Stadia shuts down its internal studios

[DerNebel]

Google Stadia Shuts Down Internal Studios, Changing Business Focus

I guess people will have to find another company to round out their boogeyman lineup that totally excuses MS trying to buy out half the industry.

[Xevross]

Stadia being the laughing stock of the industry was fun while it lasted. I guess it'll shut down fully later this year.

[kitler53]

amazon will follow soon.  gamepass in a few years.

[Xevross]

amazon will follow soon.  gamepass in a few years.

You think xbox will shut down all of its studios?

[the-pi-guy]

Lol.  
Amazon I think will go out eventually.  MS is too invested, they have experience now.  

[kitler53]

You think xbox will shut down all of its studios?

no.  just the gamepass service.  ...well hopefully just the gamepass service.  i mean, i don't think all of xbox closes down.

ms has too many studios making games to make the kinds of profits ms thinks they can make with a subscription service.  they still think they can get to 200 million subscribers like netflix has.  there are not enough gamers that want to play the kinds of games that appear on MS/sony/PC hardware to support those numbers.  ms will leave the service once they realize they are losing money (even if just relative to not have a subscription service).

[Legend]

That sucks for the devs.

Microsoft and Sony jumped in but everyone else fails, outside of just buying ownership like Twitch or Oculus.

[Xevross]

no.  just the gamepass service.  ...well hopefully just the gamepass service.  i mean, i don't think all of xbox closes down.

ms has too many studios making games to make the kinds of profits ms thinks they can make with a subscription service.  they still think they can get to 200 million subscribers like netflix has.  there are not enough gamers that want to play the kinds of games that appear on MS/sony/PC hardware to support those numbers.  ms will leave the service once they realize they are losing money (even if just relative to not have a subscription service).

Well I guess we'll see with this one. I think it'll take a long time for them to shut it down if it does happen, as we've seen how much investment they're throwing at this thing. They have a lot more belief than google ever did for stadia, and they have the investment to back it up

Game Pass also hasn't replaced their game sales, so its not like its cut off their other revenue streams. If everyone were to stop buying games normally on xbox and then not all of them convert to game pass then that'd be a problem, but that isn't a real scenario.

I don't see how game pass loses them money. They'd have to fudge a lot of things up. There's a good chance they make less money than if they just carried on without game pass, but that'll be hard to judge.

[kitler53]

Well I guess we'll see with this one. I think it'll take a long time for them to shut it down if it does happen, as we've seen how much investment they're throwing at this thing. They have a lot more belief than google ever did for stadia, and they have the investment to back it up

Game Pass also hasn't replaced their game sales, so its not like its cut off their other revenue streams. If everyone were to stop buying games normally on xbox and then not all of them convert to game pass then that'd be a problem, but that isn't a real scenario.

I don't see how game pass loses them money. They'd have to fudge a lot of things up. There's a good chance they make less money than if they just carried on without game pass, but that'll be hard to judge.

MS just attempted to raise the price of Live gold.    why?   because they can't even get half the people that subscribe to live gold to see the value in gamepass.

gamepass is an amazing value for our industry's whales: they guys that were buying a new $70 game every month.   but the mainstream doesn't buy that many games.  the mainstream doesn't spend $180 in games a year and it's not exactly because of money,.. it is because a crud load of people really only want to play their 1 game a year: Cod, Fifa, NBA y2k, destiny, fortnight.  

once MS realizes that the only people willing to buy gamepass are the ones that would have given them $600 a year + live gold instead of $180 for gamepass ultimate they'll drop gamepass.  it's loosing them money even if the loss isn't a negative loss.

[the-pi-guy]

MS just attempted to raise the price of Live gold.    why?   because they can't even get half the people that subscribe to live gold to see the value in gamepass.

gamepass is an amazing value for our industry's whales: they guys that were buying a new $70 game every month.   but the mainstream doesn't buy that many games.  the mainstream doesn't spend $180 in games a year and it's not exactly because of money,.. it is because a crud load of people really only want to play their 1 game a year: Cod, Fifa, NBA y2k, destiny, fortnight.  

once MS realizes that the only people willing to buy gamepass are the ones that would have given them $600 a year + live gold instead of $180 for gamepass ultimate they'll drop gamepass.  it's loosing them money even if the loss isn't a negative loss.

A couple of caveats:
Gamepass is a long term goal for MS.

It's steadily growing and MS was trying to push it along.

It's also probably complicated about how much the general public is spending on games. They aren't buying many games, but they're probably investing more in games they like.  DLC and microstransactions make way more than the games themselves.  

Gaming is becoming a bigger industry than movies and TV are. Seems plausible that a Netflix like service will catch on.