Since the launch of Xbox Game Pass, a persistent question has remained – does it help or hurt games sales? Game Pass is a success for Microsoft, as the money they make from all those subscriptions almost certainly makes up for any loss of first-party game sales, but what about the individual publishers that put their games on the service? Are they hurting their bottom line?
Well, according to the NPD Group’s Mat Piscatella, the answer is, for the most part, no. Putting a title on Game Pass can amplify consumer excitement and sales, but only if the game is received well. If your game isn’t so hot, or perhaps just has a weak launch, Game Pass can cut the opposite way, amplifying negative sentiment and damaging sales.
Data still suggest that subscription services like Game Pass are helping grow the overall market. Consumer response to games on these services appear to be amplified, which can help boost traditional purchasing of participating games across all the platforms they appear on.
— Mat Piscatella (@MatPiscatella) December 14, 2021
Potential downside is if a game is poorly received on the service. That sentiment also appears to be amplified, which can weigh sales down. Overall though, these services appear to be a net positive, and can be a valuable part of a successful go to market strategy.
— Mat Piscatella (@MatPiscatella) December 14, 2021
Traditional purchasing isn’t going anywhere. And it’s totally fine as an individual consumer to not want to subscribe to a service. You do you.
— Mat Piscatella (@MatPiscatella) December 14, 2021
So yes, Xbox Game Pass can be a powerful tool, but only if you use it properly. Forza Horizon 5 just set a launch month sales record for the franchise despite being a Day 1 Game Pass release. Meanwhile, some other Game Pass releases, like Square Enix’s Outriders, seemingly haven’t turned out so well. I think the day when a Game Pass release makes sense for all, or even most, games is still some ways away.
What are your thoughts on all this? Does a game releasing on Xbox Game Pass change your perception or buying habits?
