"Game Pass can "claim a few victories" in terms of games that might have otherwise "sunk beneath the waves," Loftis said, calling out Human Fall Flat as an example. However, the "majority of game adoption" on Game Pass comes at the cost of revenue from retail, she said, "unless the game is engineered from the ground up for post-release monetization.""
"Regarding what Loftis said about Game Pass coming at the expense of retail revenue, this is something even Microsoft has admitted to. Xbox's own CFO testified that Starfield and Indiana Jones and the Great Circle likely lost out on "millions" in retail sales due to Game Pass. For its part, Microsoft has always said that Game Pass is offered as an option to players as opposed to being the only way to buy and play Xbox games."
Subscription services such as Xbox Game Pass shift player access away from retail purchases, reducing retail revenue for many titles. Some games gain visibility through subscription libraries and can succeed despite low standalone discoverability. A substantial portion of Game Pass adoption represents foregone retail sales unless titles are designed for ongoing monetization after release. Microsoft acknowledged that some major releases likely lost millions in retail sales due to subscription availability. High-profile launches can still top retail charts despite concurrent subscription availability, but subscription access can nonetheless impact overall retail performance. Game Pass generated nearly $5 billion in annual revenue, raising questions about developer sustainability under the model.
Read at GameSpot
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