Microsoft confirms that Xbox Game Pass hurts game sales
Internal analysis shows a sales decrease after games come to Xbox Game Pass.
While Xbox Game Pass is often touted as an excellent subscription service for gamers on Xbox and PC, it’s not without its drawbacks. Although it means easier access to games for players at a lower price, it also means that less players are buying games to own. It’s something that Microsoft has now officially acknowledged, revealing data that confirms game sales decrease after they are added to Xbox Game Pass.
As a result of the UK Competition and Markets Authority’s investigation into Microsoft’s acquisition of Activision Blizzard, it was revealed that Microsoft has data that shows the negative impact that Xbox Game Pass has on game sales. "Microsoft also submitted that its internal analysis shows a [redacted]% decline in base game sales twelve months following their addition on Game Pass.”
Source: Microsoft
After the information got out, a Microsoft spokesperson provided a quote to Eurogamer, clarifying the situation. "Xbox Game Pass offers gamers and game creators more choice and opportunity in how they discover, experience, and deliver games," the spokesperson told the outlet. "For gamers, that means providing another option for them to discover games and play with friends at a great value. For developers, that means creating another option for how they monetise their games.”
The quote seemingly implies that developers can make additional money on their games from in-game purchases. In 2018, Xbox boss Phil Spencer said that being on Game Pass can actually improve a game’s sales.
Microsoft did not deny the information found in the CMA’s report. While it’s been speculated for years now that players are less likely to buy a game outright when it’s available on Xbox Game Pass, it’s pretty significant to get confirmation on Microsoft’s behalf. As we await the eventual resolution of Microsoft’s attempt to acquire Activision Blizzard, count on Shacknews for any necessary updates.
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