Zippy6 said:
Imaginedvl said:
Well, I responded in the news comments, but I would not be surprised for this be included in GamePass at some point. When you bring the 15$ vers 5$, you forget one thing, marketing and customer aquisition which is, by far, the most expensive part of any service like that out there. GamePass will guarantee revenues and player aquisition, at the end Ubisoft is probably making 1 or 2$ per customers (I'm making up numbers here just to illustrate) so a deal with GamePass can most likely be good for Ubisoft. Unless the adoption of Ubisoft+ on console is really that good, this can very likely be a good deal for Ubisoft knowing how GamePass is successful. Will see in few months anyway, but I'm betting on it. |
The cost for gaming subs is balancing subscription revenue with loss of $60 purchasers. Microsoft cannot offer enough money to ubisoft for it to be worth ubisoft giving every gamepass subscriber all of their games and DLC day one. You are greatly overstating the cost of marketing if you think ubisoft make $1-$2 per $15 sub. That's insane lol. |
No that's not insane, I think you are naive to believe that Ubisoft is going to make more than 1 or 2$ per sub/months (we are talking about profits here, not revenues...), even if Marketing is not 13$ (which is not what I said by the way), the total of all cost to put a game out there is probably close to that, and the margin cannot be higher than that :) You can disagree but I'm talking byexperience, I built 2 games (one is an online web browser RPG) and marketing and player aquisition is by far the most expensive; like crazy expensive...
For instance I had a deal with GameForge (Big European publisher from Germany) and while the total cost of dev. of one game (2 years of dev, 3 devs working on it) was probably something close to half a million, the initial offering of GameForge for 2 months of marketing was 2 millions dollars and this coverred only the first 3 months, in exchange they would receive 0.80$ out of every 1$ we made... and this WAS a good deal, and with this 2 millions we aquired maybe 1500 players... It tooks way more to actually get where we are today (around 10000).
This goes with game dev. too, whenever a game is being sold at 79$, at the end the dev. or even thge publisher makes only few dollars per games and the subscription model is not going to replace that, it is a complementary offering. They are still going to sell those 60$ games like before and this is just another revenue stream. Getting 1 or 2$ or more (whatever is the number) from GamePass Ultimate subscribers "is insane" indeed for them... And this without spending a dime in marketing.