Microsoft will continue providing employees with free Xbox Game Pass Ultimate subscriptions, a reversal initiated by a fan-favorite figure in Phil Spencer. This decision comes after Microsoft had previously announced no less than 24 hours earlier that it would start revoking this privilege, a move that was quickly met with widespread disappointment among the company’s 238,000 employees and pretty much the entire internet.
The Xbox Game Pass Ultimate, a premium subscription service launched in 2019, has been an integral part of Microsoft employees’ benefits, allowing them free access to a wide array of games. This perk, enjoyed by the employees since its inception, was under threat as Microsoft planned to remove it from most of their compensation packages in January. It led to a flurry of complaints from employees who felt aggrieved by the prospective loss of such a valued benefit.
Phil Spencer, who was seemingly unaware of the initial plan to scrap the Game Pass Ultimate benefit, acted swiftly upon learning of the discontent this decision had caused. His intervention was crucial. He took to the company’s internal Viva platform, assuring employees that the benefit would not be revoked: “After looking into this more with the team, I just want to confirm that no change will be made to Game Pass availability in 2024. If you have access to the Game Pass offer today you will continue to have access. I appreciate the time to get up to speed and sorry for the questions and confusion created. And thanks for supporting Xbox.”
This change of heart by Microsoft, as reported by The Verge, is a massive win for the company, especially for the Xbox chief. It’s proof that, for as long as he’s in position, the company will listen and respond to its workforce’s concerns.
Amidst a landscape where several prominent gaming companies have implemented brutal layoffs, including Microsoft, its decision to maintain employee benefits stands out as an unequivocally positive action. However, it’s worth noting that this positive turn of events wouldn’t have been necessary had the company not initially planned to revoke it in the first place.
The reversal by Microsoft is a strategic decision that extends beyond mere employee satisfaction. Having a workforce engaged with the product they’re working on is invaluable. As such, the $15 monthly value of the Game Pass Ultimate subscription is a small price to pay for a well-informed and motivated workforce. Moreover, with the sheer number of Microsoft employees, the potential for them to advocate and recommend the product can be significantly more beneficial than the cost of providing the service for free.
Phil Spencer’s move to overturn the decision is both a triumph for employee morale and a shrewd business maneuver. By listening to the workforce and acting decisively, Spencer has not only bolstered his reputation but has also enhanced Microsoft’s image as a company that values its employees’ welfare. This incident highlights the importance of having an open communication channel within an organization and the significant impact of executive leadership in shaping company culture and employee satisfaction.
Spencer’s leadership, in this case, not only reversed a decision that could have had a negative impact on morale but also reinforced the value Microsoft places on its employees’ well-being.
Unfortunately, it does raise concerns about what will happen once the inevitable comes and Phil Spencer is no longer at the helm. At the moment, the long-time Xbox figurehead currently serves as the CEO of Microsoft Gaming.
Xbox recently welcomed a massive lineup of games to the Game Pass for the first half of November.
