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Subscription Services: Boon or Bane for the Gaming Industry?

Supporting Smaller Studios is Crucial for Preserving Gaming's Diverse Soul

NEWS-LarianStudiosUbisoftSubscriptionServices-min
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What You Need to Know

The video game industry is at a crossroads. With the rise of subscription-based services like Game Pass, developers are being forced to confront a new reality. While some see these services as a golden opportunity, others fear they could stifle creativity and lead to a homogenization of games.

One of the most vocal critics of subscription-based gaming is Swen Vincke, CEO of Larian Studios.

Vincke’s recent comments made on social media about Ubisoft’s decision to revamp their Ubisoft+ Premium and Ubisoft+ Classics service hit a nerve. Vincke argued that such services give too much power to platform holders, who can dictate what games get made and how they are played. He believes that this could lead to a situation where only big-budget, safe games are developed, as these are the types of games that appeal to the broadest audience.

“Getting a board to ok a project fueled by idealism is almost impossible and idealism needs room to exist, even if it can lead to disaster,” Vincke wrote.

“Subscription models will always end up being cost/benefit analysis exercises intended to maximize profit.”

Vincke point is that if you have a subscription service, developers have to cater to the lowest common denominator. You can’t take risks, you can’t experiment. You have to make games that everyone will like, and that’s not how great games are made.

In other words, the subscription model gives platform holders too much creative authority, and breeds conservatism in design.

That’s something Vincke doesn’t want to see.

“There is nothing wrong with that but it may not become a monopoly of subscription services,” he added. To some extent, developers and publishers “are already all dependent on a select group of digital distribution platforms and discoverability is brutal. Should those platforms all switch to subscription, it’ll become savage. In such a world by definition the preference of the subscription service will determine what games get made. Trust me – you really don’t want that.”

Vincke’s concerns have merit, but it’s not all doom and gloom.

Subscription services can also have some positive effects on the gaming industry. For example, they can make it easier for players to discover new games, and they can provide a steady stream of income for developers.

Ultimately, the future is uncertain.

Subscription growth, according to Mat Piscatella of Circana (formerly NPD), “has flattened, and sub services on console and PC platforms accounts for only 10% of total video game content spending in the US.” But it’s fairly clear that these services aren’t going anywhere anytime soon. And with that being the case, it’s likely that a variety of business models will be forced to coexist, with some developers opting for subscription services and others sticking with traditional models like direct sales. Only time will tell which model will be most successful.

In the meantime, gamers can only hope that developers will continue to prioritize quality over quantity, regardless of the business model they choose.

And while the convenience of subscription services beckons, remember the vibrant tapestry of the gaming landscape.

If you yearn for innovation and daring narratives, if you crave experiences that push boundaries and spark conversation, then seek out the passionate voices of smaller studios and independent developers. Their handcrafted creations, often born from unbridled creative freedom, hold the power to surprise, delight, and leave an indelible mark on your gaming journey.

So, venture beyond the curated library of Game Pass and embrace the raw energy of independent studios. It’s in those uncharted corners that the future of gaming, brimming with originality and heart, truly takes flight.

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Josh Lurie
Josh is the founder of VSG, and covers the gaming industry and the latest tech. He developed a deep love for video games playing Super Mario Bros. and Duck Hunt with his dad. On top of developing VSG, Josh is an antitrust attorney in the DC Metro area. He will unashamedly quote Dumb and Dumber in any conversation, and his favorite game is Sea of Thieves.

Disclosure: This post may contain affiliate links, meaning VSG will get a commission if you decide to make a purchase through our links. For more information read our affiliate linking policy.

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