During Xbox’s FTC hearings, PlayStation CEO Jim Ryan called Xbox Game Pass “value destructive” and said that publishers told him they aren’t fond of Xbox’s subscription service (thanks IGN). Ryan made the comments during his deposition, much of which was sealed, though he didn’t say which publishers told him this or how it factors into Sony’s concerns over the Xbox-Activision deal.
“I talked to all the publishers and they unanimously do not like Game Pass because it is value destructive,” Ryan said during his recorded statement.
Ryan didn’t clarify if literally all the publishers told him this when asked, though Yakuza maker RGG Studios told GLHF in an interview earlier in 2023 that the series being available on Game Pass was invaluable in exposing it to new audiences.
Ryan also called the subscription service unprofitable, though whether that’s true is a bit of a mystery. Xbox head Phil Spencer said in a report to the U.K. Competition and Markets Authority that Game Pass led to a decline in market value, though Microsoft also reported $3 billion in profits in 2022 just from the subscription service.
Whatever the situation with Game Pass’ profit-making potential and value to publishers, Microsoft is raising Game Pass prices in July 2023, but only for console.
Written by Josh Broadwell on behalf of GLHF
