To offset the risk that comes along with developing big-budget games, the video game industry needs more and better monetization methods, according to Microsoft's Xbox boss, Phil Spencer. Speaking withGame Informer, Spencer said the movie and TV industries have done a good job monetizing their back catalogs through "meta-subscription" services like Netflix and Amazon Prime, and video games are lagging behind.

"Building big, AAA games is expensive. It's high-risk," Spencer said. "One of the things that we need to do is think about as an industry are the windows of the content and how to monetize better. There are different ways to monetize the back catalog. EA's trying here [with its subscription-based program EA Access]. Us platform holders have Games with Gold and Sony has PlayStation Plus. Movies do a good job of this, TV does a good job of this. I think it's a space the [games] industry has to evolve, because the people who own the content need to continue to monetize in interesting ways. Subscription's a good business model."

Though Spencer said he's optimistic about subscription services for games, he made it clear that this model remains unproven for games; after all, EA Access was only released publicly on Xbox One this week. "Frankly, EA Access is going to be one of those things the industry is going to learn from," he said. The movie and TV markets, of course, are much older than the video game industry and have had time to try new things and learn what works best. Compared to those industries, video games are still in their infancy, and it makes sense that the major players don't have everything figured out just yet.

One major way publishers and developers have attempted to monetize beyond the initial purchase is through downloadable expansions and microtransactions. Those models have been met with some level of consternation from gamers, but that hasn't stemmed the trend.

Also in the interview, Spencer talked about Kinect for Xbox One. He said the standalone Kinect is still coming this fall, though he didn't share a specific release date. Regarding price, he suggested it will sell for somewhere north of $100. "We need to get the prices [set]," Spencer said. "I want consumers to make decisions when they're fully informed. The price difference will be more than between the console (bundles)."

http://www.gamespot.com/articles/game-industry-needs-more-and-better-ways-to-make-m/1100-6421729/

The games industry agrees. Everyone in every industry agrees that they need more and better ways to make money.

So, XOne with Kinect for $499 didn't sell, but now a plain XOne for $399 and Kinect for over $100 will?

That's a great idea! They do it a little now but there is still potential for so much more. Another thing to do is to put adverts instead of loading screens. 

Did you know that the water is wet? Amazing isn't it.

OT: Well, after hearing Ubisoft saying that Riot isn't stealing enough money out of our pockets (when LoL's success is mainly due to its fair approach), hearing these words is as I said above stating the obvious, but we know how far it can go, right M$?!

Or make better products that by the virtue of not being mediocre sale better.

theirs always that.

Wow Ka-Pi. your ideas are fantastic. MS needs to hire you! 

Please do no put micro-transactions in $60 games.

Sony's games have the same problem too you know. 

Yeah. I'm surprised how slow the gaming industry has been to adapt. There's so much money to be made from these sorts of things. 

Not a bad idea.

Only I would have Uncharted sponsored by Google Maps.

Tomb Raider by Wilson's Funeral Homes.

Bloodborne by Red Cross.

Sunset Overdrive by Viagra.

I could go on....