PS4 Can't Copy Game Pass?
After the recent God of War game release I read an article saying that titles like God of War are exactly why Sony can't copy Microsoft's Game Pass. That is utter horse shit.
In fact, I would say, titles like God of War are EXACTLY why Sony SHOULD copy the Game Pass model. But, more on that in a moment.
One of the arguments was that Microsoft could "afford" a stunt like Game Pass because Xbox isn't their core market.
This is idiotic on two levels. Firstly, PlayStation isn't Sony's primary source of income either and secondly, Microsoft can't exactly afford to suffer losses for their Xbox division.
Sony is MASSIVE company. They make movies, TV, LCD panels, chips of varying sorts, music and probably TONS of things I'm overlooking. Sony can afford to play games with PlayStation every bit as much as Microsoft can afford to with Xbox. In fact, maybe more so. Sony has their hands in far more markets directly aligned with console gaming than Microsoft and can not only afford to tinker with the strategy, but also has far more venues along which to do so.
Microsoft on the other hand is in a transition phase. Windows licenses are no longer their long term aim. Cloud is. But, that is still a gamble. And Microsoft knows their plan is risky and has been VERY judicious about cutting funding to programs which aren't working. This actually puts Xbox in a very dangerous place.
I could see someone arguing that Nintendo couldn't gamble like this. But Sony? Seriously?
If this IS a gamble, then it is one which could see the entire Xbox division canned by Nadella who seems the polar opposite of Ballmer and completely willing to kill anything he doesn't see having good short or mid-term prospects.
So, why does Game Pass work? For the simple reason that subscriptions and digital games are much more lucrative than physical disc sales. It is telling that Microsoft's first party games announcement was panned not by game makers, but by physical disc retailers like Game Stop.
The biggest problem with discs has always been resale. When you re-sell a game, neither Microsoft, nor the game maker get a cut. But the middle man, people like Game Stop do. This can massively hurt profits. For the game makers, virtually any digital sale is better than a physical one.
It is also a good strategy because the person who holds the service controls which games are included and has a HUGE amount of information on things like which games are being played and for how long. The massive amount of analytics means that Microsoft can tailor the offerings to ensure that the service is maximally profitable, while still appealing enough to grow the service.
Such a service dangles a carrot for purchases like in game items and DLC. And, if you're invested in DLC and not done the game when the service removes it... you're more likely to purchase the game. In other words, the existence of such a service, and even the existence of a game in the service doesn't preclude a vendor from making direct sales.
Now, lets take a game like God of War. I said it proved the model more than broke it. God of War isn't an MMORPG. It is a game with limited playability. It is the sort of thing that gets resold quickly and often. It is the sort of game lent around amongst friends. If it were included in a Game Pass like service, more people would get on board in a way which profits the studio directly than would through other means. This also means exposure to DLC sales and any other in game purchases. It also means they'd reap a percentage of the subscription sales for potentially as long as the title is in the catalogue. And, people are much more likely to buy DLC (I would think) if they felt like the base game had been free. Subscriptions are deceptive that way.
Ease of access also means it is more likely that more of your friends will get on board and more likely you'll invest more time and money into the game.
And, sooner or later, the major title releases will dry up. Eventually, subscribers will be paying for access to games that they probably wouldn't have bought, or if they did, would have at steep discounts.
Online play is also blocked behind PS+ subscription which drives more people to try and stay with that service as well.
At the end of the day, it isn't a bad idea.
In fact, I would say, titles like God of War are EXACTLY why Sony SHOULD copy the Game Pass model. But, more on that in a moment.
One of the arguments was that Microsoft could "afford" a stunt like Game Pass because Xbox isn't their core market.
This is idiotic on two levels. Firstly, PlayStation isn't Sony's primary source of income either and secondly, Microsoft can't exactly afford to suffer losses for their Xbox division.
Sony is MASSIVE company. They make movies, TV, LCD panels, chips of varying sorts, music and probably TONS of things I'm overlooking. Sony can afford to play games with PlayStation every bit as much as Microsoft can afford to with Xbox. In fact, maybe more so. Sony has their hands in far more markets directly aligned with console gaming than Microsoft and can not only afford to tinker with the strategy, but also has far more venues along which to do so.
Microsoft on the other hand is in a transition phase. Windows licenses are no longer their long term aim. Cloud is. But, that is still a gamble. And Microsoft knows their plan is risky and has been VERY judicious about cutting funding to programs which aren't working. This actually puts Xbox in a very dangerous place.
I could see someone arguing that Nintendo couldn't gamble like this. But Sony? Seriously?
If this IS a gamble, then it is one which could see the entire Xbox division canned by Nadella who seems the polar opposite of Ballmer and completely willing to kill anything he doesn't see having good short or mid-term prospects.
So, why does Game Pass work? For the simple reason that subscriptions and digital games are much more lucrative than physical disc sales. It is telling that Microsoft's first party games announcement was panned not by game makers, but by physical disc retailers like Game Stop.
The biggest problem with discs has always been resale. When you re-sell a game, neither Microsoft, nor the game maker get a cut. But the middle man, people like Game Stop do. This can massively hurt profits. For the game makers, virtually any digital sale is better than a physical one.
It is also a good strategy because the person who holds the service controls which games are included and has a HUGE amount of information on things like which games are being played and for how long. The massive amount of analytics means that Microsoft can tailor the offerings to ensure that the service is maximally profitable, while still appealing enough to grow the service.
Such a service dangles a carrot for purchases like in game items and DLC. And, if you're invested in DLC and not done the game when the service removes it... you're more likely to purchase the game. In other words, the existence of such a service, and even the existence of a game in the service doesn't preclude a vendor from making direct sales.
Now, lets take a game like God of War. I said it proved the model more than broke it. God of War isn't an MMORPG. It is a game with limited playability. It is the sort of thing that gets resold quickly and often. It is the sort of game lent around amongst friends. If it were included in a Game Pass like service, more people would get on board in a way which profits the studio directly than would through other means. This also means exposure to DLC sales and any other in game purchases. It also means they'd reap a percentage of the subscription sales for potentially as long as the title is in the catalogue. And, people are much more likely to buy DLC (I would think) if they felt like the base game had been free. Subscriptions are deceptive that way.
Ease of access also means it is more likely that more of your friends will get on board and more likely you'll invest more time and money into the game.
And, sooner or later, the major title releases will dry up. Eventually, subscribers will be paying for access to games that they probably wouldn't have bought, or if they did, would have at steep discounts.
Online play is also blocked behind PS+ subscription which drives more people to try and stay with that service as well.
At the end of the day, it isn't a bad idea.
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