A lot has been talked about today about the future of subscription services in video games, such as PlayStation Plus . Although one might think that Jim Ryan, CEO of Sie, is intended to enter this market completely, and occupy a position similar to that of Netflix or Spotify, the manager has indicated that this is not the case, and in his Place has pointed out that the industry is addressed more to games as a service.
In a talk with Gamesindustry.BIZ, Ryan talked about the subscription services, and his role in the current industry. With more than 25 million users, Xbox Game Pass is a factor that has created a pressure in this market. However, CEO has mentioned that the environment will not be dominated in a way similar to that Netflix and Spotify have done so on their respective markets. This was what he commented on:
“The subscription has undoubtedly grown in importance over the last years. Our number of PlayStation Plus subscribers has grown from zero in 2010 to 48 million now. And we anticipate, for our services, that we will see greater growth in the number of subscribers.
But the medium of the games is so different from the music and linear entertainment, which I do not think we see it reach the levels we see with Spotify and Netflix.
Some of the [games] live service that are being very successful these days, and I am not restricting this comment to the console, they are effectively subscription services.
That phenomenon of the live service game… which, in large part, has promoted the enormous growth in the game industry we have seen in the last ten years.
I believe that the trend towards live services will continue, and if a model is sought in our entertainment category, which supports a sustained commitment for a long period of time, live service games could fit better than a subscription service “.
This position makes a lot of sense when we consider that the last two studies acquisitions are related to games as a service . On the one hand, we have a Bungie, creators of Destiny, and on the other we find Haven Studios, who are creating a social experience.
On related topics, Jim Ryan ensures that the large publishers of the industry will be in the new PS Plus. Similarly, subscription services only represent 4% of industry’s profits.
If something has made it clear to us, especially during the past few months, is that games as a service can mean large losses for a company. Not everyone can be the next great destiny. We only have to wait and see which of these two tendencies end it work for Sony.