MarkMe2525
Banned
Subscription services absolutely cannabilize traditional sales, but the point is to get enough people that normally don't spend any or much money in their ecosystem, to counteract the lost revenue.
The concept of the positive effect is this:
If A, B, C, D, E buy a game if store only
Then A buys game only if on gamepass but B, C, D, E + F, G, H, I use gamepass
Because game is popular/trending/hyped J or even K might possibly buy the game. It's obvious that gamepass canibalizes the sales of B, C, D, E because they literally aren't buying it but the concept is that there is potentiallymoreadditional people (J/K) that end up buying the game due to so many people talking about it.
It might be for now. Its clear from OP that it's clearly going to hurt the industry long term and "xbox" are willing to take that hit because their parent company is fucking massive. It clearly isn't growing organically or they wouldn't be buying up massive third party publishers which hurts everyone not in MS ecosystem.I'm not a shareholder in MS so I couldn't give a shit how much money they make or don't make on their division. Game Pass is a good deal as far as I'm concerned.
That's how I see it too.Subscription services absolutely cannabilize traditional sales, but the point is to get enough people that normally don't spend any or much money in their ecosystem, to counteract the lost revenue.
Yo this is so much worse than I thought. I nean I'm not surprised. Everyone knows that was the case. But the fact xbox did this to itself
He's not saying that you end up with more units sold than compared to if you didn't have it on gamepass though. He saying the elevated popularity gets additional people to buy the game which contributed to an increase in sales but no where does he say that overall game sales are higher from being a day one gamepass game vs being just sold. In the overall context of the quote, he's not arguing about how this is the best most lucrative model because you end up with more units sold, he's explaining why it's been healthy business model for them.Nope. Read it again. He states unequivocally that being on gamepass elevates the popularity of the game thus increasing the number of sales. So he is in fact saying that being on gamepass increases sales.
I imagine a future where gamepass consist of primarily 1st party games. 3rd party content is just there to prop up the service while Xbox attempts to get their internal teams to a point where they get a new release every couple of months. I imagine indies will always be apart of the service as well to fill in gaps.That's how I see it too.
Let's say they have data that suggest that an average player buys 10 games through the whole console generation, if they can get that person to spend 15$ per month instead, then it's a win.
But the calculus breaks down when you have to offer hundreds of games, and spread the revenue to third parties and your internal teams too.
If a publisher can have 10 high quality, sought-after GaaS, then putting all those in a subscription service bundle could make financial sense.
Edit : A subscription service offering older catalog games also can make financial sense, since the publisher will get recurring revenue from games that have already recoup it's cost.
Unless it's GaaS type updates every few months for their games, I don't see how that subscription service would be viable.I imagine a future where gamepass consist of primarily 1st party games. 3rd party content is just there to prop up the service while Xbox attempts to get their internal teams to a point where they get a new release every couple of months. I imagine indies will always be apart of the service as well to fill in gaps.
Anyone that thought any different was either lying or dumb
Well they have 23 studios with multiple teams and they are attempting to purchase one of the largest publishers on the planet. To me, it looks like they are setting the table for what I spoke of previously. Remember, I said primarily 1st party, not exclusively 1st party.Unless it's GaaS type updates every few months for their games, I don't see how that subscription service would be viable.
Full new games already take 3+ years to release, so to expect a publisher to release one of those every few months to maintain subscribers, I don't see how that's possible.
I see it as a publisher owning 10 successful GaaS in different genres, fully maintained and frequently updated with new content, and all bundled under one subscription service.
I assume this was MS plans all along, with how they set up Halo as being a '10 year' game. They could have a Forza 'infinite', a Gears of War 'infinite', a Fallout 76, a Elder's Scroll Online, etc.
The problem is that you still need good management and talent retention to pull it off...
ABK could have bolstered that plan, but, thankfully, regulators need to protect consumers and healthy market competition.
Subscription services absolutely cannabilize traditional sales, but the point is to get enough people that normally don't spend any or much money in their ecosystem, to counteract the lost revenue.
Its fans back in the day were old , I remember playing the ps2 while the og xbox if existed, something like 1 in 15 ratio, what's worse the demographic were old , it was futuristic but appealing to older players since the beginning , most kids said it's complicated, look how Sony build their demographic, they were all young and even with their age differences, their thoughts and ideas towards games were the same ,they have a lot in common and it was a compliment to share similar thoughts ; steam is a monopoly, they shouldn't have issues as they are if they demanded the 30% ,its just common sense, they shouldn't work for free ,no body does that , its community is bad ,there's no point on shielding with steam and demonizing ms, this isn't the 80s anymore, I don't understand demonizing ms as if they work for free and do all the s.Yeah unfortunately Halo wasn't the same without Bungie and not a good launch for Xbox One.
They werent selling Halo 3 numbers anymore, so Subsciption sounded good on paper. While Nintendo and Playstation were selling 10+ million for 1st party games. Nintendo even more at times
I wonder what the board thought of it back then compared to now?
Till then this is talking bullshit to get some fame....
I imagine a future where gamepass consist of primarily 1st party games. 3rd party content is just there to prop up the service while Xbox attempts to get their internal teams to a point where they get a new release every couple of months. I imagine indies will always be apart of the service as well to fill in gaps.
Which is fine if you a) don't claim otherwise and b) actually do replace that lost revenue.Subscription services absolutely cannabilize traditional sales, but the point is to get enough people that normally don't spend any or much money in their ecosystem, to counteract the lost revenue.
Which is fine if you a) don't claim otherwise and b) actually do replace that lost revenue.
We now know A was another lie to add to the long list of now proven lies and whilst B will only be known in the fullness of time it has been clear to many wise heads for a while now that they're failing on that front. They've been missing subscriber targets - growth just isn't where it needs to be. That means they need to up their game or up their prices. Well, there's also the option of cutting costs to gain margin.
That's how I see it too.
Let's say they have data that suggest that an average player buys 10 games through the whole console generation, if they can get that person to spend 15$ per month instead, then it's a win.
But the calculus breaks down when you have to offer hundreds of games, and spread the revenue to third parties and your internal teams too.
What are you talking about?We now know A was another lie to add to the long list of now proven lies and
Imagine bringing up Steam sales as a counter argument to subscription services. Lolthe devs are still getting paid, the ones devaluating their franchises are MS and games devaluation ALREADY HAPPENED with steam sales.
so far the "premium" games i got with the subscription were as well put together as anything else, so i don't see the reason for the doom and gloom tbh
hell if anything we already know that a bunch of good games wouldn't have been made without gamepass according to the devs hemselves.
you see it as devaluation of the media, I see it as offering a safety net for devs to take risks
Noting that we have no idea what it's actually selling on Steam. We only know that it peaked at arond 6.5 thousand concurrent players. Being at the top of the steam charts for a quick burst, particularly in dry periods like January-February, means nothing for actual hard numbers, as has been displayed numerous times. So we can't even label Hi-Fi Rush as a smash sales success.This is spin and misinformation at its finest.
The reason the game is seeing we on steam has absolutely nothing to do with gamepass. It's selling on its own merits, don't take that away from the team that worked on it.
Thank you for writing JK at the end there. Before that I thought what you were actually being serious.There no contention that the raw number of units sold would likely be higher if it was exclusively only available through traditional buying.
There's no mental gymnastics, I'm simply saying the article you posted is not Microsoft saying you end up with more units sold than if you didn't have it on gamepass. But that there is additional sales that arguably would not have happened if the game was less accessible. And that those additional sales help for an overall healthy business model for them.
If you look at the quote in context, He's not championing it as the best most lucrative model or that it doesn't canibalize sales. The fact that it canibalizes sales is implied in the question which Spencer just says he'll just say the model has been healthy for their franchises then brings up this positive effect increased access has in that quote from the article. He's not even saying it will work for all games either but that it's been healthy (not great) for them and that 3rd party should make their own business decision but he thinks that it's a good option.
The concept of the positive effect is this:
If A, B, C, D, E buy a game if store only
Then A buys game only if on gamepass but B, C, D, E + F, G, H, I use gamepass
Because game is popular/trending/hyped J or even K might possibly buy the game. It's obvious that gamepass canibalizes the sales of B, C, D, E because they literally aren't buying it but the concept is that there is potentiallymoreadditional people (J/K) that end up buying the game due to so many people talking about it.
Wait what? are you serious? I have been going off how it's been spun on here and was under the impression that it's breaking some sort of sales record.Noting that we have no idea what it's actually selling on Steam. We only know that it peaked at arond 6.5 thousand concurrent players. Being at the top of the steam charts for a quick burst, particularly in dry periods like January-February, means nothing for actual hard numbers, as has been displayed numerous times. So we can't even label Hi-Fi Rush as a smash sales success.
imagine missing the entire point like you didImagine bringing up Steam sales as a counter argument to subscription services. Lol
Also: What risks?
Yeah Microsoft was throwing money left and right just to get any game on there. Kind of like arcade in the 360 days. So yeah I guess the dev is technically right - Microsoft was looking to spend money to prop up a service and I guess were the only capital provider at the time to fund this.imagine missing the entire point like you did
what risks?
Pentiment, one of the best titles of 2022, wouldn't have happened if not for gamepass according to the dev himself
https://www.nme.com/news/gaming-new...ame-would-not-exist-without-game-pass-3351838
What.. you guys don't buy games you already are given access to for few dollars a month?
Why is it two things cant exist? They are saying sales dwindle after 12 months. 3rd party games are NOT typically in gamepass for 12 months!Phil-
"When you put a game like Forza Horizon 4 on Game Pass, you instantly have more players of the game, which is actually leading to more sales of the game," he said."
MS-
"Microsoft also submitted that it's internal analysis shows a decline in base game sales twelve months following their addition to gamepass"
So which is it? Someone is lying bro.
Including sycophants on this forum defending this shit as sustainable in any way.
Your point was that the existence of steam sales (often where AAA games sell their lowest number of copies platform-by-platform by the by) somehow devalues games at all/to even nearly the same extent as a subscription service where you have access to hundreds of games, many of them on launch, for a monthly fee that amounts to a fraction of most Steam sale prices for recent tentpole releases.imagine missing the entire point like you did![]()
Josh Sawyer can say that all he likes, and it makes him either a liar or a part of a truthfully incapable studio. This is what I don't like about games discourse when it comes to "taking risks" or whatever: There's nothing risky or new about a narrative adventure game with a not-so-quirky artstyle. Certainly not when it's cheap to make. Do you think David Cage's games are "risky"? They're more financially risky than Pentiment, that's for sure.what risks?
Pentiment, one of the best titles of 2022, wouldn't have happened if not for gamepass according to the dev himself
https://www.nme.com/news/gaming-new...ame-would-not-exist-without-game-pass-3351838
Yeah this is how all subscriptions work. Apple Music, Netflix, Spotify, Disney+. The only way sales increase through subscriptions is if the subscribers are talking so much about something new that they essentially end up like walking ads and get non-subscribers to buy something they never planned to buy.Subscription services absolutely cannabilize traditional sales, but the point is to get enough people that normally don't spend any or much money in their ecosystem, to counteract the lost revenue.
Wait what? are you serious? I have been going off how it's been spun on here and was under the impression that it's breaking some sort of sales record.
Your point was that the existence of steam sales (often where AAA games sell their lowest number of copies platform-by-platform by the by) somehow devalues games at all/to even nearly the same extent as a subscription service where you have access to hundreds of games, many of them on launch, for a monthly fee that amounts to a fraction of most Steam sale prices for recent tentpole releases.
It's a ridiculous idea.
Josh Sawyer can say that all he likes, and it makes him either a liar or a part of a truthfully incapable studio. This is what I don't like about games discourse when it comes to "taking risks" or whatever: There's nothing risky or new about a narrative adventure game with a not-so-quirky artstyle. Certainly not when it's cheap to make. Do you think David Cage's games are "risky"? They're more financially risky than Pentiment, that's for sure.
We're really going to sit here and pretend that fucking Obsidian couldn't make Pentiment without Gamepass, when a bunch of Estonian tankies came out with Disco Elysium to massive critical and financial success 3 years beforehand?
That's the benefit of Gamepass. It's a low risk platform so low risk games, low investment games naturally fit thereimagine missing the entire point like you did
what risks?
Pentiment, one of the best titles of 2022, wouldn't have happened if not for gamepass according to the dev himself
https://www.nme.com/news/gaming-new...ame-would-not-exist-without-game-pass-3351838
You think a game like cod that sells in the BILLIONS of dollars is going to turn that profit with gamepass? Get of the crack! It sells more on PlayStation ffs!Look at it this way. Do you think halo would still be selling like hotcakes if it wasnt on gamepass? People on gaf tend not to look at ms without emotion involved. They wouldn't have launched game pass if it couldn't be profitable. Period. It has a clear business case. Games dont always sell at full price 12 months after launch. We are not talking about GTA or something like that.
It may be a moot point if most games sales typically dwindle after the first 4 months.
Same thing happened in the music biz and the movie biz. I love my vinyl and CD collections. I also work in the music industry, and so I know first hand how tech and consumer demands can change things,in a short space of time and in some cases put people out of jobs, overnight. scary thought. . Consumer demands will always shape these things. regardless of what people think of GP right now, on GAF, subscription of services will be the future.
A game costs more than an album to make in most cases, so id imagine the cost impact being much bigger for the games biz...but long term? thats where consumers are heading. nobody cares about owning physical copies of media anymore and if people no longer feel that way about art then I hate to break it to you but video games dont stand a chance. The fact that things like fortnight, and mobile games make more money than most AAA games says it all really.
In a world thats in a recession..people struggling to make ends meet....yet video games.. a non-essential entertainment medium is getting closer to $100 a pop. And the games themselves are getting more expensive to make.... gamepass may go up in price someday. But it will always be cheaper than buying two or three full priced games. Im sure it does canibalise sales in the same way streaming hurts record and movie sales. But subs and streaming is also the distribution method all other forms or entertainment have accepted as the dominant form of consumption...gaming will sooner or later catch up with consumer habits in other areas of entertainment.
Is GP sustainable? I dunno, but is making triple AAA games that dont meet their sales projections after tens or hundreds of millions spent on development, sustainable (Im sure square could tell us a thing ort wo about that) ? And what happens when the prices go up on games again? because AAA game development isnt getting cheaper, these games require more people than ever to make in most cases...What happens when that expense is handed to the user again, people were crying about the current price?..... sure subscription prices may go up but so will game prices....but what does this subscription Vs buy-to-play argument look like when its say £150 for a years worth of GP versus 100 bucks for the latest single player action game with movie like set pieces and 30 hours of gameplay? and maybe 80 bucks more for the usual 'year one' DLC pass? is that gonna be economically sustainable for the average gamers (or parents) wallets?
On a side note: I spend a lot of time between england the US, jamaica/the carribean and latin america, and most people in some of the places ive worked can barely afford a big screen TV...but they have internet, and a smart phone, some with the odd game or two on there..they have netflix, some even have spotify because these things give affordable access to modern entertainment. For people in poorer countries with internet access things like gamepass are gonna be huge, this is something Ive seen for myself.
i think your analysis is quite wrong and misguided that i dont even know where to start.
the only thing i am going to say is this:
Subscription services are not the future but the present.
AAA dev/publishing have been already changed by the consumers.
Game Pass is just an evolution of previous services.
in poor countries where people can barely afford a big TV. what makes you believe they will waste their precious internet/mobile data playing videogames on the cloud when they can access Free games natively on their smartphone? not even mentioning that data centers are not a priority in those places.
You're right I was imagining it apparently haha. Only an X bundle as you say.Is there an S bundle though? As far as I know it's officially only X, I believe it's a way of pushing up margins on it.