How Xbox & Microsoft Will 'Screw Up' The Industry

Michael Pachter discusses how the Microsoft business model is going to "Screw Up" the video game industry, but how that's not necessarily a bad thing for consumers. The big Xbox news today is still continuing to focus on the Microsoft Activision Blizzard deal and Pachter gives his thoughts on how that going through will impact Sony PlayStation and force them to evolve their business models to what it would seem the industry is going towards. The PlayStation position has been largely one concerned about Call of Duty exclusivity, but Microsoft seems to be more focused on a future goal of ensuring access to Xbox Activision and other games on more devices.

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[gamershaven]

I don't think anybody can genuinely say that this deal is bad for the industry. Look at Sony/Playstations practices and compare those to MS/Xbox. Xbox is trying to expand the overall scope of gaming, while Sony is continuously fleecing their customers over and over. I don't want that for my gaming choice, and I'm surprised at how much the Playstation fans embrace their greedy practices.

[marango]

My biggest fear is that games will be quantity over quality because of subscription models

[lennarddejong]

3 times calling out to subscribe in 1 video seems a bit too much... I would consider unsubscribing just because of that... I just might miss a video or 2...

[misterpink]

Cable was full of awful bloat and advertising controlling the content.

Netflix reset things. Raised the quality and removed advertising from bloating and commanding what content could go on there.

[TerraWare]

Asking for people to subscribe multiple times in a video is a big turnoff and takes away from the flow of the video. I also recall you saying you wouldn't do this once hitting 100k which you did.

I've never once subscribed go a youruber or liked their video because they asked me to, only of I like their content and asking people to do that is just annoying. They will if the content is good. You've seen good growth theres no reason to do this. I personally just hit skip 15 seconds multiple time when youtubers do this.

[scorpio]

I believe how gaming is consumed and how gamers are is very different from how tv and movie shows are consumed and how the average viewers are

[jprosey]

Very well done coverage on this topic. I like the industry insider interviews and feed back

[glennhkboy]

Just like Apple & iTunes before, MS will not "screw up" gaming industry as a whole. What MS is "screwing" now is the physical media, physical sales of games.

[TamalesDeRajas]

So basically: Xbox is gonna screw up big companies from prying more money out of their customers and Xbox is gonna give gamers great deals. I like the sound of that.

[TihetrisWeathersby]

Everyone should take a page out of HBO's playbook, Quality over quantity

[BAMozzy]

Screw up the WAY the Industry operates - maybe change the Business model and provide 'Premium' Content to MORE people without needing to 'OWN' content. I don't play games I bought 4yrs ago for example yet still 'own' the License to play. Netflix may have affected Cable services for example but its not like the only way to watch a TV show was to buy it on DVD/Bluray so that market changes from a 'Sales' based to a 'Service' based model where a person doesn't 'own' their Games, their licence to access/use that software if they stop subscribing or the game leaves - so its not quite the same situation.

You will still have Sales based companies who won't want their products in a Service day and date - EA, Ubisoft, TenCent, Embracer etc all have games that will be Sold on Premium Harrdware, not in Game Pass or other Service to 'BUY' - maybe a year later it will be in a Service, but not day and date. Sony themselves are a Sales based business - hence they don't put their games in a Service or on PC day and date - they use those games to Sell hardware and Software units first and foremost - then, when they can use them for PR and boost 'flagging' sales, stick it out on PC and/or PS+ extra to 'promote' it again and drive more interest, more sales etc...

[jandoor]

This deal is a win/win - Great for the industry and bad for a bunch of arrogant, hypocritical Japanese business men - who could ask for more?

[ClashFork]

I don't mind less games on consoles as long as they are pushed to be good experiences and overall we have a great time playing them

[lanzo]

Great insight by Pacter..I completly agree..but at the same time theres some key differences that make video games very different from movies or even music.

first one is that video games has in game sales..in video games its common for publishers to make more money from the use of the game than from the access to the game..think fortnite, apex, DestinyWarzone, PubG and much more.

those games make more money from gamers playing the game..and buying microtransactions than from gamers buying a copy of the game to get access to play it...there is nothing like that in movies

second DLC..The ability to add content to what consumers already have and ask them to pay for it doesnt exsist in movies or music.Publishers can give you the base game in a subscription service and later create DLC using assets from the base game to make a new experience that they can monetize for high profit margins.

the reality is the gaming industry is far more dynamic than movies, TV or even music

we also havent even gotten into the virility of games and the indi devs...how a game can be made in a basement by 5 guys and blow up .think Valhiem or any number of other games ....which now have the ability to create high quality games on low budgets and get them onto big platforms like steam.so theres no telling really where the industry is gonna go.

[apimpnamex]

No I think just opposite. I think this Microsoft activation deal will help move the industry forward just as the movie and music industry has changed the game industry will change. Both movies and music industry has changed over the years from tapes to CDs now digital and same thing with the gaming industry going for a cartridge to CDs now digital. It's bound to happen and you either prepare yourself for the future or you get lost in the past.

[ilyasbt]

I think the major difference here is that gaming companies can adapt easier compared to other industries.

[MatthewTyreeKS]

Damn, Destin, please stop the constant begging for subs. How many times did you interrupt this video to ask for subs? Two times? Three? In a video less than 10 mins long? Wow

[midnightdt]

Bro. Please stop with the promos in the middle of every video..

[acevedoaandres]

The problem with the explanation of patcher is that the $70.00 option is available in gaming and the tv steaming services not.

[dbzextreme]

Remember in 2013 when patcher predicted xboxone with kinect, was going to eat sonys lunch???