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only thing I want to respond to is about the Amazon thing...I'm not thinking about ad revenue...you are incorrect about that. Amazon sets aside money they generate from Amazon Prime memberships to be distributed to authors based on the activity from users on their books. Ad revenue has absolutely nothing to do with it. I know because I make money from this system. I get quotes on the money pool that is available. No ad revenue.
Sigh, no it wont. No more then gamefly, Netflix, vudu, Redbox, or any similar competitor killed the movie or new game sales. Each has their own niche.
Xbox game pass has around 500 games and your favorite game can be yanked at any time.
Steam has 50,000+ games and an uncountable number of best sellers that aren't on gamepass. Both have their niche and will be successful but one doesn't have to kill the other for them to thrive.
Again this is demonstrated by FACTS, such as that gamepass and steam have both broken their previous records over the last year or two. Both can thrive together with many people including myself using both.
Amazon is a great example of what I'm talking about and so is Spotify. They came on the scene and put so many others in their fields out of business because others didn't evolve. The game pass type model will take over and if steam, sony or all the others (maybe besides nintendo) don't get on board, they will be in trouble.
Steam is just a platform to obtain games...Valve doesn't really create much of anything. Yea the vr headset and the new deck but those are small fries. They have nothing else. If they don't stay the best platform they will die eventually. For some reason all of you think Steam can just stay as it is forever like it's some perfect business that can never be taken out.
Game pass exists and is their own selective thing. This will not negatively affect valve. They are the best platform by offering the most. People come here, they sell the thing, valve gets a cut. They're a huge money printer.
They do NOT need to adopt a model because you want it. They won't become less or die for not adopting the model you want. They're unlikely to falter for not adopting the model you want.
They evolve annually to any extent they need to, anything else is optional.
You seem to constantly try to pain a doom and gloom if they don't give you such a model, just give up, that's silly. That's like saying if they don't adopt crypto, nfts, that they will go out of business for not evolving. It's also saying if they don't do what egs does that they'll fail for not adopting.
Valve doesn't do fear, they do realistic data and statistics. They're doing fine, they will do fine. They don't need to adopt every other site and platforms models to succeed.
This is pages and pages of absolutely nothing but trying to get a company to fear a non threat. That's not how any of this works.
Again you are being short sighted. I'm not talking about today...I'm talking about tomorrow. The game pass model (Not the actual Xbox Game Pass) will absolutely take over. I just presented Spotify as a really solid example.
And movie sales are starting to fade. The future is not movie theaters and physical copies...it's all streaming. Owning things isn't what we do anymore...we pay for the right to access and that's about it. It's what happened to our music and it's what we do for most of our games too. I haven't bought a physical game in years...
The game pass model is the new way of accessing games.
So you said Netflix and Redbox didn't kill the movie industry or sales...remember Blockbuster? Or any other movie/game rental place? They absolutely murdered them. Blockbuster had the chance to buy Netflix and evolve and it chose to stay as it was and it died a swift death.
Netflix/Redbox -> Blockbuster
Spotify -> iTunes
Amazon -> A dozen retailers
Game Pass -> Steam? Gamestop? Physical games from retailers? (I'm not spending $60 at Walmart or Target anymore than I would on Steam if I don't have to)
Answer me this, do you really think Steam can just stay how it is forever and be just fine?
I never said I wanted it. I have said, in fact, that I don't. I don't like the game pass model. I use spotify but I actually don't like it. I'm just not dumb enough to waste my money. I can have access to every song out there for a small fee each month. I have access to a very large and growing library of amazing games for a small fee each month.
Everyone says Valve prints money...they are a platform like youtube or tiktok. The host other peoples content and provide access. As long as they are the best for access they will be fine...The game pass model provides better access.
Steam does need to evolve...if not a game pass system that something to compete. They are not good enough how they are anymore. MS is absolutely taking over the gaming world. Hell, they will probably buy steam next...why not...they bought everything else and to them Steam is very small.
Generally from what I've heard from a few people I know at Sony, they tend to get the agreement to have the game, and they pay according to how many "keys" get used.
PS+ exists for more than ten years. Games for Gold for ten years. Amazon Prime has something similar. Youtube Red/Premium works the same, Netflix, Spotify ... I am pretty sure the payment aspect has been figured out and is profitable enough for everyone involved to keep such services alive - both, financially and content-wise.
There's many ways to arrange a contract even if you're unsure of the outcome.
Wehn I worked selling fruit and veg, we' doften buy in whole lorry loads of melons, say. At the end of the season, we'd get a lorry load and their sizes were a bit random so they weren't worth as much. So the growers would simply send us the lorry load nad we'd have a "Commission" contract with them.
We agreed NO Price at all. It was basically just get what you can, and you take a cut of the gross take.
They worked really well.
As I said prior, amazon didn't profit for many years and other retailers said that their business model couldn't work. Then we look at it today. They are a giant and those retailers are literally gone. This game pass model is not something "New". Spotify did the same for music and it murdered itunes.
MS is a very large company and they know exactly what they are doing.
https://en.wikipedia.org/wiki/Criticism_of_Spotify
May want to read up on what artist feel about Spotify then.
Yes, MS may make money and publishers as well, but if they are following the Spotify model, then developers will barely get anything.
Amazon doesn't make much of a profit and not in the way you think.
https://www.fool.com/investing/2019/02/19/how-amazon-actually-makes-money.aspx
Only 7 billion in NA in 2018 with a loss on the international market of 2 billion. Most their money comes from cloud computing these days, not retail sales.
MS doesn't have that option as they have been, and often still are, under scrutiny for possible monopolistic behavior. They know what they are doing to make a profit for themselves, not for everyone else. They also know they can't even try to kill off retail sales as it is with in their best interest to have them as well.
I am guessing this is where you get the 4 billion from?
https://www.businessinsider.com/xbox-game-pass-to-make-billions-in-2022-2022-1
Keep in mind that is not subtracting the expenses such as money paid to developers. They are more likely making very little at this point. Their goal is not profits though, but engagement.
Finally, keep in mind people were saying that streaming games was going to kill Steam and game sales too, so this isn't the first time such ideas have been pushed around. The industry can easily support both and I doubt MS is interested in killing off game sales at all. They still make a good amount from them too.
Developers are paid by their publishers during development, mostly per milestone. Very few even have some sort of bonus for superb performance. Even Fewer meet these threshholds.
If you are independend or under a small label, you always will struggle. Most have additional funding for development, either investors or grants. Not making a profit can be actually proftable if it means getting your name out and securing funding for your next project.
Answer those and then we can determine whether it's 'very profitable' for developers rather than it just being a further monopoly for Microsoft and to stifle competition.
Gamepass does NOT sell the same services as steam. Its a subscription model that offers less then 1% of the games on steam and those games can be removed at any time.
Just like Kindle Unlimited hasn't killed books, Gamepass isn't going to kill Steam.
You seem to be under some misguided obsession that businesses can't exist side by side, and that one has to kill the other despite the plethora of evidence showing otherwise.