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Category:
News
Platform: Xbox
Tier 1

Thanks to Xbox Game Pass, players are gaming more but buying less, notes Microsoft

Good for consumers, but is it good for developers?
Image of Matthew Fuller
Matthew Fuller
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Published: Feb 13, 2023 11:22 am

Since it was first released in 2017, Xbox Game Pass has continued to be a hugely popular service for players to enjoy some of the biggest and best games Xbox has to offer. However, developers may not be as enthusiastic as players about the service going forward, as it’s been revealed that putting games onto Xbox Game Pass has a noticeable effect on game sales, essentially eating into those titles’ revenue.

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Related: UK’s CMA deals major blow to Microsoft’s Activision Blizzard deal

This information comes via the UK Competition and Markets Authority (CMA), which recently released a provisional report regarding Microsoft’s attempt to purchase Activision Blizzard. The report states that Microsoft submitted its internal analysis for the report and admitted that games on the service had a decline in base game sales in the twelve months following their addition to Game Pass. However, the exact number has been redacted. In essence, this backs up the idea that developers will lose money and potential full retail sales of their games due to the cheaper and more convenient option of Xbox Game Pass.

Elsewhere in this report, it details Activision Blizzard’s rather dim view on putting its own titles like Call of Duty and Overwatch on the service, or any game subscription service for that matter, citing the same belief that it would “severely cannibalise B2P [buy-to-play] sales, particularly in the case of newer releases.”

Related: Bobby’s going nowhere if the Activision Blizzard deal fails according to new reports

This is all part of the ongoing back-and-forth between the two companies and multiple regulators regarding the proposed $69 billion deal for Microsoft to purchase Activision Blizzard. Since its announcement, there have been numerous setbacks and roadblocks to the deal with regulators, including the CMA, being opposed to the deal and either attempting to block it, filing lawsuits, or offering concessions before approval, such as a guarantee that Call of Duty would remain on PlayStation systems for at least ten years.

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Author
Image of Matthew Fuller
Matthew Fuller
Matt is a freelance writer based in the UK and has spent over three years covering and writing about video games. He discovered his love of games journalism while attending Canterbury Christchurch University, where he earned a bachelor's and master's degree in Game Design and has been writing ever since. He will find any excuse to play and write about games. When he isn't fighting dragons or exploring far-off galaxies, he spends his free time playing D&D, listening to music, or reading a good book. His primary game bests are Diablo IV, the Final Fantasy series, D&D, and anything new releasing that tickles his fancy.
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