So is this not going to have Day 1 releases for any of the tiers? NGL, I think they're missing an opportunity here. The answer is simply enough: just do a per-game contract subscription rate, set it between $3/MO - $6/MO, depending on the retail MRSP (physical and/or digital) of the game, give a higher grade say $9/MO that also gives you full access to DLC content and certain MTX items released during the contract's 1-year period.
The user is still legally obligated to pay to the terms of the contract (it's no different than contracts for mobile data plans or ISP internet service) and it can still count as a unit sold, while being cheap enough to where you may get that user to buy more games on similar contract plans in the same period. Just have a monthly code feature built into these versions of the game wherein the user has to verify their status with an online check, just once a month, and the game continues to function like a regular full-retail copy.
Because unless they are adding a well of new features to at least some of the PS1/PS2/PS3 games supported, like network online play and whatnot, I don't see a clean path for this service to get massive increases in subscribers if that's truly Sony's goal. They may be put off the idea of potentially hurting sales copies with including them Day 1 in the service but as seen with GamePass at least for some games its actually helped generate more revenue than it would've a more traditional method (they sold roughly 1.45 million copies of FH5 revenue-converted prior to its release in GamePass). And even ignoring that, they can take something like the Amazon Luna model but apply it on a per-game basis when it comes to new releases, and solve that problem right then and there.
3P are not going to be very keen to put a lot of their own new big releases into the service if Sony themselves are reluctant, though; they have to lead by example on this. Again take Microsoft for example; with games like FH5 and very likely Halo Infinite doing very strong in content revenue sales (which converted to retail units puts them in millions sold territory), that and user data/activity/further content revenue figures is going to be useful for convincing more 3P devs and pubs to put some of their bigger releases into the service, because now they have examples to be led with, data to go off of etc and it helps a lot that stuff is from the platform holder who owns the service itself.
It'll at some point have to be the same thing with Sony or else a lot of 3P aren't going to commit like that when it comes to Day 1 releases and that's going to neuter growth of the service itself. So I'm hoping they're considering Day 1 for at least some major 1P releases some way (like TLOU: Factions for example; there's almost no reason that can't be released as a Day 1 title here).
In response to your bolded, and aside from the fact your avatar features my favorite tennis player of all time, ...
Not all change is good. This idea that sub services are the "future" and "selling products" makes you a dinosaur is just false. Having high revenues that sustain expensive development efforts hardly makes you a "dinosaur." It means you have a good business.
Again, this goes to what I was saying at an earlier post. There is nothing, absolutely nothing, that supports the idea that Game Pass is a good business move. Now I have changed my mind in some ways as I think MS is going to be fine with it, but it's because they are going to subsidize it with both 3rd party game sales fees and large F2P MTX efforts. And perhaps money from other sources in the company.
Again, so many people here talk about the "23 studios" MS has, but completely ignore the fact MS now has to pay salaries and studios costs to support all 23 while not really charging for their games. The hope is that a smallish sub service is going to fund this? Sony is NOT going to go in this direction when they are comfortably winning.
Sony and Nintendo are making record profits right now.
Microsoft won't even say what their broken down revenue is.
Like
SportsFan581
said, the games are on a service you pay either $9.99/MO or $14.99/MO for, in addition to still being sold through retail both physically and digitally. They aren't actually giving anything away.
You are thinking as if subscription models and direct-sales models can't co-exist when that is what Microsoft are already doing. IF there is a future where direct-sales goes away as an option it'll only be because the mass market has spoken to make it that way. And it's not like other business models in the industry haven't come and gone: the arcade business model and the shareware model with PC games up to the early-mid '90s for example have both gone from positions of prominence to very small pieces of the market now, and the market was able to adjust accordingly. It'll do so again in the future.
Lastly, why are you bringing up cumulative multi-divisional profits into a conversation about subscription streaming services? Shouldn't you be asking what Sony's profits from PS Now are, or NSO for Nintendo? Otherwise you're just referring to the direct-sales, traditional stuff which it isn't like Microsoft's abandoned that. And if you're referencing revenue, Xbox's total revenue for the fiscal year was only $500 million behind Nintendo's; Nintendo obviously had more profit than Xbox division but Nintendo only has gaming so I'd
hope their profits were larger than Xbox's or there'd be a point of concern!