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[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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adamsapple
Or is it just one of Phil's balls in my throat?
Your words are falling on deaf ears Mat, just look at this topic.
'People' were cheering that the entire ABK library will be on game pass in 2022, for a deal that closed September 2023?
user friendly
Member
No, just XBOX.So gamepass was never going to destroy the industry like many fearmongered?
DenchDeckard
Moderated wildly
Ms Bright ABK to make bank. They have plenty of games multiplat now. Minecraft, elder scrolls online etc. They've been multiplatform for years. To what extent we will see.
If gamepass dissapears then it was great while it lasted.
My worries aren't how MS makes money or not. If they want to offer gamepass I'll enjoy it. I dont expect Sony to do the same if its not sustainable for them.
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ChoosableOne
ChoosableAll
Shin-Ra
Junior Member
Let’s see if the pro-consumer Starfield/Forza Motorsport ‘Early Access’ model continues with 2024 releases.
Day +5 release for no extra cost on GP or +$35-40 for actual release day play.
Maybe game subscriptions are due for ad-supported tiers, can’t wait for that!
LordBlodgett
Member
"Yet". I was lucky enough to work in IT in 2013/2014 and see the beginning of the Office 365 movement and was able to load up on Microsoft stock. 10 years ago a subscription based Office license was less than 5% of the market, and now it is the standard. Same with Itunes vs Spotify, or owning DVDs or Blu-Rays vs streaming services. Gaming is slightly different because the content lasts much longer so casual players may feel like they are unable to get enough value out of the subscription, but I still see it becoming a major part of the industry. Younger generations have absolutely no problem with digital over physical, and subscription vs owning so as long as the subscriptions offer enough value they will keep growing.
When gamepass was first introduced I thought it was a great idea for Microsoft to expand their player base by giving players another way to get access to a lot of content at a decent price. It was never for me. I think I subbed to game pass for a total of two months to try it out and I quickly realized that my backlog was big enough and I just bought what I wanted anyways.
But good lord what a colossal failure GP is. How does Phil have a job? I love Xbox and want it to succeed in the console space, but doing nothing but promoting GP - and let's be real, a huge number of GP subs initially were on that dollar upgrade deal they did for years - and not bringing the games has fucked Microsoft. It's a shame.
But good lord what a colossal failure GP is. How does Phil have a job? I love Xbox and want it to succeed in the console space, but doing nothing but promoting GP - and let's be real, a huge number of GP subs initially were on that dollar upgrade deal they did for years - and not bringing the games has fucked Microsoft. It's a shame.
adamsapple
Or is it just one of Phil's balls in my throat?
Interfectum
Member
Yes, before it was blocked. Next question.
Have fun reading:
Cute, you were even one of the ones who thought you'd be getting diablo day 1 with it closing August 2022 so I have no idea why you're coming at me with this nonsense.
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balls of snow
Member
While I took advantage of gamepass/ ps extra this is good to hear. There will always be a place for indies and AA on the service but as a consumer, I have no problem putting a game I wanna try but not sure will enjoy on wishlist and wait for the invetible sale.
adamsapple
Or is it just one of Phil's balls in my throat?
Bizarre. If the deal had closed all the way back in 2022, you think they'd still be waiting till 2024 to start putting Activision content on game pass? Why bother with hypothetical news pieces that didn't turn out to be true.
The OP would only need to put all of Matt's Tweets to offer the true context of that information..... But it is clear that he does not want to give the context but rather create a narrative that he knows will be well received here....So gamepass was never going to destroy the industry like many fearmongered?
In fact, in those Tweets Matt is only exposing the same thing that you are saying and yet look at the reactions here....
Context:
1- The subscription model is just that, just another model. It is not understood the fear of some of subscriptions and that it could be the model that prevails and at the same time defend that it is a danger that must be stopped.
2- "income from video games" includes income from mobile phones.... Yes, gaming income on mobile phones is double that of consoles... 10% is a huge amount.
3- Subscriptions are not just Gamepass as some reduce it. Why?
. Subscription revenue has been flat, but not down. Account that in this period Sony has raised prices up to 35% and MS too raised prices.... It is clear that this has hit the number of subscribers and according to Matt himself very recently, the only subscription that has grown has been Gamepass in USA during this year which means that spending on subscriptions has remained flat even despite the growth of Gamepass, which has not been able to counteract the decline in other subscriptions ergo...
But you Know, like that magnificente ABK acquisition thread... "just shut up and say MS/Xbox is the worst"
Gamer_By_Proxy
Member
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Don't forget the "Gamepass™ is the best deal in gaming" tagline that the whole video game media industry was paid to say.
The bolded should interest you. It matters if they make money or not.
The man issue here is that gaming costs too much for the companies to be fully or mainly supported through subscriptions. It's not working either for Movies and TV shows. Have you paid attention?
Punished Miku
Member
Just wait for Foamstars.
Skifi28
Gold Member
I just thought I'd reply since everybody else already did and I'm feeling left out.So gamepass was never going to destroy the industry like many fearmongered?
Gamer_By_Proxy
Member
That's such a stupid lie too. It's undisputable that Epic's free games is the best deal in gaming. It costs zero money. Not even a sub.
I'd also argue PS+ Essential getting tied to your account forever is a better deal, and often has better games than the rental services.
JohnnyFootball
GerAlt-Right. Ciriously.
Do you have actual data to back that up for Gamepass, because Microsoft sure as hell isn't providing it.
I have no idea what you mean. That has nothing to do with what I said. I said
"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"
So what exactly are you disputing? The reasons then and the reasons now 4 months after close why it hasn't is irrelevant, people were cheering and gloating about ABK games being on gamepass in 2022.
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Kenneth Haight
Gold Member
Killjoy-NL
Member
"Netflix of gaming"
"Market of 2 Billion"
"Play on any device (soon Playstation and Nintendo*), you don't need an Xbox"
Pure genius.
"Market of 2 Billion"
"Play on any device (soon Playstation and Nintendo*), you don't need an Xbox"
Pure genius.
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DryvBy
Member
So gamepass was never going to destroy the industry like many fearmongered?
Most were worried it would destroy Xbox and there's reason for it.
Kagoshima_Luke
Gold Member
Exactly. Not worried about it destroying gaming, but rather destroying Xbox. As much as I hate where Xbox is going, we need them here to keep Sony honest.
Most were worried it would destroy Xbox and there's reason for it.
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Shake Your Rump
Member
Only 10% of total spending? Maybe the prices are too low? Sony ahead of the curve again with their price increase?
chilichote
Member
*it doesn't even mattrick^^
DForce
NaughtyDog Defense Force
He literally said growth has flattened and the idea that it would become dominant is unsupported by data.
Use Gotham Knights as an example. It benefited from putting the game on Game Pass and PS+. This helps devs reach more players.
What you don't get is that this doesn't negate the fact that growth has flattened. It will always benefit by reaching more players. If Microsoft pays third-party devs to put games on the service, it will benefit developers and players
But all putting games day one on the service comes at a cost. One of the main reasons MS spent so much money on acquisitions is to see massive growth and it has flattened. That's not good no matter how you spin it lol.
FIREKNIGHT2029
Member
This 10% is even more damning when you realize it’s all subscriptions included and not just GamePass alone which is a tiny fraction of that 10%. MS made a huge mistake betting the whole farm on this business model. It’s not sustainable for AAA game development and it explains the recent rumors we’ve been hearing about them bringing their games to other consoles and Satya’s pivot.
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Negotiator101
Member
Oh we know why
rofif
Banned
Well yes but also it have ton of bad effects on game dev and people getting used to free shit. How can you get a game in the sub for close to nothing if it costs 100mil to develop. Without m$ money? No chance
Lupin25
Member
So gamepass was never going to destroy the industry like many fearmongered?
Mainly Xbox
But considering the amount of studios MS has acquired over the past decade…
They weren’t too far off lol
Tajaz2426
Psychology PhD from Wikipedia University
Yeah, that’s the problem. They want to own nothing. It possibly the most idiotic way to spend the income you make.
You have straight morons that will subscribe to anything, but do not own. My own jeep wants me to pay for a subscription to be able to lock, unlock, start, set timing for charging my battery. Just like Netflix or any other subscription service I won’t do it because I own nothing and it has no value.
If idiots keep pushing this way we will have a subscription just to start our vehicles. No one will own anything and that is all because people are useful idiots for these companies. There is also no value on digital music, or movies as they can take them away as they wish and you can do nothing about it.
Pretty pathetic that people just go along with what they are told to do. How people bend the knee to these corporations and spend money for no value blows my stinking mind. I learned in economics in middle school never spent money on something with no resell value.
These people don't even bother to learn the difference between Netflix and Gamepass, if they did, they would realize it never was.So gamepass was never going to destroy the industry like many fearmongered?
mayham2199
Member
One of their biggest mistakes IMO was not partnering with Steam to get GP on there. I don't really care what Gabe wanted MS should have taken that $70 billion and invested in getting GP on Steam. They wont see the kind of growth they want on PC without that.
//DEVIL//
Member
Funny I had the same reaction when I saw his shirtPhil Spencer’s reaction to these figures…
TheThreadsThatBindUs
Member
So gamepass was never going to destroy the industry like many fearmongered?
Lol,
You're missing the point that if GamePass didn't become the defacto disruptive force that MS wanted it to be (which would have had a deleterious effect on the industry), then there is no possible way that it could ever generate the kinds of revenues MS want... so expect them to massively cut back on investment in content for the service.
adamsapple
Or is it just one of Phil's balls in my throat?
You're feeding into more of that fearmongering Mat is talking about, which is what I was pointing to as well.
Phil, himself, has said he doesn't see a future where game pass is 50% or more of Xbox's total revenue, i-e the whole dominant idea is sort of a forum-creation than anything they realistically expect, it is doing what he intended to at the moment, and is profitable to them as it stands.
For me, and many others, it is an incredibly valuable service. I reckon the same is true for many PS+ subscribers as well, but no one expects it to become the dominant gaming medium any time soon.
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