Microsoft admits Xbox Game Pass screwed up game sales

For a while, Microsoft thought Game Pass was boosting regular game sales. In the latest report, however, Microsoft acknowledged that putting games on the Xbox Game Pass subscription service resulted in a significant drop in core sales.

Xbox Game Pass drops game sales

The UK Competition and Markets Authority (CMA) had come to the tentative conclusion that Microsoft’s acquisition of Activision could hurt players in the UK. Government monitors highlighted the downside of the deal, noting specifically the potential for higher prices, fewer options and less innovation. The report created by CMA revealed important information for Game Pass.

In the 277-page document, Microsoft states that there has been a drastic drop in core game sales for twelve months after its addition to Game Pass. Actually, this correlation is quite logical because if a game is on Game Pass, players usually don’t go and buy the full version of the game. But Microsoft thought the opposite in 2018.

In an interview in 2018, Xbox boss Phil Spencer said that owning games on Game Pass improves game sales. On the other hand, Microsoft’s acquisition of Activision is under scrutiny by regulatory agencies. This purchasing plan is being studied intensively on both the US and European sides. If we interpret the latest situation, we can say that the Microsoft/Activision agreement is wobbly at best. Although CMA has not made its final decision, it seems that the parties will be advised to cancel the purchase.