PlayStation boss: Xbox Game Pass is failing, so they’re making acquisitions

As we reported, one of the biggest leaks we’ve ever seen in gaming history recently occurred. One way or another, confidential documents and countless emails from Microsoft executives have come into the public eye as a result of the company’s litigation with the US Federal Trade Commission (FTC) over its acquisition of Activision Blizzard. A copy of his Q&A was leaked along with these documents Jim Ryan With its investors Play Stationwithout being hidden Disputed points.

This Q&A took place specifically in 2022, where Jim Ryan answered various questions about PlayStation’s future plans, the direction of the industry and also about the competition. Particularly interesting is the question asked about Xbox Game Pass, which according to Ryan’s confirmed statements It failed to convince third-party publishers, forcing Microsoft to make these large acquisitions.

Yes, Ryan expected Xbox Game Pass to have more subscribersStressing that the amount of 25 million seems small compared to the money invested by Microsoft. He pointed out at the same time PlayStation Plus is a really big subscription service, with 50 million subscribers. On the whole, PlayStation Prime Xbox Game Pass is disastrous for the gaming industry in general.

Below is the relevant excerpt from the Q&A:

The Game Pass business model seems to be facing some challenges and Microsoft appears to be losing a lot of money from it. Since AAA publishers spend $100 million or more developing games, they are happy to sell them for $70 on PS5. The subscription model is more difficult for them. Given this environment, should Microsoft offer minimum revenue guarantees if it wants these titles on Game Pass? Or should they go out and buy more assets, like Activision, to put on their platform? Are these two options available to Microsoft when trying to gain critical mass and support from AAA publishers for Game Pass?

Jim Ryan: I can say with certainty that Microsoft tried the first method and it didn’t work at all. This prompted it to make the big acquisition. I’ve spoken to all the publishers and they agree that they don’t like Game Pass because it’s a value destroyer, not just for individual titles, but for the industry as a whole. The last number of subscribers announced by Microsoft in January was 25 million. I’m sure everyone has their own opinion on this, but I personally would have expected more data on all the money spent. We have nearly 50 million PS Plus subscribers. We believe we have a meaningful subscription service.

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