Physical retailers around the world were upset at Microsoft with its announcement of the Xbox Game Pass service. Retailers feel that Xbox Game Pass makes physical video game irrelevant. With that being said, Microsoft still wants to support physical retailers supplying them with Xbox products in the near future according to one NPD analyst.
GamingBolt had a chance to speak with NPD analyst, Mat Piscatella, and he feels Microsoft still has lots of incentives to support physical retailers for the time being. Physical retailers aren’t fully going away yet and Microsoft still needs them to help sell hardware. You can read Piscatella’s opinion down below.
“I think this depends on the retailer. The console continues to sell well in the US, and Microsoft has been smart and aggressive in its pricing and promotional programs. Bringing PUBG to retail and seeing the success the retail version of that game has had suggests that they will find ways to ensure retail is involved and seeing return on its investment in retail space and inventory.”
The future of Xbox software is a different story though. This is because Xbox Game Pass will have all first party Xbox One games on day one for a fraction of the price. This essentially means it’s much cheaper to subscribe to Xbox Game Pass than to buy first party video games for $59.99 per release. Game Pass is like Netflix and might be the future of how video games are distributed in the near future putting physical game retailers at risk of losing business if other companies follow suit.