Xbox Game Pass Impact: How Multiplatform Strategy and Sales Losses Shape Microsoft's Approach

Xbox Game Pass Impact: How Multiplatform Strategy and Sales Losses Shape Microsoft's Approach

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A new Q&A from former GamesIndustry.biz reporter Chris Dring has recently been published, revealing some potentially concerning insights about Xbox Game Pass and its impact on game sales.
Dring highlights that, although the numbers can vary depending on the game, a general "anecdotal" trend suggests that titles on Xbox Game Pass can experience a significant drop in expected premium sales—around 80%. He goes on to explain that, for Microsoft, it can actually be advantageous to release these games on multiple platforms. The buzz generated by a big Game Pass title can often drive interest and boost sales on other platforms as well.
While this may not come as entirely new information, the specific figure of 80% stands out. It could shed light on why Microsoft has doubled down on its multiplatform strategy. With the rising costs of game development, especially for high-budget titles like Call of Duty, this approach allows Xbox Game Pass to keep subscribers engaged and excited, while other platforms like PS5 can contribute crucial sales revenue.
It’s worth noting that for third-party games on Xbox Game Pass, Microsoft compensates publishers for bringing their titles to the service, which helps mitigate the loss in sales. These agreements can potentially involve millions of dollars!
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