It’s not only Netflix that’s looking to build a “Netflix for gaming.”
It was recently announced that Big Tech companies, Apple and Amazon have launched subscription-based video game services in hopes of becoming the top dog in subscription-based gaming.
But to get to, and stay at the top, these companies (in addition to Netflix, Sony, Microsoft and others) are going to need a whole lot of content.
The competition for content, especially for developers and studios who create fun and engaging games within a quick development window, has led to the industry experiencing massive consolidation.
To fill its Xbox Game Pass subscription title list, Microsoft, the second most valuable company on earth by market-cap, has acquired Activision, Bethesda and nine other independent studios since just 2017.
But it’s not only Microsoft that’s on the hunt for titles and developers.
Nearly every major gaming company, from big publishers to traditional Big Tech companies have been on a developer buying spree…
Content is needed, and the money is flowing. In the first three months of this year alone, a record dollar-value of mergers and acquisitions have occurred in the industry.
Due to all the deals, even developers who’ve remained independent and shunned buyout offers are welcoming this new “growth by acquisition” model… because their valuations are soaring too.
Better, the new subscription-based atmosphere we’re experiencing has also helped these smaller studios reduce risk when launching new games.
Tom Davis of Thunderful said, “For a lot of actual indie developers, someone that is self-publishing a game by themselves, the chance of making it as a success by just putting it out there is pretty low…
“By being able to actually get your game in front of the 25 million people that are subscribed to something like Game Pass or this new PlayStation Plus thing, it actually benefits sales as well – because people are just generally talking about the game.”
As video gaming moves further into subscription-based streaming services, we’re likely to see the industry develop much like Netflix did.
Subscription streamers will “host” outside developed games, build up renewable monthly revenues, then develop their own studios and games once they find which types of titles offer the best bang for the buck…
Call it the Netflix model.
After seeing financial success in the streaming of Hollywood studio titles, Netflix began developing its own content with “Netflix Studios” movies, television shows and documentaries.
Since it began in-housing much of its own content, Netflix has won 16 Academy Awards, 112 Emmy Awards, and 27 Golden Globes….
And collected tens of billions of dollars in monthly subscription fees.
You can expect the subscription-based game-streaming business to follow this same model.
However, to become the leading “Netflix of gaming” company, and a monetization giant…
Big Tech and Big Gaming will continue to compete for the top spot by spending ridiculous amounts of money on acquisitions.
Small studios could be targeted for buyouts right now. By investing in them before any buyouts occur, savvy investors could be in for windfall profits.
Read more, HERE
Or discover an independent gaming company with patents in in-game commerce that could revolutionize video game monetization, HERE