PlayStation Plus and Xbox Game Pass are subscription services that promise customers quite different benefits. Take Two CEO Strauss Zelnick has a favorite.
Take Two leader Strauss Zelnick continues to see no point in the Game Pass model. On the one hand, he does not want to endanger the established economic model. And on the other hand, he doesn’t think games can be compared to other types of entertainment where subscriptions work.
“We cannot afford to turn our business inside out in a way that makes no commercial sense. There always has to be an intersection between what the consumer wants and what the publisher can do.” like Zelnick. “And you know there’s no point in doing this for our things. That’s our opinion. And I think Sony agrees with us because they said so too.”
Useful for back catalog titles
While Take-Two is skeptical about Xbox Game Pass, the company believes the new PlayStation Plus model is going in the right direction.
“It can be very useful for back catalog titles, for selling titles that have been around for a while and that have been priced down. It can make economic sense to offer these on a subscription basis,” says Zelnick. This is an exploit that extends the monetizable period.
“The people of this country [USA], the households, consume 150 hours of linear programming per month. That’s over 100 programs. This need can be met with two or three subscription services. That’s a very good deal compared to buying a la carte, or even compared to previous cable packages,” says Zelnick. “But interactive entertainment is consumed on a different level, about 45 hours a month and in a different way.”
Therefore, it is not clear that a wide audience wants access to hundreds of games a month and is willing to pay for it. “It’s possible that a small portion of the audience would want that, but I don’t think it’s a broad base because it’s not how people consume interactive entertainment,” the statement continued .
However, Zelnick admitted that he could be wrong. If that were the case and players were increasingly asking about subscriptions, then Take Two would not be averse to devoting itself to this topic.
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Sony also doesn’t believe in the Game Pass model and even fears a drop in quality. Should the company sell AAA games on the PS5 via subscription services, “the necessary investments” might have to be reduced, which according to Sony CFO Hiroki Totoki would “degrade the quality of first-party games”.
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