Microsoft have said that Game Pass is not a "replacement" for game purchasing.
Microsoft boss on why Games Pass will not replace traditional purchasing
The tech giant - who launched their X-Box gaming subscription service back in 2017 - do not see the on-demand games library as a substitute for individually purchased games, insisting that despite the market for subscriptions growing "fast", individual transactions are still the dominant method of purchase.
Microsoft boss Phil Spencer said: "So let's make sure we offer our customers choice between subscriptions and transactions. That’s probably the only difference between us and some of the video subscriptions. Transaction is bigger than subscription. Subscription is growing faster, just because it’s relatively new. And with Game Pass, we were one of the first movers in that space. But the transaction business is very large. We still sell physical disks."
The gaming boss then went on to acknowledge that while their subscription service is similar to movie giant Netflix, transactions are still a traditional part of "gaming."
He told the New York Times: "But yeah, it feels like Netflix. But we do — I think the option of allowing people to buy, it’s just been a traditional part of gaming. The retail market continues to be very strong and grow. So let’s make sure we offer our customers choice between subscriptions and transactions. That’s probably the only difference between us and some of the video subscriptions.
"But without content, community and cloud, I think getting into gaming right now—and you see this in what Netflix is doing. I think it's smart what they're doing. They're buying some studios. They're learning about the creative process of interactive entertainment. And I think it's a very smart way for them to move into the space. For us, we just started this many, many years ago."