Yeah but Indie games are hosting concerts and using game pass for exposure it would be there main source of revenue. And who would buy a single indie game for $10-20 when they can just keep subscribing to game pass for $10 or less. It devalues games, I would think especially smaller ones.
Because...they like the game and want to complete it outside of GamePass? Or they don't want to subscribe to GamePass? Or literally any other reason that people buy games after trying it for the first time?
And guess what...those devs still get alot of revenue from their metrics on GamePass! This has all been explained repeatedly about every subscription service. You are using traditional lemonade stand logic to describe a business model based on engagement and active users. It's not apple and oranges. You are using selective commentary from people you want to listen to ("all I hear is people bragging about getting in cheap and not subscribing") that you aren't "seeing" the people resubscribe at full price, or buying these games that they would have never given a chance, because in the past, the only solution was paying for price for something you didn't know about.
Yeah, gamepass is motivated by the exact same thing driving everything the company has done under Nadella: transitioning as many revenue streams as possible to ARPU. It's the same thing that's driving Apple to lean hard into subscription services. Wall Street is really, really, rewarding ARPU metrics over individual sales with no long term recurring revenue streams.
All of this. One model gets you $60 over a period of time and another model get you alot more over an even longer period of time. When you get people into your ecosystem...it affect ad clicks, how they are exposed to other MS products, and valuable data on what your consumers want to buy/play.
I'm clearly talking about 1st party, 3rd party has nothing to do with this, When i played through on GP i noticed they lean heavily into microtransactions and dlc as a way to make back so much of the lost revenue
But this is what he means...how do you know they are losing revenue? Where in GamePass is it "leaning into" MTX and DLC, considering all DLC using comes free with the games there? Where is this coming from that this is some loss leader business that they have to trick gamers into making up the difference somewhere? Do you have a quote from someone saying this?
That's not how it works. What was one bucket is now several buckets. If they were losing revenue, Phil Spencer wouldn't have a job.
