In the past the advantage to consoles from a business perspective was ecosystem locking people so they could milk profits. That’s why you saw consoles be really cheap but have their games cost more than their pc counterparts and why there were so many more console exclusives than now. The market has changed and that’s no longer viable.
So instead they offer subscription style gaming at a huge loss, make it a no Brainer to get until people are locked in and competitors have lost relavency. Then they’ll jack the prices sky high. Just like with TV streaming.
Yeah, the comparison to what’s happened in the TV and Movie streaming space had occurred to me. Major studios burned down their existing businesses to try and jump into the streaming space, only to very quickly hit a hard cap on the possible number of subscribers.
Gaming is obviously a very different market, and apparently, console and PC gaming make less revenue than the Mobile/Freemium market, so maybe Microsoft sees it all as moot at this point.
Major studios burned down their existing businesses to try and jump into the streaming space
It sure seems like streaming burned down their existing businesses by its mere existence, not that they did it to themselves by abandoning their existing businesses, unless we’re talking about a bell that just can’t be unrung. People stopped going to the movie theaters in the same numbers they used to of their own accord. After all, if our TVs are almost as good as the movie theater, but we can watch the same thing for a tiny fraction of the price, with the ability to pause it and not have to deal with people talking over it, a lot of reasons to go to the theater just evaporated.
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Gamepass market share.
In the past the advantage to consoles from a business perspective was ecosystem locking people so they could milk profits. That’s why you saw consoles be really cheap but have their games cost more than their pc counterparts and why there were so many more console exclusives than now. The market has changed and that’s no longer viable.
So instead they offer subscription style gaming at a huge loss, make it a no Brainer to get until people are locked in and competitors have lost relavency. Then they’ll jack the prices sky high. Just like with TV streaming.
Yeah, the comparison to what’s happened in the TV and Movie streaming space had occurred to me. Major studios burned down their existing businesses to try and jump into the streaming space, only to very quickly hit a hard cap on the possible number of subscribers.
Gaming is obviously a very different market, and apparently, console and PC gaming make less revenue than the Mobile/Freemium market, so maybe Microsoft sees it all as moot at this point.
It sure seems like streaming burned down their existing businesses by its mere existence, not that they did it to themselves by abandoning their existing businesses, unless we’re talking about a bell that just can’t be unrung. People stopped going to the movie theaters in the same numbers they used to of their own accord. After all, if our TVs are almost as good as the movie theater, but we can watch the same thing for a tiny fraction of the price, with the ability to pause it and not have to deal with people talking over it, a lot of reasons to go to the theater just evaporated.
It’s not at a loss, unless you mean the console itself. Game Pass is profitable.