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Jim Ryan: PlayStation about big blockbuster games that cost a lot to make, Game Pass model would not make financial sense

Hezekiah

Banned
Yeah no chance they are making money, unless they dont pay to devs at all.

People bragging how they got game pass for 1$ / month and even if the official price is 5-15$, divide that to hundred(s) of games = it is pennies what individual games gain.

Kind of like netflix, losing billions to gain popularity and hoping to turn into profit some day
I see it getting regular (annual) price increases after the first year or two of this gen.
 

Aidah

Member
The Business model naturally influences the products. If Sony were to switch to a subscription model you'll evetually start seeing a lot more of their games focusing on "engagement", quantity of the content, sandbox design, being online, social features, in-game monetization, and other things that the business model incentivizes. I'd rather them and Nintendo didn't.

As for the $70 price of games. that's a 17% increase. Disappointing to see Sony be one of the first to jump on $70 despite making more per game sold than 3rd party pubs, and as digital becomes more prevalent, they'll be making even more per game on average. Hopefully though at least that could make them stick to largely no in-game monetization for another gen.
 
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Either join now or be left out.

Netflix reshaped the movies industry and forced all the giants to follow it's footstep, but they can't compete, because they were wasting time being skeptical of the model.

Now Microsoft is leading the gaming subscription market, while others are being skeptical and will be too late when realize they should have joined the scene.
Yep, and it’s not even neccessary to put every first party game on the service. Disney is still putting their big names in theaters first.
 
This just in. All big movie studios have said Netflix won’t become a big thing because everyone likes going to the theatre more than watching at home......
 
D

Deleted member 775630

Unconfirmed Member
Sony AAA games sells millions of copies. It wouldn't make sense. But Sony has a roster of AA games which they could include Day 1.

What will make sense is improve on the $60/year of PS Now and integrate that to PS Plus which has 40+ million subscribers.

PS Plus (includes PS Collection) = $60/year, $10/mo
PS Plus Premium (includes PS Collection and PS Now) = $90/year, $15/mo

Same strategy with randomly including 2-year old AAA first party games for a limited time. But be aggressive on AA games and GaaS games. Games like Fall Guys day and date on the service.
It makes more sense for Sony to sell those games single copy like they do now, but it's not like this model is not sustainable. Which he deliberately says to take a jab at Microsoft again.
 

kriolo

Member
this is a business call.It's a pure simple invest in people playing xbox rather playstation.When you play a console you can't play the other at the same time and when you invest that time in the long run matters a lot in terms of the next console you buy, the services, games,DLC,accesories, subscriptions etc etc etc So maybe yes, Microsoft is bleeding money now, but in 5 years we'll see if the 70 usd a game model lasts
 

Zoro7

Banned
Like how blockbuster movies never go straight to Netflix. Even Mulan on Disney plus requires an extra payment on top of your subscription. Let’s face the facts.
 
They already have adapted a Gamepass like thing with PS+ Collections. It's only a matter of time, because they know that Gamepass is ridiculous value for customers.
 
This just in. All big movie studios have said Netflix won’t become a big thing because everyone likes going to the theatre more than watching at home......

But big budget movies still exist. Disney is the model that people should be looking at. Disney+ co-exist with Disney's blockbuster movies. Sony's AAA blockbuster games could co-exist with PS+. AA GaaS games go day and date on PS+ and AAA blockbuster games continue to be an event on their own.

Sony has a plethora of AA games. Those type of games could go release on PS+/PS Now day 1. Sony could also ask small developers to make them GaaS games. They could always be on the look out for interesting indie games or very fun online games to release on PS+/PS Now. An example of that is FALL GUYS and rocket league. Sony could start doing this more often now while they try to make a robust line-up and perception for PS+/PS Now. This strategy will not affect Sony's AAA output. This will not force them to race to the bottom. Ultimately, it will not affect the quality of their AAA games.

Their big blockbuster AAA games should continue to be an event on their own whenever released.
 
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So true. Thank Sony for giving us a combination of many diff budget games and not banking on filler mediocrity. Demon Souls remake looks so good and like thy really invested in it, so does Spidey, Horizon, Ratchet, God of War 2 we know will be more AAA goodness.
 
Like how blockbuster movies never go straight to Netflix. Even Mulan on Disney plus requires an extra payment on top of your subscription. Let’s face the facts.
Bad comparison.

Netflix produces blockbusters themselves, The Gray Man has a 200m budget. Red Notice has a budget of 150-200m, the Irish Man and 6 Underground were around 150m, Triple Frontier had a 120m budget. Bright was around 100m iirc.

HBO invests 100s of millions in their most popular shows like Game of Thrones. Amazon invests 100s of millions in Lord of the Rings.

That's all blockbuster material in terms of how much their stuff costs.

What if Gamepass gets 100m subscribers by the end of this gen? (no, not 100m consoles sold, 100m Gamepass subs who mainly use xCloud to play games).
The Gamepass model doesn't make sense NOW with only 10-20m subscribers, but Microsoft thinks longterm.
 

Zoro7

Banned
Bad comparison.

Netflix produces blockbusters themselves, The Gray Man has a 200m budget. Red Notice has a budget of 150-200m, the Irish Man and 6 Underground were around 150m, Triple Frontier had a 120m budget. Bright was around 100m iirc.

HBO invests 100s of millions in their most popular shows like Game of Thrones. Amazon invests 100s of millions in Lord of the Rings.

That's all blockbuster material in terms of how much their stuff costs.

What if Gamepass gets 100m subscribers by the end of this gen? (no, not 100m consoles sold, 100m Gamepass subs who mainly use xCloud to play games).
The Gamepass model doesn't make sense NOW with only 10-20m subscribers, but Microsoft thinks longterm.
Wasn’t there loads of articles about Netflix losing a lot of money?
 

Mista

Banned
Lots of contradictions but hey, they aren't the only ones

MS will do the same thing and we know it. Games developments is very costy

At the end of the day if you're going to pay for quality then its justifiable no?

I don't mind the $10 increase if I'll be getting lots of guaranteed quality games

I can see that this price raise will make people think 100 times before buying a game now
 

iHaunter

Member
I really don't see how gamepass is worth it for MS. I imagine they are bleeding money.

It's a long term scam. Think about EA being part of gamepass ultimate for free, amazing deal right? They're in cahoots with the Macrotransaction bullshit.

You can literally make more money by giving away for free.

3630824-mtx34.png
 
Wasn’t there loads of articles about Netflix losing a lot of money?
Netflix was a big money loser first several years a huge money pit I think recently thyve just started making profit.

Since 2019 thyve been profitable

"For full-year 2019, Netflix delivered operating profit of $2.6 billion and profit margins of 13%, up from 10% in 2018, 7% in 2017, and 6% in 2016. In fact, the company has hit its target each year since it began providing full-year operating margin guidance back in early 2016"
 
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Racer!

Member
Yeaah, if you say so. You're the biggest Sony fanboy here whose blindsighted by them. What Jim Ryan said doesn't mean anything, Sony will make something like Gamepass in a year or two.

And if they do, quality goes in the toilet. You loose. As a matter of fact, you sound like a Xobox fan...you`ve already lost.
 
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gamepass might be sustainable for $30+ a month subscription. At that point, you have to ask yourself if it would be worth it to you. Gamepass wont be a $1 promo, or 4.99-14.99 forever
 
Wasn’t there loads of articles about Netflix losing a lot of money?
Netflix is a profitable business.


  • Netflix gross profit for the quarter ending June 30, 2020 was $2.505B, a 30.62% increase year-over-year.
  • Netflix gross profit for the twelve months ending June 30, 2020 was $8.821B, a 35.93% increase year-over-year.
  • Netflix annual gross profit for 2019 was $7.716B, a 32.43% increase from 2018.
  • Netflix annual gross profit for 2018 was $5.827B, a 59.21% increase from 2017.
  • Netflix annual gross profit for 2017 was $3.66B, a 42.22% increase from 2016.
 

Arkam

Member
Jim is right. Cuz he understands basic math. However there is a massive asterisk. GP is absolutely losing money at ~10m subscribers (thats w/o original AAA content).... but would very likely be profitable if it were 100m subscribers. So in the long run IF you can grow your subscribers it might work out. We watched Netflix go through that long period of losing money too and now look at them. Still not able to make major blockbusters but they are getting closer each year. Will be curious which way MS goes. Do they make the smaller/cheaper games to pad the content throughout the year or do they invest in some AAA games that will surely lose them money in the short term.
 

CeeJay

Member
gamepass might be sustainable for $30+ a month subscription. At that point, you have to ask yourself if it would be worth it to you. Gamepass wont be a $1 promo, or 4.99-14.99 forever
The market will decide what the price will be, if they put it up too much then it begins to lose customers. 100million subscribers at $15 is better than 50million subscribers at $30 a month
 
As soon as game pass does the inevitable price jump, I'll be cancelling. I don't have the time to juggle playing enough games to justify the cost at a certain point. This threshold will be different for different people obviously.

How and if Microsoft changes their business model of delivering games around this service would be interesting to see. Microsoft with more frequent, smaller games, or Sony with the big budgets. What will people want in the long run? One will be correct, and the other pay for it.
 

tryDEATH

Member
Lyin' Jim out here pulling wool over the eyes of his loyal herd once again and guess what its working like a charm.

He screwed you over on the power of the console, then controller support, followed up by royally bending you over on the "Next-Generation" games, then came a price hike for games, and now he is telling you that GamePass doesn't make financial sense for Sony, screwing you over once again and leaving you with a inferior console and ecosystem.

So what do Sony fans do after getting shafted on this many issues, they gobble up all the lies like a good loyalist would and turn on MS, even though two of their "Blockbuster" games coming out for next generation is a DLC/Expansion game and a Remaster.

But, they are now "concerned" about MS's bottom line and how it will effect the quality of games, because Jimmy boy said so and are now hoping that will be the case even though there is no evidence for it at all.

The most hilarious thing is that they aren't holding Sony accountable for the multitude of f*ck overs at all, its like they are all together in the Sunken Place singing kum ba yah and ignoring the reality around them.
 

Shmunter

Member
Lyin' Jim out here pulling wool over the eyes of his loyal herd once again and guess what its working like a charm.

He screwed you over on the power of the console, then controller support, followed up by royally bending you over on the "Next-Generation" games, then came a price hike for games, and now he is telling you that GamePass doesn't make financial sense for Sony, screwing you over once again and leaving you with a inferior console and ecosystem.

So what do Sony fans do after getting shafted on this many issues, they gobble up all the lies like a good loyalist would and turn on MS, even though two of their "Blockbuster" games coming out for next generation is a DLC/Expansion game and a Remaster.

But, they are now "concerned" about MS's bottom line and how it will effect the quality of games, because Jimmy boy said so and are now hoping that will be the case even though there is no evidence for it at all.

The most hilarious thing is that they aren't holding Sony accountable for the multitude of f*ck overs at all, its like they are all together in the Sunken Place singing kum ba yah and ignoring the reality around them.
This post seems unnecessarily hostile. Not to mention completely idiotic.
 

Jaybe

Gold Member
Game Pass is a race to the bottom. Subscribers will get what they pay for.
 
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synchronicity

Gold Member
Gamepass is disadvantageous for all players in the medium term. It will mean that inexpensive games will be developed in short intervals, because complex/expensive development is not worthwhile with this price model.

So I can understand Ryan there, although I'm sure that if the chances of making more money with it were good than the traditional way, then he would do just that.

Yeah, I have no interest in the race-to-the-bottom "Wal*Mart" type of model for gaming or any other art form.
 

tryDEATH

Member
This post seems unnecessarily hostile. Not to mention completely idiotic.

It isn't hostile, it's just presenting facts.

This just another Jim Ryan special where he tells his herd a lie and then the herd starts lashing out uncontrollably at the competitor. Majority of the comments here are already how its cost MS too much money and how the games on Xbox are going to be worse, because Jimmy boy said Sony makes "Blockbuster" games and because of that it doesn't make any financial sense to them so anything contrary to that must mean bad.

The fanboys are already rallying around the next narrative that GamePass games will be bad, with out any evidence, which they will spam all other threads with.
 

Shmunter

Member
It isn't hostile, it's just presenting facts.

This just another Jim Ryan special where he tells his herd a lie and then the herd starts lashing out uncontrollably at the competitor. Majority of the comments here are already how its cost MS too much money and how the games on Xbox are going to be worse, because Jimmy boy said Sony makes "Blockbuster" games and because of that it doesn't make any financial sense to them so anything contrary to that must mean bad.

The fanboys are already rallying around the next narrative that GamePass games will be bad, with out any evidence, which they will spam all other threads with.
Your viewing it through your own lens, and it’s incorrect. Ryan isn’t leading a narrative, he is reflecting what the community expects. His current cross gen lie however brings his credibility under scrutiny. Being able to provide what is expected by the fans is now under question.
 
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tryDEATH

Member
Your viewing it through your own lens, and it’s incorrect. Ryan isn’t leading, he is reflecting what the community expects. His current cross gen lie however bring his credibility under scrutiny. Being able to provide what is expected by the fans is now under question.

What lens? The one where he has screwed over the PS user base over and over and they just seem fine with it, because its Sony. But lash out at Xbox for anything? Where can I get one of those rose tinted lenses where this makes any sort of sense.
 

Shmunter

Member
What lens? The one where he has screwed over the PS user base over and over and they just seem fine with it, because its Sony. But lash out at Xbox for anything? Where can I get one of those rose tinted lenses where this makes any sort of sense.
Sounds like the only one that is getting screwed over and over is you. Solo.
 
MS has already said they're making chump change from gamepass, and this was before EA Play was added at no extra cost.

They want to get tens of millions of subs before they increase the price. Long term plans.

Microsoft isn't making any profit, more so probably losses on gamepass. This model takes years to make profit and millions upon millions of subscribers. Netflix just started making profit few years ago.
 

Men_in_Boxes

Snake Oil Salesman
I stopped liking big budget movies (for the most part) when I was in my late teens. I find them milk toast, predictable, and generic.

Gaming is no different.

I'd rather have a bunch of mid sized studios take creative risks than have a few big budget studios make safe choices because they have to appeal to everyone.
 
This is where all the crazy arguments come from. From this belief right here.
I'm not saying that it gets there, but it's obviously what Microsoft is betting on. This has been their strategy for a few years now. They want to reach as many people as possible, the big question is how many casual gamers are okay with streaming games. It's a risk Microsoft is taking and they're confident in its success.

Jim Ryan is obviously thinking short term, but imagine if Gamepass becomes as big as Netflix, or even half as big... Netflix has been dumping 15-20 billion yearly into their platform. Imagine Microsoft (or someday even Sony) dumping 15-20 billion into games every year, that's something that isn't possible with the current model.
 

Azurro

Banned
Lyin' Jim out here pulling wool over the eyes of his loyal herd once again and guess what its working like a charm.

He screwed you over on the power of the console, then controller support, followed up by royally bending you over on the "Next-Generation" games, then came a price hike for games, and now he is telling you that GamePass doesn't make financial sense for Sony, screwing you over once again and leaving you with a inferior console and ecosystem.

So what do Sony fans do after getting shafted on this many issues, they gobble up all the lies like a good loyalist would and turn on MS, even though two of their "Blockbuster" games coming out for next generation is a DLC/Expansion game and a Remaster.

But, they are now "concerned" about MS's bottom line and how it will effect the quality of games, because Jimmy boy said so and are now hoping that will be the case even though there is no evidence for it at all.

The most hilarious thing is that they aren't holding Sony accountable for the multitude of f*ck overs at all, its like they are all together in the Sunken Place singing kum ba yah and ignoring the reality around them.

Wow, who hurt you? Please, point at which part of the doll where Sony touched you.
 
I'm not saying that it gets there, but it's obviously what Microsoft is betting on. This has been their strategy for a few years now. They want to reach as many people as possible, the big question is how many casual gamers are okay with streaming games. It's a risk Microsoft is taking and they're confident in its success.

Microsoft has been confident with many of their products in the past. Some failed, some succeeded. We'll see. But if you ask me, MS is digging xbox's grave right now with this strategy.

Jim Ryan is obviously thinking short term, but imagine if Gamepass becomes as big as Netflix, or even half as big... Netflix has been dumping 15-20 billion yearly into their platform. Imagine Microsoft (or someday even Sony) dumping 15-20 billion into games every year, that's something that isn't possible with the current model.

I don't think Jim Ryan is opposed to a subscription of pool of hundreds of games that will be advertised to the masses through streaming on phones and tablets. I think they do have a strategy to make that happen. (Although again, I don't think it will succeed. There's simply no customer for it.)

What Jim Ryan is not amenable to is releasing their big blockbuster games day 1 on PS Now. Whatever their strategy is with PS Now, it will not include their big blockbuster games that has no microtransaction. Sony will have to create game specifically for PS Now or ask small party devs to make it for them. Keep the price low but with good value.

Two birds, one stone two stones. AAA big blockbuster games are not affected. PS Now/ PS+ Premium subscription will grow. Netflix and other streaming services did not kill big blockbuster movies in cinema.
 
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