| Machiavellian said: What I wonder is how do you come by your numbers. In other words you say its not sustainable but where are you getting the numbers to back it up. Do you believe that all these companies going to sub models are just doing it for the fun of it. Its not like MS does not know about the sub model, how it works and the profit margins since they sell multiple sub models with their products. When gamers say they do not see how something will work is more to the point that they have no clue about the business and then rely on bias to front their opinion. I have worked in multiple big business that do sub models and I can tell you that MS as a company would not put the whole company behind GP if the model was not sustainable. |
What do you think a sustainable price is subscription wise? Considering Microsoft 365 starts at 9.99 per user per month for just a couple web app versions.
The worries are that the continued undervaluing of games, in order to acquire more subs, will hurt the industry in the long run. It's a race to the bottom which is never good.
Either the sub price goes up, or the service grows to hundreds of millions of people. There is still a big cost to running xCloud, yet the higher the user base, the more optimized it can be. And there will be plenty 'low cost' people that run all on their own hardware.
However if it grows that huge, the next worry is, how will it change gaming. Just like retaining users to a subscription service, games will want to retain their players to get a bigger piece of the subscription money pie. Which might mean more grinding and/or pay to win which ftp games are plagued with. Plus if it grows that huge, competition will want a piece of the pie as well with the risk games get locked behind different subscription services just as what happened to tv.
Yes, the model can be sustainable. Atm, the way it is laid out at the current pricing, it is not. So what is needed subscription number vs price wise to get to a healthy sustainable model that puts out regular new content.
