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Microsoft previously announced that, in addition to further increasing the price of Game Pass, it will also cancel the basic tier of Xbox Game Pass for new subscribers and replace it with the new Xbox Game Pass standard tier (which includes both console and PC), and also offer a package that does not include any launch games.

In addition to this, Microsoft is planning to launch a new subscription tier based on cloud services to provide a cheaper alternative to XGP Ultimate. It is speculated that this tier will include launch games, but it is targeted at potential users who do not have an Xbox console, which means that the service may also be applicable to competing platforms. With the implementation of the previous price increases, it can be said that Microsoft's attitude has shifted from "earning a reputation at a loss" to beginning to seek profits. So, what is the significance of current game console subscription memberships?

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01

The advantage of cloud services is Microsoft's next focus

From an operational logic perspective, the subscription model for games is clearly a trap, aimed at cultivating users' habits of gaming on multiple devices. Once this habit is formed, Microsoft's advantage in cloud layout will be infinitely magnified. The reason why Microsoft is focusing on the subscription model is, on one hand, because Microsoft has already been defeated in the traditional one-time purchase model of games, and on the other hand, the current player environment has been taken up a lot of time by PC and mobile games, and there are not many players who can sit in front of the TV and play for two hours.

Therefore, developing multi-device gameplay has touched the interests of many manufacturers. If it were a one-time purchase model, it would be clear that a game could be sold once for the console, once for the handheld, and once for the PC. If it were buy one get three free, manufacturers would definitely not be willing.

The advantage of Microsoft's XGP is multi-device synchronization, allowing single-player games to also be enjoyed in a fragmented manner.

If it were changed to a subscription model, it would be different. A subscription is equivalent to renting and will be returned to the library. If you really like it and want to own it permanently, you would need to purchase it separately. In this case, some manufacturers would be willing to join the subscription library, and most of the games that join the subscription library support multi-device save synchronization and gameplay.For instance, Microsoft's XGP gaming is a prime example of this. With the support of the Windows system, for middle-aged gamers like myself, if the children are playing in the living room in the evening, I can play on my computer in the study; if the children are studying in the bedroom, I can play on the TV in the living room; during lunch breaks at work, I can even play through cloud services; and for players abroad, they can even engage in cloud gaming through their smartphones...

All game configurations, achievements, and save files are supported for synchronization across multiple platforms, allowing single-player games to be played in a fragmented manner. As we have mentioned before, if you develop this gaming habit, your reliance on the cloud will significantly increase, which is also the ultimate goal of Microsoft in strengthening its subscription-based gaming model.

02

Sony in Peril and Nintendo Lying Low

In contrast to Microsoft's frequent moves, the two major competitors in the console market, Sony and Nintendo, appear quite passive. According to data from the third-party data organization True Trophies, in July of this year, the number of second and third-tier PlayStation Plus members for Sony decreased by 48.67% compared to June.

As a second-tier subscriber, I feel that Sony is completely indifferent when it comes to the content of the member game library. Occasionally, there are some relatively eye-catching games added, but they are all older titles, such as "Final Fantasy VII: Crisis Core Reunion" and "Remnant 2". Players who are willing to play these games have likely already purchased them, and those who are not interested will probably only give them a cursory try after they are added to the library. There is a lack of strong stimulation like the XGP's day-one library additions, and there is also no convenience of a one-time purchase for multiple platforms.

Therefore, as far as I know, quite a few second and third-tier PS members will cancel their subscriptions or only retain the first tier after their membership expires, because PS games require at least a first-tier membership for online multiplayer, which is also quite "annoying".

Expensive prices coupled with an unimpressive game lineup make life difficult for Sony's PlayStation members.

Unlike the other two companies that are in direct competition with each other, Nintendo has always used "exclusivity" as its moat. Therefore, it never engages in the subscription-based game library model. Its Switch Online membership is also the cheapest among the three, with the core function being online multiplayer. It also offers some classic console emulators and games from its own library, and DLC for certain games like "Mario Kart 8" and "Animal Crossing" can be played through a premium membership subscription.Many people might criticize, "Why is it that PC games don't require a fee for online play, but consoles do?" The reason is quite simple: the game distribution platforms on PC do not have enough say. Consoles operate in a closed environment from hardware systems to software ecosystems and market operations. Within this ecosystem, the console platform manufacturers hold absolute power. However, in the PC ecosystem, platform vendors like Steam are just one of the important but not the only channels for game distribution. If Steam could truly dominate the PC digital game distribution market, Valve would likely not hesitate to adopt the "paid online" model from the console world. In essence, this is just an inevitable result of the capital market.