Sony dipped its toe into the future of subscription virtualization with its revamp PS Plus layers, but she resisted the temptation to include high-profile AAA titles on her service on Day One, such as Xbox Game Pass Do. It’s been said from the start that this business model is unsustainable, and with projects like The Last of Us: Part 2 and Horizon Forbidden West costing in excess of $200 million, it’s not hard to see his point.
And speaking with attorneys as part of the FTC’s ongoing lawsuit against Microsoft as it seeks to buy Activision Blizzard for $69 billion, Jim Ryan indicated that the publishers he’s talking to aren’t exactly fond of the potentially disruptive business model either. “I’ve spoken to all the publishers, and they unanimously don’t like Game Pass because it’s a value destroyer,” he said, according to the publication. the edge. “I talk to publishers all the time, and this is a very popular view over many years by publishers.”
Microsoft has already acknowledged that subscriptions affect full-price sales, and we suppose the fear for publishers is that if customers consume the vast majority of their content through monthly memberships, they may be reluctant to spend their money on titles that aren’t. included therein. We’re clearly not at that tipping point yet – subscription growth has really stagnated in the US so far this year – but the potential concerns are easy to understand.
Elsewhere in the court hearing, Ryan expressed his amazement at Xbox Game Pass’ confirmed total of 25 million subscribers in January 2022, admitting his company was “expecting more given all the money it’s spent.” Surprisingly, the Redmond competitor has yet to provide an update on that number, which means growth may have leveled off.
“Alcohol maven. Evil bacon lover. Wannabe social media geek. Travel guru. Amateur introvert. Pop culture nerd.”