AndrewWK said:
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Even if every PS+ member downloaded a game for free only about 1/100 of those people or less would have actually bought the game. The devs get compensated a smaller amount for every PS+ member that downloads it which equals about what they would have gotten if not put on PS+. It's a much more reliable profit stream plus you have a lot more people playing your game which brings in a lot more DLC and interest in sequels. It can be a very profitable venture for a developer especially if their game is old or isn't a huge title.
Sony pays the devs maybe 50 % of the subscription rates and probably keeps the other 50%. Minus the server costs which aren't much.