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

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Xbox Game Pass, Microsoft And Activision are they really a threat to the video game industry? A comedian has spoken and when comedians talk it is always better to think about it, because they often prove more lucid in the reasoning of many alleged intellectuals or of many who feel excessively intelligent. That then continuing to consider them as second-class artists causes a lot of medieval renaissance quarrels and it would also be time to overcome certain idiotic prejudices that it was hoped the ‘900 had swept away and which instead have come back strongly in vogue (who knows why).

Be that as it may, Adam Conove, comedian known for the Adam the Treacherous program, who had practically no resonance with us (only one season was broadcast on TV, which went practically unnoticed), defined a threat for the entire video game industry the Xbox Game Pass and the acquisition of Activision by Microsoft. The reason? “The company’s immense funds would allow it to distribute games at too low a cost to standards. Basically, according to Conover, Xbox Game Pass with its 9.99 euros per month offers a price that is too low compared to the production costs required by current games and is a distribution system that can only be supported by Microsoft because it is safely able to absorb losses. All this, according to him, would throttle competition, however, because it would represent an offer that others cannot replicate.

Basically he looked at what he did from Amazon and applied the same model to the world of video games: “is so big that it can afford to offer much lower costs than its competitors through an “undercut” procedure of the opponents, that is Sony and Nintendo, because Microsoft would not need to make money from Xbox Game Pass unlike the others, who instead have to continue to sell the games for 70 or 80 euros to cover production costs.“Now, his reasoning is not acceptable for several reasons, first of all the fact that it is absurd to think that Microsoft can keep its service at a loss forever only to harm its competitors, an opposition that has already been made by Tom Warren. of The Verge, to which we only add that before making combinations such as the one between Amazon and Xbox Game Pass we should see the particularities of the two reference markets and evaluate the services in their specificity, to find the possible points of convergence and evaluate how much they are actually comparable. All this if we want to exclude the positive testimonials for the service of many developers, small and large.

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

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