One of the largest arguments on behalf of Xbox Game Pass and still stands is the amount of value the service is for subscribers. The number of titles, countless additions, perks & benefits equals out the amount you pay per month. But, how harmful can it be for Microsoft and even publishers? In a previous statement, it was revealed roughly 90 percent of users would explore new games through the service they normally wouldn’t if not subscribed.
Additionally, arguments were tossed in considering the amount of users subscribed would certainly damage sales for games on an entire ecosystem compared to traditional sales. Even questions circulated asked if the service is even profitable. While Microsoft Gaming CEO Phil Spencer says it’s just making it is profitability, reports are now surfacing that Xbox Game Pass is ‘cannibalizing’ games.
From a recent report by the U.K. Competition and Markets Authority (CMA), Microsoft shares that games do face a downfall as a response to being featured on Xbox Game Pass, gamesindustry.biz transcribes. “Microsoft also submitted that its internal analysis shows a [redacted]% decline in base game sales twelve months following their addition on Game Pass.”
Similarly, the CMA-released report also pressed on the entity’s stance on the deal for Microsoft’s advancements in acquiring Activision Blizzard. The question that stands is how could the deal be processed. In conclusion, the firm believes Microsoft is in a bad position for fair competition with Xbox Cloud Gaming. The argument continues that the deal would be allowed to pass if Call of Duty is left out of the legal discourse.
More on the losses Microsoft is responsible for regarding Xbox, Spencer did reveal Microsoft is also at a loss of roughly $200 per console this generation. Speaking during the Wall Street Journal TechLive event this fall, it is revealed that Microsoft recoups in sales and services following each unit sold. You can read the full report by heading here.
Are you surprised by the new report on Xbox Game Pass?
