The video game industry is transforming. It does this constantly, and one of the biggest changes in recent times is the transition from physical to digital. Having a video game with its box and disc is giving way to the logic of subscriptions: playing a large number of titles without having to pay for them individually. It was something that we already did with the rental, with thousands of establishments already disappeared, and that in a way hides the logic behind services like Xbox Game Pass, PlayStation Now, EA Play, Twitch Prime or the most recent Stadia.
The best demonstration of this transition is that 70% of the adult population in the US has at least one subscription in the style of HBO or Spotify. In comparison, videogames lag behind (at 30%), but given the rapid growth in recent years, it is to be expected that we will end up talking about the "Netflix of videogames" in the end. PS Now has more than 2 million subscribers, EA Play has 5 million, and Game Pass has already passed the astonishing 10 million mark. Such is the impact, that half of Sea of Thieves players came from this service.
The reason for the Game Pass: ¿is it sustainable?
When the Game Pass appeared three years ago, it already had a good offer: Gears of War 4, Halo 5, Sunset Overdrive… At the time of announcement, the shares of the Gamestop stores fell 8%. Over the months, the service situation has only gotten better, and now even includes big Xbox launches from day one. Because of this, not a few have wondered if the model is sustainable, but Phil Spencer has recently assured it. There are even developers who claim that their presence on the platform has increased the sales of their games.
¿But what about consumers? That we would also be changing our habits. According to DWR (Digital World Research) studies carried out in recent years, the population between 18 and 30 years of age no longer values both ownership of content and access to it. It has also been proven that the convenience offered by these subscription services is preferred, allowing you to enjoy them at any time and platform. These would be aspects to take into account to understand the growing success of models like the Xbox Game Pass, which does not prevent Game Pass subscribers from playing more and spending more than those who are not, according to a recent study. Surprising, ¿right?
In the specific case of Xbox, you will have seen Microsoft's effort so that its brand is not simply linked to a console, but to an ecosystem. In fact, that is your competitive key for the next generation. Sony has the advantage of having very strong hardware sales around the world, giving rise to the so-called PlayStation territories ... but its PS Now service is not that round. Therefore, we find here two strategies: one more risky, the other more conservative. The important thing is that for users this translates into more game possibilities. As Dino Patti (PlayDead) told the Eurogamer portal, "consumers want as many games as possible and at the lowest cost." That is basically what subscription services offer compared to the traditional market.
There are very interesting numbers behind services like Game Pass. Matt Percy revealed in an interview that the number of games played increases by 40% with subscription, and that the time spent also increases by 20%. This allows users to experience games that may have never been considered before, and if one does not convince them, the loss will have been less than if they had bought it. In addition, Microsoft has found that the new titles incorporated into the service multiply its user base and in some cases even contribute to boosting sales.
Pros and cons: ¿are subscriptions the future?
The PC is a system open to developers thanks to Steam and the multiple existing platforms. But on consoles the situation is different, although it is thought that it could improve with subscription systems. However, the Netflix model being pursued is quite peculiar, and while it has advantages such as visibility, it also has drawbacks, such as that developers are paid based on what their product is believed to be worth. That is, there are no precise criteria. ¿How much would a game like Touryst be worth for Game Pass?
Of course, the indisputable thing is that here platforms such as Game Pass, PS Now or Stadia have the upper hand, and we can only wait until the negotiations with the developers are fair enough so that the users in the end see each other. favored and feel the need to pay for a subscription. That is the most important thing and what will give us the clue that this model is indeed the future that is widely preached.