Are Xbox Game Pass, Microsoft and Activision really a threat to the video game industry?


THE Xbox Game Pass, a Microsoft it’s at Activision are they really a threat to the video game industry? A TV presenter from the United States, Adam Conove, defined Microsoft as the great threat to the entire video game industry thanks to its Xbox Game Pass and Microsoft’s acquisition of Activision. The reason? “The company’s immense amount of money would allow it to distribute games at a very low cost by standards. Basically, according to Conover, Xbox Game Pass with its $9.99 per month offers a very low price compared to the production costs demanded by current games and is a distribution system that can only be supported by Microsoft because it is able to evolve with losses. All this, according to him, would strangle competition, however, because it would represent an offer that others cannot replicate. “

Basically, he looked at what Amazon did and applied the same model to the world of video games: “is so large that it can offer much lower costs than its competitors through a procedureThe” undercut “from opponents, namely Sony and Nintendo, because Microsoft wouldn’t need to cash in on Xbox Game Pass unlike the others, who instead need to keep selling games for 70 or 80 dollars to meet production costs.”

Now your reasoning is not acceptable for several reasons, first of all, because it is absurd to think that Microsoft can keep its service at a loss forever just to harm its competitors, an opposition that has already been made by Tom Warren. from The Verge, to which we only add that before making combinations such as the one between Amazon and Xbox Game Pass, we must see the particularities of the two reference markets and evaluate the services in their specificity, find the possible points of convergence and assess how much they really are. comparable. All this if we are to exclude the positive testimonials for the service from many developers, small and large.

That said, it must also be said that the reaction shown by many players was as usual inappropriate (let’s define it kindly), especially from an argumentative point of view. It would be time for the industry to learn to reason with ease about the possible criticality of certain products and certain market maneuvers, regardless of their own judgment… and those who have and will continue to defend Xbox Game Pass write it because they consider it an excellent service for several reasons. Will this sector be able to grow and face a discussion in a sensible way?