Sony estimates it would take “several years” to develop an Xbox Game Pass competitor

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The company believes it would take “several years” for a competitor to create a rival for Xbox Game Pass, even with substantial investments. Sony Believes It Would Take ‘Several Years’ to Create a Rival to Xbox Game Pass Sony has says subscription services can compete with games purchase for a one-time fee, but thinks the lowest upfront costs of subscription services might be “anti-competitive.” This is in comparison to publishers who recoup investments in games by selling them for an upfront cost. The company thinks subscription services could harm the consumers as it could reduce the quality of games.

Sony estimates that it would take “a number of years” to develop an Xbox Game Pass competitor. As reported by ResetEra, when asked about Microsoft’s purchase of Activision Blizzard, Sony spoke with Brazil’s regulatory agency and provided many responses, including their opinions on Xbox Game Pass. According to Sony, Xbox Game Pass has increased its share of the global subscription service market to 60 to 70 percent over the past five years. In Brazil, Xbox Game Pass accounts for 70 to 80 percent of the market for PC subscription services.

Highlights

  • Sony claims that Microsoft has between 60-70% of the total premium subscription market and a staggering 80% of the PC subscription market DonFerrari in reply toaTokenYeti (1 day ago)Collapse. A rival in what sense though? If they’re talking of creating a sub service that’s as ever present on different platforms (Console, PC, Mobile, maybe streaming directly to the TV) then that’s definitely very tough and it’s Game Pass’s big ace. On consoles alone however, I’d say PS Plus (Extra/Premium) is already shaping up to be competitive. DonFerrari in reply toUnderwaterFunktown (1 day ago)Collapse. I think he isn’t saying only about the number of devices it can be put, but on having a similar number of subs.

  • A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.

Gamepass wasn’t much of a threat during those 5 years when Microsoft rarely released new 1st party games outside of Forza games. Gamepass is great to play indie games, older 360 games, and all of the Yakuza games. Now 5 years later, Microsoft’s investments are gong to start paying off next year with hopefully a steady stream of strong 1st party games that is going to make Gamepass a lot harder to compete with. If Microsoft has a steady 2-3 years of awesome 1st party games come out, the proposition of paying $140 for 2 a new Sony games per year or $120 a year or less for all of the Xbox’s 1st party games is going to be a tougher sell.

If Sony was really this concerned about Game Pass, you would think they would have launched a true competitor by now. They themselves say it would take “several years” to create a competing service. Game Pass has been around for 5 years now. That’s more than several years. There can be different business models in the gaming industry. It doesn’t have to be subscription service or nothing. Sony’s business model has worked for them for a long time and with the launch of the new PS+ service, Sony isn’t in any danger to be making these kinds of claims.

Sony has never said that GP isn’t profitable. They have claimed that it may not be profitable for them. The competitive statement might be baseless, but ultimately this conversation was about MS’s purchase of Activision. It wouldn’t make sense for Sony to be supportive of the move so obviously they’re throwing out concerns. Either way, I’m pretty confident they know that nothing is going to stop this acquisition regardless. Sony probably couldn’t afford making something like gamepass into a success. You need to be willing to make a loss for a lot of years till you get enough subs. You also need to sacrifice a lot of game sales. It works for Microsoft, but it’s not as easily done on PlayStation or Nintendo for that matter.

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