Microsoft says adding titles to Game Pass causes “cannibalisation” of sales

Microsoft’s own internal documents note a “decline” in base game sales following additions to Game Pass, describing a “cannibalisation of B2P sales.”

Microsoft’s latest arguments about Game Pass, as referred to by the Competition & Markets Authority, discuss how adding titles to Game Pass can lead to a “cannibalisation” of B2P — “buy-to-play” — sales.

Microsoft says Activision also sees MGS services as “cannibalis[ing] B2P sales”

As noted by GamesIndustry.biz, the provisional findings report from the CMA (thanks, Kotaku) mentions that internal documents from Microsoft “recognise” how titles being added to Game Pass can lead to this “cannibalisation” of B2P sales, and that its own “internal analysis” shows a “[redacted]% decline in base game sales twelve months following their addition on Game Pass.” Microsoft also apparently argued that Activision preferred not to put its own “current content” on Microsoft’s multi-game subscription (MGS) services because of how it would “cannibalise” Activision’s own B2P sales, with “Activision’s view that MGS services, regardless of platform, severely cannibalise B2P sales, particularly in the case of newer releases.”

Just recently, meanwhile, the CMA argued that Microsoft’s Activision Blizzard acquisition “could harm UK gamers”, while Google and Nvidia reportedly raised concerns over the deal too.

What do you make of Microsoft and Activision’s views on Microsoft’s MGS services and how Game Pass can affect sales? Let us know in the comments!