
Microsoft has attempted to explain its admission that putting games into Game Pass leads to "cannibalization" of buy-to-play sales and claimed that the number of developers interested in releasing their games on Xbox's subscription service keeps growing.
According to the Competition and Markets Authority's provisional findings report released last week, the Xbox firm acknowledged that the inclusion of games in Game Pass has an adverse effect on the sales of its buy-to-play library.
"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 said.
This admission contradicts the previous statements from Xbox boss Phil Spencer who claimed that Game Pass increases sales rather than undermines them. Eurogamer decided to ask for an explanation of this admission and find out if the situation has changed since Spencer's earlier comments.
Microsoft provided a statement claiming that the advantage of Game Pass for developers is that it offers an additional avenue for monetizing their games. The company noted that it negotiates separately with each studio to discuss fair compensation for releasing their game on Game Pass which will satisfy the developers.
It also added that it is committed to supporting game developers of all sizes and helping them to maximize their financial gain from adding their titles to Game Pass and as a result of this approach, an increasing number of game developers are interested in releasing games on the service.
"We're focused on helping game creators of all sizes maximize the total financial value they receive through Game Pass," Microsoft said. "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."
The company did not retract its earlier statement about the decline in buy-to-pay sales, but at the same time, it made it clear that Game Pass remains a profitable and appealing option for numerous developers.
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