'Netflix model' worrying some video game makers - Business Insider

[madmaltese★ 2,558]

This has been something I've said is my major concern ever since it has seem we are veering towards this model. Fairly common concerns to have given what things like Netflix and Spotify have meant for the tv/movie and music industry. 

 

 

"What happened with the other industries is big checks were written for a while until the platforms didn't need the content creators anymore," one game publishing executive, who spoke on condition of anonymity because of active relationships with gaming platforms, told Business Insider. "This check might feel good now, but it might not feel so good in five years."

 

Platforms like Microsoft's Xbox Game Pass need that content to draw in subscribers, but the long-term effect could be dire for the industry: People stop buying games directly, and start paying for subscription services instead.

"It's an offer you can't refuse," another studio executive told Business Insider. "If you destroy the system of purchasing and replace it with a subscription model, then the subscription model is all that's left. It's just Netflix and Blockbuster; instead of renting per video, you're paying for subscription services."

 

These subscription services could mean the end of the traditional direct-to-consumer sales of individual games, where the sales trajectory over time looks like a downhill slope with a (hopefully) long, tapered decline. 

"We just adjust to the new paradigm," that studio executive said. "We have to make sure we have our profit margins up front. If we do a Game Pass game, we have to build our margins into that."

 

Another prominent game developer who spoke with Business Insider put the issue succinctly: "Isn't it much easier to just give developers a giant sum of money for now, and then, when there's no market to sell directly to consumers anymore, you just give them less? That's what I would do if I was a platform."

 

https://www.businessinsider.com/video-game-subscription-services-developer-concerns-microsoft-apple-netflix-2020-2?r=US&IR=T

 

 

[-GD-X★ 7,733]

I love what Netflix and Spotify have done. I would be ok with gaming subscription services if the quality content is there.

[jehurey 3,230]

3 hours ago, -GD- said:

I love what Netflix and Spotify have done. I would be ok with gaming subscription services if the quality content is there.

But it would appear to be risky that the "quality" will have to be adjusted to the upfront payout that MS is giving people.

 

And if sales of $60 games become less and less and less............Microsoft will say "well, we'll pay you one lump sum of what your estimated sales would be, but based on current trends, your game at $60 probably wouldn't sell more than 500K-800K copies, so we'll just pay you that much."

 

The subscription model could create a race to the bottom.

 

Also, with these new consoles and console graphics, I think outdated animation is going to stick out like a sore thumb. You can create a gorgeous high-poly character model, but you're going to start having to do what the big studios are doing with facial animation and mo-cap or else its going to be noticeable.

 

This is looking like, more and more, to be the type of pricing model for smaller-scale indie games. I don't even know if there's going to be such a thing as "AA" production quality games. If so, maybe they could thrive under a subscription model.

[HolyAx 297]

subscriptions are cancer to pretty much everything. Its like communism, everyones gets less but equal amounts of income.

[lynux3 2,078]

Xbox is killing gaming confirmed.

[Playstation Tablet 1,725]

Gaming will never turn into Netflix, that's not how you monetise many games and genres. So it's an irrelevant worry.

[Remij 4,676]

4 hours ago, jehurey said:

Also, with these new consoles and console graphics, I think outdated animation is going to stick out like a sore thumb. You can create a gorgeous high-poly character model, but you're going to start having to do what the big studios are doing with facial animation and mo-cap or else its going to be noticeable.

About that, I expect machine learning to greatly improve animations in games in the near future.  Physics models will also handle a lot of that animation as well.  This will go for all types of games, not just realistic looking ones.

[Goukosan 2,255]

9 hours ago, -GD- said:

I love what Netflix and Spotify have done. I would be ok with gaming subscription services if the quality content is there.

Even with Netflix you still have 99% of the big movies in the theaters first and 99% of good TV shows outside of Netflix. 

 

With gaming if direct to customer sales go away and we're left with only a subscription model.... that's a different ball game. 

[-GD-X★ 7,733]

9 minutes ago, Goukosan said:

Even with Netflix you still have 99% of the big movies in the theaters first and 99% of good TV shows outside of Netflix. 

 

With gaming if direct to customer sales go away and we're left with only a subscription model.... that's a different ball game. 

Hbo is a subscription model that prioritizes quality over quantity. Perhaps, games will be more episodic. 
 

also, I think the day 1 release on gamepass, for full releases, Is a bad idea. The game should debut as a purchase, then transition to a subscription model once sales have dropped off. 
 

all in all, I like the subscription idea. It just needs fine-tuning.

[Goukosan 2,255]

Just now, -GD- said:

Hbo is a subscription model that prioritizes quality over quantity. Perhaps, games will be more episodic. 
 

also, I think the day 1 release on gamepass, for full releases, Is a bad idea. The game should debut as a purchase, then transition to a subscription model once sales have dropped off. 
 

all in all, I like the subscription idea. It just needs fine-tuning.

HBO is not solely a subscription model like Netflix. 

 

HBO is a premium channel network that you can still get through traditional means... but it also has a steaming subscription option. 

 

That's different from being soley streaming subscription based. 

[-GD-X★ 7,733]

9 minutes ago, Goukosan said:

HBO is not solely a subscription model like Netflix. 

 

HBO is a premium channel network that you can still get through traditional means... but it also has a steaming subscription option. 

 

That's different from being soley streaming subscription based. 

It’s still requires a subscription. You pay extra for HBO. It’s not free. 

[The Mother Fucker 26]

I'm not too concerned about video gaming subscription service where as "software" subscription service in general is a major concern and should be the focus. 

 

I come across countless applications in recent year that only offer "Subscription" purchase for license rather than offering the traditional full software purchase that grants you 1 license.

 

So instead of paying $39.99 for said Software that you have for life to use. 

 

They are wanting  you to pay $39.99 for 1-year subscription of software that auto-renews, and will bill you again for $39.99.   

 

The later is absolute ass, and it is what's happening to a lot of commercial software right now.  

[Goukosan 2,255]

2 minutes ago, -GD- said:

It’s still requires a subscription. You pay extra for HBO. It’s not free. 

You can still get it through traditional means AKA cable..... Cable has never been free. 

 

 

You can't get Netflix through Cable... Netflix is it's own self contained streaming subscription service.   

 

 

Those two are different. 

 

 

Not only that, the big AAA movies premiere in the Theater first before it comes to HBO. 

 

Those traditional avenues still have exist. 

[Cooke 2,026]

You used yo be able to rent games at a video store, then buying used games became popular, then buying digital games became popular, now it's streaming services. Everytime it changes the industry things it's going to collapse. 

[-GD-X★ 7,733]

28 minutes ago, Goukosan said:

You can still get it through traditional means AKA cable..... Cable has never been free. 

 

 

You can't get Netflix through Cable... Netflix is it's own self contained streaming subscription service.   

 

 

Those two are different. 

 

 

Not only that, the big AAA movies premiere in the Theater first before it comes to HBO. 

 

Those traditional avenues still have exist. 

It doesn’t matter. It still requires a subscription cost. Hell, HBO even considers It a subscription on its own site (Even with cable):

https://www.hbo.com/ways-to-get
 

Netflix and HBO both release exclusive programming and older movies. Netflix just distributes it differently. Also, I addressed the problems with current subscription models: 

”I think the day 1 release on gamepass, for full releases, Is a bad idea. The game should debut as a purchase, then transition to a subscription model once sales have dropped off. “
 

 

[The Mother Fucker 26]

HBO also been around since the late 70s as one of the original premium-cable channels. They have a much larger connection to the Hollywood studio Industry to broker deals for content compared to Netflix which had to build-up their own content funded through themselves. 

 

Not a fair comparison @-GD-

[-GD-X★ 7,733]

5 minutes ago, The Mother Fucker said:

HBO also been around since the late 70s as one of the original premium-cable channels. They have a much larger connection to the Hollywood studio Industry to broker deals for content compared to Netflix which had to build-up their own content funded through themselves. 

 

Not a fair comparison @-GD-

It’s a very fair comparison. Both RELY HEAVILY on exclusive content and older, non-exclusive stuff. The way they distribute the material is different, though.  That’s why HBO has a better quality-to-quantity ratio. And that’s why I said what I said about gaming services - either titles will have to be episodic (a new part every other month?), or they should be added once retail sales drop off. You guys are stuck in this primitive mindset, especially about HBO. It has evolved to be competitive in an evolving industry. 

[Goukosan 2,255]

26 minutes ago, -GD- said:

It’s a very fair comparison. Both RELY HEAVILY on exclusive content and older, non-exclusive stuff. The way they distribute the material is different, though.  That’s why HBO has a better quality-to-quantity ratio. And that’s why I said what I said about gaming services - either titles will have to be episodic (a new part every other month?), or they should be added once retail sales drop off. You guys are stuck in this primitive mindset, especially about HBO. It has evolved to be competitive in an evolving industry. 

No im not stuck.... You missed where I said HBO officers the traditional a traditionalas well as  modern streaming subscribing only option?  They have evolved while also offering a traditional method. this 

 

HBO offers both. 

 

If gaming continues to offer a subscription based model as well as traditional... then the gaming companies have no issue with that. 

 

What the gaming companies are worried about its gaming going a STRICTLY SUBSCRIPTION BASED ONLY way of doing things with no traditional direct to customer sales of titles. 

 

I mean.. it says it right there in the article bro 

 

Edited February 27, 2020 by Goukosan

[102020393023445948594 2,223]

been saying this for ages, i'll never support this mediocrity.

[-GD-X★ 7,733]

7 minutes ago, Goukosan said:

No im not stuck.... You missed where I said HBO officers the traditional a traditionalas well as  modern streaming subscribing only option?  They have evolved while also offering a traditional method. this 

 

HBO offers both. 

 

If gaming continues to offer a subscription based model as well as traditional... then the gaming companies have no issue with that. 

 

What the gaming companies are worried about its gaming going a STRICTLY SUBSCRIPTION BASED ONLY way of doing things with no traditional direct to customer sales of titles. 

 

I mean.. it says it right there in the article bro 

 

I know they are worried. I merely stated my view on subscription models, in relation to tv ones and gamepass  (pros/cons). Let’s just agree to disagree on the subject.