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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

IDKFA

I am Become Bilbo Baggins
Explain to me why would companies do +100 million costing games, to give out free on gamepass on launch?

MS pays up the losses to them?

Because giving out 6 months free and selling it for 1-6$ wont pay shit to devs, that is a fact.

Pass should cost 100-500$/month to be profitable as selling games normally, to devs.

Even if they would make 1$/game from normal game sales, how would you divide that gamepass fee into hundreds of games?

Assuming all games would lose millions unit sold.

Or GP would need fuck tons of paying users to compensate it, and xbox only is too small..pc+mobile = still maybe not enouugh

Buying games individually is becoming an expensive and archaic concept. Why spend £70 on a single game when I can just pay a set monthly fee? If publishers are worried about money, then just fill the games with MTX like loot boxes or DLC.

Also, Microsoft are one of the richest companies on earth. They can take the hit and offer a six month Gamepass sub with every Xbox sold.
 
Explain to me why would companies do +100 million costing games, to give out free on gamepass on launch?

It's not given out free. You pay a montly charge and that means MS gets continues monthly revenue (unlike a retail game) which if enough people pay that monthly revenue means overall you don't use money.
It's not a hard concpet.

Sure they're taking a slight hit, but thats what everyone does to get your model established, even with Gamepass, the Xbox divsion is still turning over a profit.
 

soulbait

Member
It's not a "sony loyalist" thing, it should be every consumer thing. Look at how subscription services in every industry have completely killed their physical market for the worse. tv and music subscriptions have made people stop buying dvd sets and physical albums, leading to lower quality art. music artists barely see a dime for their work unless they're one of the people with millions of fans. We already know what the subscription future looks like in other industries, and it's not a pretty picture

gamepass is subsidizing the service with cheap 1 dollar promo and guaranteed sales deal for publishers. but wait until they have a critical mass of users and those guaranteed sales deals turn into per play licensing agreements and you'll see the industry start talking about how they can barely make ends meet even with all of the people playing their game.

It has not made people stop doing anything. It has not forced people to stop buying things, they just no longer find value in them. I am a movie collector, so I still purchase physical UHD Blurays. I have a very large collection. However, in my friends' circle, I am the only one that still does this. Why? Because I see the value in them, others do not. It is not because streaming services have forced them to stop, they just do not see the reason in doing it. I have a nice home theater setup, with a dolby atmos audio system. Most of my friends don't even have a sound bar hooked up to their "largest screen they could get for cheap" TV they can buy. They just don't care about the gains you get with physical. As long as there are enthusiasts like me around, there will still be physical media. And similar to gaming subscriptions: as long as there are enthusiasts that want physical, they will be available.
 
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