Game Pass has proven to be a pretty great deal for gamers, enabling subscribers to access a large library of games, including a number of day-one titles, for a relatively low cost, but the service appears to come at a significant cost for some of the companies involved. As part of a new provisional report from the UK Competition and Markets Authority regarding the Windows maker’s proposed $69 billion merger with Activision Blizzard, Microsoft revealed that it expects titles to see a decline in base game sales for at least a year following their inclusion into Game Pass, an admission that the service isn’t without its problems and cannibalizes sales. Xbox head Phil Spencer claimed in 2018 that Game Pass boosts sales, rather than undermine them.
From a GamesIndustry.biz report:
“Microsoft also submitted that its internal analysis shows a [redacted]% decline in base game sales twelve months following their addition on Game Pass,” the CMA noted in its report.
That confirmation runs counter to claims Xbox head Phil Spencer made in 2018 that Game Pass boosts sales rather than undermines them.
“When you put a game like Forza Horizon 4 on Game Pass, you instantly have more players of the game, which is actually leading to more sales of the game,” Spencer said, adding, “You say, ‘Well isn’t everyone just going to subscribe for $10 and go play this thing?’ But no, gamers find things to play based on what everybody else is playing.”
Elsewhere in the CMA’s report, it cites Microsoft as saying that Activision took a dim view on putting its titles into multi-game subscription services on any platform, believing that “severely cannibalise B2P [buy-to-play] sales, particularly in the case of newer releases.”
Discussion (5 replies)
Join Discussion →I actually just re-upped to GP for $1 to get to a couple of titles I didn't want to shuck out $60. Probably will end up like before tho -- I'll hang on until I burn through those titles, then drop the subscription again for lack of anything to keep me hanging around.
XBGP library is just pretty small unless you are into very specific games (mainly Halo and Minecraft).
It is a loose loose for everyone. Sure it seems appealing while you can pay $1, but at normal rates it quickly adds up. You have ea, ubi, ms, you end up paying $60 / month or more. I'd rather buy the few games I'm interested in. Not to mention the psychological pressure to play to not "waste" the subscription.
I joined again for what will probably be a short stay again, but I do enjoy not shelling out $60 for a game. Anymore there is few demos out to try a game so if GP has it I'd rather pay the $1 and try it out.
Can't be a lose lose since ms is raking in billions, so lose lose win?. I don't have the service ... Yet. Im fine with access payments to large libraries... Be it video, music or games.
I've been consdiering getting an Xbox X using their payment plan thing of 40 bucks a month for 2 years. Have my sister and niece and nephew moving in with my wife and I due to unfortunate life events. Figured it would be nice. Still debating it.