Netflix has survived for a long time now because of its subscription-based business model. The platform lets viewers access paid content from a vast catalogue of entertainment material. Apparently, this is the reason why Netflix has been smiling all the way to the bank. But could this business model be successfully replicated in the gaming industry? Well, Phil Spencer of Xbox thinks so. If it is implemented, then users could access games on demand the same way they do with Netflix shows.

Above all else, it could also change the way games are developed. Instead of developing a whole game in a short period of time, developers could create story-based games that run over time. This means that users could subscribe for the same title on different occasions as it expands and develops over time.

This business model is already being experimented by Microsoft.

Microsoft has already launched a platform known as Xbox Game pass where users access games on subscription. The platform currently offers over 100 different titles of Xbox One and Xbox 360 games.

However, unlike Netflix, Microsoft’s platform still lacks original content. To counter this challenge, they’ve hinted on introducing story-based games into the business model to help get subscription rolling.

This would eliminate cost concerns from the equation because games would be profitable enough to inspire developers into coming up with new content.

An unpopular business model…

Games such as Destiny and CoD are currently being offered as a service. This means that users have to pay an upfront cost so that they can access it. Besides this, they have to download extra content which comes in form of expansion packs or season passes that are released as times goes by.

This setup automatically forces players to pay for additional content half way in the game, and this is currently not popular. So they would not vouch for it as a sure way of replicating Netflix’s success.

What is more, this model also makes it difficult for both narrative-based games and multiplayer games to make the same amount of profit as their service-based counterparts.

But now, the subscription-based model not only does away with some uncertain cost implications, but it assures a steady flow of income which would give developers the capacity to experiment with new material. This is the same thing that has allowed Netflix to offer original TV content.

So, yes this is a practical way of doing business in the gaming industry

A casino platform like Red Flush is home to over 700 casino games. It is a well-known fact that the casino industry is netting a huge amount of revenue compared to the regular PC gaming industry where betting is not involved. The reason being; their business model has always paid off the cost of doing business on the internet. While they offer some free games with bonuses, the idea is that for someone to play a real money game at Red Flush Online Casino, they have to invest real money every time they want to spin a reel. This is not very far from what Netflix is currently doing.

Rogues Portal Staff
Rogues Portal is an entertainment web site with articles, interviews, reviews and more that are written by fans, for fans.

Leave a Reply