Phil Spencer on studio deals: "Sometimes we pay the full cost of development"
Phil Spencer talked about the process of making deals with developers in a new interview with The Verge. The head of Xbox admitted that the company is in search of the perfect financial model for the Game Pass and seeks to increase the number of hours that subscribers spend in games.At the moment, Microsoft does not have a clear model and strategy of how much to pay developers for the presence of their games in Game Pass.
Spencer admits that from a managerial point of view, this is not the right decision. However, the company tries to start, first of all, from the needs of specific developers.
head of the Xbox brand
At the same time, Microsoft is not going to restrict developers in choosing platforms, allowing them to sell the game on other platforms in parallel.
“Sometimes we pay the full cost of developing a game. Then, in addition to the Game Pass, developers get the opportunity to sell their projects. They can sell the game on PlayStation, Steam, Xbox and Switch. Thus, they are protected from the risks of incurring losses,” Spencer notes.
Microsoft continues to experiment with different models and is in search of a universal formula. “When we started, our model was based on how much time users spend in the game. Then most of the partners told us: “Yes, we understand everything, but we don’t believe in this model, so just pay us in advance,” Spencer recalls. In the future, the company hopes to come to a hybrid model that will be equally beneficial to Microsoft and developers. Spencer also admits that now the main metric for the success of Game Pass is not the size of the catalog, but the number of hours subscribers spend in games.Also on the topic:
- Phil Spencer: Subscription model is critical for Xbox Series XNewzoo named the most popular games at the launch of PlayStation 5 and Xbox Series X|S
- Phil Spencer: Microsoft will be able to beat off a deal to buy Bethesda without selling games on PlayStation
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