Microsoft has confirmed that including games in its Game Pass subscription service will cannibalize sales of these titles.
This information was published by the Competition and Markets Authority (CMA) (via GamesIndustry.biz). If you are interested in the state of the video game industry, you can check out other Gamedaim News.
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Microsoft Confirms Game Pass Cannibalizes Sales
GamesIndustry.biz has reported that the CMA’s interim report on Microsoft’s proposed acquisition of Activision Blizzard includes an admission from Microsoft that including games in its Game Pass subscription service would cannibalize sales of those games.
Microsoft also shared that its internal analysis showed a [redacted]% drop in base game sales twelve months after their addition to Game Pass.Microsoft also shared that its internal analysis showed a [redacted]% drop in base game sales twelve months after their addition to Game Pass.
Competition and Markets Authority
The confirmation contradicts the CEO of Microsoft Gaming, Phil Spencer, who claim in 2018 that Game Pass would boost sales rather than hurt them.
When you include games like Forza Horizon 4 in the Game Pass, you instantly have more players in the game and will increase the sales of the game.
You say, ‘Isn’t everyone just going to subscribe for $10 and play it?’ But no, gamers find something to play based on what others are playing.
Phil Spencer, CEO of Microsoft Gaming
Elsewhere in the report, CMA quoted Microsoft as saying that Activision has a poor view of including its titles in multi-game subscription services on any platform, believing that it “severely cannibalizes B2P [buy-to-play] sales, especially for newer releases”.Elsewhere in the report, CMA quoted Microsoft as saying that Activision has a poor view of including its titles in multi-game subscription services on any platform, believing that it “severely cannibalizes B2P [buy-to-play] sales, especially for newer releases”.
