Gaming Subscrition Services

Let’s talk about video game subscription services.

Ok let me see if I can count them all.. we have:

Playstation Plus
Xbox Game Pass
Nintendo Switch Online + Expansion
Apple Arcade
Google Play Pass
Netflix Games
GeForce Now
Amazon Luna
Stadia… now defunct
Humble Choice
EA Play
Ubisoft + 
What did I forget? That is exhausting. Sounds similar to Television subscription services. Is this good for consumers? Is it good for developers? I can see how it could be good for the sub companies if they get enough subscribers. 

At least it doesn’t seem to be going the way of music subscriptions where really there is almost a monopoly with Spotify. With no choice both artist and consumers eventually lose.

I’m conflicted as to whether these subscription services are good for consumers and developers. I can see obvious gamer benefits like: affordability, choice and exposure to new games. While the downsides, at least initially are low: lack of ownership, re-occurring subscription fees, too many services to subscribe to. 

For developers I think the upside is limited. With control comes power. These services, as they get more powerful will gate revenue. The ugly comparison is what Spotify has done to the music industry’s artists ability to directly monetize their content. Effectively now artists are forced to put their content on Spotify for extremely low revenue mostly just as a marketing tool to get fans and then try and monetize through live shows.

Small development teams need funding to build their games and if they make a deal with one the of subscription services to fund development costs I assure you they are doing at the expense of potential upside if they make a hit. 

So where is the win win? Xbox Game Pass has been a success for Microsoft. They have announced over 25 million subs so gamers see the value. Do most of the developers on Game Pass feel like it was a good choice? 

#XboxGamePass #Subscriptions

CHAT GPT VERSION

What is the future of Game Subscription Services and are they ultimately good or bad for devs and players?

It's hard to ignore the proliferation of gaming subscription services. The list seems never-ending: from established players like PlayStation Plus and Xbox Game Pass to newcomers such as Netflix Games and Apple Arcade. Don’t forget: Nintendo Switch Online, Google Play Pass, GeForce Now, Amazon Luna, Humble Choice, EA Play and Ubisoft +. With the ever-expanding array of choices, we need to consider whether this is a boon or bane for both consumers and developers.

I think gamers are have mixed feelings. On the one hand, these subscription services bring affordability and a buffet of gaming choices, introducing them to new experiences they might have never encountered otherwise. However, they also usher in some disconcerting aspects, such as the lack of ownership, the constant drain of recurring subscription fees, and the seemingly endless number of services to keep track of.

Much like the music subscription industry, the gaming landscape could be heading down a path where consumers have fewer and fewer options. With all the M&A and consolidation recently, the risk lies in letting a single company dominate the scene. Take Spotify and what it has done in music, where both artists and consumers end up with a raw deal. While we've yet to reach that point in the gaming sphere, it's crucial to see how game companies keep gobbling each other up.

For developers, the outlook is somewhat bleak. With control comes power, and as these subscription services gain more clout, they are likely to dictate revenue terms. A concerning analogy can be drawn with what Spotify has done to musicians' ability to monetize their content directly. Artists are now compelled to use Spotify primarily as a marketing tool to gather fans and then attempt to make money through live shows. If the only viable channel to gamers is through a subscription service will all game devs be forced to inject massive MTX systems into their games to survive or be content with the up front guarantees from the sub operators?

For smaller game development teams, securing funding for their projects is paramount. While making a deal with a subscription service might be a lifeline for development costs, it comes at the expense of potential windfall gains if their game turns into a blockbuster.

So where does the balance lie? Take Xbox Game Pass, for instance, which has seen immense success for Microsoft, amassing over 25 million subscribers. Gamers evidently see the value in it. But what about the developers? Do they feel it was a wise choice?

The truth is that the gaming world is still navigating through the uncharted waters of these subscription services, and the scales have yet to settle. It's a complex equation with no definitive answer. What do you all think? Will we become similar to TV or even worse, the music industry? Or will sub-services remain a minor part of the game pie?

#XboxGamePass #Subscriptions #GamingIndustry