The Xbox Game Pass is available for a moderate monthly fee and represents a kind of Netflix for games. Currently, Microsoft is being praised for bringing EA into the Game Pass – completely for free. What at first glance seems like a heavenly good offer could represent a turning point in the gaming industry, but not in favor of the players. MeinMMO author Robert explains why this is the case.
Admittedly, the Xbox Game Pass reads very deliciously on paper:
- Access to over 100 games at the same time
- Another 100 games that rotate in and out, with the fee for online gaming included
- And now an additional 60 titles from EA are joining the lineup.
- The price is extremely moderate at €12.99 for the Ultimate variant (and can be lowered further with a clever trick).
In contrast, Sony’s offering seems dusty and outdated: While Sony has some cool exclusive titles on offer and also has its own game subscription with PS Now, the fees for online play are high and the monthly free games rarely offer true blockbusters.
In fact, Microsoft has pulled off a true marketing coup with this action. The offer attracts new players to the Xbox platform, who will presumably also opt for the Game Pass. This opens up entirely new control and, more importantly, monetization opportunities for Microsoft and developers. However, this could push the entire console industry in a direction that the skeptic and cynic in me is not comfortable with.
Because by effectively abolishing acquisition costs for games, the threshold for pay-to-win mechanics will decrease further. The already absurd DLC madness will take on even more bizarre forms. Even worse, however: Resistance from players will decrease. The reason is the new pricing structure. But let’s take it step by step.
Pay to Win (P2W)
Pay to Win refers to a mechanic in often free mobile games that aims to allow players to progress faster by spending real money than players who do not invest money. These often grind-heavy games invite players at various points to spend small amounts (also called microtransactions). This type of monetization is highly controversial among gamers, as victory or defeat is determined not by skill but by the wallet.
What does a game subscription mean financially for the developers?
It is no secret: The production of elaborate and high-quality games is becoming increasingly expensive. With the new console generation, game prices could rise even further. A cheap game subscription like Microsoft’s Game Pass seems like an anachronism. Let’s take Netflix as a comparison: Netflix started cheaply but has carried out several price increases in recent years. Reasons for this are the increased licensing costs for outside content as well as the improved quality of their original productions.
EA has also likely demanded a hefty price for participating in the Xbox Game Pass. But is that enough to cover the costs of future productions? Of course, the games can be sold at full price on other platforms. However, I doubt that this will offset the missing revenue on PC and Xbox. Nonetheless, game developers have a significant advantage over Netflix – paid content in otherwise “free” games.
A paid DLC in an otherwise free game would be comparable to a movie where deleted scenes are available for a small fee (which, of course, is unrealistic). The primary purpose of companies like Microsoft and EA is to make money. By presenting a lot of content without real acquisition costs, in-game monetization will inevitably take on a much higher importance. And this is just one of many new opportunities for developers.
The new opportunities for developers with Microsoft’s Game Pass
Approximately 100 games are permanently available in the Game Pass. Additional games rotate in and out – just like in Netflix. With the elimination of acquisition costs, players will try games more often that they have avoided due to high costs. This opens up the following possibilities for developers:
- Games that perform poorly can be removed from the Game Pass, revised, and reintegrated,
- Basic versions of games will be included in the Game Pass (similar to the free basic version of Destiny 2), but special editions and premium content like costumes, etc. will still require payment,
- Additional story content like chapters can continue to be offered for a fee and
- Different pay-to-win mechanics can be tested in varying forms.
- The Game Pass could potentially become more expensive considering new titles or more elaborate productions.
What could this look like in practice? The popular football simulation FIFA presents a new edition each year that is graphically improved and contains the latest team data. However, this looks very different on mobile devices. There is no longer a FIFA 20, but simply FIFA. A core element of the mobile game are sophisticated mechanics designed to encourage players to purchase player packs. This model is also conceivable for the Xbox Game Pass. A streamlined FIFA experience that offers graphical updates and the latest team data but revolves mainly around the cash cow FUT (FIFA Ultimate Team).
FIFA Ultimate Team (FUT)
FUT (FIFA Ultimate Team) is a game mode within FIFA where players can build individual teams and compete against each other. New players are drawn through corresponding packs that can be purchased with in-game currency or real money. According to EA, FUT is the most popular game mode in FIFA and has been continuously expanded in recent iterations.
The main source of income for companies like EA is in-game sales, meaning sales generated when the player already owns the game. These revenues will increase when more players own the game – for example, as part of a subscription.
The possibilities for experimentation are limitless here. It will be interesting to see if there will be resistance from players against such practices. After all, the games are included for free in the Game Pass. Anyone who wants more than the standard has to pay extra. The possibilities in a game like FIFA seem seemingly boundless:
- Legendary teams from yesteryear are only available for an additional fee
- Scenarios to replay past matches are available for a small fee
- Larger tournaments can be offered as DLCs
- New or old jerseys, socks, or balls can be offered for real money
The list can be continued indefinitely. Whether it will come to this extent is, of course, uncertain. Depending on resistance from the gaming community, developers may adjust their approaches and gain new insights and results. The aspects of psychology, reward systems, incentives, and interaction opportunities are becoming increasingly important in the gaming industry. Since players have access to significantly more games with the Game Pass than before, the field for experimentation on the part of developers is immensely enlarged.
Why Sony has a significantly better approach in my opinion
Sony’s flagship on the Playstation 4 has been elaborate exclusive titles like God of War or The Last of Us, and they will likely be so on the Playstation 5 as well. God of War was an absolute highlight of this console generation for me, not only because of the fantastic gameplay and graphics but also because it was simply a single-player experience. Without annoying microtransactions. The focus was on the game, not on additional monetization opportunities.
I wish for such a puristic gaming experience for the future as well, even if it is considered less “innovative”. Innovation should not lead to psychological studies about the buying behavior of players becoming more important than the content itself. I sincerely hope that Sony resists the impulse to imitate and stays true to its line. Conservatism could well be the successful model here. Nevertheless, valuable insights can still be gained from afar about this unprecedented experiment.
Conclusion: Quo vadis, gaming industry?
Because that is what it is: a gigantic experiment – and we are the guinea pigs. The resistance of players from this field study will significantly influence the direction the gaming industry takes. Will we be overwhelmed by low-budget base versions of games that shine mainly through paid content? Or will we continue to enjoy high-quality (and thus high-priced) blockbusters? Sony’s and Microsoft’s philosophies appear to be diametrically different drafts. Which one prevails will be decided by consumers and players – with their wallets.
What is your opinion on this controversial topic? For colleague Leya, the Game Pass is even a good reason to switch to Xbox:
