The Potential Consequences of a Game Pass Dominated Industry

The UK's Competition and Markets Authority (CMA) investigation into Microsoft's acquisition of Activision Blizzard has revealed that Game Pass can decrease a game's sales for at least a year. While this may not be surprising, it contradicts Microsoft's previous statements on the matter. The company initially claimed that Game Pass would boost sales by increasing visibility and word-of-mouth, but it now acknowledges the negative impact on paid sales. This shift in perspective has significant implications for the industry, particularly for third-party publishers who may find themselves struggling to maintain a direct relationship with consumers in a subscription-based model. The dominance of Game Pass could lead to a monopsony, where publishers are forced to rely on a single platform, potentially squeezing their margins and limiting their ability to connect with consumers. As the industry continues to evolve, it is crucial to consider the potential consequences of a Game Pass dominated landscape and the impact it may have on various stakeholders, including publishers, developers, and consumers.