Microsoft Issues Comment on Xbox Game Pass Cannibalizing Game Sales
A claim by Xbox head Phil Spencer that Game Pass would not cannibalize game sales may not be true, according to a report out of the UK stemming from investigations of Microsoft’s Activision Blizzard acquisition. Microsoft has released a statement rebutting the report’s findings.
Game Pass is Microsoft’s video game subscription service, often referred to as the “Netflix of gaming.” In 2018, soon after Game Pass launched, CEO of Microsoft Gaming Phil Spencer claimed that Game Pass would increase sales of games that are available both on Game Pass and sold at traditional retailers. Spencer theorized that word-of-mouth about a game available on Game Pass would influence players who are not subscribed to the service, leading to increased sales from non-Game Pass players.
Tunic Publisher Has Some Concerns About Subscription Services
A provisional report from the UK’s Competition and Market Authority found that the opposite might be true. After analyzing internal Microsoft documents, the CMA found an unspecified percent decline in base game sales in the year following a game’s addition to Game Pass. Eurogamer reached out to Microsoft for further explanation of the CMA’s findings. An Xbox representative countered by suggesting that game creators that make the games available on Game Pass are compensated fairly for their work and are “allowed room for creativity and innovation.” The statement does not directly reference Game Pass’s impact on overall base game sales.
Soon after Game Pass launched in 2017, some wondered if a subscription model would hinder traditional game sales, as it seemed impossible that it couldn’t. When a game is made available as a part of a service with millions of subscribers who all have instant access to a
Read more on gamerant.com
