Since 2013

Search

Search

Xbox Reported To Lose 80% In Premium Sales For First-Party Releases On Game Pass

In the ongoing restructure of the Xbox business model, one thing for certain is the emphasis on Xbox Game Pass. With the fall release for Call of Duty: Black Ops 6, the service is anticipated to generate over one million subscribers. And although there has yet to be a number on the user count, the service is also projected to generate over $5.5 billion sometime in 2025 also.

As for the counterbalances of Game Pass, it is hard to overlook. In one report, the service is seen to cannibalize titles on its service. In a separate report, sales thanks to the subscription overshadowing premium sales also paints a negative connotation for the platform from many developers as well outside of Xbox Game Pass. Despite that, the firm does report to be in the green for its software/services in earnings report though.

But how much does this affect Xbox first-party releases? According to gamesindustry.biz head Christopher Dring, the amount that Microsoft sacrifices is more than half it would see in premium sales. Roughly 80 percent in sales is instead utilized for its subscription.

“Anecdotally, games that are in Game Pass can expect to lose around 80% of its expected premium sales on Xbox. That’s the figure that gets thrown around. It’s less if it’s a big mainstream release, but generally… look at how low Hellblade 2 charted. Or where Indiana Jones came. Or even Starfield. Game Pass clearly hurt sales of those titles on Xbox.”

Dring also added the hindrance for smaller developers trying to releases it titles on the platform thanks to the shadow casted by Game Pass. “I am actually torn on subscription. I believe it can lead to lost revenue, and services like this make it harder for everyone else. Try being an indie game on Xbox right now that’s not on Game Pass…”

And this is clearly apparent in recent time despite the ongoing ID@Xbox program. Previously, it was reported that the gold rush of Xbox Game Pass/Epic Games Store promotions for smaller studios has entirely dried up as of late. You can read the full report by heading here.

Do you think Xbox is operating in its best favor with the Game Pass model?

Source: InstallBase

Share Everywhere!
RELATED ARTICLES