Next gen PS5/XB1SX sales ratio will look the same as this gen's. Huge changes in console marketshare require huge changes in the industry.

[Pyro as Bill]

Angelus said:

There's a lot of problems with some of these arguments I'm seeing here, and some people also seem to be conflating Xcloud with GamePass, despite them being separate things, but let's table all that for a minute.....

I'm curious, for the people who are so adamant that a business model like GamePass doesn't make more financial sense than selling individual games...can you tell me why big 3rd party publishers like EA and Ubisoft are already moving in the same direction on PC? EA Origins Premier, and UPlay+ both offer pretty much the same service as GP for their respective parties. Is it your opinion that these publishers have no interest in expanding this business model to consoles in the future, provided the platform holders allow it? Are EA and Ubi, who certainly have enough big franchises of their own, capable of selling 10m+ units just not as interested in maximizing profits as Sony, that they would be willing to throw away cash on this type of subscription model that offers their biggest games day 1 (or sooner) for a low monthly fee?

I think the mistake everyone is making is comparing rentals to ownership. We have a ton of value sitting unused on our shelves that most of us ignore. Yet we also wouldn't think $1 per week or even a $1 per day was an unreasonable price for a game rental.

In '08 and '09 Nintendo made an average $20 profit per customer per year. If that's all they need to deliver the content they do then there's definitely a more efficient way to do that where both Nintendo and their customers can benefit.

From what I can tell it doesn't suit annual games that supercede their predecessor like FIFA because the consumer eats up most of that $60 loss after ~12 months. EA basically gets $60/year by renting out FIFA.

A game like Mario Kart can last 5-10 years and you can still get 50% of the full RRP as trade in at the end. Even 90% after year 1 but as soon as it's traded in Nintendo get's nothing and their 'rental' revenue dilutes everytime the game is traded in.

Excluding promotions, what's the worst that can happen? Everyone does a one month $15 sub, plays every single game and then never buys another retail game or subs again?