Microsoft provides clarity on Game Pass revenue model in response to recent reports

The CMA’s investigation into the Microsoft-Activision merger has released public documents that have been scrutinised for interesting details. One recent finding is a statement by Microsoft confirming that titles on Game Pass experience an undisclosed reduction in sales while on the service. Nonetheless, Microsoft has now released a further statement to provide clarity on this matter.

While it may seem like common knowledge that Game Pass titles would experience a decline in base game sales, the significance of this quote is that Microsoft had previously boasted in 2018 that games such as Forza Horizon 4 actually saw an uptick in sales after being introduced on Game Pass.

Microsoft provided a statement to Eurogamer this afternoon to address the circulating quote, stating that their priority is to assist game developers of all sizes in maximising their financial returns through Game Pass. They work with each developer individually to create a customised program that meets their specific requirements, compensates them fairly for their participation in the service, and allows for creative freedom and innovation. Consequently, the number of developers interested in partnering with Game Pass is steadily increasing.

Although the document reveals that a redacted percentage of sales is forfeited upon launching a new title on Game Pass, it fails to provide any information on the potential increase in revenue from DLC or MTX sales, which many games have utilised to bolster their income, including Microsoft’s Forza Horizon series. For instance, players of the game on Game Pass can purchase a DLC bundle to enhance their experience.

Game Pass has always faced intense scrutiny, and this scrutiny has heightened in the wake of Microsoft’s proposed acquisition of Activision Blizzard.