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Negotiator117

Banned
Jul 3, 2020
1,713
Don't Microsoft make like $15 billion profit per quarter? If so they're one of the few companies that can afford to do this in terms of AA / AAA budgets.

There's also the fact that once they have people in their ecosystem those people are far more likely to buy other non GP digital content like full third party games, special editions, early access first party versions, dlc, expansions, micro transactions etc so they're getting a cut of a lot of potential added purchases.
Yes they have more cash on hand than any company in the world.
 

Magog

Banned
Jan 9, 2021
561
We had (a very informal) poll here a little while ago and, even here where we're all enthusiasts who know about these offers, only 16% of people said they paid $1 deals only.

The same percentage paid the full monthly price, double that bought multi-month deals (3 month or 6 month gift cards) and the biggest percentage - 40% - had converted XBL with the $1 deal (so they'd paid about $180 for three years of Game Pass Ultimate). Which works out at about half price over three years.

I think the 'only paying $1 for one month/three months' folk often get bundled in with the converting XBLG for $1 folk (who have had to buy three years of XBLG to do it so are still giving Xbox $180 to do it - just in one bulk go).

Personally speaking, I was a 'converted my XBLG' voter but, as of this month actually, that's expired and I'm on the 'paying full price monthly' train (other than a couple of free 7 day cards I got with some Pringles last week). I can't be bothered to keep chasing deals and cancelling and resubbing to get $1 deals. I just let the sub roll. I could do similar deals with Netflix and WWE Network and Disney+ etc if I shopped around but, to be honest, the price is already so low that it's not worth my time. You can get obsessed with trying to get deals on everything all of the time... I'm not sweating like £3 a week coming out of my bank account for Game Pass Ultimate as a full price subscriber.
The largest percentage converted for $1 according to what you said so that's only $1 worth of new revenue as those people already had gold. That actually supports what I said.
 

TheGhost

Banned
Oct 25, 2017
28,137
Long Island
With an article title like that, it only strengthens the narrative of trolls. Yeah the content of the article may not match the title but it's going to cause more problems than solve anything
 

kmfdmpig

The Fallen
Oct 25, 2017
19,348
I got a XSX and have only played Gamepass games on it. I love it and always have tons of things to play (on PC and cloud as well). If MS was worried about the long term viability of it I doubt they'd let you stack up to 3 years. Marketshare, I suspect, is more important to them than increasing cost.
 

TheGhost

Banned
Oct 25, 2017
28,137
Long Island
Surely that's Apple.

Anyway, I think eventually the deals will dry up if it takes off more broadly and obviously price increases. They are still trying to rapidly grow and sustain it with new games and it's still early days.
So you're saying one day Netflix will be $30 a month or something? Because when people say price increases it sounds like that instead of the natural adjustment of a dollar or two.

considering 3 month cards are always going on sale I'm not that concerned at all.
 

Messofanego

Member
Oct 25, 2017
26,106
UK
As someone who doesn't have Game Pass or intend to and cares about the developers, this relieved a lot of my concerns in regards to funding, curation, creativity of vision (Tim Schafer being inspired to bring out discarded ideas), and features. Great article, Chris Tapsell!
 

Yahsper

Member
Oct 29, 2017
1,523
People who respond to articles while clearly not having read them should get a warning if we ever want to be able to have decent, in-depth conversations.
 

ghostcrew

The Shrouded Ghost
Administrator
Oct 27, 2017
30,351
The largest percentage converted for $1 according to what you said so that's only $1 worth of new revenue as those people already had gold. That actually supports what I said.

I'm gonna bet that most of those people didn't have three years of Gold stacked on their account before doing this deal.

The deal advice is 'buy three years of Gold (because that's the max you can convert) for $180 and convert it'.
 

Magog

Banned
Jan 9, 2021
561
I'm gonna bet that most of those people didn't have three years of Gold stacked on their account before doing this deal.

The deal advice is 'buy three years of Gold (because that's the max you can convert) for $180 and convert it'.
But presumably if they had gold already they would have continued their subs to access online functions even if gamepass never existed.
 

regenhuber

Member
Nov 4, 2017
5,202
Yep, that's me. I have a very limited amount to play games, so I rather invest it in the exact, precise games I really want to play.

My Game Pass sub is good till June 2022... but I haven't played a game on it since early last year. I sold my XBX and invested in a PS5, and that's been much better for me and my huge PS4 backlog.

Ngl back in my broke university days I would have needed this service and I hope it does well.
But today, as you mentioned, if a game releases that I want to play (most recently Persona Strikers) I will get and disregard the games I could be playing for free on gamepass.
So in my unique case (atm, who knows what MS does in the future) the XSX and GPU sub are come on top of my regular gaming spending.

So you're saying one day Netflix will be $30 a month or something? Because when people say price increases it sounds like that instead of the natural adjustment of a dollar or two.

considering 3 month cards are always going on sale I'm not that concerned at all.

tbf here in Germany the 4 screen HD plan is already at 18€ (12€ for 2 screens).
So you don't need to be nostradamus to predict that one day Netflix will be 30 USD.

But I'm with you, it will be small increments over a long period of time. Don't think any subscirption provider will be hike the price 30% in one go.

I also believe that MS has to use new AAA game prices as a point of orientation.
Right now new games are 70-80€ here, so a year of gamepass (180€) is "less than three new games".
If (or rather when) AAA games release at 100€, the price for gamepass will rise accordingly.
 

ghostcrew

The Shrouded Ghost
Administrator
Oct 27, 2017
30,351
tbf here in Germany the 4 screen HD plan is already at 18€ (12€ for 2 screens).
So you don't need to be nostradamus to predict that one day Netflix will be 30 USD.

But I'm with you, it will be small increments over a long period of time. Don't think any subscirption provider will be hike the price 30% in one go.

I also believe that MS has to use new AAA game prices as a point of orientation.
Right now new games are 70-80€ here, so a year of gamepass (180€) is "less than three new games".
If (or rather when) AAA games release at 100€, the price for gamepass will rise accordingly.

That 18€ 4 screen plan is also for 4k, right? The 12€ plan is the normal, HD 2 screen deal (that presumably most people sub to).

I see that as the different between Game Pass and Game Pass Ultimate maybe. Netflix adding a new tier (UHD) for a small extra charge (like Game Pass Ultimate offering Gold and Game Pass for PC at a small increased charge) rather than them creeping the price up for everyone.

They definitely have crept the price up in the past but it's been super slow. I remember them getting a load of backlash once and reverting it. Feels like a long time before they'll be able to creep up to $30!
 

RedSparrows

Prophet of Regret
Member
Feb 22, 2019
6,477
From what I've seen around here, people love Game Pass because it gives them the chance to try and play many games. On the other hand, I focus all my attention to one (console) game at the time, aiming for the Platinum if it has one, however long that may take me. Maybe it's a week, maybe it's a month, but I don't like hopping between games when I haven't finished the one I'm playing.

It's pointless for me to get Game Pass playing this way. If I want a game, I'll buy it. That lets me focus on it for as much time as I want without having to worry about others I may want to play leaving the service. I have a massive backlog on my PS4 and Vita, so the idea of adding even more games to it seems absolutely counterproductive.



Yep, that's me. I have a very limited amount to play games, so I rather invest it in the exact, precise games I really want to play.

My Game Pass sub is good till June 2022... but I haven't played a game on it since early last year. I sold my XBX and invested in a PS5, and that's been much better for me and my huge PS4 backlog.

Fair enough! If you're the type to exhaustively go through a single game at a time, then yup, a deluge of content is irrelevant.
 

regenhuber

Member
Nov 4, 2017
5,202
That 18€ 4 screen plan is also for 4k, right? The 12€ plan is the normal, HD 2 screen deal (that presumably most people sub to).

Yeah, I also think most people choose the 12€ one. The 8€ plan (1 screen, SD) is only there to make the other plans look good imo
Yet some want the 4 screen plan and don't have 4K TVs. Others want 4K but only need 1 screen. They are all funneled in the most expensive plan.
Not even arguing that it's a bad deal, just saying it's not super unusual to get it as 4K TVs have become standard.

They definitely have crept the price up in the past but it's been super slow. I remember them getting a load of backlash once and reverting it. Feels like a long time before they'll be able to creep up to $30!

My point is : 2014 they started here with 8€-9€-12€, 6 years later it's 8-12-18. I know, 4K fucks up the comparison lol
Whether that's slow is subjective but it won't be too long until it hits 30€. I'm old, 10 years doesn't feel that long anymore.
All in all I think there is a massive difference between adjusting prices over time for inflation and increasing the price as a business decision. Netflix imo isn't really squeezing customers.

Don't believe MS will do that with gamepass either.
Don't think it's a valid argument against Gamepass to predict that it will be more than 15€ one day. Duh, of course.
As long as it stays in line with what's happening in terms of inflation and the overall economy, it's not an issue.,
 

Anno

Member
Oct 25, 2017
6,950
Columbus, Ohio
But presumably if they had gold already they would have continued their subs to access online functions even if gamepass never existed.

Microsoft has been consistent in saying that Gamepass drives other revenue/engagement, though. So even if someone had 3 years of gold stacked up, presumably it's worth it for MS for that person to convert to Gamepass instead, as they'll play more games that leads to them buying games they wouldn't have otherwise. And there's no direct cost to MS for them doing so.
 

Reckheim

Avenger
Oct 25, 2017
9,370
Until it becomes unsustainable for MS, its not something gamers should be worried about. And by all accounts, its working for them.

You're renting games for super cheap, what's there to be worried about.
 

DvdGzz

Banned
Mar 21, 2018
3,580
It's pretty good, will be better once XGS starts popping off. PC is too good imo, Playing nothing but awesome mods for Dark Souls 3, Dialo 1 and 2, +Valheim more than my PS5 and XSX combined.
 

Magog

Banned
Jan 9, 2021
561
Until it becomes unsustainable for MS, its not something gamers should be worried about. And by all accounts, its working for them.

You're renting games for super cheap, what's there to be worried about.
I think the worry is how games will be designed to be even more MTX focused to make up for lost revenue.
 

Marano

Member
Mar 30, 2018
4,893
Rio de Janeiro
Read the whole thing.

One thing I found interesting from the article is that in the near future there will be publishers and devs not owned by MS who will build their games centered around the idea of gamepass and being on it day 1 for the huge audience, creating a snowball effect.
 

AHA-Lambda

Member
Oct 25, 2017
11,796
Why would it be too good to be true? People making it seem like it is getting every single big game day one or something.

Day 1 Microsoft games and older 3rd party games doesn't seem like some magical deal.
I'm sure you won't be saying this when Bethesda titles drop day one on game pass...
 

RR30

Member
Oct 22, 2018
2,262
I think the problem is that everyone still tries to compare the big 3 platform holders as a 1:1 thing when clearly all 3 have moved into a phase of leveraging their individual strengths to grow themselves rather than directly competing like the 90s warz.

Nintendo has streamlined their handheld and console into a juggernaut revitalising their IPs

Microsoft is leveraging the azure stack and reach into multiple platform areas to grow a service that matches the ubiquity of office 365

Sony is sharpening the saw of the PS4 strategy that was successful for them to great effect

And it's great for consumers imo. All three companies are doing something different and all three are succeeding from the looks of it.
 

CabooseMSG

Member
Jun 27, 2020
2,187
It's a loss leader, plain and simple. Like Costco rotisserie chicken, it gets people in the (proverbial) door
 

Chippu

Member
Oct 28, 2017
516
Netherlands
I bought a bunch a Pringles during a sale and topped up my Game Pass account with 18 months for €54. Donated most of the Pringles to the food bank.

So, if not Microsoft, at least Pringles and my local food bank are getting something out of it.
 

Parthenios

The Fallen
Oct 28, 2017
13,602
I spend more money on GamePass than I spent on regular Xbox games prior to that. I think I'm the target audience here. It's almost like an anti-whale strategy.

A console attach rate is usually like 7 to 10 games per console, right? So that's $420 - $600 spent on games per user. GamePass is $15/mo I think? That's $900 over a five year console generation, way more revenue in the ecosystem. That's where the math works out in GamePass's favor.
 

Biske

Member
Nov 11, 2017
8,255
Super interesting article and I hadn't thought of one key difference to netflix or other subscription models, how you can actually buy the games, often at a discount and how it encourages buying DLC, trying other types of games. A real gateway of gaming. So it seems like its working for pretty much everybody and Microsoft is in it for the long haul.

Even if that wasn't the case, and it was some moviepass kind of nuttyness, the value is so amazing at the moment, even if you could only have it for a few months or a year, you'd get so much out of it. As the article shows, I play way more games. Way more.
 

Reckheim

Avenger
Oct 25, 2017
9,370
I spend more money on GamePass than I spent on regular Xbox games prior to that. I think I'm the target audience here. It's almost like an anti-whale strategy.

A console attach rate is usually like 7 to 10 games per console, right? So that's $420 - $600 spent on games per user. GamePass is $15/mo I think? That's $900 over a five year console generation, way more revenue in the ecosystem. That's where the math works out in GamePass's favor.

as long as they don't make you subscribe annually, its fine. Only subscribe when there are games on there to play.

I subscribed in December, played doom eternal and cancelled my subscription, probably wont subscribe again until starfield comes out.

to me its not really anything more then a rental service.
 

Bobson Dugnutt

Self Requested Ban
Banned
Oct 25, 2017
6,052
Personally I'm jaded about on demand services in general and would rather have some semblance of ownership still, with on demand/streaming stuff being supplemental at best. But I can see why it would be good value for some and it's obviously the way things are headed eventually and will end up being the main way of consumption. I do think people will get fed up of the higher RRPs for games sooner or later, bringing more people to such services.

But I really hope the video game industry is unique enough that gamepass and its competitors don't ultimately echo the worst aspects of other on demand services eg. the sheer amount of dreck you have to wade through on netflix to get a good show and the fact that all the services are rasing their prices now so the value proposition eventually gets lower if you wanted to regularly sub to more than one platform. And I also really hope these services won't be like Spotify where it is really tough for small and medium developers to do well. But thankfully that doesn't seem to be the case at the moment.
 

itfiend

Member
Dec 31, 2019
406
If people are worried prices are going to go up, stack to 3 years when you see a price you're happy with. The price is only ever going to go up, and having the 3 year stack means you can buy when you see deals to top the stack up.
 

Watership

Member
Oct 27, 2017
3,116
This thread has reminded me of the Game Pass is "not the way I play games" type.

They're like my friend who when we are about to hit play on a movie on a streaming service says "No dude. I own that movie on Blu-ray."

Games may be considered owned items, but the actual worth of games is in the experience they offer. That's why Game Pass is revolutionary.
 

Arthands

Banned
Oct 26, 2017
8,039
It's a foot in a door deal. Like Netflix, etc. Get a huge number of subscribers, get them to be comfortable to use the method that it becomes the norm for them, increase price later, profit.

I don't think anyone is really going to argue otherwise, but those sticking to the traditional method has resulted in an increased to $70 price tag
 

Omniblack

Member
Jul 10, 2020
538
I keep coming to the realization that what most people fear from gamepass is the service ending. The whiplash of something like that would be immense.
Anecdotally the friends I have on Xbox who didn't jump on gamepass right away all spoke about wanting to own their games or not trusting the service. As word of mouth spread majority of the friends I have are subbed. The more skeptical sub to play a game or 2 on the service and cancel, whilst still referencing the above issues.
 

gifyku

Member
Aug 17, 2020
2,740
I think the worst we'll see is a price rise, or more tiers added, with only the top tier getting new games day 1

I think only MS really knows if it's sustainable, and they won't be dropping any hints if it's not

If MS can stock it will loads of exclusives then I think they'll be fine, as there will always be a reason for people to hop on when new stuff is out, and most people will do what they do with all subs, and end up paying more than they would have done just buying the stuff they were going to play

I know this argument is made quite a bit but it is quite narrowly focused.

"Most people will pay more than just buying stuff they were going to play'
  • Perhaps but that assumes you are one person utilizing the service. The value of Netflix, Spotify etc is also in the ability for the household to access these services for the same price. Lots of parents have Netflix mainly for their kid's paw patrol time for eg and their watching time is a bonus. For me, my kids also use gamepass to access titles like Disney Rush; i think this will be a key focus for gamepass going forward
  • Your time is valuable. Actually figuring out what you want to play takes time and time is money too. So if you spend a lot of time watching trailers, reading articles, playing demos and then paying full price for two games (90 CAD * 2), then 180 CAD for a year of gamepass ultimate is not bad. I dare say even at 240 CAD a year, its not too bad.
  • Access - Netflix, Spotify; one of their calling cards is access everywhere on every device. Gamepass wants to do that too. Is there value there for everyone? Maybe not but given everyone owns multiple devices at this point, it clearly is potential value for a lot of people and actual value for many already
  • Stuff I know I am going to play is usually just a way to say I will buy every Sony game or every Nintendo game or every FIFA game. Just like Netflix expanded the number of genres and sources (like Americans watching French TV) people are willing to try, the same holds true for gamepass
 

Magog

Banned
Jan 9, 2021
561
i'm sure the people from the industry involved in the deals know far less than concerned users of resetera
Look at Halo Infinite. It's shaping up to be a generation long game to replace what might have been several releases and is already causing controversy with its micro transaction design before its even released.
 

DopeyFish

Member
Oct 25, 2017
10,788
I think the worry is how games will be designed to be even more MTX focused to make up for lost revenue.

tell me

if game pass subscribers are on average higher revenue (on subscriber revenue alone) than gamers that simply buy games, how does one lose revenue if every game buyer were to become a subscriber?
 

OldBenKenobi

Member
Oct 25, 2017
1,696
It's a loss leader, plain and simple. Like Costco rotisserie chicken, it gets people in the (proverbial) door

I would say an example is more their $1.50 hotdog and soda combo that get more people into the stores but even with that chicken, the prices have never been raised in those two things and we clearly see how successful Costco has been.
 

supercommodore

Prophet of Truth
Member
Apr 13, 2020
4,190
UK
Look at Halo Infinite. It's shaping up to be a generation long game to replace what might have been several releases and is already causing controversy with its micro transaction design before its even released.

The trend of big shooters moving to a F2P "game as a platform" model isn't driven by game pass, it is just the way the genre is heading, even CoD has now succumbed to it. Activision are also seeing that by making the move to F2P they have diminished interest in their yearly titles.

Halo 5, which predates game pass, already had MTX which were awful, so MTX in Halo is just more of the same on that front. The only silver lining is that they will be limited to the F2P multiplayer side.
 

Liliana

Banned
Oct 28, 2017
3,375
NYC
I think the worry is how games will be designed to be even more MTX focused to make up for lost revenue.
They are giving an opinion. Their opinion doesn't equal fact.
Look at Halo Infinite. It's shaping up to be a generation long game to replace what might have been several releases and is already causing controversy with its micro transaction design before its even released.

You're being incredibly transparent right now.

What is it about positive Xbox Game Pass remarks that rustles jimmies so much?