Software is still the main driver for the video games market, but subscriptions may one day become the dominant model. This won't happen until consumers shift their behavior.
The video game subscription market has considerably evolved over the years. Prompted by Microsoft's forward-thinking Xbox Game Pass, both Sony and Nintendo now have their own competing multi-game services. The aggressive value model has attracted tens of millions of paid subscribers that regularly contribute to the relatively new billion-dollar gaming segment.
What would it take for subscription to overtake software sales? First, consumers would need to change their habits. This process is already underway as we speak. Microsoft and Sony are trying to convince gamers to be less reliant on full game purchases and instead buy into recurring subscriptions--that's why PS Plus and Game Pass offer such incredible value at the moment. There's potentially more revenue that way, but a lot more upfront spending (and even losses).
In a recent interview with GamesIndustry.biz, Ubisoft head of subscription Philippe Tremblay delivers some candid thoughts about the future of the market.
When asked how subscription could become the top biz model in gaming, Tremblay said:
"One of the things we saw is that gamers are used to is having and owning their games, a little bit like DVD. That's the consumer shift that needs to happen. They got comfortable not owning their CD collection or DVD collection.
"That's a transformation that's been a bit slower to happen [in games]. As gamers grow comfortable in that aspect...you don't lose your progress. If you resume your game at another time, your progress file is still there. That's not been deleted. You don't lose what you've built in the game or your engagement with the game.
"So it's about feeling comfortable with not owning your game.
"I still have two boxes of DVDs. I definitely understand the gamers perspective with that. But as people embrace that model, they will see that these games will exist, the service will continue, and you'll be able to access them when you feel like. That's reassuring."
