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Conina on 20 May 2020
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IcaroRibeiro said:

Subscription for unlimited availability of games only makes sense when the annual subscription per person is over the average money spending buying

The prime example in music subscription. USA music yearly spending in 2005 (year of iTunes launch) was 47 dollars per person. A Spotify yearly premium membership is 120 USD, of course these numbers are inflated because many people uses student subscriptions or family subscriptions, but even a half of the full price still over 47 USD/year. That's how USA music market is starting to recover after over a decade of steady devaluation

I don't know how much money an average american pays for console gaming, not gaming in general including subscription and hardwares, I meant only retail market. If it's over 120 USD a year then Microsoft is either losing money or mitigating their bad software sales because their consumers don't even meet the average spending threshold

Edit: I found this and it's for console marketing only, not including PC or mobile. Using 91 million as the USA console user base (source) it means ~393 USD on average, even it's counting both subscriptions and purchases still way over 120 USD 

You really think that American console gamers buy games for ~393 USD on average each year?

As stated it the graphic, the $35.8 billion revenue already include in-game purchases and subscriptions.

And they also include PC and mobile revenue: https://www.marketingcharts.com/cross-media-and-traditional/videogames-traditional-and-cross-channel-107330

The total worldwide console game market only were $45.3 billion revenue and it included games, in-game purchases and subscriptions and even console hardware.

$45.3 billion / ~200 million consoles (PS4 + XBO + Switch) = $226.5 per console (in-game purchases and subscriptions and even console hardware.)

Oops... that revenue also includes 3DS hardware and software sales... so:

$45.3 billion / ~260 million consoles (PS4 + XBO + Switch + 3DS) = $174 per console/handheld (in-game purchases and subscriptions and even console hardware.)

Or look here:

https://www.tweaktown.com/news/69808/ps4-sold-over-1-billion-games-106-million-consoles/index.html

1150 million PS4 games and 106 PS4 consoles were sold in six years, that is a tie-ratio of 10.85 games in six years... so annually 1.8 games on average.

Even if all these 1.8 games were sold for full price (spoiler alert: they were not), that would be just $108 per year. The majority of the additional revenue is from in-game-purchases + subscriptions.

Last edited by Conina - on 20 May 2020