Microsoft launches its games day-and-date on Xbox Game Pass, whereas Sony opts not to release its first-party games on rival service PS Plus at launch, with the likes of Horizon: Forbidden West coming a year after.
Microsoft and Sony have different strategies for their video game subscription services. In an interview with Axios last year, Spencer explained how the service was not burning cash and called it "very, very sustainable".Īt the same time, however, in the UK Competition and Markets Authority's provisional report, Microsoft admitted its video game subscription service led to a marked decline in base sales. Xbox CEO Phil Spencer, meanwhile, has been transparent about Game Pass' profitability and sustainability. "The Game Pass business model appears to have some challenges, and Microsoft appears to be losing a lot of money on it," Ryan said.Īsked for comment, Xbox did not provide a direct statement, but did point to an Xbox Wire Post claiming that every single Game Pass title announced at this year's Xbox Games Showcase comes from a creator that has previously released a game with the service. Just before that, Ryan claimed Game Pass is unprofitable for Microsoft.
"I talked to all the publishers, and they unanimously do not like Game Pass because it is value destructive," Ryan said during his testimony. During his pre-recorded testimony for an evidentiary hearing between the Federal Trade Commission (FTC) and Microsoft, Jim Ryan claimed publishers do not like Microsoft's video game subscription service because it is "value destructive".
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