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[12Dannu123]

We often hear this phrase throughout forums about the 'Netflix of games' what it means is that you can access an unlimited amount of games at a very cheap price. With the aggressive pricing and the quite good quality games on the platform that are being released.

When Netflix was released, it was a disruptive business model that essentially caused the consolidation of the TV and Movie industry. I won't be surprised if Microsoft's Game Pass does the same thing in the Gaming Industry.

Stadia is more IaaS than SaaS and isn't using a Netflix model. Sony's system is the closet but Sony isn't willing to add their own games or fully adopt a Netflix model but instead only focuses on older games.

IMO I think Microsoft is the Netflix of the Gaming industry at this point and I think when they extend their ecosystem to any device via XCloud, it will likely do very well most likely better than Sony and Google's offerings.

People may say that the Netflix model doesn't work. But no one can deny the 130 Million and rapidly growing subscribers.

 

[FrankCaron]

I agree. Sony is effectively HBO to Microsoft’s Netflix at this point.

The biggest question is whether or not Microsoft can create its House of Cards. Halo Infinite right now is basically the only hope, imo. They need more chances, and the studio acquisitions are the strategy therein.

That said, I’d argue games are far more difficult to get right substantively than TV shows. So many more variables involved, and gamers in general demand a higher quality product on the whole.

Of course, that’s all assuming performance works.

It’s going to take longer than some think it will for this disruption to fully take root, but once it does, there’s no going back.

 

[juliotendo]

Microsoft has the most potential do do this compared to Sony. I don’t count Google because they have 0 original content and I don’t see developers developing solely for Stadia.

 

[HeresJohnny]

Perhaps, if the Netflix of gaming means a couple million customers and developers that make very little back on their investment for having the games featured on the service. It'll never be as big as Netflix for a number of reasons. It might share the same philosophy, but that's about where it ends.

 

[12Dannu123]

I agree. Sony is effectively HBO to Microsoft’s Netflix at this point.

The biggest question is whether or not Microsoft can create its House of Cards. Halo Infinite right now is basically the only hope, imo. They need more chances, and the studio acquisitions are the strategy therein.

That said, I’d argue games are far more difficult to get right substantively than TV shows. So many more variables involved, and gamers in general demand a higher quality product on the whole.

Of course, that’s all assuming performance works.

It’s going to take longer than some think it will for this disruption to fully take root, but once it does, there’s no going back.

Agreed, the Consolidation of the Gaming Industry is when this will likely take root.

 

[12Dannu123]

Perhaps, if the Netflix of gaming means a couple million customers and developers that make very little back on their investment for having the games featured on the service. It'll never be as big as Netflix for a number of reasons. It might share the same philosophy, but that's about where it ends.

Netflix and Microsoft basically pay the developers to be on the service. For Indies this is a massive gain for them.

 

[HeresJohnny]

Netflix and Microsoft basically pay the developers to be on the service. For Indies this is a massive gain for them.

Netflix doesn't sustain itself on indies and neither will Microsoft's service. And where does the money come from to pay the developers if the subscriptions don't cover the costs?

 

[12Dannu123]

Netflix doesn't sustain itself on indies and neither will Microsoft's service. And where does the money come from to pay the developers if the subscriptions don't cover the costs?

Obviously it's debt but Microsoft is Microsoft so this business model won't effect them as such plus they have the traditional purchasing. Sony however is a completely different story and PSNow following the Netflix model will likely cause heavy burden on Sony.

 

[Nikana]

Perhaps, if the Netflix of gaming means a couple million customers and developers that make very little back on their investment for having the games featured on the service. It'll never be as big as Netflix for a number of reasons. It might share the same philosophy, but that's about where it ends.

Oh stop.

 

[HeresJohnny]

Obviously it's debt but Microsoft is Microsoft so this business model won't effect them as such plus they have the traditional purchasing. Sony however is a completely different story and PSNow following the Netflix model will likely cause heavy burden on Sony.

For the service to be remotely profitable for companies, it has to get big while keeping a relatively small pool of games. The larger the service gets, the more pieces of pie have to be cut up, and the cost of the service has to rise to accommodate the growth.I don’t see how it works under any condition for video games like it does with movies. Games have made strides to be more socially acceptable, but they’re nowhere on the same level of consciousness with the public as movies are. There is no way Microsoft will ever reach 150 million subscribers as Netflix has with a games service. Just not gonna happen.
.

 

[Humdinger]

It's a handy analogy, but there are a few big differences:

1. Streaming games is not at all equivalent to streaming movies.
2. Netflix is badly in the red. Perhaps it will be genuinely profitable someday, but it isn't now. It's built on an ever-increasing mountain of debt.
3. Netflix had few competitors, whereas MS already has several.

We'll see how it works out. Personally I think the streaming option is something that appeals to corporate interests, because it would kill the used game market and lower distribution costs. As a gamer, it does nothing for me.

 

[Virex]

If you haven't heard already yesterday at their conference a million times yesterday.

But have you heard about Gamepass?

Gamepass
Gamepass
Gamepass

Have you heard of it yet? Going to remind you again. Gamepass.

 

[RiccochetJ]

Game Pass is the shit. I've already paid for my sub many years over. When they announced Game Pass Ultimate I signed up immediately. I've taken advantage of the service so much that it's already paid for itself 5 years of me buying those games.

Is it the Netflix of games? Yea, it kind of is. I"d be surprised if they're operating at a loss though. As far as I know, they're doling out money based on how much a game is played.

And don't get me started on how Netflix is operating in the red. They're going into debt for a reason. If they stopped spending for even a month, they would have millions in cash.

 

[DanielsM]

Netflix and Microsoft basically pay the developers to be on the service. For Indies this is a massive gain for them.

Actually not really - you can do some searches, most of the indie games are single player, the service providers want to pay them by the hour, so basically they don't get paid much.... many of them have spoken up about it.

All Netflix is - is a new Blockbuster, and its not even new.

Netflix is a loser business, the only reason it exists is because the fed funds rate has been near zero for a decade+ now, those rates went back to even 5-8% (let alone the rates from the 80s).... Netflix would have to shut doors within months. (maybe a topic for another day)

 

[#Phonepunk#]

Netflix produces original content i want to take in. comedy specials. movies. tv shows.

Microsoft has yet to make any game i have ever wanted to play.

Microsoft has also never been a gateway to accessing any content. i use Netflix to watch old movies. not once have i ever used Microsoft (are we talking about an app here or what? just the entire company? ok...) to play an old game. in fact for most of my life Microsoft has been a blocker in the way of me enjoying old software.

ultimately it's down to games. i looked at the Gamepass games and there is nothing i want to play. i sub to PSNow on PC and there is always stuff on there i wouldn't mind trying out. i don't care about Halo or Minecraft or Gears of War, so not really seeing the value there.

 

[StormCell]

Actually not really - you can do some searches, most of the indie games are single player, the service providers want to pay them by the hour, so basically they don't get paid much.... many of them have spoken up about it.

All Netflix is - is a new Blockbuster, and its not even new.

Netflix is a loser business, the only reason it exists is because the fed funds rate has been near zero for a decade+ now, those rates went back to even 5-8% (let alone the rates from the 80s).... Netflix would have to shut doors within months. (maybe a topic for another day)

All that suggests, regarding Netflix being a loser business, is that perhaps they're way undercharging for the content and service they provide access to. Their current competitors are all backed by really deep pockets, including the cable networks and dish services. Netflix not only offers superior content to Hulu and Prime, but they're now also producing their own content (by far the most expensive end of the proposition).

The only competition I see doing that (a cable company) wants to charge how much for the most basic (worthless) live TV package? I think I noticed some Prime original content, but none of it looked remotely good, and, again, that's Amazon's deep pockets versus Netflix...

Netflix should be charging a lot more, and we should all be happily paying for it. And if a service like Gamepass is going to succeed it's going to have to offer that kind of value, perhaps at a loss initially, in order to show customers the value that can be had.

I'm not crazy about a digital subscription service for games, but if the value is right I can be convinced it's worth it. I already basically throw money away on PS Plus for a couple of freebies every month, so...