Comment on Veteran Videogame Analyst: Subscription growth has flattened [in video games]
kromem@lemmy.world 10 months agoNot really.
Video on demand works because the content is short and you need a large variety in a pay period as a consumer.
I don’t just watch one show or movie in a month, it’s several. So bundling makes sense.
For video games, it’s maybe one title a month that I really care about playing and then I only have time for that one game.
They are very different markets and a subscription model isn’t necessarily the future or even what’s most profitable for a company to offer.
Great take, I wish more would see the music industry like this as well.
I used to pay for Spotify premium then realized that I hardly added more than a handful of new things to my “library” each month. I switched to budgeting the same monthly funds towards building a local library from direct purchases and bandcamp.
It really depends on your level of consumption of new content whether a subscription service makes sense.
echo64@lemmy.world 10 months ago
It’s worth remembering that the goal of subscription services like gamepass is not to be the most profitable avenue. The goal is marketshare.
Microsoft lost, and Microsoft lost hard. Reportedly, the CEO wanted to exit gaming entirely after the Xbox One. They didn’t based solely on the new business plan, which was to disrupt the market. Kill the existing model by offering super low-cost subscriptions (paid for by Azure and Office 365) and become the new encumbant of a new industry where you can jack up the prices and lower the cos(and quality) over a decade trying to chase profitability.
Subscriptions are not about revenue generation as every subscription model out there lowers revenue massively. It’s about holding a larger share of the market so you can make money in other ways.
kromem@lemmy.world 10 months ago
I think you’re confusing the advantages and strategies of having a subscription and the advantages and strategies of having a loss leader.
Not all subscriptions are designed to be loss leaders, and most of the benefits you see in GamePass (lower or even negative revenue in exchange for increased market share) is seen over and over with loss leaders that aren’t subscriptions.
Yes, I agree that Microsoft has adjusted strategy from a focus on winning console wars to winning software gatekeeping across PC and now apparently even competitor consoles. And that GamePass plays a large part in that.
But it would be a mistake to assume that subscriptions in games are all going to have the same goals and focus as Microsoft with GamePass.
echo64@lemmy.world 10 months ago
I would argue that there are three kinds of game subscriptions right now
the last one has existed for a long time and doesn’t really factor into the discussions people are having today. it’s not really relevant. the other two are both a factor of each other and relevant to what we are talking about.