Ex-PS Boss Says It’s “Impossible” for Developers to Make Money From Game Pass

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He Believes These Services Need Hundreds of Millions of Subscribers to Become Profitable!

Story Highlight

  • Former PlayStation boss says developers can’t make money off Game Pass services. 
  • These services can only generate profits if they have hundreds of millions of subscribers.
  • He says that is the reason PlayStation exclusives have sufficed and Xbox hasn’t. 

The debate over whether Game Pass generates enough profits for Xbox or the studios that publish games on it has been going on for ages. Data reveals that the service has stagnated, and a former PlayStation executive has weighed in. 

He said that it is impossible for developers to make money from Game Pass, since the subscription model isn’t built for that. When they develop a game, studios expect to go beyond breaking even and turn it into profits. 

Why it matters:  For services like these to be profitable even for the studios, it needs to have hundreds of millions of subscribers, and since Game Pass’ growth has stagnated in recent years, things aren’t promising. 

Talking to The Expansion Podcast, Shawn Layden said he doesn’t believe Game Pass can earn you any profits. He says the service is much like a casino where the house edge always wins, which in this case is Microsoft. 

Developers’ hope is always to get into profit sharing, to blow through your break-even point where you start turning a profit on your games. In a subscription model, that’s just impossible to do.

Xbox Game Pass First-Party Games
It is impossible for developers, especially AAA games, to profit from Game Pass

Developers expect to make their titles profitable, which unfortunately isn’t possible with Game Pass. While the service can help smaller indie developers by providing them with additional exposure, it’s bad for AAA titles. 

A $70 game has a chance to break through and become profitable, but that just isn’t possible with Game Pass. That’s, according to Layden is the reason PS exclusives have triumphed over Xbox exclusives. 

What are your thoughts on the ex-PS boss saying that it is impossible for developers to make money on Game Pass? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum. 

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