Ed Fries, who led the development team for the first Xbox, expresses his concern in an interview.
Xbox It has become one of the most surprising and successful services in the gaming industry. This is demonstrated by its constant catalog updates, the growing number of users and the recorded trends between the players, but the proposal of microsoft it does not convince all people familiar with the video game environment. Yes Ed Friesknown for leading the team that created the first Xbox and left the company in 2004, admitted to having doubts about the impact of Game Pass in the sector.
What they do and it makes me nervous is Game PassEd FriesFries talked about it in an interview for Xbox Expansion Pass (Going through VGC), where he is asked about the decisions he would make if he were part of Microsoft’s video game department today: “What they do and It makes me nervous it’s Game Pass,” the former executive explains. “Game Pass scares me because there’s an analog thing called Spotify which was created for the music industry. When Spotify took off, destroyed the music industryliterally halved the annual revenue of the music industry. It’s done so people don’t buy songs anymore.”
“So we have to be careful not to create the same system in the video game industry,” says Fries. “These markets are more fragile than we think. I saw the video game industry destroy itself in the early 1980s. I saw the educational software industry destroy itself in the mid-1990s… They literally destroyed a multi-billion dollar market in just a few years .
When Spotify took off, it destroyed the music industry, cut the industry’s annual revenue in halfEd Fries“So Game Pass makes me nervous,” Fries continues. “As a customer I like. I love Spotify as a customer – I have all the songs I’ve ever wanted… It’s a great deal for the customer. But that’s not necessarily good for the industry.” Next, the former boss is asked about the possibility of video game developers accepting subscription platforms as usual, which Fries believes “At some point given, it changed and everything had to be [en Spotify]. The percentage of games that are on Game Pass always small and there are lots of games. There are 200 games released every week on Steam, and even more on mobile.”
After Spotify, the music industry has grown like never before
Since 2011 (when Spotify launched in the US), the music industry has increased its revenue by 75%What data is recorded in the music industry after the launch of Spotify? Well, contrary to what Fries believes, the industry has grown tremendously with the launch of this app. From VGC they collect statements of Tim Inghameditor of MusicBizWorldwide on this subject, who remembers that the music business saw its income grow 75% since 2011 (the year Spotify hit the US market).
However, the consumption of music cannot be compared to that of video games, as reminded Christopher Ringhead of B2B games at ReedPop studio and VGC contributor: “At the moment there are a lot of stories about how subscription services have been added to game creators. Not only are they a source of income in themselves themselves, but they are also they immediately open the games to millions of people“explains the professional.
“There are many examples of games being introduced to subscription services on a console, becoming incredibly popular, and this has caused a peak in sales at regular $60 prices on other platforms,” Dring recalled. Obviously there are concerns about revenue generated from subscription services, which is why PlayStation is hesitant to present exclusive launch games in the catalog of your new PSMore.
“However, games are very different from music or TV. These linear forms of entertainment are much shorter and more digestible. How many songs or TV shows do people consume compared to video games?” , explains Dring in the article. “If you’re someone who only plays a few games a year (like FIFA or Call of Duty), how likely are you to subscribe to a service with hundreds of options? That remains to be seen.” how great gaming subscription services will become“.
For now, Ed Fries has no reason to worry about the impact of Xbox Game Pass in industry. Ultimately, Microsoft plans extend the entertainment of your service with a family project and, thanks to the profits generated by his proposal, he has the opportunity to explore other areas of video games as a CloudGaming which already exceeds 10 million users.