It looks as though the plump pockets of big corporations like Epic and Microsoft are beginning to empty, and it's putting some smaller studios in an awkward position. After offering funds in exchange for exclusivity or availability on Game Pass, many indie devs have come to rely on these deals to finance their projects. However, it seems those deals are becoming harder to lock down, and they're worth less than they used to be.
Speaking in an interview at GDC, Casey Yano, co-founder of Slay the Spire studio Mega Crit, says he's heard the same story over and over. "I talked to at least five small teams, like 35 [members] and under, during GDC, and they're like: Cuts, cuts, cuts, funding canceled, talks that were going on for a year, canceled," he said. "It sounds like it's sh*t. We're definitely very privileged to be able to self-fund. [Otherwise] I'd be very, very, very scared right now."
Chris Bourassa, co-founder of Red Hook Studios, the team behind Darkest Dungeon, pointed out that Microsoft's deals for putting a game on Game Pass have "come down in scope", and that it's a similar story with Epic and the Epic Games Store. Previously, these deals have allowed some teams to break even on their games before they've been released, offering a lot of security even if sales were lower than expected. Now, this is becoming a less and less reliable safety net as the purse strings are tightening.
It's an unfortunate, if not surprising, situation. Looking at Game Pass, it's always pushed for day-one releases, and Microsoft's bottomless coffers have bankrolled countless small titles to ensure they're part of the package. However, as subscriber numbers plateau and growth slows, we're not surprised Phil is having to be a little more conservative here.
You have to assume this also applies to Sony and PS Plus, as it'll also be offering deals to various teams to get them onto the Extra catalogue. While there have been some rare examples of day-one releases, the platform holder's decision to largely sidestep this perk of Game Pass may prove to be the smarter long-term play after all.
Anyway, it's an interesting topic — you have to wonder what things are going to look like in five, 10 years. What do you make of all this? Discuss in the comments section below.
[source pcgamer.com]
Comments 56
let's be real here. The funds are there, these billion-dollar corporations just don't want to invest in it because maintaining growth on the shareholder profit front is the only goal in the myth that is the endless growth system in a finite world.
There is no balance, sustainability, or resiliency in the minds of those at the helm of greed these driven entities. Enough is never enough.
It's quite frankly disgusting.
Let's face it, Sony's services will be in exactly the same position. Just expect more, older, first-party titles to fill in the gaps...
Why does Push Square publish so many articles about Xbox, especially ones that some fanboys will use to claim Xbox is dead (despite gaming overtaking Windows in terms of revenue)? Neither Pure Xbox nor Nintendo Life do the same for other companies.
Anyway, even if Game Pass has fewer Indie games, and fewer games altogether, it is still much better value than PS+ considering most PS+ games are cheap anyway. Why buy a £100 subscription when the game I want is less than £10? At least Game Pass has, and will continue to for the foreseeable future, day-one games.
I don't think any dev should automatically expect their next and future titles to be snapped up without question. In fact, as time goes on, any platform holder will be more selective over which games make the cut.
That's just common sense. Or am I missing something?
It was never sustainable. It looks good for a bit, then the problems start showing.
@KundaliniRising333 felt like a poem.
Buy games people, save gaming!
I don't mind when EGS funds the development of games that might otherwise have never existed (AW2, presumably), but the stupid little deals they've offered companies to try and introduce console-style timed exclusivity to the PC space in an attempt to drive business away from Steam has been a nuisance. Hoping we see less and less of that now.
@lightningbolt79 Because as noted at the bottom of the article, this must apply to sony too.
Let’s just face it. The subscription bubble has popped and services like Gamepass are just going to continuously get worse just like they have for TV show adjacent services. The corporations got too greedy the last two years and the economy has been rough so people are cancelling their subs for services that are arguably decreasing their value. It’s simple economics, but the corporations are hoping they can gaslight their consumers, employees, and affiliates into believing they’re hard up for cash, when they’re only hard up for breaking their previous profit record.
@lightningbolt79 I think the second last paragraph explains why the article is relevant - The same issues MS are facing in this regard will also be faced by Sony. We'll just hear about it from MS first because they've bet hard on this model, while Sony have been holding back and sticking more to the traditional model.
I don't think anyone who is being realistic has any doubts about the future of the XBOX brand either - XBOX will be around for as long as gaming is around.
It's their future as a console manufacturer that people are starting to doubt. It's not just PS fanboys either.
Personally I think it would be a tragedy if they leave the console space, but based on recent comments it looks like they want to be a kind of a Steam Machine more than a console now.
It's all about return on investment. Has any of these day one indie games increased game pass or plus subscription memberships? Or has exclusively on epic cause million of steam players to move over to Epic?
Didn't see all this coming. No siree.
@Jaz007 Xbox has continually promised first party AAA games day 1 and how many of those have actually released? Gears 5, Halo Infinite, Starfield, cough cough Redfall. That's about it. There is no way that Game Pass can pay for all of these massive games. MS would be laughed out of the room if they wanted to launch a game like Spider-Man day 1 on a subscription service.
@Shepherd_Tallon Imo, Microsoft will dump XBox and concentrate on PC. 2/3 or more of people in the world have a PC running Microsoft. Why waste money on a failing console?
Lets be honest about this: Microsoft is Sega. They had one excellent console in the XBox 360/Mega Drive and then everything else since then has been a downward slope. Unlike Sega however, MS has options.
This was always to be expected. At some point they will have had to assess what they were paying out for games to be included on subscription services and assess whether they were getting sufficiently return on their investment and then make reasonable adjustments. I wouldn't be surprised if the same will apply to securing bigger budget third party games also.
Removed - unconstructive feedback
@LowDefAl I think buying Activision caused a lot of trouble for Xbox, before they were just a small segment of Microsoft overall business, but now they are one of the biggest segments and a ton of pressure is now on them. If the rumor of steam/epic store fronts coming to Xbox than I wouldn't expect another Xbox system in the future
It was only a matter of time before Epic and Microsoft (especially M$) would stop bankrolling their customers as well as the developers!
I don't understand why people won't use Epic over Steam though. It is just a storefront and why not keep two storefronts at least?
I can understand why xboys won't buy their games. They've subbed for nothing and stacked their memberships to last years upon years.
In general, the big companies are overpaying a segment of employees who enjoy mythological levels of idolation from an always news- and games starving media who has to rapidly burn through what can be month-long experiences.
Maybe not specific to indies but we've already seen this with the quantity/quality drop off in PS Plus. It's just not something these big companies want to throw money at anymore
@lightningbolt79
https://www.purexbox.com/news/2024/02/playstation-follows-xbox-in-announcing-significant-layoffs-for-2024
https://www.purexbox.com/news/2024/02/phil-spencer-gets-why-helldivers-2-isnt-on-xbox-but-still-thinks-its-silly
https://www.purexbox.com/news/2023/12/bungies-independence-reportedly-under-threat-after-layoffs-and-destiny-2-expansion-delay
https://www.purexbox.com/news/2023/11/playstation-studio-bungie-knows-its-lost-a-lot-of-the-destiny-2-communitys-trust
https://www.purexbox.com/features/reaction-playstations-showcase-was-a-win-for-xbox-whichever-way-you-slice-it
https://www.purexbox.com/news/2023/01/sony-joins-xboxs-accessibility-mission-with-project-leonardo
Take off the fanboy goggles and you will see pure is just as bad as push. Can’t speak for Nintendo life as I rarely go there.
@GeeEssEff
That doesn't fit the narrative of Xbox being a massive victim though now does it?
@lightningbolt79 You are wrong. Pure Box definitely does.
I don't think this will affect Plus as much it will affect EGS and Game Pass.
Why? Well because Plus doesn't offer D1 as Game Pass and it rarely funds exclusive games as EGS does.
@lightningbolt79 dude, read some of the regulars comments over on PX, you would think Sony had kidnapped their kids!
But as others have pointed out to you that this will affect Sony too
@KundaliniRising333 Cant agree more in the end i think Gamepass ruins the value of games more then developer profit of it.
If you look at how many people you hear ill wait until its on PS Plus or Gamepass i really dont believe its sustainable and does more damage in the long haul.
@Fiendish-Beaver So like it always has been? I rather see cheaper online play with online saves for a lower price. And one higher tier as with the PS one titles and extra games.
This is why I couldn't understand the Devs championing the ABK deal, as the more studios MS has the less reliant they are on third party to boost the gamepass catalog.
This was bound to happen. The only way to run your business sustainably is to serve your customers. Make games that people want and love and you will most likely make money and prosper. But all these gamedevs were after the Game pass, Epic, and ESG funds. They thought who cares if the game flopped commercially or gamers hated it. As long as we got bankrolled we are fine. But eventually those funds were going to dry up once the funders lost interest or motivation.
Xbox console is dying and Game pass has stagnated failing to bring in customers. It was a last ditch effort by MS to rejuvenate Xbox but instead they shot themselves in the foot and destroyed their console business by conditioning their customers to not to buy games. Now MS sees no point in throwing more money at Gamepass deals and gamedevs realise that they have neither funds nor customers to rely on. That is what you get for selling your passion and creative independence in return for funds.
They'll eventually learn that gaming subscription services just do not operate the same as streaming television services. The average gamer does not have the time to consume the numerous games on a service in the same way consumers consume television shows because each game takes at least 10 hours if not 30, 40, 50. That's like 1-5+ seasons of television per game. And that's not even taking into account games you can sink 100s of hours into. The average gamer is going to play maybe 2 or 3 games to completion realistically in a year on a service. After you've used these services for a year or two, you soon start to realize that despite the nearly endless value available, it's not very realistic to take advantage of even a fraction of it. And it's very possible to outright own the games you play for about the same price if you're savvy and patient and work through your backlog. Except you own them which has more value than temporary access. And if you buy physical you can resell them. The math just works differently compared to other online subscription-based media. I have both PS+ Extra and Game Pass that I stream on my Samsung Tv via an app. Both work great and have lots of games, obviously. But I'm currently working through like 5 other great games I bought for bargain bin prices physically for cheaper than those yearly subscriptions. So those subscriptions aren't really getting used. That's fine because I have the money, but I'm less inclined to renew because I don't really need to. All of this goes without mentioning the development side issues that arise when games become devalued to fit the subscription model, as illustrated in this article. It gives the sense that not only is the subscription model built on a shaky foundation financially, but the true value proposition to gamers starts to melt away the longer you have the service.
Saw this coming years ago, the more first party games Microsoft has to fund the less indie games will be put onto the service, and even with a focus on first party games day one it's still not working for them. That's why they are bringing their games to playstation and charging big bucks for "early access" editions on gamepass for certain games.
Sony were right all along, it's not sustainable and it's obvious to see.
@colonelkilgore I knew someone would cut through the crap 👊
@LifeGirl
I think you're right.
As I said I don't want the see MS leave the console space, but it seems inevitable at this point.
Handheld PCs or something like the Steam Machines from a few years back, I think that's the direction they're heading.
"many indie devs have come to rely on these deals to finance their projects"
This was a strategic mistake that borders on stupidity. Look, anything that seems too good to be true usually just is. Game Pass has always been an obviously unsustainable proposition from the start, as I (and many others) have been trumpeting for years.
Now, the inevitable future has arrived and those who believed in fairy tales are suffering the consequences for being so naive. I hope they learn from their mistakes, but I'm not holding my breath.
@Jimmer-jammer 👊😉
What has this got to do with Sony? And let's not pretend sony is In exactly the same position
@lightningbolt79 for fanboy arguing clicks
@Shepherd_Tallon Right, and I believe Valve will try to get back to that Steam Machines well, too. So, we should have Valve and Microsoft competing in the consolized PC space, while Sony and Nintendo compete in the more traditional console business model for the foreseeable future.
I personally hope that the old model prevails, but the industry has kinda been moving towards this PCfied games machine for years now, unfortunately.
@Art_Vandelay
Valve Vs Microsoft
PlayStation Vs Nintendo
That might not be the worst outcome of the last few years.
@Toot1st
I assume that you're as critical of PureXbox then?
GP/PS+ devalued indie games to the point where most people simply won't pay out for them anymore. Look at all the studios that tried launching outside of subscription services and fell on their ass after "disappointing" day 1 sales. Everyone knew ahead of time this would be the case and everyone knew the gravy train wasn't going to last.
It is what it is. Big companies want ever increasing results. Growth has stagnated, so they must cut costs instead.
Sounds more like quality control to me
Not surprising. Playstation always knew how expensive these were. We saw in the leaks just how much research they do before they implement something. Epic and Xbox true to American capitalism threw money in the hopes of disruption that affected no one but their own businesses.
Even for first party day one: Playstation saw the damage it did to HFW sales when that came out on Plus a year later. Microsoft are losing so much money in their subscription business if you look at how well Starfield would've sold in the initial launch period.
Says the same gaming news website that constantly supported that stupid game pass in the past couple of years. Some of you journalists sometimes look hypocrite 🙄
@lightningbolt79
"Why does Push Square publish so many articles about Xbox.."
Because this is a PlayStation news website, and because Xbox is their most direct competitor this kind of stuff is de-facto relevant and important to PlayStation based on how interrelated their business practices and strategies are. What Xbox does and doesn't do affects Sony in a direct and real way.
Or I guess, based on your comment history, what you wanted to hear was PushSquare staff and users are just really biased and are trying to constantly dunk on Xbox for clicks and in a nefarious effort to promote a 90s-esque console war.
I dunno, pick one.
The problem is that gamers' time is limited. People don't have time for indie games. These days, it takes at least 100 hours to get an AAA game trophy.
Slowly saw this happening. It would’ve been different if their first party games were top notch! They lack in quality and gamers will not keep giving them free passes. After the fiasco of FM 2023, imo, they need to step up big time. Months have been passing by and the QC is still under par! The pressure they created themselves will certainly not help them do better in the short term. 3rd party wise, March, has been great for me regarding gamepass and tbf, PS isn’t going to blow away Xbox in 2024 either. So maybe in comparison, 2023, is going to be a bit less awesome game year? We have been spoiled …
@KundaliniRising333
I agree with you in general terms, but I think you're wrong in putting the blame entirely on those "at the helm". It's the financial system nature, the stock market's nature that's flawed. It's not enough to be doing good, not even very good, or extraordinarily good. You need to do better, year over year. This is the expectation of the investor - and the investor can be a ruthless hedge fund as well as a random Canadian pension fund, made of normal, non-greedy people who try to fight off inflation.
It's easy to hate on the CEOs and their eight-figure bonuses, but the fact, the way I see it, is that every person who buys stocks (directly or indirectly through a fund) hoping that such stock will increase in value is part of the bigger problem.
A novel concept, but devs should focus on good quality games with some uniqueness and people will want to buy them! Gamepass has too much indie fluff and Phil finally figured out Xbox is wasting money. Playstations stricter selection of indie games like Stray, Stfu and Sea of Stars Stars is bearing fruit.
Sucks this like best thing about gamepass is all the indies it brought can't say myself but think was more than the ps version even seen people saying on here saying gamepass was the place for indies lol. hope it keeps going like that played tons of good games dues to it and some I wouldn't have known about if not for it n if not can see it dying 😥
@Darylb88 was plenty good ones on Xbox though I know theres a fair bit of garbage😂 but even seen them have positive reviews like that coffee talk lol but gamepass has had some good stuff think year before last had moonscars,eastward,ghost song n few other in like couple months
@CaptD the amount of indie/smaller studio they could have bought 😭 gamepass could be overflowing with great games
@ShadowofTwilight I don't visit that site so have no idea what articles they post
@Toot1st
Nice job blatantly ignoring the posts that list those types of articles. It's only Sony fans that are bad eh?
I have Nothing New to Add about GamePass Feasibility, Except to say, I New this Day was Coming the Very First time that Micro$oft talked about Launching the X-Box One, with the Power of X-Cloud....🌧
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