Xbox Game Pass-like subscriptions are a “danger” and make developers become "wage slaves," says former PlayStation boss

Former Sony Worldwide Studios chairman Shawn Layden has shared his thoughts on gaming subscription services such as Xbox Game Pass, stating that he believes they are ultimately bad for developers and the industry as a whole.

The details:

• Speaking with GamesIndustry.biz, Layden referred to the idea of Game Pass and similar services offering the “Netflix of gaming” strategy as a “danger” to the industry. He explained that as its popularity grows, people have shifted from paying for games to waiting for them to arrive on a subscription platform, much like how music streaming "killed" music sales.
• The executive also stated that, while the transition to Spotify and other platforms resulted in a drop in sales for artists, live performances continue to provide an alternative revenue stream, unlike gaming. He also stated that he believes day-one subscription service game launches are "bad for business," though some indie studios may benefit from the discoverability factor.
• Layden shared that due to this, developers may feel pressured into immediately putting their titles on subscription services, making them a “wage slave.” "They're not creating value, putting it in the marketplace, hoping it explodes, and profit sharing, and overages, and all that nice stuff," Layden said. "It's just, 'You pay me X dollars an hour; I built you a game. Here, go put it on your servers.'" I don't think it's really inspiring for game developers."
• Despite Microsoft confirming on several occasions that Game Pass remains one of the most profitable parts of its gaming division, the financial impact for developers has been called into question. Recently, FBC: Firebreak studio Remedy shared that the game had underperformed commercially, noting that it had failed to hit sales targets on PC after it launched the game as a day-one title on PlayStation Plus and Game Pass.

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