Content area
Full Text
Microsoft Corp.'s forthcoming subscription-based video game service for the Xbox One could threaten traditional video game retailers that have long relied on preowned and used game sales for revenue.
Set to launch late this spring, Xbox Game Pass will cost $9.99 a month and will give subscribers unlimited access to a rotating library of more than 100 titles. Unlike Sony Corp.'s PlayStation Now service that lets subscribers stream games to their devices, games offered via Game Pass can be downloaded directly onto the subscriber's Xbox One console, allowing both online and offline play for as long as the subscription to the service stays active.
Notably, video games giant Electronic Arts already offers a similar service on the Xbox One called EA Access, which lets subscribers play a selection of titles for $4.99 a month or $29.99 a year.
Video game retail chain GameStop's shares fell significantly after the EA service was unveiled in 2014 and again when Game Pass was announced in February. Investors seemed concerned that these services would negatively impact GameStop's lucrative used-games business, which is already being encroached upon by the rapid growth in digital sales. While...