Xbox Clarifies Its Own Admission That Game Pass Cannibalizes Some Game Sales
Microsoft has clarified its own admission that putting games into Xbox Game Pass can, in some cases, lead to a decrease in sales. Responding to the many headlines recently about the cannibalization effect for Game Pass releases, Microsoft shed some further light on the matter.
In a statement to GameSpot, a Microsoft spokesperson said Microsoft tries to help game developers make the most money they possibly can through Game Pass. As such, Microsoft cuts deals with developers and publishers on a title-by-title basis, the terms of which are not made public and are presumably not consistent across the board. In its statement, Microsoft didn't comment specifically on any cannibalization effect, but it also didn't say this never happens.
Given the size and scale of Xbox Game Pass, the custom financial arrangements for each game, and all manner of other potential contributing factors, it certainly seems that some Xbox Game Pass titles would see their full-game sales affected by being included in Game Pass. In other cases, however, game sales may grow over time thanks to being included in Game Pass.
Microsoft submitted to the UK's Competition & Markets Authority that a certain percentage (that was redacted) of base game sales decline 12 months after being added to Game Pass.
«We're focused on helping game creators of all sizes maximize the total financial value they receive through Game Pass,» a Microsoft spokesperson said. Each game is unique, so we work closely with creators to build a custom program to reflect what they need, ensure they are compensated financially for their participation in the service, and allow room for creativity and innovation. As a result, the number of developers interested in working with Game Pass
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