XXL
Member
Game Pass had a price increase earlier this year. It's was much more than 8%.
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Circana November 2024: #1 Black Ops 6 #2 Madden #3 FC 25 #4 CF 25 ; PS5 #1 Units + Rev, NSW #2 Units + Rev / Switch reaches 46.6M passing PS2
- Thread starter Luminoth-4545
- Start date
- Sales-Age
Kacho
Gold Member
Because there’s less demand for the PS5 Pro at launch
LordOcidax
Member
WoW sales are dropping really fast after launch in others markets compared to PS4 Pro in the same tame frame, looks like the sales of PS5Pro were really front loaded and also we have to take into account that the PS4Pro had stock issues and the PS5Pro no. December is going to be a big factor, but i think that WW numbers is going to end below the PS4Pro on the same time… Talking about units sales not revanue.
ShaiKhulud1989
Gold Member
Sony made more money regardless and those amateur PS5s are still selling. WW they are in-line with PS4 Pro sales according to Sony themselves.
Your point?
Topher
Identifies as young
There isn't a measurable difference in marketing between either console which is why it is odd that you are trying to reference that at all.
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Kacho
Gold Member
I’m guessing Sony anticipated lower demand overall which is why the price is so high. They’ll make up for the lack of demand with more revenue.
SneakersSO
Member
Non-mobile videogame subscription spending is up 8%. That accounts for all video game subscription spending - Nintendo Online and PS+ are also included in that.
Not just that, the price of the tier for GP that includes COD is over 16% more expensive than it would've been a year ago. That means if everyone who had GamePass last year had it this year and had it for CoD, just for BO6 GamePass, at minimum, that figure should be 16% higher, even if you attributed the only growth in this sector to CoD BO6 and purely to GamePass.
From folks I have spoken to, GamePass has simply been unable to reach anything resembling a solid metric for growth in awhile. They have the highest churn rate in entertainment subscriptions (not just gaming), and that increased after the restructuring and price hikes over the summer.
kazuyamishima
Member
Hard to say, it was over 46m sold in October 2024 and with November is at over 46.6m units sold.
LordOcidax
Member
No, we need more tears from the purple site.
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Than who? Dominate would mean above all. That's not happening this holiday season.
Woopah
Member
They are not "full of shit". Switch declined 3% in revenue, but it increased in unit sales due to discounts.
PS5 sold more unit sales, so that surely dominates no?
Trust you on what?
Topher
Identifies as young
I think Sony probably has some wiggle room in price if demand subsides too much post-launch. And demand will certainly subside. Not that we will necessarily see a price drop any time soon. Possibly next fall.
Kacho
Gold Member
My point is pretty clear and we’re talking about the US here, not worldwide.
adamsapple
Or is it just one of Phil's balls in my throat?
Sure, but the article specifically cites one thing as the primary driver.
And the related accessory fomo spending like the disc drives too. Pretty shrewd.
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LordOcidax
Member
Anything could happen, Nintendo is really big in december and if they go aggressive with the promos is totally possible looking by these numbers.
XXL
Member
Correct. If anything, it looks like Game Pass is in decline on Xbox.
This is not surprising. I generally sub for a month play all the games I want to play and unsubscribe. I'm going to do this soon on PC Game Pass and play Avowed, Stalker 2 and Indiana Jones. That's not sustainable imo. Lol.
Kacho
Gold Member
Have they been able to get their disc drive inventory sorted? Seems like a big fumble on their end because those things are pure margin.
XXL
Member
I think there will be a price drop with a GTA VI bundle. Either at launch or next holiday.
adamsapple
Or is it just one of Phil's balls in my throat?
Still out of stock on the official website.
Buy Disc Drive For PS5® Digital Edition Consoles | PlayStation® (US)
Disc Drive For PS5® Digital Edition Consoles (model group – slim). Discover Games and Movies on Blu-ray™ Disc.
direct.playstation.com
Klayzer
Member
I guarantee you, if Xbox only had a 12% decrease from last year, he and the rest of the Mohicans would be screaming growth.
The pro by itself, was competitive with all models of Xbox consoles sold in November, let that sink in.
SneakersSO
Member
Okay? That doesn't discount the actual math. And even if you took a look on a pie chart of the 8% in growth, as long as the majority of that 8% was coming from the increase in GP revenue, which could come from a number of places - new subscribers, subs in lower tiers increasing for the launch period of CoD, lapsed subscribers coming in for a single month and then dropping again - the statement would still be true. It doesn't change the fact that other subscription services, services that are a part of ecosystems which are growing in overall users relatively speaking, would also be subscribing to said services on those platforms.
The fact is, Nintendo Online and PS+ and its tiers didn't get price increases in NA this year, and GamePass did. GamePass also got one of the biggest games to release in the year in said service, and the growth in the overall sector did not outpace the growth in the price to access said service.
XXL
Member
Topher
Identifies as young
Luminoth-4545
Member
Should be above Xbox Series but behind PS5, for December i'd expect something like 1.4m to 1.5m for PS5, 1.0m to 1.1m for Switch and 800k to 900k for XBS.
Humdinger
Gold Member
Highest churn rate in entertainment subscriptions, and not just gaming subs. Interesting. Never heard that before.
Unknown?
Member
Using it incorrectly mind you.
Yes, it's not like there were ads being blasted for, " the newest and greatest PlayStation yet!!!"
Both Pro consoles were tame in what they got for exposure but 4 did have the "upgrade to 4k" on its side.
Heisenberg007
Gold Journalism
It's usually the opposite. Products are priced based on other (mainly production costs and margin factors). The sales volume is then decided by market forces.
So, it's not that "Sony priced it higher because they expected lower volume demand." Instead, it's "Sony priced it higher, which decreased volume demand."
However, the net result is positive for Sony, as it generated more revenue than PS4 Pro launch did. So they obviously priced it perfectly.
LordOcidax
Member
Talking about december.
SneakersSO
Member
This makes a lot of sense when you stop and think about it for a moment. Gamers as a consumer base are very cognizant on the business dealings of the industry, at least relative to other entertainment venues. Steam and PSN sales are a massive mover for game software devs right now in part because we've learned that consumers in this space love waiting for a deal. A Disney+ or Netflix subscriber just has it and leaves it on, seldom thinking about it. Gaming enthusiasts are aware of the value benefit of subscribing for a limited period of time to play a selection of titles in a small time frame, allowing them to bypass the MSRP of those titles, and then unsubscribing.
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Heisenberg007
Gold Journalism
Not just that, but I think services like GeForce Now would also be a part of that "non-mobile videogame subscription" group.
adamsapple
Or is it just one of Phil's balls in my throat?
Why would anyone say 12% decrease is growth? That would be spinning
Yep, Geforce now would be too. As would Luna, Boosteroid etc.
Which makes CoD and GP being the primary driver for an overall increase sound even more impressive.
I wish they put out actual numbers so we wouldn't have to do this guessing game.
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LordOcidax
Member
I think is going to be more close. It’s going to be fun to watch.
Unknown?
Member
Focusing on one portion of data while ignoring others, is also spinning.Why would anyone say 12% decrease is growth? That would be spinning
Yep, Geforce now would be too. As would Luna, Boosteroid etc.
Which makes CoD being the primary driver for an overall increase sound even more impressive.
I wish they put out actual numbers so we wouldn't have to do this guessing game.
Notice how no one here is saying it's doing better or other such nonsense?
Mortisfacio
Member
Horizon Zero Dawn Remastered and Lego Horizon
My mom sent me a picture of Lego Horizon asking if my son would want it for Christmas.
I've now cancelled Christmas for her even asking that question. True story, maybe.
Luminoth-4545
Member
It is.
Europe - PS2 + 17.7 million
PS2: 55.2 million
NSW: 37.52 million (shipped as of 30th Sep, 2024)
U.S - NSW + 0.2 million
PS2: 46.4 million
NSW: 46.6 million (sold through as of 30th Nov, 2024)
Japan - NSW + 12.6 million
PS2: 23 million
NSW: 35.62 million (shipped as of 30th Sep, 2024)
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Kacho
Gold Member
Maybe to some degree but I don't completely buy that. There are likely multiple reasons for decreased demand, not just price. Word of mouth has been lukewarm too, so I suspect that will have an impact on demand going forward.
Heisenberg007
Gold Journalism
The opposite. 8% increase is attributed to all these services: GP, PS+, NSO, GeForce Now, Boosteroid, Luna, etc.
Who knows if out of those 8%, Game Pass only had a 1% contribution, and the rest of the 7% happened in these other services. More services in that group = smaller probability of Game Pass being the primary driver.
Astray
Member
You can kinda tell this happened when the gp ultimate subscription price went up %16 (iirc) and subscription revenue only went up by half that percentage YOY.
Between Sony getting more money out of COD vs past years AND increasing the franchises reliance on its existence on PS.. This might have been a complete clusterfuck for MS.
Which is sad because this year's COD has been well-received.
HeWhoWalks
Gold Member
Where PS5 will once again sell more?
Luminoth-4545
Member
Yeah, it's closer to 600K than 700K. I thought it was at 45.9m not 46.0m, my mistake.
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adamsapple
Or is it just one of Phil's balls in my throat?
Eh, it wouldn't be reported as it did in that case. Between 8~ services sharing the same 1% growth point each, it would not be labeled as a 'primary growth driver' or be the only one cited by name in the growth segment.
No, just the tweet.
Yep. Launch month to six month later would be a better indicator.
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SneakersSO
Member
Its cited by name purely because nothing else changed in the non-mobile gaming subscriptions sector outside of CoD releasing in November. Nothing else of significance occurred.
Keep in mind, the data isn't more granular then this. You see an increase in revenue in a sector, you look at what market factors may have caused it. In this case, the only major thing that occurred is BO6 released into GamePass. There you go, theres your headline. No one is conducting an exit survey of all users in said space to try and quantify what exactly drove these things.
LordOcidax
Member
We have to wait. Some people are forgetting how big Nintendo is in December, if we apply the 15~22% increase of November for the Switch we are going to have a good battle. Also, November was the launch month of the PS5pro so that peak is not going to be there, at least that Sony announced some kind of discount for the Pro wicht i doubt. Not talking about revenue.
Kacho
Gold Member
Yeah probably a good timeframe. The real story takes time to unfold.
HeWhoWalks
Gold Member
I don’t have to wait. PS5 will sell more, but the Switch will do fine considering its age.
adamsapple
Or is it just one of Phil's balls in my throat?
Ok, but again, to look at some points you and other posters brought up before.
The GP price increase happened almost half a year ago, so citing the price increase as a big reason for the growth *now* doesn't make sense, if it's having growth at this point after half a year with the release of big new game, then it's pretty easy to connect the dots that it seems to have had a notable impact on GP subs, and not just because of the price increase that happened in the summer. Now, whether those are returning folks, people who only sub for 1~3 months etc, that's a different topic and subscriber churn is kinda expected in services like this.
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