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Discussion The cost* of putting games on Gamepass (FTC leak)
- Thread starter Bishop89
- Start date
brainchild
Moblin
Setting aside the fact that these are estimates, if the reports about gamepass making $230M+ a month are true, then I could see it working if those costs are only reserved for "high value" select titles. It definitely isn't something they can do for every title that's for sure.
blue2425
Bob-omb
Those look like Day 1 estimations? Unless I am reading the chart wrong? Have anyone of those games came out day one on Gamepass. This feels more like a chart of why never to expect an AAA game day 1 on gamepass that isn't first party.
The chart also is showing one facet of why they are doing these major acqusitions. Some of the costs would be the entire budget for that development team. It makes absolutely no sense for MS to CONSITENTLY spend that much on IPs they don't own.
The chart also is showing one facet of why they are doing these major acqusitions. Some of the costs would be the entire budget for that development team. It makes absolutely no sense for MS to CONSITENTLY spend that much on IPs they don't own.
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robertman2
Chain Chomp
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Idk why but the notes for Mortal Kombat 1 and Jedi Survivor being "crown jewel, they won't do it" are pretty funny to me
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Yeah this is a very important distinction
if anything these numbers were used to make a case against this strategy and for the direction they took.
TsarOfAbility
Piranha Plant
Yep, thought the same. MS can't win
Edit: Kyle mentioned once that since DI covers current gaming news, they may have low replay value. On the flip side, it is nice to look forward to him commenting on recent events such as these
ziggyrivers
thunder
- Pronouns
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Guess Microsoft Blue Screen’d their plans today
Mekanos
Tattletale
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They’re really getting put through the red ringer
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Mister Gideon
Piranha Plant
Unless you’re trying to create a situation where people with limited budgets have access to a vast wealth of games which vanishes in it’s entirety if that person stops subscribing or chooses to try and leave the ecosystem.
JorgenRaft
Chain Chomp
This is exactly what I was arguing on Fami recently and people called me crazy.
These services cost way too much to sustain long term without having these big price hikes. Legacy content and smaller games are one thing but subscribing the newer AAA games is not something that’s ever made sense to me.
These services cost way too much to sustain long term without having these big price hikes. Legacy content and smaller games are one thing but subscribing the newer AAA games is not something that’s ever made sense to me.
Mekanos
Tattletale
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I think MS can offset it in the short-to-medium turn as a loss leader because MS as company has so many other revenue streams. But they're definitely chasing the dragon on GamePass as a longterm business model.
blue2425
Bob-omb
Sorry, I've read your post multiple times and dont understand what your saying in relation to my post.
Mister Gideon
Piranha Plant
It makes no sense spending that much on IPs you don’t own, unless you look at it from the perspective of a company trying to lock people into their subscription service. They can pay over the odds for games now because they’re counting on people being unable to easily leave their ecosystem once those games are no longer on the service, and making that money back in the long term.
brainchild
Moblin
If your argument is that they're counting on people to buy games that are leaving the service, I could see that, but the ecosystem doesn't mean anything to the consumer if the content that pulled them in there is no longer accessible to them at all.
blue2425
Bob-omb
Yes. And my point is, based on this leak and the current history of games released on Gamepass, MS believes that is not a feasible business outcome, at least when 3rd party AAA games are involved. How many 3rd party AAA games have released day one on Gamepass? The only one I can think of is maybe MLB: The Show, which MS negotiated with MLB and not Sony. Other examples is when you look at MS last E3 presentation where Sega played a prominent role. In that showcase, you saw P3R and P5T go to Gamepass day one while the higher budgeted LAD and Re:Fantazio did not. Thus, MS has a limit they are willing to spend for IP they don't own.
What we have seen is that MS has shown a lack of appetite in getting 3rd party AAA games day one on Gamepass. Contrarily, they have shown an increased appetite in acquiring studios and attempting to flesh out their own studios like The Initiative. It doesn't make alot of business sense for MS to pay close $300mil for Star Wars: Survivor, which would be a temporary asset and probably not even move the needle that much for them. Comparatively, making their own game with that money or acquiring studios like Crystal Dynamics and Eidos for $300mil makes way more sense. Especially when that $300mil also comes with IP like Tomb Raider and both of studios are already currently on loan from Embracer and helping MS develop some of their games.
Pillydillsy
The greatest banana sherif in town
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When you think about the fact that Xbox has in last place this generation alongside these hefty prices for INDIVIDUAL GAMES, NOT EVEN GROUPS OF GAMES OR A FULL COMPANYS CATALOGUE, how long is it until Xbox opts out of game pass all together? Especially now that other companies are gonna see how much they paid for some games like jedi survivor and say “pay us this amount!”
OctoSplattack
Chain Chomp
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- He/Him
Well, here's a Twitter thread doing the math, if anyone is interested.
ohlawd
bruh
Really hope MS starts acquiring other devs/pubs at a more consistent and faster pace. ABK deal should have been cleared earlier (thanks for nothing, FTC/CMA) and that deal has prevented them from pursuing other companies. Eventually they're gonna minimize the 3rd party deals or not do so many AAA deals but still get the indies like how it is currently to add more choices for the consumer. I know these are estimates from MS but if it really does end up costing 300m for Jedi Survivor they might as well be permanently exclusive and treated as 1st party titles. It sucks that we're in 2023 and the service as great as it is is being built upon and isn't in its final form. Can't wait to see what it's like in 2030, then 2040, and so on.
blue2425
Bob-omb
The problem with that analysis...and its hard for me to tell for sure given Twitter runs awful for me is that it is making the assumption MS is actually paying the 250Mil for games like MK1, which they are not. In which, as stated in this thread IS unsustainable. Again Twitter is awful for me, so maybe I am missing something in those threads.
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This does seem to be over a year old, so at the time BG3 was just "game that's been in early access for a long time" rather than "sudden hit of 2023".
