2/22/2024 0 Comments Hi-fi rush golden canI imagine, as Game Pass goes on, you’re going to start to see two things: If you play on Game Pass, for an additional $30 you can upgrade to the Bite Back edition” that has the preorder bonuses and the “Hero Pass” in it. I might be reading too much into their Redfall announcement, but their Redfall announcement had something to the effect of “You can preorder it now or play it on Game Pass. It remains to be seen if that will be so, once the subscriber numbers reach saturation. Money in needs to result in more money out, across the business. But the axiom at the top of my post still needs to be obeyed. Maybe it’ll be different for Microsoft, which has a lot more runway than Netflix to make the numbers make sense. Netflix found out the hard way that the spending it was doing on original content was not resulting in subscribers gained. That said, any numbers that Microsoft puts out is just creative accounting to justify continuing the experiment. Ironically, it would make metrics for success harder to accurately measure and therefore diffuse the responsibility of a “bad quarter” away from any one game. If successful, it would be a big shift in the way games get funded, and optimistically, it could allow mid-budget games to reappear in the market. If you multiplied the total number of current GamePass subscriptions by the maximum amount that GamePass could possibly cost, would that exceed $200M? Maybe, I don’t know the exact numbers. Since Microsoft has more cash on hand than a small Balkan nation, it’s able to burn money to test its theory. It is betting that funding 20 $10M video games a year for $200M will result in at least $200M and one dollar in GamePass subscriptions (exact numbers made up). Right now, Microsoft has proposed a different strategy to achieve positive profit. (In reality, it needs to make much more than that.) Regardless of whether you’re an indie studio or part of a megacorp, this is the logic that lies at the heart of capital. At the end of the day, a video game that costs $10M to make needs to earn at least $10M and one dollar in retail sales in order to justify its existence.
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