Hard Data: Gamepass Grows Gaming

MeachTheMonster

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winb83

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It’s the better business model by far.
Let's say Sony gets to keep 50% of every game sold at $70. Let's also give them an average attach rate of 11 games per console which the PS4 reached. For every customer they get to buy a console on average it would take Microsoft about 3 years and 2 months to reach that in monthly payment on the lower tier of Game Pass.

We're talking about an 11 game attach ratio that took 7 years to reach and a subscription service generated that in a little over 3 years per customer.

Give them 70% of every game sold. Per customer a subscription service at $10 per month generates those sales in 4 and a half years. Still less than the 7.

So no game sales aren't everything. They are just what we're used to hearing.
Also consider that Game Pass subscriber still buys some games. In 3.2 years that subscriber has generated the same revenue as a 7 year gamer that only buys games with an attachment ratio of 11 games just off the subscription payments. The additional games they buy are extra on top of that. That customer is flat out more valuable to a company than the guy who only buys games.

There's a reason all these businesses are transitioning to subscription based pricing. For them by far it's a more superior model than all these individual transactions. In the gaming space they can shift the focus from selling games to keeping gamers engaged.

I mean 20 million in sales in impressive but that means there are like almost 100 million in a gap between the PS4s out there and that game's sales and considering it's also on PC there is another gap. If that was on a subscription service how many more people could that game reach and engage? If Game Pass has 25 million subs Forza Horizon penetrated 60% of the sub base with 15 million players. Horizon penetrated 17% of the PS4 install base.
 
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