Did you pick up Gears of War: E-Day this week? If so, you're part of a surprisingly small group of actual buyers. Microsoft's latest console exclusive just launched, and the first sales data is in—and it's raising some serious questions about Xbox's strategy.
According to Rhys Elliott of Alinea Analytics, E-Day has sold about 230,000 copies so far. Steam accounts for 168,000 of those, while Xbox (console and PC combined) makes up the other 62,000. That might sound low for a flagship Gears game, but straight sales don't tell the whole story. E-Day is also available on Game Pass, and Elliott says the subscription service "cannibalized" the majority of sales. In fact, 1.7 million people acquired the game through Game Pass instead of buying it outright.
But here's where it gets interesting: 722,000 of those Game Pass players bought the $30 Premium upgrade, which gave them early access and extra content. That means nearly 950,000 people actually paid something for E-Day. Elliott points out that Xbox accounts for almost three-quarters of the revenue—roughly $26 million of the $37 million total, versus about $11 million on Steam. So while Steam sold more copies, Xbox made more money.
Still, Elliott calls these "soft numbers" at a time when Xbox badly needs revenue wins. He says the $70 edition is "functionally dead on Xbox" because so many people opted for Game Pass or the cheaper upgrade. "In a world without day-one Game Pass, many of these folks would have bought E-Day at $70," he said. "Xbox is, in effect, charging its most valuable customers the least."
Game Pass itself brings in nearly $5 billion annually, but Elliott notes it's no longer growing, putting Xbox "at a crossroads." Xbox CEO Asha Sharma has acknowledged that Game Pass was a big bet that didn't pay off, and Microsoft has already made changes—like removing day-one Call of Duty releases from the service. New games now require outright purchases or a year-long wait.
What about a PS5 version? Many expected one, especially since Microsoft's own documents showed it was in the works and Gears of War Reloaded came to PS5 last year. A PS5 edition was reportedly canceled at the last minute, and while Microsoft denied it, fans aren't convinced. Aaron Greenberg said E-Day isn't a timed exclusive, but he said the same about Starfield before it hit PS5. Analyst Mat Piscatella also reminded everyone that Game Pass isn't pure cannibalization—you still pay $23/month, and not everyone would buy the game outright anyway.
Looking ahead, The Coalition's Mike Crump says E-Day creates a "great foundation" for the franchise and a sequel could be made faster. But with Xbox at an "all-time low" and major changes underway, the future is uncertain. Will you be picking up E-Day, or are you waiting for Game Pass? Let us know in the comments!
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