Earlier this week, Microsoft announced huge changes to its Xbox Game Pass subscription service. The company said that future first-party game releases, including titles like Sea of Thieves and Crackdown 3, would become available on the service the same day that they release worldwide. But while many Xbox fans and players were delighted with the news, the announcement hasn't gone down so well with one retailer.
According to a local news report (translated from German using Google Translate), Austrian retailer Gameware KG has now stopped selling Xbox One consoles as a result of the Xbox Game Pass announcement. The retailer, which has been in business since 1989 and has almost 375,000 customers in the region, said that selling Microsoft consoles will "bring zero profit and only expenditure, if Microsoft alone then wants to profit off of the sales of software." Gameware KG also told Microsoft that "If you want to do business alone, you should do the work alone."
It should be noted that retailers are still able to profit from Xbox Game Pass by selling subscriptions within their retail stores. But it's obvious that if Xbox Game Pass grows in popularity, consumers will have less and less reason to shop with those same retailers. Why would players need to visit retailers to purchase the latest Xbox One exclusive when their Xbox Game Pass subscription already provides them with access to it? While some players will prefer to purchase the game over a subscription, there is still a real money-saving incentive to get a subscription instead.
And although Gameware KG is a small retailer, it will be just one of several stores affected by the shift. For example, GameStop's stock price has already dropped by over $1.50 per share since the Xbox Game Pass announcement as investors clearly realize the damage it will do to the business. Not only will players buy fewer games in its stores, but they will feel less inclined to sign up for services such as GameStop's rental program and any other programs it launches designed to sell more physical games.
The change to Xbox Game Pass also seems to be part of a long-term shift in strategy that could also be damaging for retailers. Previous comments by Microsoft's gaming boss Phil Spencer seem to suggest that Microsoft is looking at a console-free future where Xbox consoles don't exist but it continues to release games, offered through services like the Xbox Game Pass. In that case, retailers would really suffer and plenty more retailers will follow in Gameware KG's footsteps when it comes to renouncing Microsoft.
Source: GamesMarkt