In recent years, the gaming industry has seen a shift towards subscription services, with Microsoft’s Game Pass being a popular choice for many gamers. However, a new report from the UK’s Competition and Markets Authority reveals that Game Pass might not be as beneficial for game sales as previously thought.
The report states that Microsoft has admitted that Game Pass has a significant impact on the actual sales figures of games that are added to the service. Microsoft’s internal analysis shows that there is a [redacted]% decline in base game sales for 12 months following a game’s addition to Game Pass. This means that for a year after a game’s launch on Game Pass, it sees a dip in sales on Xbox platforms, which contradicts earlier comments made by Phil Spencer, who claimed that Game Pass was leading to more game sales.
Interestingly, the report also reveals that Activision has expressed concern about including its games on subscription services, as doing so could cannibalize buy-to-play sales, particularly for newer releases. This shows that Game Pass’s impact on game sales is not limited to Microsoft’s first-party titles, but also extends to third-party publishers.
In contrast, Sony has taken a more cautious approach when it comes to subscription services, particularly for its own, first-party titles. The company has opted for a more traditional premium release method, and this has been working out well for them, with record-breaking sales for games like God of War Ragnarok and others. PlayStation boss Jim Ryan has been vocal about his thoughts on the matter, and with this revelation from Microsoft, it seems he may have been right.
This report is part of the ongoing regulatory review of Microsoft’s acquisition of Activision Blizzard. Regulators in the UK and USA are concerned that the $69 billion deal will have too large an impact on the industry, potentially harming Xbox’s competitors. The revelation that Game Pass has a significant impact on game sales figures may give regulators more reason to scrutinize the deal further.
In conclusion, while Game Pass has been a popular subscription service among gamers, its impact on game sales figures is becoming a concern. The report reveals that Game Pass can lead to a decline in sales for 12 months following a game’s addition to the service, which is a significant factor for game publishers and developers. While Phil Spencer’s earlier comments suggested that Game Pass was leading to more game sales, Microsoft’s admission contradicts that claim.
The report also highlights that third-party publishers like Activision are wary of including their games on subscription services, as they fear it could cannibalize their buy-to-play sales. In contrast, Sony’s cautious approach of releasing first-party titles via a more traditional premium method has been successful, with impressive sales figures for games like God of War Ragnarok. This shows that the traditional release model still has a place in the industry, even with the rise of subscription services.
Finally, the report is part of the regulatory review of Microsoft’s acquisition of Activision Blizzard. Regulators are concerned about the deal’s potential impact on the industry and Xbox’s competitors. The revelation that Game Pass has a significant impact on game sales figures may give regulators more reason to scrutinize the deal further. Overall, while subscription services have their benefits, the impact of Game Pass on the sales of games added to the service is becoming a topic of concern for game publishers and industry regulators.