[GI biz] Microsoft confirms Game Pass cannibalizes sales

[Quad Damage 1,742]

https://www.gamesindustry.biz/microsoft-confirms-game-pass-cannibalizes-sales

 

 

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The UK Competition and Markets Authority's provisional report on the Microsoft-Activision Blizzard acquisition includes an admission from Microsoft that putting games into its Game Pass subscription service cannibalizes sales of those titles.

 

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"Microsoft also submitted that its internal analysis shows a [redacted]% decline in base game sales twelve months following their addition on Game Pass," the CMA noted in its report.

That confirmation runs counter to claims Xbox head Phil Spencer made in 2018 that Game Pass boosts sales rather than undermines them.

 

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Elsewhere in the CMA's report, it cites Microsoft as saying that Activision took a dim view on putting its titles into multi-game subscription services on any platform, believing that "severely cannibalise B2P [buy-to-play] sales, particularly in the case of newer releases."

 

 

 philocchio strikes again 

Edited February 13, 2023 by Quad Damage

[Goukosan 2,258]

No shit, only stupid lemmings believed gamepass would increase sales. 

[Cell 427]

Philocchio 

 

Seriously though anyone who thought otherwise was kidding themselves. Just look what iTunes and later Spotify did to the music industry and in particular brick and motor shops which only sold physical content. But Phil thinks people are going to pay for gaypass and then go out and buy the games which release on gaypass full price. Ok. 
 

 

[FIREPOWER 736]

 

 Philnocchio is on a roll.

[Mr. House 3,371]

45 minutes ago, Goukosan said:

No shit, only stupid lemmings believed gamepass would increase sales. 

 

[sugarhigh 519]

2 hours ago, Ramza said:

 

They refer to these games as "free" and then say it doesn't hurt sales.

[kaz 2,440]

hobopass enjoyer masterrace 

[Playstation Tablet 1,732]

The issue isn't that gamepass eats away at sales of games on gamepass itself. It eats away at game sales period since the retarded userbase has been taught to avoid buying games.

[FIREPOWER 736]

1 hour ago, Team 2019 said:

The issue isn't that gamepass eats away at sales of games on gamepass itself. It eats away at game sales period since the retarded userbase has been taught to avoid buying games.

This is exactly what I was trying to warn retards like Ghostz and Lemij about.

 

Microsoft has ended up killing retail software sales on their platform. Sony doesn't even need to pay AAA devs to leave Xbox at this point.

AAA publishers will see Xbox dwindling sales and decide to make their games exclusive to PS. it's already happening with Japanese publishers like Square Enix.

 

Only a matter of time before Western AAA publishers jump ship too 

[Playstation Tablet 1,732]

46 minutes ago, FIREPOWER said:

This is exactly what I was trying to warn retards like Ghostz and Lemij about.

 

Microsoft has ended up killing retail software sales on their platform. Sony doesn't even need to pay AAA devs to leave Xbox at this point.

AAA publishers will see Xbox dwindling sales and decide to make their games exclusive to PS. it's already happening with Japanese publishers like Square Enix.

 

Only a matter of time before Western AAA publishers jump ship too 

Motherfuckers bashing buying Octopath Traveller 2 while being happy to rent an annual Madden game. Original sold millions on Switch.

Edited February 15, 2023 by Team 2019

[Twinblade★ 3,937]

This is a no brainer but MS is likely paying publishers enough for their games to launch on gamepass that they aren’t too concerned about the sales they end up losing. 
 

But there should probably be some incentive for subscribers to buy those games though. Maybe they would b eligible for a discount on them, and in addition to that those purchasers would also get some exclusive dlc.

[jehurey 3,273]

1 hour ago, Twinblade said:

This is a no brainer but MS is likely paying publishers enough for their games to launch on gamepass that they aren’t too concerned about the sales they end up losing. 
 

But there should probably be some incentive for subscribers to buy those games though. Maybe they would b eligible for a discount on them, and in addition to that those purchasers would also get some exclusive dlc.

they do have such discounts.

 

.....and, when analyzed over the medium or long term, these games never seem to fully recover with their full retail sales.

 

There is no long-term studies on this, so we don't know if third-party publishers still feel the same about GamePass.

 

But I do know that Activision didn't bother to work out any deal, prior to getting bought out.

 

We really don't know how the EA and Ubisoft partnerships are fairing on GamePass.

 

But you need to understand, since the very beginning, we've been asking questions that TRULY ASK: "how much money is Microsoft actually generating from GamePass?"

 

Because, none of us actually believe that this service is making huge money. Microsoft is just eating the loss, and paying out developers, because they're trying to bottom-out the market.

 

https://twitter.com/Perlrulez/status/1625235919317110785?ref_src=twsrc^tfw|twcamp^tweetembed|twterm^1625235919317110785|twgr^|twcon^s1_c10&ref_url=

Edited February 15, 2023 by jehurey

[Cooke 2,033]

No shit