Microsoft Admits Xbox Game Pass ‘Cannibalizes’ Game Sales
Microsoft has stated that its aware the Xbox Game Pass subscription service potentially “cannibalizes” regular game sales. While Xbox Game Pass has missed its subscriber goal for two years in a row, the service has still proven to be incredibly popular and successful among fans of Microsoft hardware. It allows gamers to play on console, PC, or mobile at will, with progress saved to the Xbox Cloud and generally accessible from any platform.
In January 2022, Microsoft announced its planned acquisition of Activision Blizzard for $68 billion. This inevitably gave rise to controversy, not only among gamers concerned about the future availability of their favorite franchises, but also among government bodies that regulate anti-competitive behavior. One of these regulatory agencies is the UK’s Competition and Markets Authority (CMA), which thus far doesn’t seem strongly inclined to allow the Activision Blizzard deal to go through.
Rumor: Xbox Game Pass Could Be Adding Another Atlus RPG
In response, Microsoft has been providing documentation to defend its right to acquire Activision Blizzard, and the CMA has released occasional updates about its ongoing investigation. In one of the latest CMA reports, which was made available on February 8, it was revealed that Microsoft’s own internal documents admit that Xbox Game Pass “would lead to the cannibalization of B2P sales,” B2P meaning Buy-to-Play or games purchased the traditional way.
The significance of this statement, according to the CMA report, is that Microsoft’s subscription-based services like Xbox Game Pass and Xbox Live Gold may lead to a decrease in Activision’s regular game sales, which are currently a key source of revenue for the publishing giant. Activision has
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