Top
670°

Sony's new PS Plus looks smarter after Xbox Game Pass sales failure

Sony's more sustainable approach to PS Plus Extra and PS Plus Premium looks like the right call after Microsoft's Game Pass strategy hurt game sales on Xbox consoles.

Read Full Story >>
truetrophies.com
Orchard210d ago

If MS are fine with trading some game sales revenue for subscription dollars, it's fine - and future proofing, subscriptions are the future and can be more lucrative in the longer term.

GP is definitely 'smarter' for consumers.

crazyCoconuts210d ago

Sure, from a consumer perspective, smart to just wait for a game you like and pay $1 to play it. GP is awesome for me

Snookies12210d ago (Edited 210d ago )

Agreed, I don't even pay anymore with reward points lol. Plus I love having access to both PC and Xbox Game Pass Ultimate for the price of free.

DarkZane210d ago

It's good for a consumer perspective, but from a developer's perspective, it's terrible since they make less money.

Just wait until every devs makes trash games with microtransactions because cutting down on quality and adding microtransactions to make any real money is going to be the only way to survive in the industry. Let's see then if it's good for the consumers.

Xbox and its fanboys are killing the industry.

Lifexline210d ago

Agree it’s great for consumers and isn’t game pass very profitable wasn't those numbers release in their financials.

People are really stupid if they care about companies who make millions or billions. People should care about their own wallet. What’s wrong with people. The gaming industry will be fine. It’s only growing.

crazyCoconuts210d ago

@lifexline - "isn’t game pass very profitable wasn't those numbers release in their financials"
No those numbers wasn't release in their financials. Just revenue.

S2Killinit210d ago (Edited 210d ago )

@orchard
I think its better for everyone including the consumers when the business model is designed to produce high quality gaming. Just because you are getting crap for cheap doesnt mean you are better off.

I think the consumers are voting with their wallets which business model they prefer.

Lifexline210d ago

@crazycoconuts no I’m pretty sure Microsoft said that it was profitable go Google it they said that it account for 15% of Xbox revenue and profitable.

VariantAEC209d ago

@DarkZane
"Xbox and its fanboys are killing the industry."
Couldn't have said this better myself.

FinalFantasyFanatic209d ago

@DarkZane,
We already end up with Micro-transactions, DLC and Loot boxes/Gacha, and the developers are still saying they're not earning enough, plus, the crunch time/deadlines and incomplete games/day one patches at release... I'd hate to see Gamepass dominate and further exacerbate the issue, it only seems to help a small number of developers succeed.

crazyCoconuts209d ago

@lifexline, I'm holding to what I said- you said profitability numbers were released in their financials. I'm telling you they are not.
Yes, Phil was at a conference once and said "and it's profitable" . If you consider that evidence that it's profitable, that's fine, but MS doesn't release that info for Xbox like PlayStation does

bloop209d ago

The GP model with big budget games releasing day one isn't sustainable. Sure, it's great now, because MS are throwing all kinds of money at it, but inevitably it's going to come to a stage where something has to give. Studios will start seeing budgets slashed or there'll have to be an increase in subscription prices. Neither solution will benefit developers nor consumer.

Old McGroin209d ago (Edited 209d ago )

@DarkZane

"Just wait until every devs makes trash games with microtransactions"
"Xbox and its fanboys are killing the industry."

You mean like the microtransactions in Gran Tourismo 7?

crazyCoconuts209d ago

Regarding all this "killing the industry" stuff, as long as there's a free market and the barriers to entry are low for publishing a game, we'll all be fine. If anything is out of balance: value of games, price of sub, fees given to devs for product... The market will correct- customers will leave, devs won't put their games on the service. It's like an evolving organism. If competition gets stifled due to bad behavior by big companies, that's when we run into problems.

GamerRN209d ago

If Sony is so smart why are they afraid of the Activision purchase?

crazyCoconuts209d ago

@gamerrn because Sony doesn't have the funds of the second largest company IN THE WORLD to go toe to toe in a game of Monopoly.

209d ago
+ Show (12) more repliesLast reply 209d ago
Flawlessmic210d ago (Edited 210d ago )

Trading some revenue? more like a bucket load.

and the question is how long will they take the hit for?

Starfield should be a game that sells 20 mill easy, now id say wed be looking at 5 mill at best in the first few months.

They need to stop with engagement numbers, that does not equate to new money or revenue thats just the existing base playing.

The stat Microsoft should be us showing in liue of not showing us sales numbers anymore is new subscriber numbers after the release of big AAA titles.

If starfield releases and they gain 10 mill subscribers then that is obvs very good but seeing as Microsoft only tell us engagements numbers id say there aaa titles are not driving up the numbers because otherwise they would say hey we just gained X million amount of new subscribers since in the first month of X games release.

Only MS has the pckets to sustain this business model, it would put everyone else out of business to release first party games that cost 100s of millions of dollars day and date on a cheap sub.

God if war earned 700mill plus in its first 3 months, someone tell me how many new subscribers sony would have needed to make that back? if it released on its sub service?

GamingSinceForever210d ago

“Starfield should be a game that sells 20 mill easy, now id say wed be looking at 5 mill at best in the first few months.”

GTFOH 😂 😂

darkrider210d ago (Edited 210d ago )

Starfield sell 20 millions easy. Not evrn if it was on the ps5 and ps4

shinoff2183210d ago

I don't think theybgain 5 million from starfield. I imagine most interested already have gamepass. Myself included(same name)

Obscure_Observer210d ago (Edited 210d ago )

"Starfield should be a game that sells 20 mill easy, now id say wed be looking at 5 mill at best in the first few months."

Microsoft does not care about sales, that´s why Starfield will no be available on Playstation.

"They need to stop with engagement numbers, that does not equate to new money or revenue thats just the existing base playing."

They won´t. It´s working for them. According to CMA´s investigation report, last year, Xbox dominated 60-70% of the Cloud Gaming market, which means that the vast majority of people playing via Cloud are spending their gaming time on Xbox ecosystem. And that´s exactly what they´re aiming for. Despite PS5 excellent sales, MS knows that million of consoles sold does not equate to millions of gamers playing that console in a steady monthly basis.

I mean, what happens when gamers beat the one and done type of games that Sony is known to do so well, like Ragnarok for example? They´ll patiently wait a full year for the next AAA first party banger like Spider Man 2 this year? Will they have their eyes distracted by games from the competition like Zelda and Starfield? Probably yes. That´s why Sony is investing on GaaS this generation. They don´t want Playstation gamers to look interested on games or services from the competition every far and between Playstation´s first party releases. To those companies, a busy mind is a distracted mind. That´s why those companies and publishers are investing on gaming services and its content, to keep you there, on their ecosystem.

"If starfield releases and they gain 10 mill subscribers then that is obvs very good but seeing as Microsoft only tell us engagements numbers id say there aaa titles are not driving up the numbers because otherwise they would say hey we just gained X million amount of new subscribers since in the first month of X games release."

10 million subscribers won´t mean much if after one month all of them unsub. They rather have 2 million new subscribers via Starfield that are active on the service for an extended period, like one year or more. That´s the definition and goal of MAU.

Flawlessmic210d ago (Edited 210d ago )

You guys really missed my point in regards to that part, was pointing out that starfield would've been a big seller, Bethesda games usually are now it wont be.

and the question is how many new subscribers will these big games bring in when they release and will mS tell us the numbers rather than giving us bullshit engagement numbers.

Ill be playing it on GP so wont be contributing to the sales, just like 90% of people on gamepass.

@ Obscure

considering Xbox is the only company actually playing in the cloud space them dominating isn't exactly impressive if the competition aren't even trying in that field.

They might not care about sales but they do care about subs and now that MS has all these big studios making very Expensive games those sub numbers need to grow and grow massively and thats what these AAA games should be doing for the service.

the numbers will need to grow exponentially to account for all the new studios making high cost games, if no ones buying games which lets be honest they arent, and new subscribers are coming slowly, how exactly is that sustainable?

Obscure_Observer210d ago

@Flawlessmic

"You guys really missed my point in regards to that part, was pointing out that starfield would've been a big seller, Bethesda games usually are now it wont be."

It´s will obviously sell less copies once it will be available day one on both PC and Series consoles day one. Not to mention that it will sell zero copies on Playstation. But Starfield will still sell big regardless, it´s an big open world RPG game by Bethesda after all. It´s like a cult.

"Ill be playing it on GP so wont be contributing to the sales, just like 90% of people on gamepass."

In case the game delivers, the moment you start and play Starfield, you among millions of gamers around the world on PC, Series consoles, mobile and TVs will spend hundreds (maybe thousand) of hours out of the Playstation ecosystem. So other than having fun, you´ll be helping Microsoft achieve its goals. They will be more than happy to have you and millions of gamers hooked on Gamepass.

"considering Xbox is the only company actually playing in the cloud space them dominating isn't exactly impressive if the competition aren't even trying in that field."

Didn´t say it´s impressive or unimpressive. Xbox is the actual leader in the Cloud space and such achievement must cause a very good impression on their executives, investors and shareholders. That means that investments on Gamepass, XCloud and Microsoft first party games will continue. Yeah, Phil Spencer just greenlit a new Halo game build from the ground up on UE5 despite the fact that Xbox invested millions in R&D for the Slipspace Engine. Just to throw it away after just one game. And yes, 343i continues as the Halo main developers.

You see, Microsoft are pretty confident in whatever they´re doing, I wouldn´t bother and worry about them now and the foreseeable future.

"the numbers will need to grow exponentially to account for all the new studios making high cost games, if no ones buying games which lets be honest they arent, and new subscribers are coming slowly, how exactly is that sustainable?"

Microsoft is willing to go pretty hard on competition, they´re will spend big money on new games, new technologies, new studios and even more publishers if allowed to achieve their goals.

"God if war earned 700mill plus in its first 3 months, someone tell me how many new subscribers sony would have needed to make that back? if it released on its sub service?"

Well, Jim Ryan himself confirmed that Sony doesn´t have that kind of money to blow like MS does, but Ryan strategy for Playstation is working.

Flawlessmic209d ago

@obscure

I'm not worried about MS at all, they have the pockets to do what they are doing and I'll happily take what I can from a 2 trillion dollar company especially as the competition is strong amongst all 3.

What I'm worried is Ms taking the lead and forcing Sony and Nintendo into a position where they need to offer the same things to keep there consumers from.jumping ship which will lead to lesser experiences and more mtx for those platforms cause they simply can't afford to keep the quality high while charging minimal for IT.

if things stay exactly as they are in terms of market position then happy days. Sony and Nintendo keep doing what there doing no chamges needed and Ms keeps doing what there doing minus buying the whole industry up.

Chevalier209d ago

@Obscure_Observer

First thing to point out here according to Xbox they have missed their Gamepass targets 2 years in a row. As for your take on GoW is absolutely 💯 idiotic. GoW alone will generate more profit than Gamepass because they take all the profit as its a 1st party title whereas Xbox only gets a fraction as they have to split the payment to all the developers in some way.

As for the main point digital sales and subscriptions being the most profitable and more on Playstation. Playstation digital sales destroy Xbox/PC sales. Also Playstation is doing fantastic all round. They broke the record last quarter and industry record with $8.8 billion revenue and record profits. So they're doing fantastic. Playstation up 56% whereas Xbox with minor boost from Gamepass was down 13%.

Obscure_Observer209d ago (Edited 209d ago )

@Flawlessmic

'What I'm worried is Ms taking the lead and forcing Sony and Nintendo into a position where they need to offer the same things to keep there consumers from.jumping ship which will lead to lesser experiences and more mtx for those platforms cause they simply can't afford to keep the quality high while charging minimal for IT."

As I said before, Nintendo is in a league of their own, they are not worried about Sony or Microsoft quite the contrary in fact, Nintendo and Microsoft has been business partners for some time, as Microsoft allowed some of its exclusive games to be ported to the Switch.

Such partnership will only grown stronger in the future in case Nintendo decides and release a next gen console as powerful or superior to the Xbox Series S. It´s possible that Starfield and even TESV might be ported and released on Nintendo´s next gen console.

In Sony´s case, their actual position can only be undermined by Sony itself. I mean, Playstation needs to and make sure their exclusive games to deliver in consistency and high quality levels above the competition to justify $70 investment from it´s customers.

That´s why I have a good laugh every time I heard uniformed people say Xbox doesn´t care about quality of it´s first party games, they couldn´t be more wrong and naive. It´s all about perception. I mean, why would I continue with Playstation while paying full price for games which quality is inferior in comparison with the competition where those games are "free"?

In resume: all Sony have to do is maintain its high quality for first party and exclusive games, and Playstation will continue to lead and be successful.

derek209d ago

If you have gamepass why would you pay? That game, as a Microsoft owned ip will be on the service indefinitely from day 1. If you think this fact won't severely hurt Starfield sales wise I don't know what to tell you. They'd be luck to hit 20 million. My guess is you'll hear some engagement metrics from Microsoft at the outset then you won't hear anything from them sales wise afterwards as they do not want give up their phony narrative regarding gamepass effect on game sales.

shinoff2183208d ago

I remember ms being pretty open during the 360 Era. Since early to middle Xbox one Era they got pretty tight lipped. Aside from giving useless stats like hours on things. Sh I fall asleep all the time when gaming.

DarXyde207d ago

Obscure_Observer,

I don't know what you mean when you talk about one and done games on PlayStation. I don't speak for everyone, but I don't think I've played any game to the end once and put it down forever. Actually, maybe Killzone 2, but that's because I found single player to be a chore. Multiplayer was fun in doses. You can't just say they're one and done because many are driven by narrative. I quite enjoy retreading the stories and watching the cutscenes again.

Don't know who you're speaking for, but it ain't me.

+ Show (9) more repliesLast reply 207d ago
Profchaos210d ago (Edited 210d ago )

It seems like a short term vision to say yeah Sub dollars to recoup lost sales however there's a few things we can learn from this.

1) Microsoft has stated they are not satisfied with the overall growth of gamepass despite claiming a profit
https://www.eurogamer.net/m...

2) the model tends to lead to development of more live service esq titles like halo infinite with its 10 year plans, sea of thieves as examples.

3) AAA games are not coming to it day and date were seeing indie games that may not have reached an audience getting some recognition and good for them but it's not like GTA 6 is going day 1 game pass maybe 3 years on when sales drop so really that's telling.

4) there's a push to still buy DLC for the games you don't technically own if it was profitable why not include it

5) were seeing dramatically high job cuts and lower quality first party titles comparatively vs the 360 era

6) while Sony and Nintendo can launch a game in a traditional way and sell north of 10 million units Microsoft base their metrics on made up numbers like downloaded or played.

7) what percent of users honestly simple create a new email every month to get the $1 for 3 months offer over and over again or exploit the gold loophole that still exists but 3 years of gold at a deep discount from key sites pay $1 get go ultimate for 3 years for $50 these users must make up a percentage of their sub and contribute nothing to the revenue.

At the end of the day being pro consumer is good but when it comes at the determent of the industry and your quality that's different you can't be pro consumer all day every day you need to turn a profit to keep pushing for better quality games

kindi_boy209d ago

nice job cherry picking examples.

210d ago Replies(1)
Jin_Sakai210d ago

“subscriptions are the future and can be more lucrative in the longer term.”

Wrong. It’s a “PART” of the future not “THE” future.