Game Pass causes some titles to lose 80% of sales

summary

• Many games on Xbox Game Pass stand to lose up to 80% of their potential earnings.
• Many of the AAA games that are losing revenue could be games that Xbox acquired to be playable on Game Pass.
• Despite these losses, Game Pass has proven to be a great service for titles like indie games.

Without a doubt, Xbox Game Pass It became one of the best deals in gaming, so much so that it allowed Microsoft to change its offerings Focus of keyboards Instead create an ecosystem where anything, from your computer to your mobile phone, can… It could be an Xbox.

but, With some games launching on day one on Game Pass, one might wonder how Microsoft makes up for the cost of lost sales. As it turns out, similar to how Free Epic Games titles If you’re digging a moat of debt, Microsoft is also losing a significant amount of revenue with Game Pass.

Business journalist Christopher Dring, an industry expert and former president of gamesIndustry.biz, explained in an article Online Q&A Exactly what the Game Pass business model could involve and how Some titles are expected to lose up to 80% of their profits.

The general trends of the gaming industry have declined

The industry, as a whole, is on its way Huge slopeDring helps explain how profits and statistics can change as the market continues on its course Cloud gaming and subscription services. Plus, there are still plenty of reasons why subscriptions are good for gaming.

First, although Dring explains that “games on Game Pass can expect to lose about 80% of their expected premium sales on Xbox,” he also explains how this statistic is well understood within the industry.

It is important to note that many of the huge titles released on Game Pass, e.g Indiana Jones and the Grand Circlecreated by companies like Bethesda, which It was bought by Microsoft previously. A big motivation behind these acquisitions was the potential upgrade to Game Pass.

So Game Pass is not only leaking profits from other gaming companies, but from Microsoft itself. Not to mention existing Packed on Game Pass It allows potential customers to try your product when they wouldn’t otherwise.

And at least Microsoft has more stability with people playing on separate platforms like mobile and PC. Compare this with Sony, which, according to Dring, “is a little concerned that it still has such a large audience to upgrade from the PS4.”

The focus on gaming has created an excellent incentive for Microsoft to capture the market from a different angle. Dring also makes a good point that despite the profits leaking, Game Pass’s huge audience could then shift attention away from standard AAA releases.

Indie potential in Game Pass

Although the biggest news is always what mega title will be announced for Game Pass next, e.g Call of Duty Black Ops 6which brought huge Quantity of new arrivals To serve, there are a whole host of other experiences to play on the platform.

Microsoft is not new to supporting independent developers, with games like Ori and the Blind Forest and Cup head Previously published by Microsoft Game Studios. As Dring explains, having these titles on Game Pass could be a huge success for these small games.

“Trying to be an indie game on Xbox right now that’s not on Game Pass,” Dring asked, because it’s clear that the service could be a big way for indie games to reach an audience without having to deal with other online platforms like Steam. .

We know from the data that there are a lot of people who only play Call of Duty. And if some of those people decide to get Call of Duty this year via Game Pass, and those same people take the opportunity to play some other Game Pass games, games they wouldn’t have played otherwise… it’s hard to say that’s a bad thing. something.

It’s hard to choose between them, given the accessibility of Game Pass and Other platforms It can achieve a significant increase in audience numbers, which is key considering how much the casual gaming market has grown in recent years.

But with some games losing up to 80%, companies may end up asking themselves: “Should this really be acceptable?” Although multi-platform versions still allow for massive consolidated profits, they still represent a significant chunk of change.

As Dring put it, it really is a fine line, and on each side there is a slope to choose between. Sure, many of us may be reaping the benefits of subscription services and cloud streaming, but who knows what that could bring for the future of gaming.