Xbox One Delisted By Austrian Retailer Following Game Pass Announcement

"If you want to do business alone, you should do the work alone.”

Posted By | On 25th, Jan. 2018

The announcement by Microsoft that all first party games would get a day and date release on their Game Pass subscription service was huge- potentially, this could alter the paradigm of how games are distributed to customers, with us moving from tangible physical games with ownership towards a more Netflix-like subscription based model.

Unfortunately, such a paradigm would also cut out retailers- who make most of their games related profits on actual game and accessory sales, as opposed to console sales. Consoles are sold at minimal to no margins- so by undercutting physical game sales, you are basically removing the potential profits retailers might be able to get from your platform, and thus, disincentivizing them from carrying your hardware.

And that’s exactly what has happened- following in the wake of Microsoft’s announcement, Austrian retailer Gameware has announced that it will be delisting all Xbox hardware from its stores, according to German magazine Gamesmarkt. Reasons cited by Gameware include the undermining of their profit margins, and the fact that the hardware will bring them zero profits, while leveraging their infrastructure. Speaking directly to Microsoft, Gameware has said, “If you want to do business alone, you should do the work alone.”

Gameware is the largest dedicated games retailer in Austria, and since 1989, has had almost 375,000 customers- while that is a very small size of the global market, if other retailers decide to follow in its footsteps, Microsoft could have a problem on its hands here.


Keep On Reading!

Fairgame$ Officially Cancelled Over 3 Years After Its Announcement

Fairgame$ Officially Cancelled Over 3 Years After Its Announcement

An alleged internal email cites mixed "player feedback and retention results" alongside "challenging market co...

Monster Hunter Wilds: Ascendance Beta Listing Reportedly Spotted on SteamDB

Monster Hunter Wilds: Ascendance Beta Listing Reportedly Spotted on SteamDB

Much like the base game and previous releases, Capcom could be preparing a beta test for the expansion ahead o...

The Division 2: Echoes of Central Park Review – Scary and Satisfying

The Division 2: Echoes of Central Park Review – Scary and Satisfying

The Division 2 takes us to a corner of NYC that doesn’t pull its punches, delivering a neat little adventure...

The Outer Worlds 2: Side Effects Guaranteed Out on December 2nd, Adds “Hours of New Content”

The Outer Worlds 2: Side Effects Guaranteed Out on December 2nd, Adds “Hours of New Content”

The first of a two-part expansion retails for $14.99 and offers a new location, companion gear, Perks, Flaws, ...

GTA 6’s Biggest Leap Could Be How the World Reacts to Your Crimes

GTA 6’s Biggest Leap Could Be How the World Reacts to Your Crimes

Is it even a GTA game if you’re not committing any crimes? But we think GTA 6 could make getting away with t...

The Legend of Zelda: Ocarina of Time Remake Review – Masterclass

The Legend of Zelda: Ocarina of Time Remake Review – Masterclass

The Legend of Zelda: Ocarina of Time Remake's new visuals and great performance make this a beautifully paced ...