Not suitable for expensive AAA productions, says Shawn Layden

Shawn Layden, former CEO of PlayStation America, has spoken in recent days about the cost explosions in the video game market. Expensive AAA productions that are planned exclusively for one platform are therefore an Achilles heel.

Later he clarified his statement and pointed out that exclusive games are necessary, especially when establishing new hardware, but could be reconsidered later.

While AAA games are becoming increasingly difficult to finance even with the classic purchase model, subscription systems are based on a different calculation model. But how does Layden feel about the inclusion of AAA games in the Xbox Game Pass or PlayStation Plus libraries? He addressed this question in the podcast “What's Up PlayStation”.

Not cost-effective for AAA games?

According to Layden, the subscription model is not lucrative for developers of AAA games that cost hundreds of millions of dollars. Rather, he sees the subscriptions as a system that pays off for A and AA games.

“I think subscriptions are interesting for people to experience games. But for me this is the world of AA games or Single A games,” said Layden. “If you get into the AAA range, if you get into the double-digit or triple-digit million range, you can't recoup that with a subscription service.”

There is not enough money to raise $200 million. Such sums – and also significantly higher amounts – are increasingly being consumed by AAA productions.

With his statement, Layden primarily refers to publishers who have to recoup their development and marketing costs.

“The platform itself, whether Game Pass or PS Plus, can make money, it can sustain itself… I'm talking about the developer who made the game, who brought it to market,” said the former PlayStation CEO.

Developers are quite critical of subscription services:

Sony and Microsoft with different approaches

PlayStation rarely brings new releases into the PS Plus subscription, but rather limits itself primarily to older titles that end up in the libraries.

In contrast, Day One Recordings are a core feature of Xbox Game Pass. Outgoing PlayStation boss Jim Ryan once described this system as destroying value for the entire industry.

Microsoft doesn't reveal how much money the company makes from Xbox Game Pass. What is certain, however, is that the expectations of the Redmond company with 34 million subscribers at last count were not fulfilled.

The company targeted a 73 percent growth rate in the fiscal year that ended June 2022, but only saw an increase of 28 percent. It will be difficult to reach the goal of 100 million subscribers by 2030.

But this goal may be long gone: “I have said many times that perhaps 10 to 15 percent of our content and service revenue is subscription revenue,” said Phil Spencer recently. There is no plan to get all players on Xbox Game Pass.

ON THE SUBJECT:

Earlier this year it was announced that Microsoft would begin releasing Xbox games for competing consoles. Four games start, but apparently only serve as a test balloon. That “Sea of ​​Thieves” on PlayStation Store Microsoft CEO Satya Nadella will note that it was able to reach the top of the pre-order charts.

Further news about Playstation Plus, Xbox Game Pass.

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