Is PlayStation Concerned About Xbox Game Pass? New Documents Reveal the Answer
Recent documents related to Microsoft’s proposed acquisition of Activision Blizzard have shed light on why Activision titles have not been featured on Xbox Game Pass. According to the documents, Activision is “concerned” about the potential “brand dilution” and “cannibalisation of buy-to-play sales.” However, the documents also confirm that PlayStation has no such concerns and has even used multigame subscription services to promote its own releases.
Why Activision is Concerned About Xbox Game Pass
Activision’s concerns were revealed in a document submitted to the UK’s Competitive Markets Authority (CMA), which is reviewing Microsoft’s proposed acquisition of the gaming giant. In the document, Microsoft explains that Activision is worried about the impact that participating in subscription services could have on its brand. Specifically, Activision is concerned about brand dilution and cannibalisation of buy-to-play sales, particularly for new releases.
Activision is concerned that releasing its titles on Xbox Game Pass and PlayStation Plus could lead to “brand dilution.” This is because subscription services may cause gamers to perceive the value of their titles as lower. Additionally, older titles may not be perceived as having the same value when made available as part of a subscription service.
Cannibalisation of Buy-to-Play Sales
Activision is also concerned that participating in subscription services could cause “cannibalisation of buy-to-play sales.” This means that gamers who would have purchased a title outright may instead opt to play it as part of a subscription service. This could cause a decline in sales for Activision’s buy-to-play titles.
Why PlayStation is Not Concerned About Xbox Game Pass
In contrast to Activision, the documents reveal that PlayStation is not concerned about the impact of Xbox Game Pass on its business. In fact, the documents show that PlayStation has actively used multigame subscription services to promote its own releases.
PlayStation’s Use of Multigame Subscription Services
The documents reveal that PlayStation has used titles like Oddworld Soulstorm and Destruction AllStars to promote its subscription service, PlayStation Plus. Additionally, PlayStation has even made “day and date” releases available on its subscription service, such as Bugsnax.
Sony’s Options to Maintain Competitive Position
The documents also show that Microsoft believes Sony has “a range of options to maintain or improve the competitive position of PlayStation Plus” in response to Call of Duty potentially joining Xbox Game Pass. These options could include integrating additional first and third-party releases on PlayStation Plus or offering other incentives to players.
While Activision may have concerns about the impact of Xbox Game Pass and other subscription services, it seems that PlayStation has no such worries. In fact, PlayStation has even used subscription services to promote its own titles and maintain its position in the gaming market. As we await the CMA’s decision on the proposed acquisition, it will be interesting to see if PlayStation’s approach to subscription services will continue to pay off.
1. What is Xbox Game Pass?
Xbox Game Pass is a subscription service for gamers that provides access to a large library of titles for a monthly fee.
2. What is PlayStation Plus?
PlayStation Plus is a subscription service for Sony’s PlayStation consoles that provides access to online multiplayer, free monthly games, and other benefits.
3. Will Call of Duty be available on Xbox Game Pass?
If Microsoft’s acquisition of Activision Blizzard is approved, it is likely that Call of Duty titles will be made available on Xbox Game Pass.
4. Can subscription services cause brand dilution?
Some companies, such as Activision, are concerned that releasing titles on subscription services could lead to brand dilution. This is because gamers may perceive the value of their titles as lower if they are made available on a subscription service.
5. Are subscription services a threat to traditional game sales?
Companies like Activision are concerned that subscription services could cause “cannibalisation of buy-to-play sales.” This means that gamers who would have purchased a title outright may instead opt to play it as part of a subscription service, leading to a decline in sales for the traditional buy-to-play model.