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[Eddie-Griffin]

https://exputer.com/news/obsidian-xbox-game-pass-success/

Story Highlights

• Obsidian CEO Feargus Urquhart has said that Xbox Game Pass has changed his perspective on success.
• Instead of revenue in Dollars, success is instead measured by hours spent in-game.
• This has resulted in the studio making their games in such a way they have something for everyone.
• Urquhart also says the upcoming games from the studio wouldn’t be possible without Microsoft.

Since its inception, Obsidian Entertainment has made a name for itself in the role-playing genre. The studio’s expertise has only increased in the years since its acquisition from Microsoft. And the CEO has now said that the subsequent release of Obsidian’s game on the Game Pass has changed how they measure success.

In a new interview, Feargus Urquhart said that the subscription service has changed how he views success. But, the way Obsidian operates remains the same, with no change being made to the formula.

When we list the innovations that have changed the gaming world, the Xbox Game Pass is one of the first names that come up. Xbox and its new service have reshaped how major companies offer video games to consumers. Its unprecedented success led to an industry-wide change in the gaming subscription model.

The Obsidian CEO said that the service has made them reevaluate how success is measured. Instead of going by sales revenue, the studio now gives more attention to the hours spent in-game. His quote gives us more detail on this matter:

"I can’t go off and spend a billion dollars and only a million hours get played on Game Pass, ‘cause people aren’t paying that much for their subscriptions.”

Hence, instead of measuring a game’s outcome in money, the studio uses the time players have spent playing it. As a result, the talk has gone from a million Dollars to a million hours. The subscription service has not made the studio change its ways, however.

Urquhart says that Obsidian hasn’t changed how it approaches games due to Xbox Game Pass. Obsidian Entertainment still makes its popular role-playing IPs the way it did before. However, success is obviously not taken into account by sales numbers anymore.

This does match the metrics Microsoft is using for other departments at Microsoft, and matches how Microsoft recently announced that Xbox now has 120 million Active Users.

They have all but dropped sales numbers and revenue figures for other metrics that don't create a perception of "will that studio survive?" or "should the director/CEO change strategy" which fits with Nadella removing pressure and internal competition with sales and revenue metrics which has been ongoing since 2015.

I don't really agree with him doing this so broadly since parts of the company, including parts of Xbox, do actually need to have growth and a positive revenue stream, and if sales are not where they should, that does need to be addressed, but most of the industry seems to be going in the same direction. Heck, we have been getting Revenue instead of units from NPD for almost 10 years now.

I do like however, that some developers feel more empowered with things like Game Pass because of the feeling pressure is being relieved, and a lack of focus on revenue and money with ultimatums, means less MTX tactics so...

 

[Ghost of Caelid]

Player count seems to be a major metric over units sales and that’s good for projects like pentiment and hi Fi which won’t be sellers but will have high engagement. Money must be made but very few games on gamepass will push subs on its own, it’s a collective process.

 

[Jennings]

I wish I could get women to accept my redefinition of success in the bedroom.

 

[James Sawyer Ford]

That’s all fine and dandy but success will be measured on the business performance, not hours played

If hours played equals better business, sure, but that’s not a guarantee

 

[odhiex]

I believe that for some type of games, this metrics work. However, money has to be made somewhere, especially to cover the investment of AAA games.

 

[Clear]

How can hours spent in-game matter unless monetization is based on it? I mean I guess if you are selling advertising space then the longer the exposure matters, but that seems like the only situation where it should.

Because at the end of the day isn't that just arguing that longer, grindier experiences are "better" than short, snappy ones? And if that's the case, what does it say about the industry going forwards?

 

[graywolf323]

measuring by hours played is exactly why some of us fear it’ll become GAAS focused

I mean I’m glad they don’t have to worry about selling a ton anymore but that doesn’t mean this isn’t a double-edged sword; will Xbox keep making games that are single-player, limited replay value, and on the shorter side? it’ll all depend on if they’re singularly focused on that “millions of hours of play-time” as being what defines if a game was successful or not

 

[Yoboman]

So monetary incentive is to pad games with filler content, focus on multiplayer and GAAS

 

[bitbydeath]

Timing seems very coincidental after yesterday’s report.

Microsoft: Read the script Feargus!

 

[Thirty7ven]

Some publishers have started giving a lot more importance to % of completion, this isn’t a gamepass thing.

Number of hours spent in a game is a Ubisoft special so I don’t think the guy is saying what he thinks he’s saying.

Maybe what he’s saying is that in the gamepass model it’s not the number of people that try a game that matters, just like on Netflix it’s not the amount of people that take a peek that matters, it’s how many people stick.

 

[AmuroChan]

will Xbox keep making games that are single-player, limited replay value, and on the shorter side?

Yes, I think we'll see more Pentiment type games. They don't require a $200m budget like a God of War.

 

[Tommi84]

Soooo... more GaaS games, amirite?

 

[GHG]

This is cute and all but how does he think his wages get paid?

 

[graywolf323]

Yes, I think we'll see more Pentiment type games. They don't require a $200m budget like a God of War.

sure but will we get The Outer Worlds 3 if 2 doesn’t meet the “millions of hours played” that Xbox projected it to?

look at how quickly Netflix cancels shows that aren’t massive hits

 

[bentanchorbolt]

As long as this model brings me high quality games from Obsidian and others then its whatever. I don't care if I have to sub to get the game or pay upfront when I buy it, I just want good games. So far with how the industry is going I find value in both models.

 

[Crispy Gamer]

Come on man

 

[AmuroChan]

sure but will we get The Outer Worlds 3 if 2 doesn’t meet the “millions of hours played” that Xbox projected it to?

look at how quickly Netflix cancels shows that aren’t massive hits

It's possible it doesn't, but that's not any different than a game not getting a sequel because it sold poorly. Netflix is notorious for axing their shows early, but that may have something to do with the way they manage their content. We don't see a similarly quick axe over at HBO Max, Disney+, Apple TV, etc.

 

[mansoor1980]

but 10k people were fired

 

[ChorizoPicozo]

yikes.
so the GaaS/Ubisoft model. great.

• is instead measured by hours spent in-game.
• This has resulted in the studio making their games in such a way they have something for everyone

 

[James Sawyer Ford]

This is cute and all but how does he think his wages get paid?

Microsoft’s willingness to take a loss?

 

[feynoob]

That’s all fine and dandy but success will be measured on the business performance, not hours played

If hours played equals better business, sure, but that’s not a guarantee

More players engagement means more opportunities for sales.

 

[Kacho]

Soooo... more GaaS gamws, amirite?

Would you expect anything less from this wonderful industry? Even Sony is going all in on the live service GaaS crap. Please be excited.

 

[Tommi84]

Please be excited.

I'm not, but that's fine. I still have A LOT old-style games to play

 

[Riky]

The likes of Grounded reached a massive audience compared to just a retail model, so what he's saying is the reality.

 

[bentanchorbolt]

Would you expect anything less from this wonderful industry? Even Sony is going all in on the live service GaaS crap. Please be excited.

Nothing wrong with live service games if they are done correctly. If charging for a battle pass is what keeps the money flowing for new maps and weapons and modes, that long term support for a truly good game, then I'm all for it. The main issues is that it sometimes feels predatory when not done correctly, it becomes obvious its a cash grab.

 

[SlimySnake]

Microsoft’s willingness to take a loss?

Didnt they just layoff 10,000 people including devs from Bethesda, Caoliation and 343? This guy is next. Gamepass wont save them. You need to sell games.

 

[Metnut]

Employee touts company line. News at 11.

 

[BrutalTruth_]

Didnt they just layoff 10,000 people including devs from Bethesda, Caoliation and 343? This guy is next. Gamepass wont save them. You need to sell games.

Bet you're salivating at the thought.

Some gamer.

 

[Kacho]

Nothing wrong with live service games if they are done correctly. If charging for a battle pass is what keeps the money flowing for new maps and weapons and modes, that long term support for a truly good game, then I'm all for it. The main issues is that it sometimes feels predatory when not done correctly, it becomes obvious its a cash grab.

To me battle passes are industry cancer but I don’t play multiplayer games which is where you see that stuff. I’m talking more single player stuff like Ghost Recon Breakpoint with it’s always-online requirement and endless MTX crap.

But I agree there’s are good examples too.

 

[balls of snow]

Its all fun and games until a studio gets gutted and put on support dev role.

 

[X-Wing]

Engagement and player count are important metrics if you are planning on monetise on user data instead of sales.

 

[bentanchorbolt]

To me battle passes are industry cancer but I don’t play multiplayer games which is where you see that stuff. I’m talking more single player stuff like Ghost Recon Breakpoint with it’s always-online requirement and endless MTX crap.

But I agree there’s are good examples too.

GR Breakpoint being a live service game was a shitty decision and derailed the good will Ubisoft built with the amazing GR Wildlands. The moment I hear something is a looter shooter, I check out. That shit is for the fucking birds. If you want to play that style of game, by all means, and if devs want to make that style of game, more power to them. But to bend a game like GR into that model and end up with a far poorer product, what a fucking turn off.

GR Breakpoint on the heals of Wildlands is my biggest gaming disappointment for the last decade.

 

[bender]

I don't know why but I'm reminded of Dark Angel: Vampire Apocalypses promising 400 hours of game play.

 

[GHG]

Microsoft’s willingness to take a loss?

 

[SJRB]

Of course a videogame developer who isn't dependent on game sales for success is happy with game pass, lol.

 

[Kacho]

GR Breakpoint being a live service game was a shitty decision and derailed the good will Ubisoft built with the amazing GR Wildlands. The moment I hear something is a looter shooter, I check out. That shit is for the fucking birds. If you want to play that style of game, by all means, and if devs want to make that style of game, more power to them. But to bend a game like GR into that model and end up with a far poorer product, what a fucking turn off.

GR Breakpoint on the heals of Wildlands is my biggest gaming disappointment for the last decade.

Yep. Couldn’t agree more. I preordered it like a dumbass because I loved Wildlands and I still feel burned.

 

[feynoob]

For people that are dismissing players engagement.

If a game has 20m gamepass engagement, there is a chance for 1m-5m out of 20m potential sale. That is a huge win for devs.

But I guess you guys won't care about that.

 

[Moses85]

Obsidian Entertainment belongs to Microsoft…

Sounds legit

 

[ChorizoPicozo]

For people that are dismissing players engagement.

If a game has 20 minutes gamepass engagement, there is a chance for 1minute-5 minutes out of 20 minutes potential sale. That is a huge win for devs.

But I guess you guys won't care about that.

fixed

 

[FoxMcChief]

If devs are happy, I’m happy.

 

[Pelta88]

20 Million

More than 20 million have played Halo Infinite

Halo Infinite has enjoyed the biggest launch in the series' history with over 20 million players, Microsoft has announc…

www.eurogamer.net

 

[bentanchorbolt]

If devs are happy, I’m happy.

This. Just let me have my Xbox and PlayStation and release games for them so I can play, I don't care about financials. Everyone is so hung up on the corporate health of these companies around here. Me personally, it doesn't make a lick of difference how many consoles or copies of games are sold as long as its enough so that good games can keep getting made. If someone folds out of the industry they will be replaced by someone else as is the nature of business.

 

[feynoob]

fixed

Delusional man.

 

[ReBurn]

This is cute and all but how does he think his wages get paid?

Probably out of the $16.2 billion in net profit Microsoft made last quarter.

 

[GHG]

Probably out of the $16.2 billion in net profit Microsoft made last quarter.

Tell that to the employees they had to let go of from the Xbox division in recent weeks.

 

[Men_in_Boxes]

This is music to my ears.

Engagement numbers are the single best metric to gauge a games quality. Things are really advancing fast in this industry we all love.

 

[ReBurn]

Tell that to the employees they had to let go of from the Xbox division in recent weeks.

The topic wasn't those people, but move the goalposts if you need to. It's ok.

Xbox had some positive news today and you feel the need to shitpost all over the place to try to to kill the mood. I get it. Everything's going to be ok, though.

 

[GHG]

The topic wasn't those people, but move the goalposts if you need to. It's ok.

Xbox had some positive news today and you feel the need to shitpost all over the place to try to to kill the mood. I get it. Everything's going to be ok, though.

Try again. It has everything to do with those people. The division wouldn't need to cut staff if it was making the revenue it needs to in order to sustain those people. The quotes in the OP make no sense when you take that into consideration.

If you want to go into "daddy's cash" mode then I'd suggest you do so at time when they aren't having to cut staff at Xbox. MAU up, gamepass subscribers up and yet they are still in a position where they have to conduct layoffs.

Cry foul and attempt to make it personal all you like, those are the facts. Try and face them instead of deflecting.

 

[bentanchorbolt]

The topic wasn't those people, but move the goalposts if you need to. It's ok.

Xbox had some positive news today and you feel the need to shitpost all over the place to try to to kill the mood. I get it. Everything's going to be ok, though.

Just remember: its always the same people with the same takes, its best just to put these fanboys on ignore. If Sony or MS doing well bothers people to the point where they continuously vocalize it and then gaslight you when its brought up, to the ignore list they belong.

It's concern trolling at best. At worst, emotional responses over a plastic box.

 

[feynoob]

Try again. It has everything to do with those people. The division wouldn't need to cut staff if it was making the revenue it needs to in order to sustain those people. The quotes in the OP make no sense when you take that into consideration.

If you want to go into "daddy's cash" mode then I'd suggest you do so at time when they aren't having to cut staff at Xbox. MAU up, gamepass subscribers up and yet they are still in a position where they have to conduct layoffs.

Cry foul and attempt to make it personal all you like, those are the facts. Try and face them instead of deflecting.

MS = / = gamepass.
But go a head and complain MS actions in a thread about gamepass.