A claim by Xbox head Phil Spencer that Game Pass would not cannibalize game sales may not be true, according to a report out of the UK stemming from investigations ofMicrosoft’s Activision Blizzard acquisition.Microsofthas released a statement rebutting the report’s findings.
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A provisional report from the UK’s Competition and Market Authority found that the opposite might be true. After analyzing internal Microsoft documents, the CMA found an unspecified percent decline in base game sales in the year following a game’s addition to Game Pass. Eurogamer reached out to Microsoft for further explanation of the CMA’s findings. An Xbox representative countered by suggesting that game creators that make the games available on Game Pass are compensated fairly for their work and are “allowed room for creativity and innovation.” The statement does not directly referenceGame Pass’s impact on overall base game sales.
Xbox Game Pass offers gamers and game creators more choice and opportunity in how they discover, experience, and deliver games. For gamers, that means providing another option for them to discover games and play with friends at a great value. For developers, that means creating another option for how they monetize their games.
We’re focused on helping game creators of all sizes maximize the total financial value they receive through Game Pass. Each game is unique, so we work closely with creators to build a custom program to reflect what they need, ensure they are compensated financially for their participation in the service, and allow room for creativity and innovation. As a result, the number of developers interested in working with Game Pass continues to grow.
Microsoft’s internal documents indicate that Activision was not a big fan of having its games available on Game Pass for this very reason. Should the acquisition deal go through, Spencer has promised that Activision Blizzard games likeDiabloandOverwatchwill be available on Game Pass regardless. The question then becomes whether publishers and developers with games on Game Pass are being compensated well enough to make up for the dip in sales. It should be noted that the data the CMA is working with is from 2018. Things may have since changed. But until data to the contrary arises, it seems Microsoft’s claims do not hold water.
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