Sony Explains Why 1st Party Games Won't Debut Day 1 on PS Now

[mjk45]

Intrinsic said:

yvanjean said:
Sony is selling you a remastered Demon's Souls for $69.99 on PS5. Remastered is a quick cash grab, can be outsourced, and a cash cow. Playstation Plus Collection is just there to soften the blow for long time Sony fan to go with the $399 PS5 All digital edition. If you enhance your game and offer them in a subscription or offer digital backward compatibility you kill the remastered business.

I don't think you know what remastered is.

And i don't think you understand just why and how a subscription model for gaming is not sustainable. And is not something MS would be doing at all if things were a little... different. And if yu really think about it, it would make sense o you too. But let help you along a bit say thereare20M people paying for GP every month. And these 20M pays an average of 10 months in a year (because people will not pay every single month). That's $2B from GP/year. Now deduct whatever it cost them to maintain the service, the cost to secure the non-first party games on the service, the cost to market it..etc. What's left? Lets say $1B (and this being generous). 

Now imagine that MS makes 4 AAA games a year that cost an average of $80M (some cot more, some cost less), that's $320M to make those 4 games. Now imagine that each game can sell 12M copies in a 12 Month window. And they are sold at an average price of $55 (some buy at $70, some at $60, some at $50 and some at $40). Thats $2.6B+ from just those 4 games. So they make from just 4 AAA games that can sell to around 12M people over 12 months more money than they would make from 20M people paying for GP for 1 year. They turn a $320M investment into a $2.4B return vs a $1B investment into a $1B return (if even that much).

And you really can't see why its a bad business model? And this is just one of many issues I touched on before.

Anyways... called it. This was exactly what I said and have been saying about this. Its not a sustainable business model.

I would like to add two things, one is game pass loses money Phil himself said game pass costs money and those costs will increase overtime but are sustainable, increasing numbers on the platform rather than profit was always the aim with game pass, so in a nutshell gamepass is a strategy designed to stop any further shrinkage of the player base,now game pass going forward may change that in the future depending on how the next gen goes, another point to take into account is those AAA games subsidise other game development according to Shuey around 7 games per AAA hit.