Xbox Game Passis getting some heat from former Sony Worldwide Studios chairman Shawn Layden, as the conversation surrounding game prices, market trends, and value for the consumer reaches a boiling point. Recently, Microsoftlaid off over 9000 employeesand canceled several game projects, leading to Xbox being in the spotlight for further conversations regarding video game business practices, and Layden doesn’t have positive things to say.
In an interview withGamesIndustry.biz, Layden, along with Circana senior director Mat Piscatella, and Ampere Analysis head of games research Piers Harding-Rolls, discussed the current state of the industry. Layden blasted the Xbox Game Pass subscription model, saying:“I’m not a big supporter of the ‘Netflix of gaming’ idea. I think it is a danger.”
Shawn Layden Criticizes Xbox Game Pass & Market Profitability
“A Wild West Of Pricing”
Xbox Game Pass and other video game subscription services have changed the way games are priced. When it comes to Game Pass, specifically, Layden compared it to Spotify and its impact on the music industry, saying:“It’s 15 bucks a month or something, but virtually no one buys music anymore.“Layden then said that at least the music industry has other means of profit, like huge concert tours, while the game industry doesn’t have that.
For Game Pass, Layden worries that games being “free” at launch may hurt the health of developers. He quickly brought up theanticipation ofGrand Theft Auto 6and how it isn’t likely to be on Game Pass, and howAAA games being on the service puts a question mark on their value for consumers, saying:“you may’t unring the bell, right?”
Layden also questions whether inspiration and healthy market competition can continue with services like Game Pass, saying the developer becomes a"wage slave.“He argues they go from being passionate creatives to putting a game on Game Pass and hoping it explodes in popularity.
Game Development Costs May Hurt Innovation
Other Ways To Charge More Money Have Already Been Implemented
Beyond Xbox Game Pass, Layden also criticized the sheer cost of game development and how the large budgets may hurt new ideas in the market. He also stated thatgame prices should have increased a long time ago to provide a gradual shift in the market, as gamers are spending less money on games.
Layden attributes microtransactions, payment for early access, deluxe editions, and other forms of monetization to covering development costs and avoiding theprice tag shock of $80.“I think it’s going to be harder for innovation to occur at that price point, because when you get to that kind of cost – $200 million, $250 million to make a game – in most studios, risk tolerance goes to zero,“said Layden, as he expects $80 to be reserved for popular IPs and sequels.
Xbox recentlywalked back its $80 price tagforThe Outer Worlds 2, giving some fans hope that prices will not rise further. But given the instability of the industry, high development costs, and reliance on services likeXbox Game Pass, it seems pricing and “value” will continue to be points of contention in industry conversations.
