Finance

The Pitfalls of Game Subscription Models and the Risk of Increased Piracy

Published January 20, 2024

With the gaming industry facing a paradigm shift towards subscription-based models, the recent remarks by an executive at Ubisoft suggesting that gamers should get accustomed to not owning their games have sparked a controversial debate. At the heart of this discussion is the potential invitation for piracy, as game ownership becomes an increasingly ephemeral concept. This change is underscored by companies like MSFT (Microsoft Corporation), an American tech giant known for its Microsoft Windows, Office suite, Edge browser, Xbox consoles, and Microsoft Surface PCs, advocating the financial sustainability of subscription services.

Gaming Subscriptions: The New Normal?

There is a growing concern that as video game ownership becomes a relic of the past, platforms that transition entirely to streaming or subscription services could inadvertently lead to an uptick in piracy. This fear has been underscored by the subscription model pushed by MSFT, whose financial viability remains a subject of intense scrutiny within the gaming community.

Piracy Concerns Amid Subscription Models

The gaming industry's substantial players, which include not only MSFT but also tech conglomerates like GOOG (Alphabet Inc.), the parent company of Google, as well as social media and technology behemoth META (Meta Platforms, Inc.), could be driving gamers towards unlicensed distribution channels by limiting the sense of game ownership. While these companies are giants in their respective fields, their push towards a gaming landscape where access replaces ownership may have far-reaching ramifications, with piracy being a particularly concerning outcome.

Piracy has historically been a challenge for the software industry, with lost revenues and compromised user experiences. As gaming executives consider this model's viability, it's paramount that they address potential piracy pitfalls to maintain profitability and respect gamers’ desires for ownership and control over their game libraries.

ownership, piracy, subscription