Microsoft At Odds With Video Game Retailers Due to Xbox Game Pass Expansion
Microsoft's recent video game business strategy, which specifically involves the Xbox Game Pass, does not sit well with video game retailers.
A week ago, Xbox announced that all the much-awaited first-party video games developed by Microsoft Studios and its subsidiaries would be added to the Xbox Game Pass library as soon as they are released.
In its announcement, Xbox confirmed that some of its anticipated titles in 2018 - which include "Sea of Thieves," "State of Decay 2," and "Crackdown 3" - will be added to the Xbox Game Pass as soon as they are available.
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Furthermore, Microsoft also confirmed that the expansion of its Game Pass library will affect other major franchises with upcoming installments including "Halo," "Forza" and "Gears of War." Upcoming games from these series will be available via Xbox Game Pass "on the same day they launch."
This means Xbox console owners who are subscribed to the Game Pass platform do not have to spend extra money to separately purchase upcoming Microsoft Studios games.
While this might be a good news for avid Xbox fans, the announcement does not favor another group of stakeholders of Xbox products -- the video game retailers.
Following Xbox's announcement, several retailers in Europe expressed their frustration over how the expanded Game Pass would affect their business and subsequently decided to no longer stock other Xbox products as well.
Austrian retailer Gameware confirmed it was pulling out all Xbox products from its shelves, according to GamesIndustry.biz, while other establishments in the United Kingdom echoed the same response.
Stuart Benson of the Leicestershire-based store Extreme Gamez told the same publication: "Essentially, it's made [our Xbox business] worthless overnight." He added: "Why would people buy a £12 to £15 second-hand game when they can just pay a tenner and get a massive catalogue of titles to keep them going? ... It's pretty pointless. We might as well go where we're supported, which is Sony."
Benson expressed his frustration over Xbox's move and said the video game company "[doesn't] care about retail business in the slightest."
