Well, of course it impacts sales, especially if it's a big title.
The more important issue is revenue. If the impact on revenue is positive, then it is worth it to the developer or publisher.
We often make these arguments in a vacuum, while forgetting that Netflix and Microsoft compensates devs and publishers for their game being on the service....and only for a time....not forever.
What usually happens after a title leaves is an increase in sales from those people who played and loved it.
Lastly, arguments on this board also confuse first party with everything else. There is no lost sales for first party games. It's an investment in the platform in the same way Netflix produces original content. It pays for itself with new and sustained subscriptions. Indy devs usually come to game pass because it gives those titles more exposure to people who might be interested but afraid to take a chance.
As I've said before, I made a decision to buy 2 Series S consoles for my nephews because it meant I'd rarely have to buy them games. I can't be the only parent that does this.
So, sure, traditional sales suffer, but I'd argue the revenue they get from the Ms deal and on the back end makes GP worth it
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