• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Gamepass, Netflix and the increase in price....

The Alien

Banned
This is a new one....even for Gaf.
Its the "concerned about concern" thread.

Impressive. Most impressive.
 
Last edited:

Genx3

Member
So where does this fear that MS will increase its gamepass price at enormous heights if they see similar success comes from ?

It comes from people who purposely ignored the fact Sony raised their 1st party game prices to ridiculous levels and feel threatened by Xbox' consumer friendly approach.

So what do they do?
They create a false narrative to create a sense of Fear among consumers.

Basically Fear Mongering.
Hate to say it but reading a lot of the reactions tell me their fear mongering is working.
I read countless threads Falsely claiming that XGS buying more studios is monopolizing the industry and bad for consumers. Even if MS/XGS purchased Sega XB would still not be close to a monopoly.

Putting more games on a monthly subscription service that is clearly the best value in gaming right now is actually Consumer Friendly.
 
I don't know if anyone else has mentioned this but they did increase the price for PC game pass from $5 a month to $10 a month. if you think they can't increase it more in the future you're wrong especially when they're offering games like elder scrolls vi day and date.
 

Nymphae

Banned
Netflix has already, what, 150-200 million subscribers worldwide and its monthly price is still very low while providing more and more (and more expensive) exclusive content

Interesting spin. From my perspective it costs nearly double what it did when I was first interested, and has fewer shows that I'm actually interested in watching, with many things I was interested in rewatching long term being shuffled out of the service. Oh wow they're using that scrooge mcduck pile of cash to produce some woke originals, thanks Netflix let me pay more to cover those expenses
 
Last edited:

CeeJay

Member
The 15 million subscribers are not paying $15 a month though are they.
Long term plan...
Once people get hooked with the free taster they'll be quite likely to carry on subscribing at full price.

Even Netflix hasn't hit that mark yet and it has taken them well over a decade to do so.
Again, Long term plan...
Playstation sold over 100 million consoles, Xbox sold somewhere around half that give or take 10 mill. PC gamers number in their 100s of millions, mobile users in their billions. The potential market is there to grow way beyond a couple of hundred million subscribers if they can keep encouraging enough people in. You are really thinking too short term here. Look at what Amazon did with Prime, first it was free delivery then they bolted on books, movies, music and in the future probably games. Look at how Apple managed to grow from iTunes to the behemoth that is the App store by capitalising on their current position and then diversifying into other potential demographics. What if in a decade or so MS rebrand it to Xbox Premium and include other things into it to increase their market penetration? It's really not that hard to see why MS are doing this and where it could potentially take them. There is enough evidence out there with what other large corporations have done to increase their reach to see what Microsoft are trying to do. Right now Gamepass is the most important consumer subscription that Microsoft have, do you really think that the rest of the company is not looking at that and thinking about the possibilities?
 
Last edited:

THEAP99

Banned
But a lot of these originals are generic trash. And when it comes to games subscriptions, you need to keep people engaged. Which means more games as a service and episodic stuff like that to keep players engaged in the subscription and returning.
 

sainraja

Member
The price increase is a factor because we're talking about games here. I mean, if Microsoft can keep the price & value aligned then that's good. Pointing to Netflix doesn't help your case. Netflix subscription used to be half of what it is today and we're just talking about video content.

Sony’s $70 price increase shows nothing last forever. If Gamepass price increases over the years it has to show that the value is still there. If not people will leave.

Is that really Sony's price increase of $70? Games that are $59.99 on Xbox S/X are also $59.99 on the PS5. Games that are $69.99 on PS5 are also $69.99 on Xbox. I know overseas this is no longer true but you quoted $70 so I assume you're here in the states.
 
Last edited:

Warnen

Don't pass gaas, it is your Destiny!
The price increase is a factor because we're talking about games here. I mean, if Microsoft can keep the price & value aligned then that's good. Pointing to Netflix doesn't help your case. Netflix subscription used to be half of what it is today and we're just talking about video content.



Is that really Sony's price increase of $70? Games that are $59.99 on Xbox S/X are also $59.99 on the PS5. Games that are $69.99 on PS5 are also $69.99 on Xbox. I know overseas this is no longer true but you quoted $70 so I assume you're here in the states.

Sony 1st party games are $70, those aren’t on anything else.
 

Bryank75

Banned
I wanted to make this thread because I see many people «concerned», usually not gamepass users, that once gamepass gains more. users , MS will increase its price. They bring up Netflix as an example of the terrible gaming future ahead of us.

The thing is that Netflix has been available in my country for 4 years , give or take. During these 4 years Netflix has provided a ton of new Original content, big budget movies with the biggest stars, a gazillion new expensive tv shows and more. The increase in price from the day it arrived until now has been 1 ( ONE) euro per month. Sony just announced a 10€ increase in its games , pricing them 80€ (almost 100$) .

Netflix has already, what, 150-200 million subscribers worldwide and its monthly price is still very low while providing more and more (and more expensive) exclusive content. So where does this fear that MS will increase its gamepass price at enormous heights if they see similar success comes from ?
The 'concern' is well founded in that Netflix has MASSIVE debt, now MS can afford to pay for lots of content for a long time.....
But it would be naive to expect that they don't want to see a good return on investment within a reasonable timeframe.

The obvious plan from my perspective is that they will keep hardware going in the short term.... this generation at least.... with maybe a streaming box in the future.
Once they have enough people on board, they can stop supporting physical media and just do streaming subscriptions. Which fits better with the company as a whole... software / service business.

Then people are 'locked-in' and have no other option but to pay whatever they ask.... all services, friends lists, saves etc etc are behind a permanent paywall forever and ownership is gone. (Prices would obviously then go up)
 
Last edited:

Lupin3

Targeting terrorists with a D-Pad
Glas you can see into the future.

Because that was an outrageous take that is absolutely not grounded in a reality where companies eventually will try to charge whatever they can get away with? And where if it's too expensive people will stop paying for it?

And yes, I can. I spend my talent here on Gaf, predicting the future of a subscription. Not betting on sports. I'm glas you're glas.
 

EverydayBeast

thinks Halo Infinite is a new graphical benchmark
Every time there’s a price increase it’s never a win for the consumer it’s like when gas prices rise it’s not the same and budgets tighten up
 

_Spr_Drnk

Banned
You can! Just buy them, you can use cash or credit card to buy games. I thought this was well understood, you can exchange money for goods and services.

But I wanted a peanut!

My main worry is that we are moving towards a future where it isn't an option anymore. Look at it now with all the TV subs channels, Amazon Prime, Netflix, Disney+ etc. You theoretically have to subscribe to them all to get all the decent content. I don't mind that other people want to go all digital, I do mind that the option to buy and trade titles might be going away.

I'm an older gamer now, I have to accept things change, even if I don't like it. But the thought of having to pay for crud I dont want just to play a few quality titles leaves me cold. That is not a 'value proposition' to me.

Now get off my fucking lawn.

Edit: removed many 'look's...
 
Last edited:

sainraja

Member
Sony 1st party games are $70, those aren’t on anything else.

Microsoft's first party games most likely will be $69.99 as well (unless you subscribe to Gamepass, where you have the subscription fee). If Microsoft discounts their first-party titles right now, to $49.99, you can expect the new prices to be $59.99. Is there any indication of that not being the case?
 
Last edited:

MoreJRPG

Suffers from extreme PDS
Even at a price increase if it comes out cheaper than say, three first party games it’s still an incredible deal as you get the entire catalogue, as well as all the day one third party stuff.

Although I never expect the subscription to ever reach that level, but that’s just how amazing Gamepass is value wise.
 

Warnen

Don't pass gaas, it is your Destiny!
Microsoft's first party games most likely will be $69.99 as well (unless you subscribe to Gamepass, where you have the subscription fee). If Microsoft discounts their first-party titles right now, to say $49.99, you can expect the new prices to be $59.99. Is there any indication of that not being the case?

If the queen had balls she be the king...

MS have giving no indication that they will raise prices like sony nor is it likely when game pass is a thing
 

MiguelItUp

Member
Prices going up to is to be expected, but they're also aware that a threshold is going to have to exist. Because consumers will refuse to pay if the prices are too high and not justified.
 

sainraja

Member
If the queen had balls she be the king...

MS have giving no indication that they will raise prices like sony nor is it likely when game pass is a thing

Gamepass doesn't eliminate what the actual selling cost of a game is. The price going up isn't specific to Sony. Third-parties are raising the price too. If you subscribe to GP, that's your thing but if you wanted to buy it at release, what is that cost going to be? Everything points to it being $69.99. Otherwise, no game on Xbox S S/X should cost $69.99, but that is not the case. Saying or attributing it to Sony alone is being disingenuous.

Unless you really think by subscribing to Gamepass you are purchasing all those titles and when you un-subscribe you get to keep them at no extra cost. There is a reason games rotate monthly in Game Pass.
 
Last edited:

Warnen

Don't pass gaas, it is your Destiny!
Gamepass doesn't eliminate what the actual selling cost of a game is. The price going up isn't specific to Sony. Third-parties are raising the price too. If you subscribe to GP, that's your thing but if you wanted to buy it at release, what is that cost going to be? Everything points to it being $69.99. Otherwise, no game on Xbox S S/X should cost $69.99, but that is not the case. Saying or attributing it to Sony alone is being disingenuous.

everything but them actually saying they are raising the prices you mean right? MS isn’t going to release a game on Steam and it be cheaper then the version on Xbox. We will see if that $70 makes of off console to pc, untill then I doubt MS will increase prices.
 

Smoke6

Member
I explained it right there in the post.

15 million subs @ $14.99 = around $225 million

Rapid increase in sub numbers to say 20 million over the next 6 months (conservative estimate) brings it to around $300 million. Keep scaling that up to the 100s of millions of subs and those returns soon become sustainable. 200 million subs @ 14.99 is just shy of $3 billion (That's nearly a Zenimax every two months)

If they increase the cost of the sub too rapidly then that growth in subs will not be as fast and could even take a downturn. MS will want the growth in the service to come from the number of monthly subs, not from increases in the monthly price.

So do you think MS will cross that 100mil?

I’m gonna say no!
 

sainraja

Member
everything but them actually saying they are raising the prices you mean right? MS isn’t going to release a game on Steam and it be cheaper then the version on Xbox. We will see if that $70 makes of off console to pc, untill then I doubt MS will increase prices.

I don't think they will say anything or need to say anything; it seems to be where the industry is headed (unfortunately). When prices went to $59.99 from $49.99 nobody made an official announcement (not that I recall anyway), it just happened (there were reports saying it would increase, similar to how it happened now.) As for pricing between PC and consoles? When have they been consistent anyway? You can get games a lot cheaper on PC. With all these new and different platforms similar to Steam, they are pushing for standardization similar to consoles.

If you can point me to where Microsoft actually confirmed they are not raising prices then I stand corrected. I haven't seen that and third-party game pricing on the Xbox indicate that prices as a whole are going UP.
 
Last edited:

Genx3

Member
XGS has not announced a price increase on their 1st party games.

3rd parties could always charge what they wanted for their games.

Until XGS announces or advertises a price increase from $60 we have to assume they have no plans in doing so.
 

VAL0R

Banned
Xbox can never increase the price more than what tens of millions of families are willing to pay on their gaming entertainment budget in a monthly subscription. $15.00/month in 2020 (and adjusted for inflation going forward) is near the top of what the mass market will allow, I think. They want a hundred million+ subs, not just the hardcore. They can't have that for $25.00/month and even that would be a deal for the hardcore.
 

gundalf

Member
This will happen for sure but an increase beyond $/€15 is extremely unlikely, Gamers are too price sensible and will not accept excuses like bundling with other services.

But the consumer culture can change for sure, back then we looked for cheap feature phones and few years later we where ready to buy $699 smartphones with a hand kiss.
 
Last edited:

PresetError

Neophyte
Microsoft will get its money back. This is a certainty of the universe as inevitable as the sun coming up every morning.

They may get their money back raising the price of subscription or keeping the price but lowering the value of the content they offer but they'll get their money back.
 
The 'concern' is well founded in that Netflix has MASSIVE debt, now MS can afford to pay for lots of content for a long time.....
But it would be naive to expect that they don't want to see a good return on investment within a reasonable timeframe.

The obvious plan from my perspective is that they will keep hardware going in the short term.... this generation at least.... with maybe a streaming box in the future.
Once they have enough people on board, they can stop supporting physical media and just do streaming subscriptions. Which fits better with the company as a whole... software / service business.

Then people are 'locked-in' and have no other option but to pay whatever they ask.... all services, friends lists, saves etc etc are behind a permanent paywall forever and ownership is gone. (Prices would obviously then go up)
I don't get the agenda of this weird fear mongering. Especially by well know Sony fanatics who have zero interest in the service in the first place.

The market will drive the transition to a digital market not MS. And the idea that Gamepass will cause this is assine to say the least. The only companies required to use gamepass as a service are 1st party games. There are hundreds of games currently out on the xbox one platform and only a fraction of them are on gamepass.

This doesn't even take into account that the market leader of console gaming will still be Sony next gen. If anything is a catalyst to the transition to digital it is the digital console made by Sony, not the competitor who sold 1/2 as much.

And the rest of your post is ludicrous as well. There is no threat of putting friends lists behind paywalls or saves (unless you are PS plus and you want cloud saves). As for ownership, "we believe in generations", is worse for ownership than a digital market IMO. My steam library still has games I bought 10 years ago on it, but I can't put a PS2 disc in a PS5 and play it. But don't worry about that because Sony will be happy to sell you a remake or remaster at full price.
 

fallingdove

Member
Microsoft will get its money back. This is a certainty of the universe as inevitable as the sun coming up every morning.

They may get their money back raising the price of subscription or keeping the price but lowering the value of the content they offer but they'll get their money back.

How do you figure?

Netflix, considered to be the most successful of the streaming services, still isn't making money. In fact, they are headed in the opposite direction of profitability — their recent financials indicate that they are seeing a lower return on original content despite having to spend more on it each year.

You then multiply development costs to factor for video games and increase the time needed to produce content and there is no way that Microsoft will be able drive profitability with what they are currently charging for the full price GamePass subscription.

*Anticipated response - but that is for Microsoft to figure out, I don't care if it's profitable. For me as a consumer, it's the best value in gaming.
 

Nester99

Member
My game pass just ran out.

About to reup with Ultimate for another 3 years for $210 CDN
Full price is what $17x 36 = $612?

Not a lot of concern on my part.

That's is not even 3 PS5 games for unlimited play for 3 years.
The best part about game pass is it expands my horizons, Played a ton of games i never would have bought and just love. (omg slay the spire)


Game pass is fucking great, especially if you get the deal. Of course the price will go up. Inflation is a thing.

I love my PS4/5 for exclusives, but that gamepass deal is just so sweet.
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
I wanted to make this thread because I see many people «concerned», usually not gamepass users, that once gamepass gains more. users , MS will increase its price. They bring up Netflix as an example of the terrible gaming future ahead of us.

The thing is that Netflix has been available in my country for 4 years , give or take. During these 4 years Netflix has provided a ton of new Original content, big budget movies with the biggest stars, a gazillion new expensive tv shows and more. The increase in price from the day it arrived until now has been 1 ( ONE) euro per month. Sony just announced a 10€ increase in its games , pricing them 80€ (almost 100$) .

Netflix has already, what, 150-200 million subscribers worldwide and its monthly price is still very low while providing more and more (and more expensive) exclusive content. So where does this fear that MS will increase its gamepass price at enormous heights if they see similar success comes from ?

What do you consider "enormous"? I think it'll be $20 a month by the end of next-gen. Is that enormous to you?
 

chonga

Member
Long term plan...
Once people get hooked with the free taster they'll be quite likely to carry on subscribing at full price.


Again, Long term plan...
Playstation sold over 100 million consoles, Xbox sold somewhere around half that give or take 10 mill. PC gamers number in their 100s of millions, mobile users in their billions. The potential market is there to grow way beyond a couple of hundred million subscribers if they can keep encouraging enough people in. You are really thinking too short term here. Look at what Amazon did with Prime, first it was free delivery then they bolted on books, movies, music and in the future probably games. Look at how Apple managed to grow from iTunes to the behemoth that is the App store by capitalising on their current position and then diversifying into other potential demographics. What if in a decade or so MS rebrand it to Xbox Premium and include other things into it to increase their market penetration? It's really not that hard to see why MS are doing this and where it could potentially take them. There is enough evidence out there with what other large corporations have done to increase their reach to see what Microsoft are trying to do. Right now Gamepass is the most important consumer subscription that Microsoft have, do you really think that the rest of the company is not looking at that and thinking about the possibilities?
Ah, the old 'there are billions of mobile users' argument again. This is just pure wishful thinking.

Go look at the active player counts for mobile games. Games that reach the levels you're hypothesising for Game Pass are very rare events. But these are games that go viral and don't require you to pay a single penny to download, or play.

There's a giant leap between people clambering to play a free title for a quick fix vs. getting them to pay $15+ per month.

Do you really think the 50 year old women filling their free time with Candy Crush are going to jump at the chance to play Halo for $15 a month?
 

CeeJay

Member
Ah, the old 'there are billions of mobile users' argument again. This is just pure wishful thinking.

Go look at the active player counts for mobile games. Games that reach the levels you're hypothesising for Game Pass are very rare events. But these are games that go viral and don't require you to pay a single penny to download, or play.

There's a giant leap between people clambering to play a free title for a quick fix vs. getting them to pay $15+ per month.

Do you really think the 50 year old women filling their free time with Candy Crush are going to jump at the chance to play Halo for $15 a month?
And what percentage of smart phone users worldwide might be interested in Xcloud? Even if its just 1% then thats about 30 million. How about people who game on PC, lets add just 1% of those people to Gamepass for the time being, thats another 10 million, how about people who might want to stream through Xcloud on bigger screens than phones such as tablets or low powered laptops or TVs? Can you see how once you move away from just targeting people on consoles then the potential customer base goes up in orders of magnitude?
 

MrRogers

Member
Its the amazon situation. Have constant great deals and specials to draw the masses in and undercut competitors, then as your monoploy grows the sales disappear, competitors fail and then you pay full price and then some. People will sort out the value of things as they go, but i have a sneaking suspicion that all these streaming services are the new cable and like cable they will screw the consumer when they have no one left to compete with and that time is fast approaching.
 
Last edited:
Top Bottom