The “Recouping Costs” Excuse For Paid Online Multiplayer No Longer Works

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Remember when online multiplayer was a bonus? Now it's a mandatory tax on consoles. Total corporate nonsense.

Story Highlight
  • The original justification for charging for online multiplayer was to cover the costs of running servers.
  • The argument about covering costs is no longer valid, as console makers earn substantial profits from digital sales and subscriptions.
  • Online multiplayer is often bundled with other subscription services, making it difficult to separate its cost.
  • Gamers have accepted paid online multiplayer as the norm, making it easier for console manufacturers to maintain the fee.

Consoles have long been celebrated for offering a more affordable and user-friendly gaming experience. Yet, every console gamer knows the sting of realizing that a long-anticipated game requires an online multiplayer subscription.

When console manufacturers first started charging for online multiplayer, it was because running the servers was costly. Back with the Xbox 360 and PlayStation 3, these services were new and seen as a luxury. 

In 2024, the situation has changed a lot. Nowadays, online multiplayer is a basic part of gaming, not a luxury. Cloud technology has made server management cheaper and easier. Even so, console manufacturers still charge for online multiplayer, but now it’s more about making money than covering costs.

Why it matters: The excuses of charging for online multiplayer to cover costs are over. Now, it’s about making and boosting profits in a world where services, subscriptions, and digital content are key.

Online Multiplayer Wasn’t Always A Paid Feature

The Xbox 360 Had Many Great Exclusive Titles
The Xbox 360 had many great exclusive titles.

It wasn’t always like this, though. Originally, online gaming was free on all platforms. However, Microsoft introduced Xbox Live for the Xbox 360, making it a paid online multiplayer standard.

At the time, PS3 still offered free online play. However, the better experience of Xbox Live and popular games like Halo led many players to pay for it. Soon after, Sony introduced a paid online service with the PlayStation 4.

Nintendo followed with the Switch, making paid online services a standard feature across all major console platforms.

The Subscriptions Ecosystem

Subscription Services
Every major console manufacturer now has subscription services with online multiplayer access.

Paid multiplayer services continue because consoles have built subscription-based ecosystems around their platforms. Services like Xbox Game Pass and PlayStation Plus are key to their revenue, offering online play, game libraries, and other features.

This bundling makes it hard for users to see what they’re actually paying for. For example, Microsoft’s shift from Xbox Live Gold to “Game Pass Core” shows how online play is now part of a larger subscription model.

The argument that paid multiplayer is needed to cover costs no longer holds up as well. With big profits coming from digital sales, microtransactions, and subscriptions, the old reason for charging for online play doesn’t apply anymore.

Consoles are no longer major financial losses, and the real money now comes from digital game sales, DLCs, and subscription fees. The profits from these services make me question whether it’s still necessary to charge for online play, especially since PC gamers get similar features without extra fees.

Why Does It Still Exist?

Why do we have to pay for online on console but not PC?
byu/International-Job553 ingaming

Why haven’t console manufacturers removed the fee for online multiplayer? Simply put, because they can. Gamers have accepted paying for online play as standard.

Since multiplayer is now a part of subscription services that offer extra features, companies face little resistance to these fees. Multiplayer gaming has become a major profit source, and dropping the fees would cut into their earnings.

Additionally, with the rise of cloud gaming and streaming, Xbox and PlayStation are heavily investing in these services. For example, Xbox Game Pass Ultimate includes multiplayer access along with cloud gaming and a large game library.

This bundling makes it harder for gamers to resist paying for what was once a separate feature.

As console makers tighten their hold on online gaming, PC gaming becomes more appealing. Although setting up a gaming PC can be costly upfront, it often saves money in the long run.

Online multiplayer on PC is free, and platforms like Steam frequently offer discounts, making games cheaper over time. Additionally, PC gaming provides more freedom in how you play and manage your games. Unlike consoles, which have strict limits, PCs offer greater flexibility and cost efficiency.

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