xbox game pass microsoft statement

Microsoft Releases Statement on Xbox Game Pass Sales Cannibalization

After a report stated yesterday that Xbox Game Pass actually does cannibalize video game sales, Microsoft has revealed a full statement on the matter to try and explain previous seemingly contradictory statements by Phil Spencer himself.

Microsoft says that Xbox Game Pass maximizes financial value

While Microsoft has in the past claimed that Xbox Game Pass is all-around a good thing for developers, this doesn’t seem to be the case as shown in a UK Competition and Markets Authority report, which revealed a lack of video game sales as a result of Game Pass. However, Microsoft is looking to quash the talk around the service and definitively state that Game Pass is overall a benefit for the company.

Microsoft commented to Kotaku on the news story from yesterday, stating the following:

“…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.”

While this statement is in direct response to the news from the CPA’s report on the Activision-Blizzard acquisition, it fails to actually deny any of the details in that report. The report confirmed that game sales declined after a game was added to Xbox Game Pass, which is in contrast to previous statements by Phil Spencer that insist a game being placed on the service actually increases sales overall, rather than causing a reduction in overall sales. Nothing in the statement actually contradicts this report, which may show that the CPA’s report is accurate.

In recent news, Sony is reportedly developing a set of PS5 gaming headphones, and Gran Turismo 7 VR has received an update in preparation for the launch of the PSVR2.

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