Because whether you consume a specific game on that service or not, it still had to be paid for it to appear on the service. Our subscription cost is, in a self-sufficient business, ideally the means through which the company accrues the funds to pay the developers for their product to appear on our services. All of them. Not just the ones you engaged with. Not just the ones they think you personally will like. All products on the service.
I mean no offense here but I had to edit this because this is such a self-evident point that I was caught completely off-guard on how to respond here.
You believe your point to be self-evident. But it's 100% wrong. Lol
Yes, the game's developer is paid in order for the game to appear on the service. No the value of the the game is not directly related to the number of users on the service, because no one at the negotiating table expects every user on the service to be a user of a game. Beyond that revenue per user, is probably not a very useful metric unless your talking about GaaS. Most games, like cooking simulator, aren't going to see costs grow with the user base, so total revenue vs cost is the proper way to asertain how much value the developers have extracted from the product.
Your grasp of the economics hear are so laughably ridiculous that I'm honestly stunned at how confidently wrong you are.
Secondly, no the subscription cost isn't "ideally" the means by which these developers are paid to appear on the service. These are metrics made up by you that have no actual relationship to the real world. this scenario only exists in your mind. Gamepass doesn't exist in isolation. The subscription revenue is just one of several revenue streams that make the business model "self-sufficient". That said, gamepass subs generate likely generate well over $125 million a month- which should more than cover their content acquisition costs.
Sure it does. A service like this is unlikely to ever be competing with standard games sales for very long. We've seen this with music streaming, we've seen this with Netflix, we've seen this with literally every other service where renting product for a significantly lower cost was somehow going to coexist with buying that product off of a physical or digital shelf.
Nobody buys movies anymore. Very few people buy albums too.
You're comparing apples to oranges. The economics of makings, distributing and consuming games is very different from that of passive entertainment. Before you could stream music and movies, people had already stopped purchasing those things. For those mediums, subscription services bottled the lack of appetite there was for ownership. There's no comparison to the video game industry where demand for ownership shows no signs of dissipating, despite the emergence of services that allow players to rent.
Unlike with Netflix, Gamepass recognizes a relationship between engagement and additional spend. The subscription represents the first transaction, not the only relationship.
Also the sub isn't in competition with standard game sales. Standard sales are an integral part of the Gamepass business model. That's why subscribers are given discounts. That's why titles are rotated in/out. That's why dlc is a seperate purchase. That's why franchise feature their older games right before sequels launch outside of Gamepass etc.
Marketing is important, but that's only bound to diminish as more and more games get rotated in and out. Right now it's all a bit novel so when there's news like this we still talk about it. But do you really think in like two years we'll still be talking about a game of the scope of Cooking Simulator going on Game Pass unless it's extremely outstanding in terms of quality?
I'm not sure what this comment is supposed to mean. Since the service's inception, there have been titles from across the spectrum in terms of both scope and quality. There's no sign of this changing within the next two years.
I don't even know of any others on the service right now and I have an active subscription that's still going to last me months.
Any other what? Simulators?
Power washing simulator, farming simulator, goat simulator? flight simulator? Lawn mower simulator? SnowRunner? Train Sim World 2? Space Warlord Organ trading simulator? Surgeon Simulator? Two Point Hospital? The Sims 4.
What are you looking for? How is the addition of Cooking Sim "novel" in any way? People are talking about it because it's rare that we learn how much a Gamepass licensing deal is worth.
Thankfully, yes. Read above though.
Not just thankfully, it's by design. Literally, an intrinsic part of the desired business model.
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