Shawn Layden Is Skeptical Of The Xbox Game Pass Model

Former Sony CEO Shawn Layden, who recently joined Streamline Media Group’s advisory board, has expressed doubts about subscription models like Xbox Game Pass, arguing that it’s hard to turn a profit by offering big-budget games through a subscription service.

“It’s very difficult to launch a $120 million game with a subscription service that charges $9.99 per month,” Layden told Games Industry. “If you just draw it out, you have to have 500 million subscribers before you can recoup your investment.”

Layden acknowledged that Microsoft initially takes a leadership position to significantly grow Game Pass’s user base. However, he is not so convinced that such a strategy will work.

“If you only have 250 million consoles, you won’t get half a billion subscribers,” he added. “So how do you circle that square? No one has realized that yet.”

Layden is also skeptical of streaming technology like xCloud due to its limited reach.

“People buy consoles because they want access to the content,” he continued. “If you can find a way to get the contents to people’s homes without a box, yes, yes. Everyone has a streaming solution in one form or another. Most of it is limited by whether you have a decent internet connection. And they haven’t built the business model for that yet.”

Microsoft CEO Satya Nadella has said Xbox Game Pass is “growing rapidly”. While Sony’s Jim Ryan is not a fan of the model, he has previously said the company will have a response.

[Source:[Source:[Bron:[Source:games industry]