89653 42 microsoft suggests sony offer day and date releases to boost playstation plus

Microsoft suggests that Sony offer today and date releases to enhance PlayStation Plus

Microsoft has I suggested That Sony is disrupting the business model that provided nearly 10 years of success in order to boost the value of PlayStation Plus.

Microsoft suggests that Sony offer daily releases to enhance the PlayStation Plus 42

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Right now, Sony and Microsoft are competing with the Activision merger. Sony opposes the deal and says it will “threatens the gaming system,” Where Microsoft argues the deal is great for consumers and the competition. One of the main arguments is that Sony’s PlayStation Plus will have a hard time competing if Activision games become exclusive to Game Pass and not available on PS Plus.

So what should Sony do? At the very least, Microsoft says Sony should offer today and date releases for major first-party and third-party games on PlayStation Plus. In other words, Microsoft is advising Sony to break the so-called “virtuous cycle” that has helped sustain the multi-billion dollar PlayStation empire.

In a specific argument against the blocking of Sony’s competitive PlayStation Plus service, Microsoft says the following (page 5, paragraph c):

Moreover, even if Microsoft succeeds in increasing Game Pass with the addition of Call of Duty, CMA will also have to convince itself that Sony cannot respond with investments or improvements in its service. Sony clearly has a range of options to keep the situation going. PlayStation Plus Competitive Edition or Enhancement.

At a minimum, Sony can include additional first- and third-party releases in PlayStation Plus in a ‘day and date’ release. Sony’s first-party exclusives not currently included in PlayStation Plus include notable titles such as The Last of Us, God of War and Spiderman and Final Fantasy VII Remake. The inclusion of such titles would be beneficial for gamers.”

Sony is losing PlayStation Plus subscribers, but the company isn't willing to take any more risks with first-party game sales in exchange for increased subscribers.

Sony is losing PlayStation Plus subscribers, but the company isn’t willing to take any more risks with first-party game sales in exchange for increased subscribers.

While this sounds like a good idea in theory, a closer examination of PlayStation’s business suggests otherwise. It’s really not good advice for Sony right now, and PlayStation wasn’t set up for this kind of service approach first. First, let’s take a look at why Sony completely dismisses the idea of ​​day and date releases similar to Xbox Game Pass.

Back in May, Sonny Jim Ryan explained The current corporate model is based on a virtuous cycle:

“In terms of our assessment of what gamers want, it’s very simple: gamers want great games. This is their first and most popular perspective.

“How it’s delivered is a secondary concern. I would say whether in absolute terms, relative terms compared to our history or compared to anything competitors are managing, we’ve never been in a stronger place than PlayStation Studios is than we are now, and we expect that position of strength to continue.” Excellence will only grow.

“We are in a virtuous cycle where success allows investment, which leads to more success, allowing us to invest more and hopefully bring more success.

“That virtuous cycle, we feel that if we were to move to a different model, which involved putting AAA games on a subscription service on day one, we feel there is a huge risk that the virtuous cycle that we have successfully created will be compromised and potentially broken.

“We definitely feel this is not in the best interests of PlayStation players. This is our view on this particular issue.”

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A look at Sony’s production of first-party games reveals why the company likely didn’t want to release these titles on a subscription service at launch. Sony relies a lot on selling premium-priced games, especially first-party games, which sell for much lower copies than third-party titles. However, PlayStation generates most of its revenue from in-game purchases and microtransactions, so by no means premium first-party games have the bulk of the profits, but gamers arguably choose PlayStation because of its exclusive benefits.

Launching first-party games on the first day on the subscription service will likely lead to more subscriptions and more subscription revenue, but it’s also likely to eat into full game sales, which, at $69.99 apiece, could be more lucrative.

for example: God of War Ragnarok sold 5.1 million copies in its first week. Would it have sold that many if it came out on day one on PlayStation Plus?

Sony also releases more games than Microsoft, and the titles are usually premium blockbuster-style experiences with extended playtime, quality-driven visuals, and an emphasis on immersion. These types of first-party games are very expensive, and Sony wants to maximize profits as much as possible.

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Second, Sony is already about to disrupt its business in hopes of expanding across other platforms, including PC and mobile. This expansion point is also complemented by another incredibly risky attempt to release more live service games –Sony wants to release 12 live games by 2025including many online games available on both PC and PlayStation consoles.

The truth is that Microsoft has taken a very different approach than Sony with their video game business. Years ago, in 2017, Microsoft revolutionized the market by introducing Game Pass. Since then, Game Pass has grown to over 25 million subscriptions providing nearly unparalleled value with access to over 400 games across consoles, PC, mobile and even direct console-free access to TVs via cloud gaming apps.

Microsoft chose this path because it had to adapt to a market that the Sony PlayStation 4 had largely dominated; So rather than trying to compete on Sony’s terms, Microsoft has shifted the playing field.

Suggesting Sony do the same when A) is currently in a market-leading position and B) is already chasing risky endeavors isn’t the biggest argument.