Microsoft admits that Game Pass hurts revenue

[edgamer]

The UK Competition and Markets Authority's provisional report on the Microsoft-Activision Blizzard acquisition includes an admission from Microsoft that putting games into its Game Pass subscription service cannibalizes sales of those titles.

"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.

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."

Microsoft confirms Game Pass cannibalizes sales

The UK Competition and Markets Authority's provisional report on the Microsoft-Activision Blizzard acquisition includes…

www.gamesindustry.biz

 

[Jerry]

I guess this is expected right? As Game Pass subscriptions rises at Xbox eco system of course people will tend to buy less the games that are on service. But for those who wants it on other platforms actually it can increase. It happened with Hi Fi Rush, the game sold very well on Steam.

 

[PGen98]

Yeah, it's a pretty understandable risk when more people buy into game pass, it makes those games less appealing to buy when you can just play them on Game Pass. I know I use and love it as a service, it's fantastic for me since I can't afford new games these days.

 

[BigPete7978]

I mean I don’t see why it wouldn’t. Well with first party sales specifically. Other games it might help with purchases in some instances.

 

[JamesSoft]

I guess this is expected right? As Game Pass subscriptions rises at Xbox eco system of course people will tend to buy less the games that are on service. But for those who wants it on other platforms actually it can increase. It happened with Hi Fi Rush, the game sold very well on Steam.

I agree that the rise of Game Pass subscriptions is likely to have an impact on game sales. On the one hand, it's likely that fewer people will buy games that are available on Game Pass.

 

[Shagger]

I couldn't care less about the financial woes of multi-billion cooperations than don't know nor care that I exist. Gamepass hurts sales, whoop-de-do, I don't care. What matters to me is gamers getting a fair deal, wether it be through subscriptions or game sales.