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Forums - Gaming Discussion - What threat does Gamepass pose for Sony in the long run?

SvennoJ said:
LudicrousSpeed said:
1. I could be mistaken but I believe Netflix profited almost two billion last year? Netflix isn’t the best comparison if you’re predicting bad things for gaming, because the service not only makes money but it produces massive, expensive content. I’m sure Disney+ and GamePass lose a lot of money, that’s how new services and businesses work, especially these kinds. You have to buy all this content and you have to offer it dirt cheap to get people interested. It’s a long game.

2. Big games do cost more money which could lead to bigger losses but they also make more money. Sony said this gen something like 7 out of every 10 of their games aren’t profitable. But those 3 that are, make huge profits and offset the rest. You can invest more money into a huge project that you think you’ll see a return on. For example, Disney spent over 350,000,000 to make the last Avengers movie. They’re ok with that, because they know it will profit billions. But does that mean they’ll also spend that amount making Spider-Man or Ant Man or Doctor Strange? No, that wouldn’t make sense. Games are the same. Sony wouldn’t spend the same amount of time and money on Sackboy as they did LoU2. Also, a stark difference here with original content for video services, is GamePass games are available day one outside of the service. So why would MS invest less into a Halo or Gears or Avowed because of GamePass, when they’ll also be charging $60-70 for them outside of GamePass? They can still get that retail revenue, AND GamePass.

3. I don’t see why a GamePass service would lead to less big game projects. Many of the most expensive television series of all time are on subscription services. Even the movies are starting to catch up on blockbuster Hollywood numbers. IIRC Netflix has three 200,000,000+ projects in the works and Amazon has the Lord of the Rings, which is more of a series but will supposedly cross the billion dollar mark. It also hasn’t affected quality... in fact I would argue subscription services have past broadcast television years ago. Every now and again you get something like a Breaking Bad but for the most part network television and basic cable blows. And even Breaking Bad was a cable network.

I just don’t see the logic that GamePass will lead to worse games. You don’t get people subscribed to a service with weak content. Value doesn’t matter if what you’re getting isn’t valuable.

1. Netflix is actually over 12 billion in debt to pay for that expensive exclusive content. They are currently losing subscribers and stock prices are declining.

3. If everyone says it's great value and saves them money -> less money goes into game budgets. It's simple logic. Fargo on cable is very good! I haven't seen a good show on Netflix in a while, would love recommendations!

Imo, TV quality has declined, I'm watching less and less as the years go on. It doesn't help that what I'm interested in is spread over different streaming services thus I can't watch it. It's nice when you live alone and can switch services on the fly to binge watch what they have to offer, doesn't work like that in a family setting.

1. Netflix has no means of revenue beyond subscriptions. Xbox has gamers who buy full games on console, Windows Store and Steam to provide short term revenue alongside Game Pass monthly revenue. 

2. Indirect cash flow from increased DLC purchases. Even Minecraft continues to bring in tons of cash from its continued mega popularity on literally several platforms.

Point being Game Pass isn’t in this alone. Budgets won’t change because gamers have options on how to consume Xbox games/services. Xbox as a division can more then sustain Game Pass in the growth phase. 



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LudicrousSpeed said:

Season 4 of Expanse is out in December last I heard. Obviously Netflix is more expensive now, it used to just rent out DVDs. 

Thanks. I was checking Amazon.CA not listed there yet. Something to watch over the holidays!

Game pass will go up as well, it will need to make money on its own at some point.



sales2099 said:

1. Netflix has no means of revenue beyond subscriptions. Xbox has gamers who buy full games on console, Windows Store and Steam to provide short term revenue alongside Game Pass monthly revenue. 

2. Indirect cash flow from increased DLC purchases. Even Minecraft continues to bring in tons of cash from its continued mega popularity on literally several platforms.

Point being Game Pass isn’t in this alone. Budgets won’t change because gamers have options on how to consume Xbox games/services. Xbox as a division can more then sustain Game Pass in the growth phase. 

So which is it, a good deal or a different way to fleece the same amount of money from consumers?



SvennoJ said:
sales2099 said:

1. Netflix has no means of revenue beyond subscriptions. Xbox has gamers who buy full games on console, Windows Store and Steam to provide short term revenue alongside Game Pass monthly revenue. 

2. Indirect cash flow from increased DLC purchases. Even Minecraft continues to bring in tons of cash from its continued mega popularity on literally several platforms.

Point being Game Pass isn’t in this alone. Budgets won’t change because gamers have options on how to consume Xbox games/services. Xbox as a division can more then sustain Game Pass in the growth phase. 

So which is it, a good deal or a different way to fleece the same amount of money from consumers?

I say both. There will always be people that will buy outright. And that’s what sets Game Pass apart from Netflix is all I’m saying. GP can lean on the ecosystem to grow without concern. If the division as a whole remains profitable then gaming budgets won’t be affected. 



sales2099 said:
SvennoJ said:

So which is it, a good deal or a different way to fleece the same amount of money from consumers?

I say both. There will always be people that will buy outright. And that’s what sets Game Pass apart from Netflix is all I’m saying. GP can lean on the ecosystem to grow without concern. If the division as a whole remains profitable then gaming budgets won’t be affected. 

Perhaps. Sadly it looks like physical game prices will be affected, already are.



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SvennoJ said:

For now Netflix still has quite a monopoly outside the US.

What a very strange monopoly outside the US... most European countries also have access to Prime Video, Sky, AppleTV+, Disney+, Google Play and other Streaming services (f. e. Joyn, Maxdome and Videoload in Germany)



SvennoJ said:
sales2099 said:

1. Netflix has no means of revenue beyond subscriptions. Xbox has gamers who buy full games on console, Windows Store and Steam to provide short term revenue alongside Game Pass monthly revenue. 

2. Indirect cash flow from increased DLC purchases. Even Minecraft continues to bring in tons of cash from its continued mega popularity on literally several platforms.

Point being Game Pass isn’t in this alone. Budgets won’t change because gamers have options on how to consume Xbox games/services. Xbox as a division can more then sustain Game Pass in the growth phase. 

So which is it, a good deal or a different way to fleece the same amount of money from consumers?

Get less per capita, but more as a whole. As for the Netflix comparison, it's off because Netflix has made tons of failed ventures that didn't grow the userbase. They were essentially burning money. MS already makes money from 15 million on GP. What's 15x12x4-9? 

They pretty much already make a billion on that alone. 



Conina said:
SvennoJ said:

For now Netflix still has quite a monopoly outside the US.

What a very strange monopoly outside the US... most European countries also have access to Prime Video, Sky, AppleTV+, Disney+, Google Play and other Streaming services (f. e. Joyn, Maxdome and Videoload in Germany)

Ugh, I didn't know it was that far along already. I still read paperbacks, listen to CDs and watch cable. I'll go reserve a plot at the graveyard now.



Fei-Hung said:

Sorry I didn't make it clear. I'm not in about big blockbusters that define Xbox or IPs they own that being in money. I'm in about games like Dishonored, Doom and Wolfenstein that aren't really big sellers and often get discounted fairly quickly. You would need to be a very optimistic person to believe that these games aren't in danger of the chopping board.

You would need to be a very pessimistic person to believe that Microsoft invests billions to let most IPs die on the chopping board.

https://en.wikipedia.org/wiki/Fear,_uncertainty,_and_doubt



Conina said:
Fei-Hung said:

Sorry I didn't make it clear. I'm not in about big blockbusters that define Xbox or IPs they own that being in money. I'm in about games like Dishonored, Doom and Wolfenstein that aren't really big sellers and often get discounted fairly quickly. You would need to be a very optimistic person to believe that these games aren't in danger of the chopping board.

You would need to be a very pessimistic person to believe that Microsoft invests billions to let most IPs die on the chopping board.

https://en.wikipedia.org/wiki/Fear,_uncertainty,_and_doubt

Wouldn't be the first time

They won't be axed straight a way, die a slow death turned into a service