Although it is clear that xbox game pass is a great service for all users, it has also been made clear that this business model is not only not sustainable, but can cause problems in generating income. That is something that even Microsoft has admitted in a recent document.
As part of the recent interim verdict of the UK Competition and Markets Authority, or CMA, on the purchase of Activision Blizzard, a document has been revealed where Microsoft admits that Xbox Game Pass can cannibalize the sale of games. This was what was said about it:
“Microsoft internal documents acknowledge that adding titles to Game Pass could lead to cannibalization of buy-to-play game sales.
Microsoft also claimed that its internal analysis shows a percentage decline in sales of base games 12 months after their addition on Game Pass.
According to Microsoft, in the rare cases where Activision has considered placing its content on MGS services, its standard documents consistently reflect Activision’s view that services, regardless of platform, severely cannibalize B2P sales, especially in the case of the most recent releases”.
Along with this, the CMA document has also pointed out that Activision has a stance against subscription services, since rarely post content to a subscription serviceand they have no plans to offer a platform similar to Xbox Game Pass.
Thus, both Microsoft and Activision have indicated that services like Xbox Game Pass cannibalize the market. On related topics, these are the games coming to Xbox Game Pass. Likewise, these are the games that leave the service.
Editor’s Note:
Services like Xbox Game Pass are good, and they offer new opportunities. However, launching games day one on these types of services can be counterproductive. Like Sony, the focus should be on giving certain games a second life.
Via: CMA
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