If there’s one thing that makes Microsoft’s gaming console stand out, it’s the Xbox Game Pass. It’s a highly consumer-friendly service, and gamers all across the globe have been on its side for a long time. But apparently, video game publishers don’t really like it, according to Sony Boss Jim Ryan.
For context, there is an ongoing case between Microsoft and the Federal Trade Commission (FTC) regarding the Activision Blizzard acquisition. A major development took place on Tuesday in the form of a pre-recorded video testimony from the PlayStation boss. Ryan stated that publishers are against the Xbox Game Pass because they think the subscription model is “value destructive.”
Jim Ryan’s Thoughts on the Xbox Game Pass
Ryan said, “I talked to all the publishers, and they unanimously do not like Game Pass because it is value destructive.” Before that, he stated: “The Game Pass business model appears to have some challenges.” He then suggested that Microsoft appears to be losing a lot of money on Xbox Game Pass.
According to him, it is a “very commonly held” belief by publishers all across the industry. To compete with the Xbox Game Pass subscription, Sony and PlayStation are focusing more on exclusive first-party titles. Ryan told the Fidelity investors that this is his main strategy to counter Microsoft’s subscription service.
A main reason why PlayStation is prioritizing first-party games is to get “an edge against pressure on a historic business model.” Ryan said that owning all of the elements of a business model is a major way for PlayStation to be “self-determinant.” Additionally, aside from comments about the Xbox Game Pass, he also stated his thoughts about cloud gaming in general.
“Cloud technology will become a meaningful component of how gamers access games between 2025 and 2035,” he commented. Although Ryan doesn’t believe that cloud gaming will take over soon, he said that “significant investments” are being made in it. For perspective, Sony’s own subscription model, PlayStation Now, already had 3 million subscribers before merging with PlayStation Plus.
Also Read: 2019 Email From the FTC Case Shows Xbox Saying It Could “Spend PlayStation Out of Business”
Xbox’s Response and Thoughts
As a response to the above comments, Xbox only pointed towards an Xbox Wire post. The post claims that every upcoming Microsoft Xbox Game Pass title comes from previous collaborators of the service. Xbox CEO Phil Spencer was also quite confident about the service’s sustainability and profitability just last year.
He defended the service by calling it “very, very sustainable” and telling Axios that it was not burning cash. Till now, Xbox has not made any direct statements on Jim Ryan’s Xbox Game Pass comments. However, in the UK Competition and Authority’s provisional report, Microsoft admitted to a market decline in base sales caused by its service.
Somerville devs claimed that its sales were hurt by the Xbox Game Pass earlier this year. The Jumpship co-founder said that it is because “people just go in and try it, and they don’t invest.” Similarly, Take-Two CEO Strauss Zelnick is still not convinced by Microsoft’s subscription model either.
“I still don’t think it makes sense,” he stated.
Are you in favor of or against the Xbox Game Pass? Let us know in the comments below!
Follow us for more entertainment coverage on Facebook, Twitter, Instagram, and YouTube.
