12Dannu123
Member
With the announcement of Game Pass support coming to XCloud and expanding the platform to PC, Android, IOS and eventually TVs, they are also supporting as many controllers as possible and also willing to take losses in revenue and profit to grow the service. I think this all shows that Game Pass will VERY likely become the defacto Gaming subscription service.
Why?
This type of business model is sustainable for Microsoft, Amazon, Google, Apple, Facebook etc since they are large enough to absorb the losses. However, for much smaller companies like Sony, Nintendo, Square, EA and Activision, this business model is very hard to transition because it requires big losses the immediate term to sustain and it's questionable if they can all survive the transition without making that lost money through micro-transactions, MTXs etc.
This is why I think Microsoft will likely become the defacto Subscription Gaming service and this will extend into Game Streaming as well.
Sony needs to release their games Day 1 and aggressively invest in third party and indies to actually get PS Now off the ground. Sony cut the price of PS Now and as a result of this cut half of the games being released on PS Now, the service doesn't get indie releases day 1.
The way things are going, in order for Sony to effectively compete they will need to be in big losses in profit and revenue to get PS Now off the ground, their current strategy of releasing old games years later and not investing in indies and third parties is certainly not working. I'm not sure Sony can survive with this type of environment as they will have to go against a company that is all in Xbox and is willing to lose billions to dominate this market.
Why?
- Putting their First party on the service day 1
- Having all indies and third parties release their best and newish games on GP
- Supporting all platforms available.
- Willing to take losses to grow the service
- Has the partnerships to have Game Pass preinstalled on millions of devices. (Samsung x Microsoft partnership)
- Expanding to regions where Consoles are low adoption but have the infrastructure available (India)
- Having a potentially $299 Next-Gen Console to get early adopters onto Game Pass
This type of business model is sustainable for Microsoft, Amazon, Google, Apple, Facebook etc since they are large enough to absorb the losses. However, for much smaller companies like Sony, Nintendo, Square, EA and Activision, this business model is very hard to transition because it requires big losses the immediate term to sustain and it's questionable if they can all survive the transition without making that lost money through micro-transactions, MTXs etc.
This is why I think Microsoft will likely become the defacto Subscription Gaming service and this will extend into Game Streaming as well.
Sony needs to release their games Day 1 and aggressively invest in third party and indies to actually get PS Now off the ground. Sony cut the price of PS Now and as a result of this cut half of the games being released on PS Now, the service doesn't get indie releases day 1.
The way things are going, in order for Sony to effectively compete they will need to be in big losses in profit and revenue to get PS Now off the ground, their current strategy of releasing old games years later and not investing in indies and third parties is certainly not working. I'm not sure Sony can survive with this type of environment as they will have to go against a company that is all in Xbox and is willing to lose billions to dominate this market.
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