There have been a lot of positive success stories emerging from Xbox’s Game Pass service such as Tango Gameworks’ surprise release Hi-Fi RUSH earlier this year, but according to PlayStation boss Jim Ryan, publishers aren’t big fans of the model at all.
During his pre-recorded video deposition for the hearing between Microsoft v FTC earlier today, Ryan claimed Xbox Game Pass was unprofitable – noting how he’s “talked to all the publishers” and they “unanimously do not like Game Pass because it is value destructive”.
The PlayStation boss is also of the belief Microsoft is losing “a lot of money” from the service.
This is basically the complete opposite of Microsoft’s comments about the service since its launch, with Xbox boss Phil Spencer mentioning on multiple occasions in the past how the subscription model is more than sustainable and also has huge potential for growth in the future.
Big-name publishers like EA and Ubisoft have also joined the service – offering a large range of their catalogue, and there’s also been a number of indie success stories via Game Pass, with Xbox highlighting how many creators have returned to the service with follow-up releases.
Where the market has changed is seemingly in base game sales. Players within the Xbox ecosystem commonly opt to play games on Game Pass instead of actually purchasing them. Microsoft also releases all of its new games “day one” on the service, encouraging players to stay subscribed.
In contrast, Sony is still against the idea of new releases being on its own PS Plus subscription service at launch, with the company seemingly concerned about cannibalising regular game purchases, which is still an effective sales strategy for PlayStation.