Study confirms Xbox Game Pass games hurt sales of AAA titles, as PlayStation gamers remain loyal

One goal of Xbox Game Pass is to keep players invested in the Microsoft Gaming ecosystem. However, according to a Newzoo study discussed on a Game Wise podcast, subscribers aren’t spending as many hours as expected using the service. Gamers furiously sample and abandon Xbox Game Pass games, which also curtails potential sales.

The discussion involved how the gaming habits of Xbox and PlayStation users differ. Even with more titles available on Game Pass for a monthly rate, subscribers are limiting their playtime. Players quickly skim through the catalog until they find a compelling choice. Without a more serious investment, gamers are less likely to overlook faults they perceive early on.

Also, Newzoo assessed the effect of Game Pass subscriptions on conventional game sales. Using Call of Duty: Black Ops 6 as an example, Xbox fans bought fewer copies of the shooter than they did with previous games in the series. On the other hand, indie and AA releases may be less affected. Many gamers were unlikely to discover these projects without exposure on Microsoft’s service.

The PS5 is another reason not to use Xbox Game Pass

Having so many formerly exclusive Xbox games now on the PS5 doesn’t encourage loyalty to Xbox. That prompted Michael Pachter, who previously predicted strong Game Pass growth, to revise his forecast. Gamers are playing titles from one of many studios acquired by Microsoft, but often on the rival PlayStation console.

Unfortunately, several of the developers controlled by Microsoft have recently shut down. Raphael Colantonio, the Arkane Studios founder, blamed day-one Xbox Game Pass games for some lost jobs. Without a period of exclusivity before reaching the service, buyers have less reason to pay full price for a title.

In reality, the Newzoo study didn’t come to many surprising conclusions. Despite claims to the contrary from Microsoft Gaming CEO Phil Spencer, Game Pass is cannibalizing sales to some extent. Even worse for the company, it’s not keeping players committed to Xbox consoles or services.