Business Models
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Xbox Game Pass to Lose Day-One Games, Split Into Two Tiers in 2027 – Rumor
A rumor suggests Xbox will restructure Game Pass in 2027 into two tiers, one with ads for $12.99 and one without for $19.99, both losing day-one first-party releases and cloud streaming. Cloud gaming will be a separate $5.99 bundle, and console multiplayer access will be unbundled at $10.99 per month. These potential changes come amid internal criticism of Game Pass's business model and past publisher objections to features like a family plan.
The Witcher 4 Studio Co-CEO Says Console Prices Are “An Objective Challenge,” But “Content is King”
CD Projekt RED co-CEO Michał Nowakowski acknowledges that rising console prices present an "objective challenge" but believes content remains king and players will find ways to access games. He expressed confidence that consoles are essential for reaching a broad audience and that the company will adapt its business models regardless of future hardware generations.
"All of the industry needs to start to innovate on affordability and efficiency" - Xbox's Asha Sharma wants change and "more choice" for people buying consoles
Xbox boss Asha Sharma is calling for the entire gaming industry to innovate in affordability and efficiency for future console generations, citing current component price crises. She highlighted the need for more consumer choice in how consoles are purchased and used, and mentioned that Microsoft is considering new business models beyond traditional hardware sales. Sharma also noted the impact of AI datacenter demand on component pricing, which has led to recent price increases for Xbox Series S and X consoles.
Riot Games is winding down 2XKO active development in December
Riot Games is ceasing active development of its fighting game, 2XKO, in December, though content updates will continue until the end of 2026. The studio cited a lack of sustained player engagement and the high operational costs of the free-to-play title as reasons for the decision. Servers will remain online for the foreseeable future, and all in-game purchases will be refunded.
Newzoo: Global games market to generate $213.9bn in 2026, up 6.1% YoY
Newzoo projects the global games market will reach $213.9 billion in 2026, a 6.1% year-on-year increase, with China and the US contributing over half of consumer spending. The launch of Grand Theft Auto 6 is expected to significantly boost full-game spending, while mobile will remain the largest platform share. Future growth will increasingly rely on monetizing existing audiences rather than acquiring new players.
Netflix reportedly explored letting Peacock and Fox One live inside its app
Netflix has reportedly explored integrating competitors Peacock and Fox One within its own app, a significant departure from its long-standing closed ecosystem. Discussions involve either selling subscriptions to these services or blending their content into Netflix's library. This move follows a successful pilot program in France where Netflix integrated local broadcaster TF1's content.
Inside GoFundMe: how a donation site became America’s unofficial safety net
GoFundMe CEO Tim Cadogan discusses the company's business model, highlighting that medical bills are its largest revenue driver globally, even in countries with nationalized healthcare. Despite operating on a voluntary tipping system for consumer fundraisers, the platform has seen significant growth in brand awareness and user engagement, particularly since 2020. Cadogan also touches on operational challenges during the pandemic, the role of AI in fundraising, and the company's stance on lobbying against policies that could reduce reliance on crowdfunding.
Why Xbox's console ads could be a good thing for gaming | Opinion
This opinion piece argues that Xbox's exploration of ad-supported game streaming could be beneficial for the gaming industry by lowering access costs for players. While in-game advertising has a poor reputation, high-quality, non-intrusive ads, particularly those outside the game environment, can outperform traditional advertising and potentially create new revenue streams for companies like Xbox.
Total War: Warhammer 3's Lord of the End Times has a feature other strategy games should adopt
The upcoming Total War: Warhammer 3 expansion, The Lord of the End Times, allows players to access the main campaign by purchasing the DLC without needing the base game. This innovative approach is highlighted as a potential model for other strategy games burdened by extensive DLC costs, offering a lower-risk entry point for new players.
Ustwo Games was pushed out of mobile by the rise of free-to-play – but the mobile way of doing things is coming to PC
Ustwo Games is shifting its strategy from mobile-first to PC-first, citing the dominance of the free-to-play model on mobile and a desire to focus on premium, narrative-driven experiences. CEO Maria Sayans and CCO Daniel Gray explained that while this transition is challenging, the studio aims to retain its core identity while adapting its development philosophy for a new audience. Other mobile-focused companies like Outfit7 are also exploring PC releases, indicating a broader trend of diversification within the industry.
Games Inbox: Why isn’t there a Skyrim remake?
Readers discuss the lack of a Skyrim remake despite numerous special editions, questioning why publishers don't prioritize such projects. Other topics include the viability of a PlayStation 5 boycott, the underutilization of tornadoes in games, and concerns about Capcom's yearly Resident Evil releases and Ubisoft's Far Cry franchise.
AI Yi-Yi!
Major Chinese AI companies are struggling to find profitable business models for their artificial intelligence technologies. Meanwhile, OpenAI faces competition from the open-source AI community, posing a potential threat to its market dominance.
Delphi Interactive's fan-first strategy draws major IP interest following success of James Bond and FIFA
Delphi Interactive CEO Casper Daugaard explained that their success with games like James Bond 007: First Light and FIFA World Cup: Launch Edition stems from a strategy focused on appealing to fans of major intellectual properties rather than just 'gamers'. This approach has led to significant interest from other iconic brands looking to create interactive experiences. Daugaard highlighted that this fan-centric model influences every aspect of game design, from gameplay mechanics to overall presentation, ensuring an authentic experience for brand enthusiasts.
Xbox Game Pass isn’t "viable" with so few subscribers, says former Forza lead bracing for more…
Former Forza Horizon 5 director Mike Brown stated that Xbox Game Pass is not viable due to insufficient subscriber numbers, leading to recent studio layoffs. He believes the service's player-focused concept, while well-intentioned, has not met the necessary financial targets. Journalist Jason Schreier also noted that some Xbox studio leadership detest Game Pass, viewing it as detrimental to game value and the industry.
How Nintendo will beat PlayStation and Xbox to win the console wars - Reader's Feature
A reader argues that Nintendo is poised to win the console wars by avoiding the mistakes of PlayStation and Xbox, who are criticized for focusing too much on power and expensive hardware. The author believes Nintendo's focus on gameplay, creative freedom for developers, and more affordable pricing will attract a larger player base and developers, leading to their eventual dominance.
"If I work on that, my kids will think I'm Gandalf" – Blackbird Interactive on the highs and lows of external development
Blackbird Interactive discusses the challenges and rewards of external development, balancing work-for-hire projects with original titles. President Rory McGuire and Director Alex Delamaire highlight the importance of team excitement, client management, and leveraging diverse skill sets to succeed in the external development space.
Should you work on your own games as an external development studio?
This article explores whether external development studios should also work on their own original games alongside client projects. While some studios like Redcatpig and Lab42 see internal projects as crucial for team motivation, skill development, and creative outlets, others like Code Wizards and Airship prioritize their service-based business model to avoid resource drain and client competition. The consensus suggests that while internal projects can offer significant benefits, careful management and clear focus are essential to balance them with external work.
Business and Finance
Ubisoft is shifting to a "selective model" to decrease its reliance on individual game launches. This strategic change aims to create a more stable business by reducing dependence on the success of single titles.
Massively OP Podcast Episode 572: A punch to Elder Scrolls Online’s gut
The Massively OP Podcast episode 572 discusses significant layoffs at ZeniMax Studios impacting The Elder Scrolls Online. Other topics include EverQuest Legends' paid beta, Aion 2's business model, Tencent's acquisition of the PlanetSide IP, and Fiesta Online's upcoming console release.
'If not PS6, then PS7' — Analyst says PlayStation ending physical discs was bound to happen as 'the console ecosystem is nearly entirely digital at this point'
Analyst Daniel Ahmad believes Sony's decision to end physical PlayStation disc production in 2028 was inevitable due to the significant shift towards digital sales, which now account for around 80% on PlayStation and over 90% on Xbox. This move aligns with Sony's strategy to create a high-margin, closed digital ecosystem, controlling all software sales and eliminating the used game market.
