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Xbox spends "over a billion dollars a year" on Xbox Game Pass
(www.eurogamer.net)
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this post was submitted on 03 Dec 2023
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More stories coming like this to prep folks for price hikes.
They can't raise the price too much, or people quickly find out that it's cheaper to just buy the games outright. Their sweet spot seems to have stuck right at 1/4th the price of a new AAA game per month. Believe me, I was surprised to find out from all kinds of failed products and services over the past few years that people can actually do math.
I'd be shocked if they don't push the price up though. Honestly, I'd be shocked if there isn't a massive backlash to subscriptions in general soon.
If you ask me, I'd say that's exactly why they won't rise further, or much further. They're measuring all of this before and after they take action, and if the price increase sees a trend line go in the wrong direction, it'll be a while before they bump it again. I wasn't angry at Netflix for raising their prices such that you could call it a backlash; it just became too expensive to justify having it around when there isn't anything I know I want to watch on it.
Netflix also made a killing by creating the ad-supported tier, because the ads more than cover the cost of lowering the subscription. My folks pay for Netflix with ads but you can block them with a DNS sink like AdGuard or a Pi-Hole.
I think it's a scam honestly. Netflix's library has shrunk with all the other streaming services coming into the market. It was convenient when it was the only game in town but now it's just one of a dozen services feeling more like cable than streaming.
I just saw an article where Apple TV+ was going to bundle with Paramount+ for a lower rate.
It makes 3 Billy a year according to them. Sounds like a tidy profit but you’re probably right that hikes will continue, especially if they start getting some better games out at a better cadence.