[Mat Piscatella (NPD)] - Subscription growth has flattened, and sub services accounts for only 10% of total video game content spending in the US.
- Thread starter Pelta88
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Heisenberg007
Gold Journalism
Lovely!
DenchDeckard
Moderated wildly
So gamepass was never going to destroy the industry like many fearmongered?
Fake
Member
So gamepass was never going to destroy the industry like many fearmongered?
Well, is destroying Xbox, not the industry.
At the end of the day, there is so much concurrent payments, leeching monthly/yearly off the bank account, the average gamer is willing to tolerate (gaming, music, TV, etc) and sub prices will only go up in the future. Paying $150-$200 per year with hope that the bone the company throws at you has some meat on it is pretty non-sensical to me.
There might also be some inverse-value thinking in it: "You give me 500 games for the subscription but I don't care about 450 of them and I'll never play them. I only care for 50 of them so why should I pay for the other trash?"
Add to the fact that most of the games in the premium subscriptions have an expiration date so you "feel" you lose value the less you play and if you don't hurry up you might not even finish the game. This is an advantage of the basic sub tiers like PS+ Essential and Live Gold since every game you redeem is always locked in your account. You might not like it now, you might not finish it now, but it will be there in one or five or ten years in the future.
There might also be some inverse-value thinking in it: "You give me 500 games for the subscription but I don't care about 450 of them and I'll never play them. I only care for 50 of them so why should I pay for the other trash?"
Add to the fact that most of the games in the premium subscriptions have an expiration date so you "feel" you lose value the less you play and if you don't hurry up you might not even finish the game. This is an advantage of the basic sub tiers like PS+ Essential and Live Gold since every game you redeem is always locked in your account. You might not like it now, you might not finish it now, but it will be there in one or five or ten years in the future.
XXL
Banned
More like they tried and failed.So gamepass was never going to destroy the industry like many fearmongered?
Heisenberg007
Gold Journalism
Well, Microsoft tried its best. But, just like their hardware and software sales, they couldn't make it work.So gamepass was never going to destroy the industry like many fearmongered?
Otherwise, yeah, that was the plan. To increase GP's influence in the industry. And don't forget the very organized campaign we saw when almost every media outlet was writing articles like "PlayStation MUST put its games day one on PS Plus like Game Pass."
Mr Hyde
Member
Subscription services for music is the only sub that makes sense to me. For games, books and movies, I prefer buying and owning and having a collection. A future where only subscription services exists is not a future I wanna partake in, so good news that they are stagnant. But it's nice with options I guess.
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DenchDeckard
Moderated wildly
Schmendrick
Member
Mild shock.
and of course
and of course
ChorizoPicozo
Member
Xbox fucked themselves.
JohnnyFootball
GerAlt-Right. Ciriously.
According to Matt Pisquela since he is the expert. Since it's what you want to hear then that makes it 100% correct.So gamepass was never going to destroy the industry like many fearmongered?
ChorizoPicozo
Member
Ok. around all this drama, i have to ask:Phil Spencer's reaction to these figures…
Where the fuck is Phil Spencer and what game has been playing lately?
Tiago Rodrigues
Member
All those billions spent...all that money trying to bring content to Gamepass and "forgetting" to promote the main console for...10%. And those 10% is not even Gamepass. That's Gamepass, PS Plus (that has like almost the double subscribers, with multiple tiers), Ubisoft, EA, etc...
Gamepass probably has like 4% or something like that. Incredible...
And before someone mentions why i'm singling out Gamepass...because MS put all eggs in one basket and clearly didn't work as intended. The others didn't.
Gamepass probably has like 4% or something like that. Incredible...
And before someone mentions why i'm singling out Gamepass...because MS put all eggs in one basket and clearly didn't work as intended. The others didn't.
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DForce
NaughtyDog Defense Force
So gamepass was never going to destroy the industry like many fearmongered?
People on here said Sony is going to be in trouble because they couldn't compete with Game Pass. They said Sony didn't have the finchnal means to compete with Microsoft to create a Game Pass model.
And just like many PlayStation fans have said, the subscription service is more likely to fail than succeed.
GHG
Gold Member
So gamepass was never going to destroy the industry like many fearmongered?
If you extrapolate what's happened to Xbox, particularly how game purchasing habits have changed on the platform, across the industry as a whole what do you think would happen?
It's only not damaged the industry as a whole because Xbox's management have been so incompetent and inept in their approach.
JohnnyFootball
GerAlt-Right. Ciriously.
This is why Xbox console sales being poor for Xbox matters and it matters a lot. They're the target audience for Gamepass. PC Gamers are never going to buy into Gamepass in significant numbers. They're into Steam/GOG etc.
I mean, seriously what incentive does Microsoft gives you to invest their system if you own a gaming PC. PC Gamers aren't interested in subscription services.
I mean, seriously what incentive does Microsoft gives you to invest their system if you own a gaming PC. PC Gamers aren't interested in subscription services.
Heisenberg007
Gold Journalism
Exactly. People would blame PlayStation if Xbox ever does away with its hardware, but it's really Xbox's own doing.
They devalued their consoles and bet all their chips on the subscription horse that was never destined to succeed, while ignoring a perfectly healthy and proven business model of retail software sales.
PlayStation and Nintendo continued to follow that model and continued to found success. While Xbox, in its infinite arrogance, compared PlayStation with Blockbuster and Xbox with Netflix and thought they'd eliminate PlayStation with this Game Pass strategy.
JohnnyFootball
GerAlt-Right. Ciriously.
Gamepass has it's place. I think it could work as a $7.99 a month with older games and less known games. But for Day 1 AAA releases, I do not support as I do not believe it is sustainable.
yazenov
Member
So gamepass was never going to destroy the industry like many fearmongered?
So Gamepass was not the disruptor of the industry that some were claiming?
MasterCornholio
Member
So gamepass was never going to destroy the industry like many fearmongered?
Maybe because it was never popular enough to affect the industry in that way. We already see what it's doing to revenue on Xbox.
JohnnyFootball
GerAlt-Right. Ciriously.
Correct. The moves they are making now as far as exclusives are the moves that should have been made back in 2014-2016. They didn't have to spend $70 billion if they had properly invested in their own first party studios and started a steady stream of game releases. People talk about Microsoft having a ton of money. That is correct, but they tried to fix every problem by throwing money at it instead of building a culture of game development that Sony did back in 2007 since they didn't have the money to throw away like Xbox did. Xbox was great when they had Gamers building the brand, but once Mattrick took over Microsoft people took over and it hasn't recovered. Which is a damn shame because if they had continued on the path they began from 2006-2010 they would be kicking ass. Maybe not in first, but would be much closer to Sony.
MS could probably boost subs by actually releasing some of their games there but then it would have to admit doing so 4 months earlier would have lowered their sales. And to think people were cheering for and gloating that the entire ABK library would be on GP at the end of 2022, it's now 2024 and the xbox fans are still twiddling their thumbs. Hopefully soon though.
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Moriarty1889
Member
Good. Best news I have heard all day.
SmokedMeat
Gamer™
Just never made sense why anyone would pay to be subbed each month.
Just do a cheap promo and play the shit out of what you're after; then drop it.
Edit: I wonder how much of that 10%
- Gets it free every month via Microsoft Rewards
- Bought three years of Xbox Gold and did the conversion thing
Just do a cheap promo and play the shit out of what you're after; then drop it.
Edit: I wonder how much of that 10%
- Gets it free every month via Microsoft Rewards
- Bought three years of Xbox Gold and did the conversion thing
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SkylineRKR
Member
Ofcourse they are additive. How do you want to play Spider Man 2, BG3, FC 24, FFXVI and Diablo IV and other recent huge sellers I forgot? Certainly not by subbing.
If you're subbing, you'll likely do it on top. Face it, sub services don't add many new big games. The occasional one, but most of it are smaller projects or old games. And many of those games you can also purchase for a very low price. Personally I don't really see the benefit of subbing, but thats also because I don't play that many games in a year and what I want to play day one is never on subs (Tekken 8 and FFVII Rebirth will likely take my game time for the upcoming months).
If you're subbing, you'll likely do it on top. Face it, sub services don't add many new big games. The occasional one, but most of it are smaller projects or old games. And many of those games you can also purchase for a very low price. Personally I don't really see the benefit of subbing, but thats also because I don't play that many games in a year and what I want to play day one is never on subs (Tekken 8 and FFVII Rebirth will likely take my game time for the upcoming months).
JohnnyFootball
GerAlt-Right. Ciriously.
Yeah, once all the conversions and Xbox Live cards dry up and people are forced to pay $16.99 a month, subscriptions will likely significantly drop. I still have my subscirption until 2025, but it was all taking advantage of conversions and cheap gift cards. I won't renew after that.
Wait a min...I thought Game Pass and subscription game services was the future. According to some folks...So gamepass was never going to destroy the industry like many fearmongered?
I swear I saw some ppl saying that this week.
But it definitely was said the past few years. Seems those that were fear mongering were right.
Thank you.
Facism
Member
Inshallah
mayham2199
Member
Good this is exactly what I wanted to see. I wasn't sure how sub service would do but glad it's not working out.
SlimySnake
Flashless at the Golden Globes
Destroying the industry? I think the concern was that giving away $100-200 million games 5-7 years in production in a $10 subscription would not be sustainable, and MS execs latest comments prove that it was indeed not sustainable.So gamepass was never going to destroy the industry like many fearmongered?
You have a console manufacturer essentially looking to go third party because they destroyed their revenue stream from full game sales, and you seem to think gamepass had nothing to do with this? I'd argue it had everything to do with gamepass.
SkylineRKR
Member
I've had GP Ultimate for 2 years with the conversion thing. But even that didn't interest me anymore as I didn't want to play anything that was available for it so I didn't renew last year. I'm not going to pay 15 euros for a sub. I'd rather buy a single game up front and play the shit out of that.
This too.
Horseganador
Member
What we said a lot and we were criticized for it, Xbox has bet everything during the last five years on the GP with a brutal investment, it has destroyed software sales on its platform and devalued the value of its games and all for a tiny part of the cake that stagnated a long time ago, a total strategic error.
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I have a feeling something like DIV might be announced very very soon. The others not though.
Punished Miku
Human Rights Subscription Service
MS is making bets for the far future. Here's an article from 2010 about digital sales being 20%. What were they now in 2024, 90%? I don't know the exact percentages.
www.gamesindustry.biz
As always, you can't predict the future. But there's really no one logical that actually thinks this isn't one of the more likely possibilities. Guess we'll see.
2010's total game sales
March 18, 2010 - VGChartz Ltd, a business intelligence and research firm for retail video game purchases, and Forecasti…
www.gamesindustry.biz
As always, you can't predict the future. But there's really no one logical that actually thinks this isn't one of the more likely possibilities. Guess we'll see.
Trogdor1123
Member
10% of the entire market is actually pretty large when you consider it's console and pc together. Xbox is probably the lions share?
MisterXDTV
Member
So MS basically killed Xbox hardware and software sales for NOTHING?
LOL
LOL
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
So gamepass was never going to destroy the industry like many fearmongered?
It can't be cannibalistic if most of the industry isn't doing it like Microsoft.
Dick Jones
Banned
Other companies allowing Microsoft be the canary in the coal mines was a great decision
The Xbox app is also genuinely one of the absolute worst apps I've ever used on a computer, it's so ridiculously buggy and awful. I've had it REFUSE to install games until a total hard drive/SSD wipe on 3 separate fucking computers.
MikeM
Member
Can agree. The achievements don't pop anymore on screen but my phone gets the notifications. Like wtf MS- do you want my money or not? Fix this shit.
