% drop in consecutive quarters partly attributed to weaker Call of Duty sales.
• Call of Duty: Black Ops 7 underperformed compared to its predecessor, failing to make top sales charts and contributing to subscriber losses after its inclusion in Game Pass at launch led to increased churn and a price hike.
• Microsoft has since removed new Call of Duty titles from Game Pass at launch and reduced subscription prices, resulting in improved subscriber acquisition and retention, but concerns remain about the franchise's impact on Xbox's broader portfolio and investment priorities.
• New Xbox CEO Asha Sharma highlighted the need to rebalance investments between major franchises like Call of Duty and a steady pipeline of first- and third-party exclusives to ensure long-term platform success amid competitive pressures.