Streaming/Subscription services need to accomplish 3 things to be successful in the long run:
1. Be profitable enough to be sustainable for the platform
2. Fair compensation for content creators
3. Sustain enough content at a low enough price to drive the necessary user base
Almost every service has failed at one of those.
If you don't have all 3, your subscription service will fail. Sony with PSNow has the content even if putting their 1st Party on the platform. But the profitability and sustainable content at a low price is a big problem that cannot be overcome due to PS business being a core business. Game Pass has sustainability at a low price and fair compensation for content creators and they can ignore profitable enough to sustain the platform. But they don't have the 1st Party atm. But lack of good 1st Party content is easier to overcome than say sustaining the service.
Since Microsoft has a lot more revenue streams outside of Xbox, the impact to the company is minimal and therefore it allows MS to sustain content even at a low price.
Which is why I think long term I expect Game Pass to become 'The Gaming Subscription Service' that everybody knows and associates with subscription gaming.
Log in to comment