Microsoft Admits Game Pass Negatively Impacts Game Sales

A recent report from the UK's Competition and Markets Authority contains a statement from Microsoft acknowledging that adding games to its Game Pass subscription service results in a decline in sales for those titles. According to the report, Microsoft's internal analysis indicates a decline of [redacted]% in base game sales within twelve months of a game being added to Game Pass. This finding contradicts a 2018 statement by Xbox head Phil Spencer, who claimed that Game Pass actually increases game sales. Spencer had argued that including popular games like Forza Horizon 4 in Game Pass would attract more players, leading to higher sales. However, the report also mentions that Activision had expressed concerns about including its games in subscription services, believing it would significantly reduce sales, especially for new releases.