Gamepass seems like a great deal, so much so that I wonder how this business model makes money, especially with the cheap promotions MS has done.
Could someone explain?
I am thinking TLOU2 would probably sell 10 million or more next year, how would a hypothetical Sony gamepass make business sense? (I ask because I would like to see a gamepass like service on PS).
(edit if a mod could fix title pls)
10 million copies of a game is $600 million in revenue. BUT it's not that much as:
- Some of those copies are sold on deal, so even if someone buys digital, it's not all at a $60 price
- Some of those copies are sold by stores, so Sony's cut is more like $40 (at full price). A game sold at $30 might be $20 for Sony. A greatest hits sold at $10 might be $7-8.
For sake of argument, let's say a game selling 10 million copies gets Sony $400 million in net revenue. So for every copy sold, let's say on average Sny gets $40 per unit.
In April 2019, it was 700,000 subs. By now, let's say it's 1 million. The new price is $60/yr.
There are 100 million PS4s sold.
If Sony sold an additional:
1 million subs = $60 million sub sales
5 million subs = $300 million sub sales
10 million subs = $600 million sub sales
And this would even exclude gamers who will still buy the game and not bother with PS Now no matter what.
Even the best selling PS4 first party games at 10 million copies is only 10% of the user base which is at 100 million. That's a lot of gamers who don't want to buy the game even when it hits the bargain bin at $9.99.