Xbox Attempts To Clarify Its Admission That Game Pass Hurts Sales

Xbox Attempts To Clarify Its Admission That Game Pass Hurts Sales

Xbox has attempted to clarify its position after its own admission that titles launching on Game Pass sell fewer copies in the 12 months after arriving on the platform.

The admission was originally reported by Gamesindustry.biz, specifically a part of the UK Competition and Markets Authority’s provisional report on Microsoft’s acquisition of Activision Blizzard. In that report, Microsoft states quite clearly that, when new games appear on the Game Pass platform, it typically leads to a decline in base sales over the next year.

The admission stood in contrast to comments from Xbox head Phil Spencer in 2018 when he stated that appearing Game Pass led to a lift in sales rather than a decline. Here’s what he said at the time:

“When you put a game like Forza Horizon 4 on Game Pass, you instantly have more players of the game, which is actually leading to more sales of the game,” Spencer said in 2018. “You say, ‘Well isn’t everyone just going to subscribe for $10 and go play this thing?’ But no, gamers find things to play based on what everybody else is playing.”

So, which is it? Are games that arrive on Game Pass making more or less?

Following GI.biz’s report, Eurogamer received a comment from Xbox, in an effort to set the record straight.

“We’re focused on helping game creators of all sizes maximise the total financial value they receive through Game Pass,” a representative told EG. “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.”

You’ll notice that it does not dispute what it told the CMA about fewer game sales, just that Game Pass remains an option for monetisation.

None of this may come as much of a surprise, but it does fill in an interesting part of the Game Pass picture. While a lack of sales may not be detrimental to games coming to the platform later in their lives, it certainly raises questions about Game Pass’s vaunted Day One launches, even among Xbox’s first-party slate.


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