Boy. I just wrote an essay on another thread about this very thing. But, I don't believe in thread linking, so I'll try to edit it down here ;)
The question as posed is whether Day 1 GP is a "counter" to Timed Exclusives (TE, from here). This implies that we're talking from the perspective of the platform holder: MS. I think conventional wisdom suggests that TE is better for the platform than GP would be. I don't know if I agree with that.
What does TE accomplish for the platform? They get the privilege of spending a ton of money.. in order to spend a bunch of money promoting someone else's game because now it's "one of ours". That's especially true for big AAAs. It may help as the faithful will jump in on those sales and buying it because of the brand association, but that's a nebulous proposition. Other than that, you're doing free marketing for someone else's game! Their sales may help a bit, sure, but you don't even see a dime of it, if it's a physical sale! And remember - sales because of Sony's marketing aren't a benefit of the TE, but rather of the marketing itself that Sony pays for (or at least promotes).
I mean, are timed exclusivity deals supposed to make back their money? Or are they purely cash hole investments into the brand as a whole? And.. is that investment in the brand meaningful long term..? I'm not so convinced. "Sony's real good at taking away games from Xbox!" Or charitably, "they make deals for good games!". K.
A Game Pass deal is
also paying for the privilege of spending money to advertise someone else's game - but it's cheaper AND you also get to advertise your subscription service in the same breath. MS gets to use a third party game to elevate Game Pass - and any conversions there is 100% money straight into the hands of MS.
Day 1 GP also makes AAA games "attainable" for millions who, as a rule, don't pay $60 (or full price, in general). That means play time and player counts go up. That elevates the discourse and the excitement around the game in a way that a timed exclusive does not always. I mean.. can you imagine how huge it would be to get the next Ubi AAA or the next FIFA on GP day 1? Shockwaves. Huge free earned marketing. That means lots of people hearing about and thinking twice about a game they may never have considered otherwise. And we've seen that increase sales in many cases. I point to the success of launching Rocket League on PS+. Did that hurt sales? I think not. It may not have reached such great heights, had it just been a timed exclusive.
And, of course, it rewards the faithful who are already subbed for 3 years. For no additional cost to them, it keeps your super fans engaged in the platform and ready to champion its value. It's people mentioning Xbox in casual conversation and in media. It's people making Xbox a part of their everyday routine. THESE PEOPLE do more to elevate the quality and strength of the brand than any timed exclusivity deal ever could.
Timed Exclusivity has its uses for a platform holder. It is a play to strengthen the brand. It may increase sales. It forges relationships with publishers. It is a nod to the fans. But I think Day 1 GP could potentially do it better on every count, especially if a GP day 1 deal is cheaper than TE deal.
Thanks for attending my TED talk.
I'd say it depends for the 3rd party games if they do opt to do this
Call of Duty, for an example, sells over 20 million copies overall. Coverage on two platforms you might need to cover 12-15 million copies... and would MS throw down upwards of $600 million to do that? probably not.
It would probably be more precise investment from the PC perspective. At least on Xbox it's fairly controlled.
Sure, but COD isn't getting timed exclusivity either. It makes too much money. Now could you put DLC on Game Pass Day 1, instead of timed exclusivity? Why. The. Hell. Not. They haven't done it yet.. but.. why the hell not?
And.. don't forget that even COD has experimented with F2P now. Game Pass could be a half step in that direction. Maybe, say, for the major sports games every year, now that game prices are apparently not enough and the big bucks come from microtransactions anyway.... NBA 2K20 is on Game Pass. Why not have 2K21 just a little earlier? I think there's room to challenge conventional wisdom on this.
No, I don't think that it's a good counter. Timed exclusives will stop when gamers stop cheering for them. The only way that this happens is if Microsoft too goes all in on moneyhats so that the whole situation becomes an absolute shitshow and customers get shaken out of their apathy.
Eee. No. Fighting fire with fire is just red meat for the console warrior base. No thanks. Show us the better way, not your depraved glee in rolling around in the mud for a bit longer.