Majority Of Gears Of War: E-Day Revenue On Xbox Will Be Cannibalized By Game Pass, Analyst Says

Initial Steam Sales Figures

According to a report by Rhys Elliott of Alinea Analytics, Gears of War: E-Day has surpassed 120,000 copies sold on Steam, generating over $7 million in revenue. The game launches on October 6, with early access starting on October 1 for premium buyers, selling more than double what Halo achieved in a similar timeframe.

The Impact of Xbox Game Pass on Revenue

The report highlights that the majority of the game's moneymaking potential on Xbox will be cannibalized by its inclusion in Xbox Game Pass on day one. This aligns with previous admissions from Microsoft that day-one Game Pass releases decrease base game sales. Xbox CEO Asha Sharma previously noted that Microsoft's heavy bet on the subscription service has weakened their core business model.

Exclusivity and Potential PS5 Port

Elliott argued that hardware-driven exclusivity is effectively over for Xbox due to soaring development costs and a responsive install base that fails to justify hardware manufacturing. Furthermore, the analyst predicts that a PlayStation 5 port will eventually materialize down the road to capture much-needed extra revenue, despite Microsoft's denials regarding last-minute cancellations.