The comedian Adam Conover recently lashed out Microsoft, Xbox Game Pass andacquisition of Activision Blizzard judging them as enormous dangers potential for the gaming market in general, in a video on TikTok that went viral within hours.
The comedian of “Adam the Teaser”, a program staged in 2015 and 2016, claims that the acquisition of Activision Blizzard, but in general the whole structure set up by Microsoft with Xbox Game Pass, is a great danger for the entire gaming industry because the company’s immense funds would allow it to distribute games to a cost too lower than the standards.
Basically, according to Conover, Xbox Game Pass with its 9.99 euros per month offers a price too low compared to production costs demanded by current games and is a distribution system that can only be supported by Microsoft because it is confidently able to absorb its losses. All this, according to him, would throttle competition, however, because it would represent an offer that others cannot replicate.
It would therefore be a strategy in line with those adopted by Amazon, which is so large as to allow itself to offer much lower costs than its competitors through an “undercut” procedure of the opponents, namely Sony and Nintendo, because Microsoft would not need to obtain money from Xbox Game Pass as opposed to others, who instead have to continue selling games for 70 or 80 euros to meet production costs.
The video spread extremely fast starting from Tiktok and then on Twitter and Reddit, causing some discussion. Although some points raised by Conover are shared by many, several other aspects are somewhat dubious.
An example comes from The Verge’s Tom Warren response: “There are reasons why it’s okay to be concerned about subscription-based services like Xbox Game Pass, but the basic idea that Microsoft doesn’t have to worry about make profits with his video game business is … “and a couple of emoticons expressing some perplexity.
Likewise, many other commentators have raised doubts that the strategy of betting everything on losses makes sense, considering that Microsoft still has to answer to shareholders. Furthermore, the idea that a service at an affordable cost for users should be considered a threat, even in the face of a price increase proposed by others, is also somewhat debated.
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