Microsoft, the tech giant behind Xbox Game Pass, has recently admitted that titles entering the service experience a decline in sales in the 12 months following their addition. That’s right: a DECLINE in sales.
This shocking discovery was brought to our attention through a line in the UK Competition and Markets Authority’s provisional report on Microsoft’s attempted Activision Blizzard takeover. According to the report, Microsoft submitted that its internal analysis shows a [redacted] percent drop in base game sales for titles added to Game Pass.
Now, this statement seems to contradict an earlier quote from Xbox boss Phil Spencer in 2018. At the time, Spencer had claimed that titles like Forza Horizon 4 coming to Game Pass actually led to increased sales of the game, not fewer. He had argued that the exposure a game receives through Game Pass results in more players trying out the game and then recommending it to others.
So, what gives? Did circumstances change between 2018 and now? Eurogamer, a well-known gaming publication, reached out to Microsoft for an explanation of the apparent discrepancy. In response, an Xbox spokesperson stated that Game Pass provides gamers and game creators with more choice and opportunity in how they discover, experience, and deliver games. For gamers, this means another option for them to discover games and play with friends at a great value, while for developers, it means another option for how they monetize their games.
Microsoft claims that it works closely with developers to build a custom program to reflect their needs, ensure they are compensated financially for their participation in the service, and allow room for creativity and innovation. Therefore, Game Pass remains an attractive option for developers seeking to release their game within it.
It’s important to note that Microsoft does not dispute the CMA’s claim that Xbox Game Pass leads to fewer sales of a game. However, the company’s statement does raise interesting questions about the impact of Game Pass on titles that launch within it on day one, especially those from Microsoft’s own first-party slate.
This admission is just the latest in a series of revealing statements from Microsoft as it seeks to get its Activision Blizzard deal approved by anti-competition agencies around the world. In October, the company admitted that PlayStation’s user base was “significantly larger” than Xbox’s, even if every Call of Duty player ditched Sony. A month later, Microsoft stated that “many” PlayStation exclusives were “better quality” than those on Xbox.
So, what does all this mean for the future of gaming and for Microsoft’s bid for Activision Blizzard? Only time will tell. But one thing is for sure: the gaming industry is always full of surprises, and we can’t wait to see what happens next!
