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Take-Two CEO Doesn't Believe in Subscription Models as People Play A Few High Value Games per Month

Take-Two CEO Strauss Zelnick doesn't really believe in subscription models like EA/Origin Access or Xbox Game Pass because people mostly play a few high-value games each month rather than the collections included with subscriptions.

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ccgr39d ago

Some of the collections include games I've played years ago.

Skull52139d ago

Idiocy.

“People Play A Few High Value Games per Month”

That’s because they have a subscription that lets them do that. Take out the subscription and they probably don’t play more than one high value per month. I think last generation the attach rate for x360 which had the best rate was like 12 games. That’s for the entire generation. One high value game a month would equal that attach rate for a year. Subscription models are extremely valuable and welcome.

kevnb39d ago (Edited 39d ago )

the wii had the best attach rate last gen. 8.84
I know this is partly because the other guys didnt make hardware that lasted and they also had revisions.

Skull52139d ago

Lol Wii has the best attach rate? The console that had half the people who bought it only play Wii sports that came with the console? You sir are certainly mistaken, it was the 360.

P_Bomb39d ago (Edited 39d ago )

@skull

Idiocy is a bit much. Consider that not everyone plays as casually or gets bored as quickly. Some people already have libraries and backlog.

You said you only put 2-3 hrs in GOW and moved on. Only got halfway through UC4, struggled with Bioshock 2. I platinumed all three, and enjoyed all three. Even the MP in BS2. 2hrs to you was 60hrs to me.

So when you factor in completion % and purchase patterns (some people can sit on PuBG and Fortnite all year, I can’t), does everyone need 650 games on PSNow and 200 more on Gamepass to fill the void? I barely even touch the free games I get with PS+ or GWG. Had Army of Two sitting on my 360 since January. Subscribing to an MMO? Can’t commit to that either.

I subscribe to Netflix and barely even watch it except to see what’s new. Then I get disappointed and turn it off. Spotify is honestly the best subscription I’ve got going. It also has the most content, gets everything new day and date, is the most practical and portable. And cheapest. For my tastes, nothing else comes close. Unfortunately for them, they’re struggling http://www.abc.net.au/news/...
http://www.scmp.com/culture...
https://www.verdict.co.uk/s...

rainslacker39d ago (Edited 39d ago )

The average gamer...not the hardcore....buy 2-3 games a year. They're likely still going to do this with subscription services. The subscription service just adds to that, at around $120/yr right now for Game Pass. That means MS is getting $120 in revenue extra a year. That doesn't necesarrily mean profit, but I imagine the price is going to increase at some point. EA is in a better position, because they only have their own games on there, so no paying for extra content from different publishers.

Anyhow, If those same gamers are subbing to more than one service, then their actual spending increases. They may or may not use a lot of the software on the service though.

The hardcore gamer is a different beast however. They could probably get more value out of a sub, but at the same time, they're still likely to be spending more on actual game purchases. In that vein, it means they may not buy as many of certain games if they're available for "free" on the service.

Companies that have a sub service aren't concerned about capturing the hardcore as much, because they don't make up a bulk of the market anyhow. They want the extra money from the casuals, who will think they are getting more value, despite not using the service as much. Even netflix makes more money from those who don't use the service that much, and game sub services are no different.

+ Show (2) more repliesLast reply 39d ago
NatFanBoyRestricted39d ago

I always said the same thing about Netflix...

Razzer39d ago (Edited 39d ago )

Translation: “We think we will make more money without a subscription model”

That is fine too. There is no way most consumers will pay for subscriptions for all the major developers.

rainslacker39d ago

They probably would. Their big games tend to be pretty big. Games that expensive aren't likely to be available day one on these services.

They know that they make some good games that people want. Hence people will pay for them.

FlameWater39d ago

Translation: We make more money off Sharks than a subscription base model.

LordJamar39d ago

They only play few high value ones? With game pass you could play multiple high value ones lol. Vermintide 2 will be a day 1 game pass game something i was 100% gonna buy but sense its on gamepass il just play it there great value imo. And soon forza and gears.

BeardedDrachen38d ago

Just wondering, what are the discounts like if you wanted to purchase a game via gamepass?

BeardedDrachen38d ago (Edited 38d ago )

" I’m not sure consumers like to play lots and lots of video games a month. I think they tend to focus on a small number of high value titles. I’m not sure they’re looking for a huge number of catalog titles and I think the economic model is very beneficial to consumers now".

I figure that's how i'd feel if I had gamepass... 200+ games to play.. i might find 2 if i'm actually somewhat interested in playing them if they are old games, but the moment I turn on the Xbox I'll feel bored of what i'm already playing. In essence my excitement for gaming will decrease.

For one, I value personally owning my gaming media more than my video media, since gaming media does more for me on an entertainment level. I try to play at least 3 games a month (includes my backlog and a new game). I'm not buying 8+ games/month at my used game stores.

I think the mere selection gives consumers an illusion of value for their money.
Its' $10/month = $120/year... Now you decide to purchase the new game/old game with its discount via gamepass (whatever that is).. and your total for the year is now $150+.. Do that a couple more times and you're spending $200+ on your games that you think you're getting for a good value for. It's almost robbery.

Imagine Netflix offering you discounts to purchase shows that you're already paying $9-12/month for.

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