The PlayStation Version Of Game Pass Service Is Late, Analysts Respond

Sony launches Game Pass counterattack with subscription service upgrade (Photo: PlayStation)

JAKARTA - Sony's updated service by combining PlayStation Plus with PlayStation Now is considered quite late by Lewis Ward as Head of Game Research at IDC.

"The number of PlayStation subscribers at the higher two tiers will increase over time, which is undoubtedly the core reason for this change," Ward said, cited from Reuters, Wednesday, March 30.

Given the high cost of developing new games, analysts have voiced their concerns. They fear the pressure to combine content with subscriptions could eat into profits in Sony's coveted game unit.

Due to these concerns, Sony will seek to maintain sales of new games in addition to subscription services.

Sony launches a

revamped PS+ service;

my take's in this piecehttps://t.co/gJGslVAol5 @TomMainelli

— lewis ward (@lewisaward) March 29, 2022

"I think this move will increase margins, as more gamers will be pushed to higher-cost subscriptions," said Piers Harding-Rolls, head of game research at Ampere Analysis.

Piers added that if the cost of acquiring content increases, Sony will need to balance it with the additional revenue it will generate from its PlayStation Plus subscriber base.

According to Ampere's Analysis, Microsoft has achieved an early seven percent lead in subscriptions from Sony with 60 percent of game subscriptions in North America and Europe. Subscriptions make up only four percent of the game's total spending.

"PlayStation believes it's smarter for them and third-party publishers to include older games in their subscription plans so that new games can maximize their revenue potential during their launch window," said IDC's Ward.

Those doubts mean Sony's offering "will not attract Microsoft services," added Harding-Rolls Ampere.

Analysts see Sony's recently announced pricing as competitive. An annual subscription to the mid-tier PlayStation Plus Extra, which lacks this cloud-gaming feature, brings in over $8 per month, compared to $9.99 or $13 for Game Pass.

"Such value and price would not have been possible if we had our new game into the service once it was released," said Ryan of Sony.

According to the view echoed by Sony, Microsoft has said that Game Pass customers are playing more games and spending more on games too.

"It all boils down to engagement, if you get people engaged on your platform, monetization usually follows," Ryan concluded.