The subscription business model does not suit the gaming industry as well as the TV services market. This opinion was expressed by the CEO of Take-Two, Strauss Zelnick.
Strauss Zelnik
During a conference call in mid-May, according to Gamespot, Zelnik was already skeptical about the subscription model.
He repeated the same thing at the 35th annual conference on strategic solutions, reports Gamesindustry.biz .
Zelnik does not believe that the subscription model is beneficial to players as well as fans of TV shows. According to him, the subscription pays off only if the user plays a lot every day.
As an example, Zelnik cited an average family in which they watch movies and TV shows for at least five hours a day. In their case, a TV subscription is a reasonable choice.
At the same time, gamers play an average of one and a half hours a day, that is, no more than 45 hours a month. Having paid $15-20 for a subscription to a gaming service and passing from one to three games a month, they act at a loss. Zelnik is convinced that this is why many players do not choose a subscription model — that is, it is ineffective.
CEO of Take-Two Interactive
According to Zelnik, the only profitable type of subscription is the one that is intended only for the most avid gamers. But not for a wide audience playing only fresh AAA releases.
Nevertheless, such a business model carries an advantage for publishers, as PC Games Insider writes. Thanks to it, companies can attract a wider audience. After all, for $ 15-20, a player acquires not just a certain title, but the opportunity to try any game of any genre from a huge assortment.
Note that while the Take-Two management criticizes the subscription, other publishers are very willing to turn to it. This model is used by EA and Xbox, and in addition, as evidenced by a recent leak, Ubisoft can prepare its subscription service.