Man, we need to read more closely. #1 - these are not quotes from Microsoft and Sony, these are interpreted secondhand (third) by an investor who was getting a partial presentation by the platforms. What does that mean? When the investor says AAA, that may have nothing to do with what Microsoft calls AAA. It might be that they're quoting MS, but that's unclear. Let's not assume things we don't know.
Similarly, #2 - 1 AAA game a quarter says nothing about WHO IS MAKING THOSE GAMES. In fact, it makes FAR more sense to make sure that Game Pass is hyping some really big name 3rd party games, rather than siloing off and thereby losing 3rd party relationships on what is a win-win.
I consider subscription and streaming services harmful for the diversity of the industry and the medium. These services effectively re-raises the barriers to publishing and developing games that successfully was torn down over the last decade and moves back all the control into the hands of platform owners. I wouldn't mind if they stay as a niche means of consuming games but I'm afraid of the possibility that they like video and music services will capture too much of the market. I can't think of a worse future for games overall. The implications are dystopian. Consoles are really driving the worst trends on the business-side of gaming, it's such a shame.
No, since you would have to get on/be chosen for the service in the first place and with a subscription service the library content basically becomes a strategic decision rather than an open marketplace. Increasing the dependency on platform holders is the same as giving them control.
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I wish people thought about these things a bit more clearly. In many ways netflix for games doesn't even make any sense. The industry is doing very well - it's not like studios have trouble monetizing their games.
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Piracy and torrenting became big because it was convenient, not because it was free. With games these are all solved problems since a decade. Steam and the other online stores already are the Netflix equivalent to games, it's just different because games are different.
This is so off. I get that people don't like subscriptions. There is NO evidence that game subscription services causes developers to make less money. When you stream a movie, you don't buy it. When you stream music, you don't buy it. But on Game Pass, those are rotating catalogs and there are incentives to buy the DLC or to pick up the game fully. Even more importantly, people who get to pay more games spend more money on games. Plus, game pass seems to pay devs much better than music streaming does (we don't know specifics). Either way, devs come out ahead when they have this as an option.
You're also suggesting that devs don't need the money. They're making plenty of money!! Ignore the fact that studios are dropping off the face of the Earth as fast as they ever have because skyrocketing costs of development combined with the democratization of tools make it ironically increasingly difficult to eke out a survivable niche. Even big publishers can't find a winning monetization strategy. Gamers refuse to accept higher game prices. They refuse to accept loot boxes and other microtransactions. That's fine, but it doesn't pay employees. If you think the issue is just convenience, then Game Pass would never have taken off. Price matters. A lot.
Steam is not the Netflix of games. That's not the distribution model, it's not the business model, it's nothing alike. Unless you think of Netflix as just "my library", I don't understand why you think that works. It's such a weird inversion of reality that you think the current industry empowers studios in a way that subscription services don't.. How do you think the industry works now? Studios just decide they want to put out their game, and then it magically appears on the platform, and it sells gangbusters! Nah. Well-managed subscription services are allowing more studios to break free of publishing agreements and
viably assert their own way. Does the platform exert influence on who gets on? YES! But they do that ALREADY. Curation is good for the platform and it's good for the consumer.