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Prine

Attempted to circumvent ban with alt account
Banned
Oct 25, 2017
15,724
What a way to phrase that question...people are wondering what it means for developers on game pass and the cause and effect of Xbox heavily pushing a subscription service and what that means for the value of games and digital and physical game sales.

I haven't seen anyone concerned with Microsoft. They are going this route because they've determined it will be the most profitable / far reaching. Anything else is PR.

Quite a few posters keep saying how can MS sustain GP and thier games. Quite a few people believe thier first party games will suffer from exploit gross monetisation. The newest trend is that now MS 1sr part games like Gears/Halo don't sell significantly so GP is the only route. Phil is setting the story straight.
 

Rosebud

Two Pieces
Member
Apr 16, 2018
43,660
What "matters" to me are big budget single-player games. If they will still be viable we will only know in a few years.
 

Keikaku

Member
Oct 27, 2017
4,779
MS would be the last company I would be concerned about making money.

Just keep the free games coming.
 
OP
OP
Yearsoflurking
Nov 11, 2017
2,744
I'm thinking of e.g. devolver's comments here - I don't think it's that they feel forced to put games on gamepass, but feel it might become unavoidable, or might disrupt the economics of development in a way that nobody can ignore, even those who don't partake or don't want to partake in sub services. I mean the worry expressed in that dev's comments related to things that could affect any dev if a lot of gamers start relying on sub services for the majority of their gaming, not just those who are or aren't on the services.

But I mean, those devs can speak for themselves. I think that conversation is the more interesting one, not 'oh how will MS make money'. I mean, you're right, in that nobody should care about Microsoft's bottom line in this.

I think the majority of indie devs current concerns in gaming is the lack of curation of digital stores for exposure and the huge influx of competition. Gamepass is an additional revenue stream for smaller devs that are having an hard time gaining revenue traction with digital store only purchases. Gamepass's economics isn't like your xbl gold or psn+
 

DopeyFish

Member
Oct 25, 2017
10,796
I'm more interested to hear what he'd say to those developers who are worried about how these models might impact their business. (And I think that's what 'gamers' who voice these concerns are worried about - not about Xbox's P+L).

I mean, I'm not necessarily one of those people - but it's a bit wrong to say those who have voiced concerns are simply worrying about Xbox's bottom line, and therefore shouldn't.

imagine this scenario

you have 100 million subscribers

that's $1 billion a month for 12 months... so imagine about $100 million is for costs in running the service (unsure of what actual cost would be considering it's leveraging existing infrastructure they own)

if they had 5 games a month for a rough turnover of 33% of the library in a year then theoretically every game would be bought for about $180 million on average which is AAA money... apply a ratio for differing development costs and oh boy would the dynamics of the industry get real interesting then. MS would basically be paying big money to studios to make games and THEN they are able to sell on other platforms to get ROI.

there's so many creative things they can do with the service when it gets enough subscribers.
 

THEVOID

Prophet of Regret
Member
Oct 27, 2017
22,878
Well yeah but look how not investing in Spotify, or iTunes in the 2000s worked out for musicians, film makers in Netflix, etc.

You can not invest yourself but you will affected of the industry changes

Music industry has been a mess way before subs. Filmmakers, actors, producers, etc... Subs has been a huge job creator for the industry of TV and Film.
 

mxbison

Banned
Jan 14, 2019
2,148
We are concerned about the devs, not one of the richest mega corporations in the world....
 

NCR Ranger

Member
Oct 25, 2017
5,873
It a nice way to tell the corporate ball lickers to settle down, but it doesn't address the fears of many of the others. They convinced themselves that subs are a potential threat to the games they liked and must be fought. Granted Phil could shout from the rooftops that AAA single-player games not loaded with microtransactions are the future and people would still doubt him. Until we get a body of evidence showing one way or the other I fully expect the conversation about how subs might be bad for devs to be the new "used games are bad for devs" or "rentals are bad for devs" of yesteryear.

Personally, I don't give two shits about Microsoft's or developers' bottom lines. I will try and get the best value I can and they will either adjust to the changing market or someone else will take their place. I mean don't get me wrong there are plenty of developers I don't want to see go under, but I am not going to start going out of my way to pay more and more to keep them afloat.
 
Last edited:

funky

Banned
Oct 25, 2017
8,527
This industries weird need for secrecy regarding finances sure is stupid.

Imagine if the movie industry was hiding its numbers as much as gaming does.
 

defaltoption

The Fallen
Oct 27, 2017
11,493
Austin
They have proven time and time again that they don't. And when I observe the current situation, all I see is Microsoft throwing shit at a wall to see what sticks.
I meant in terms of being able to make money, I agree with you that they don't always make us as consumers happy but these companies are usually profitable in the end. I don't agree at all with your statement about Microsoft though, I think its very clear they are prepping themselves for a platform agnostic future almost. They want to create games for everyone on every platform they can, regardless of if consoles are around in 1,5, or 10 years. Just because Sony and Nintendo are doing different things does make their strategies right or even wrong either.
 

defaltoption

The Fallen
Oct 27, 2017
11,493
Austin
It a nice way to tell the corporate ball lickers to settle down, but it doesn't address the fears of many of the others. They convinced themselves that subs are a potential threat to the games they liked and must be fought. Granted Phil could shout from the rooftops that AAA single-player games not loaded with microtransactions are the future and people would still doubt him. Until we get a body of evidence showing one way or the other I fully expect the conversation about how subs might be bad for devs to be the new "used games are bad for devs" or "rentals are bad for devs" of yesteryear.

Personally I don't give two shits about Microsoft's or developers' bottom lines. I will try and get the best value I can and they will either adjust to the changing market or someone else will take their place.
Yup 100%
 

Deleted member 18951

User requested account closure
Banned
Oct 27, 2017
5,531
I'm thinking of e.g. devolver's comments here - I don't think it's that they feel forced to put games on gamepass, but feel it might become unavoidable, or might disrupt the economics of development in a way that nobody can ignore, even those who don't partake or don't want to partake in sub services. I mean the worry expressed in that dev's comments related to things that could affect any dev if a lot of gamers start relying on sub services for the majority of their gaming, not just those who are or aren't on the services.

But I mean, those devs can speak for themselves. I think that conversation is the more interesting one, not 'oh how will MS make money'. I mean, you're right, in that nobody should care about Microsoft's bottom line in this.

 

RF Switch

Banned
Oct 31, 2017
4,118
its crazy to me that people think Gamepass means less AAA single player games when to me it means even more. Games like Control are definitely in the future for gamepass
 

laziboi

Alt-account
Banned
Oct 25, 2019
1,918
Your Anus
Xbox has never been a profit generator for Microsoft. Their primary business is Windows, Office and Surface. Gaming is supported by those revenue streams. Phill is right that gamers should worry about this that concern them. But as someone who has an interest in entrapenur and business culture, I think its also important to ask how the company will stay afloat if they plan to take a hit on such ambitious endeavors. I'm all for creativity and doing things for gamers, but you have to keep the lights on somehow.
 

Cranster

Prophet of Truth
Banned
Oct 25, 2017
9,788
This industries weird need for secrecy regarding finances sure is stupid.

Imagine if the movie industry was hiding its numbers as much as gaming does.

This exact forum laughed at the idea of a need for an alternative sales tracker to NPD which would be more transparent without a cost. I don't think this forum really cares about finances as much as they care about the console wars.
 

bane833

Banned
Nov 3, 2017
4,530
This industries weird need for secrecy regarding finances sure is stupid.

Imagine if the movie industry was hiding its numbers as much as gaming does.
I mean it's not really the whole industry, Nintendo for example is pretty transparent. The Xbox division is hiding numbers mostly because they are bad.
 
OP
OP
Yearsoflurking
Nov 11, 2017
2,744
its crazy to me that people think Gamepass means less AAA single player games when to me it means even more. Games like Control are definitely in the future for gamepass
It also means more aa games which effectively have been dead for almost 2 generations now. Games like wasteland 3 with a slightly higher budget but not AA struggle to find success in today's gaming world.
 

the_wart

Member
Oct 25, 2017
2,263
You are a consumer. You can't have a hobby in video games without consuming the product there selling you.
Now if you were a hobbyist in mountain climbing, running, bird watching, watching sunsets ext.. then yes, you are not a consumer but just a hobbyist of those activities.

I eat every bird I watch. Also the sun, which is why it goes away at night.

Anyway it is, in theory, a legitimate concern that the economics and logistics of subscription services will favor products that I don't like. However, I have yet to see any convincing argument along these lines.
 

Deleted member 4552

User requested account closure
Banned
Oct 25, 2017
2,570
You are a consumer. You can't have a hobby in video games without consuming the product there selling you.
Now if you were a hobbyist in mountain climbing, running, bird watching, watching sunsets ext.. then yes, you are not a consumer but just a hobbyist of those activities.

You might be a consumer, I'm a hobbyist.

Your bizarre definition precludes anything which has a purchase required from being a hobby.
 

Pryme

Member
Aug 23, 2018
8,164
Really don't think that's the question being asked...people are wondering what it means for developers on game pass and the cause and effect of Xbox heavily pushing a subscription service and what that means for the value of games and digital and physical game sales.

I haven't seen anyone concerned with Microsoft. They are going this route because they've determined it will be the most profitable / far reaching. Anything else is PR.

Good thing Microsoft is just one part of a tripartite console race. How is Gamepass supposed to change gaming without any input from Sony or Nintendo? Or even change the way PC games are made and sold?

Agreed. This comes across as not arrogant, but sorta tone deaf. Of course consumers are going to worry about what affects them, but acting like your service isn't devaluating titles and affecting how devs and studios do business is a little disingenuous.

How come nobody makes similar posts about Steam sales? Or sites like CD Keys?

Humble bundle? PS+ games ?

This just feels like scaremongering about a increasingly popular subscription service.

Hell, even upcoming Xbox Game Studios games on Gamepass are relatively diverse.
 

Huey

Member
Oct 27, 2017
13,235
I'm not a consumer, I'm a hobbyist.

Yup this. I'm interested in every element of this medium, particularly when something dramatically changes the way business is done and content is delivered, and could change sustainability (for better or for worse) for creators. That interest extends beyond MS gamepass too... it's hard to predict what the impact of all subscription and streaming options will be.

This smells like Phil basically saying mind your own business and just play games, which like.. no, I think I'll keep discussing it, thanks.

Also, lol at all the "you tell 'em, Phil!" posts.

Shut up and enjoy the games. Stop pocket watching and play your position.....consumer.

You realize you're on a discussion board, right?
 

Seeya

Banned
Oct 27, 2017
7,984
**snort** driving the market into the ground so you can control the ashes? I'd sure want consumers being short sighted too. Microsoft wouldn't be burning through money on Gamepass if they didn't have a positive upside over the longer term. They don't get brownie points for 'losing money' upfront.
 

Fredrik

Member
Oct 27, 2017
9,003
I'm already thinking:
"Do I actually have to buy this now? Maybe it'll show up on Game Pass in a few months?"
So of course it matters. But Phil is right in that it shouldn't matter for me personally if MS is losing money or not, unless I hace stocks.
 

DopeyFish

Member
Oct 25, 2017
10,796
Xbox has never been a profit generator for Microsoft. Their primary business is Windows, Office and Surface. Gaming is supported by those revenue streams. Phill is right that gamers should worry about this that concern them. But as someone who has an interest in entrapenur and business culture, I think its also important to ask how the company will stay afloat if they plan to take a hit on such ambitious endeavors. I'm all for creativity and doing things for gamers, but you have to keep the lights on somehow.

Microsoft made $43 billion in income last year

they can literally give away a gamepass subscription to half the planet and still be profitable (while paying the expected revenue from half the planet to developers)
 

Gassy_N0va

Member
Oct 27, 2017
1,748
Phil is the best thing to happen to Microsoft and can't wait to see the future. He know's what he's doing and I'm more than okay letting him drive while I enjoy the tremendous value from Game Pass.
 

big_z

Member
Nov 2, 2017
7,801
Seems like a majority of people who talk down about gamepass are those who don't have access to it.

Honestly if it was a bad deal to a developer they wouldn't take the offer. Developers (excluding 1st party) aren't locked into the service either. If at the end of the day gamepass fails only Microsoft will be affected and they can eat the L.
 

Deleted member 51306

User requested account closure
Banned
Dec 27, 2018
628
They have proven time and time again that they don't. And when I observe the current situation, all I see is Microsoft throwing shit at a wall to see what sticks.
Do you really think a multi billion dollar company would continue to let Xbox run this way if they weren't seeing success from it? They aren't throwing shit at a wall. Game Pass, Backwards Compatibly and other services have continued to grow. They wouldn't announce 40+ more game pass games and pay all that money to grow the platform if it was making money.
 

mxbison

Banned
Jan 14, 2019
2,148
Sure, but can you provide examples as to why this is will be bad for devs without making assumptions?

No. Do I need proof or examples to be concerned about something?

We've already had countless threads like "I have Game Pass, I will never buy a game again". And I don't think thats a good thing for the industry. We will see.
 

laziboi

Alt-account
Banned
Oct 25, 2019
1,918
Your Anus
Microsoft made $43 billion in income last year

they can literally give away a gamepass subscription to half the planet and still be profitable (while paying the expected revenue from half the planet to developers)

Agreed. They've got nothing to worry about. But as I said, Xbox has never been a main profit-earner for the company. They're a PC/tech business first, gaming company second. Most of that revenue comes from other hardware and services the company sells like Windows and Surface. If Microsoft didn't have those things, then they'd be forced to find a way to make Xbox profitable since that's be all they have.
 
OP
OP
Yearsoflurking
Nov 11, 2017
2,744
I'm already thinking:
"Do I actually have to buy this now? Maybe it'll show up on Game Pass in a few months?"
So of course it matters. But Phil is right in that it shouldn't matter for me personally if MS is losing money or not, unless I hace stocks.
You've literally had that option of not buying something now for decades.

" do I have to buy this now the price will probably be 20 dollars black friday"
" do I have to buy this now, I can always buy this used"
" do I have to buy this now, I can always gameshare with my friend"
"Do I have to buy this now , I can go get a copy my friend owns physically"
"Do I have to buy this now I can wait for psplus/xbl gold"


Gamepass is just an additional way of gaming
 

Mudo

Member
Oct 25, 2017
6,115
Tennessee
As someone who has legitimately been worried that the absolute steal basement price of $10 a month was just too low to be sustainable.

im glad to hear that it's going well, as while I am not begging them to charge me more money, the value I am getting from it is far, far more than I'm paying.

I am excited for the future :)
 

Titanpaul

Member
Jan 2, 2019
5,008
No. Do I need proof or examples to be concerned about something?

We've already had countless threads like "I have Game Pass, I will never buy a game again". And I don't think thats a good thing for the industry. We will see.

Sorry, I didn't want to come across as berating. You have every right to be concerned about the unknown, I was just curious.
 

TitanicFall

Member
Nov 12, 2017
8,290
It's already having a ripple effect and I'm not talking about how MS's business is affected. So many threads dedicated to "How will _____ respond to Gamepass?" because if MS can give access to their games and other publishers' games out for a pittance monthly fee, why can't everyone else?
 

aisback

Member
Oct 27, 2017
8,746
I wonder if any revenue is recouped from selling data?

I don't know if they sell the data or even gather it
 

DopeyFish

Member
Oct 25, 2017
10,796
Agreed. They've got nothing to worry about. But as I said, Xbox has never been a main profit-earner for the company. They're a PC/tech business first, gaming company second. Most of that revenue comes from other hardware and services the company sells like Windows and Surface. If Microsoft didn't have those things, then they'd be forced to find a way to make Xbox profitable since that's be all they have.

Xbox is actually a major component to MS business. A lot of it indirectly but it's an incredibly powerful division in terms of what it actually gives MS.
 
Oct 27, 2017
20,767
Then keep voicing your concern on Internet forums. Don't know what to tell you.
Well yeah. And call out/try to hold Xbox accountable or anyone in the industry that damages it in similar ways to music via subs. Don't buy in and advocate to not buy in. Right now it's not too bad since it's mostly Xbox only and older games imo. But there's potential for it to go sideways for developers
 

Akita One

Member
Oct 30, 2017
4,632
I'm more interested to hear what he'd say to those developers who are worried about how these models might impact their business. (And I think that's what 'gamers' who voice these concerns are worried about - not about Xbox's P+L).

I mean, I'm not necessarily one of those people - but it's a bit wrong to say those who have voiced concerns are simply worrying about Xbox's bottom line, and therefore shouldn't.
Agreed. This comes across as not arrogant, but sorta tone deaf. Of course consumers are going to worry about what affects them, but acting like your service isn't devaluating titles and affecting how devs and studios do business is a little disingenuous.
Sorry Phil, but it does matter to us because we fear subscription services dramatically affecting development cost and development as we know it and having an impact on how creators make money like with music, film, TV the past 10 years
Really don't think that's the question being asked...people are wondering what it means for developers on game pass and the cause and effect of Xbox heavily pushing a subscription service and what that means for the value of games and digital and physical game sales.
I'm thinking of e.g. devolver's comments here - I don't think it's that they feel forced to put games on gamepass, but feel it might become unavoidable, or might disrupt the economics of development in a way that nobody can ignore, even those who don't partake or don't want to partake in sub services. I mean the worry expressed in that dev's comments related to things that could affect any dev if a lot of gamers start relying on sub services for the majority of their gaming, not just those who are or aren't on the services.

But I mean, those devs can speak for themselves. I think that conversation is the more interesting one, not 'oh how will MS make money'. I mean, you're right, in that nobody should care about Microsoft's bottom line in this.
What "matters" to me are big budget single-player games. If they will still be viable we will only know in a few years.
We are concerned about the devs, not one of the richest mega corporations in the world....
It a nice way to tell the corporate ball lickers to settle down, but it doesn't address the fears of many of the others. They convinced themselves that subs are a potential threat to the games they liked and must be fought. Granted Phil could shout from the rooftops that AAA single-player games not loaded with microtransactions are the future and people would still doubt him. Until we get a body of evidence showing one way or the other I fully expect the conversation about how subs might be bad for devs to be the new "used games are bad for devs" or "rentals are bad for devs" of yesteryear.

Personally, I don't give two shits about Microsoft's or developers' bottom lines. I will try and get the best value I can and they will either adjust to the changing market or someone else will take their place. I mean don't get me wrong there are plenty of developers I don't want to see go under, but I am not going to start paying outrageous sums to keep them afloat.

Where is any evidence or real line of thinking for any of this??? When has anything like this ever happened in history? There is none...it's just all conjecture based around people who want to say something negative about what a big publisher is doing. There has been zero evidence of a business model in entertainment changing it for the worst. GamePass enables Microsoft to take more risks on games, not less! I don't understand how someone being able to play tons of games for $5-$10 per month is bad, but that same person only have access to one game for $60, for six months, is better? There are things like engagement, word-of-mouth and active users that are talked about all the time that people that create these posts continue to ignore.

There is NO business logic or commentary from devs or anyone even remotely asscociated with any business of any kind to support these dramatic conclusions. So GamePass is going to bring about an end of single player games??????????

Let's be clear...there has been ONE question from one publisher (Devolver Digital) about the service...and they didn't have any of the numbers from Microsoft, so really they weren't any more educated that you, and they didn't say it was the end of single player gaming, or that it will lead to more MTX...none of the ridiculous extremes being hinted at here. And then...they went and put one of their games on the service! How much you want to bet that Microsoft showed them some receipts and they changed their tune!

Also...a little game called The Outer Worlds managed to be the 4th best selling Xbox game on the NPD charts despite being a major reason people signed up for GamePass. Hyper-paranoia based negativity can't explain that away.

imagine this scenario

you have 100 million subscribers

that's $1 billion a month for 12 months... so imagine about $100 million is for costs in running the service (unsure of what actual cost would be considering it's leveraging existing infrastructure they own)

if they had 5 games a month for a rough turnover of 33% of the library in a year then theoretically every game would be bought for about $180 million on average which is AAA money... apply a ratio for differing development costs and oh boy would the dynamics of the industry get real interesting then. MS would basically be paying big money to studios to make games and THEN they are able to sell on other platforms to get ROI.

there's so many creative things they can do with the service when it gets enough subscribers.

Sure, but can you provide examples as to why this is will be bad for devs without making assumptions?

People have brought up these points. They don't care. This is about hyper-paranoia that big publishers are only capable of doing things bad to ruin gaming. We really had someone on the previous page say that from a business standpoint, Microsoft has made "mistake after mistake"...LOL...like LITERALLY making stuff up with no logic or business sense on any level. Subscriptions services have universally been widely successful at creating more avenues for content producers of all types to get more attention and money that was ever offered before in traditional "buy at once" media. This is like the people that complained about having to pay over $100 for 150 channels of cable with commercials, then concern troll with "BUT NOW THAT I HAVE ACCESS TO JUST THE CONTENT I WANT WHY DO I HAVE TO BUY ALL THESE SERVICES IT'S JUST LIKE CABLE!"

Or the other thread on the EtcetEra complaining about pop music...on the radio...LOL music is great now because so many smaller and unique artists are getting 1,000x the money and shine that they would have gotten before Spotify came along.